Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3543 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3543 Introduced 2/9/2024, by Sen. Jason Plummer SYNOPSIS AS INTRODUCED: New Act Creates the Military Installation and Critical Infrastructure Protection Act. Prohibits a foreign principal from a foreign adversary country from directly or indirectly owning, having an interest of greater than 25% in, or acquire by purchase, grant, devise, or descent agricultural land or any interest except a de minimis indirect interest. "Foreign adversary" means the People's Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People's Republic of Korea, the Republic of Cuba, the Venezuelan regime of Nicolas Maduro, or the Syrian Arab Republic, including any agent of or any other entity under significant control of such foreign adversary, or any other entity deemed by the Governor in consultation with the Illinois Attorney General. Prohibits a foreign principal from a foreign adversary from leasing or purchasing land within 25 miles of a military installation. Voids any current contract in conflict with this Act. Prohibits a foreign principal from accessing critical infrastructure of the State unless approved by the Illinois Emergency Management Agency and bans certain software from being used in the State infrastructure. Defines terms. Makes other changes. Effective July 1, 2024. LRB103 39057 JRC 69194 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3543 Introduced 2/9/2024, by Sen. Jason Plummer SYNOPSIS AS INTRODUCED: New Act New Act Creates the Military Installation and Critical Infrastructure Protection Act. Prohibits a foreign principal from a foreign adversary country from directly or indirectly owning, having an interest of greater than 25% in, or acquire by purchase, grant, devise, or descent agricultural land or any interest except a de minimis indirect interest. "Foreign adversary" means the People's Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People's Republic of Korea, the Republic of Cuba, the Venezuelan regime of Nicolas Maduro, or the Syrian Arab Republic, including any agent of or any other entity under significant control of such foreign adversary, or any other entity deemed by the Governor in consultation with the Illinois Attorney General. Prohibits a foreign principal from a foreign adversary from leasing or purchasing land within 25 miles of a military installation. Voids any current contract in conflict with this Act. Prohibits a foreign principal from accessing critical infrastructure of the State unless approved by the Illinois Emergency Management Agency and bans certain software from being used in the State infrastructure. Defines terms. Makes other changes. Effective July 1, 2024. LRB103 39057 JRC 69194 b LRB103 39057 JRC 69194 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3543 Introduced 2/9/2024, by Sen. Jason Plummer SYNOPSIS AS INTRODUCED:
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55 Creates the Military Installation and Critical Infrastructure Protection Act. Prohibits a foreign principal from a foreign adversary country from directly or indirectly owning, having an interest of greater than 25% in, or acquire by purchase, grant, devise, or descent agricultural land or any interest except a de minimis indirect interest. "Foreign adversary" means the People's Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People's Republic of Korea, the Republic of Cuba, the Venezuelan regime of Nicolas Maduro, or the Syrian Arab Republic, including any agent of or any other entity under significant control of such foreign adversary, or any other entity deemed by the Governor in consultation with the Illinois Attorney General. Prohibits a foreign principal from a foreign adversary from leasing or purchasing land within 25 miles of a military installation. Voids any current contract in conflict with this Act. Prohibits a foreign principal from accessing critical infrastructure of the State unless approved by the Illinois Emergency Management Agency and bans certain software from being used in the State infrastructure. Defines terms. Makes other changes. Effective July 1, 2024.
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1111 1 AN ACT concerning civil law.
1212 2 Be it enacted by the People of the State of Illinois,
1313 3 represented in the General Assembly:
1414 4 Section 1. Short title; purpose.
1515 5 (a) This Act may be cited as the Military Installation and
1616 6 Critical Infrastructure Protection Act.
1717 7 (b) The purpose of this Act is to protect military
1818 8 installations and State critical infrastructure by prohibiting
1919 9 foreign adversaries from purchasing land near military bases
2020 10 and from investing in and accessing State critical
2121 11 infrastructure.
2222 12 Section 2. Definitions. In this Act:
2323 13 (a) "Agricultural land" means a land area that is either
2424 14 arable, under permanent crops, or under permanent pastures.
2525 15 Arable land includes land under temporary crops such as
2626 16 cereals, temporary meadows for mowing or pasture, land under
2727 17 market or kitchen gardens, and land temporarily fallow. Land
2828 18 abandoned as a result of shifting cultivation is excluded.
2929 19 Land under permanent crops is cultivated with crops that
3030 20 occupy the land for long periods and need not be replanted
3131 21 after each harvest, such as orchards or vineyards. This
3232 22 category excludes land under trees grown for wood or timber.
3333 23 Permanent pasture land is land used for 5 or more years for
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3737 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3543 Introduced 2/9/2024, by Sen. Jason Plummer SYNOPSIS AS INTRODUCED:
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4040 Creates the Military Installation and Critical Infrastructure Protection Act. Prohibits a foreign principal from a foreign adversary country from directly or indirectly owning, having an interest of greater than 25% in, or acquire by purchase, grant, devise, or descent agricultural land or any interest except a de minimis indirect interest. "Foreign adversary" means the People's Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People's Republic of Korea, the Republic of Cuba, the Venezuelan regime of Nicolas Maduro, or the Syrian Arab Republic, including any agent of or any other entity under significant control of such foreign adversary, or any other entity deemed by the Governor in consultation with the Illinois Attorney General. Prohibits a foreign principal from a foreign adversary from leasing or purchasing land within 25 miles of a military installation. Voids any current contract in conflict with this Act. Prohibits a foreign principal from accessing critical infrastructure of the State unless approved by the Illinois Emergency Management Agency and bans certain software from being used in the State infrastructure. Defines terms. Makes other changes. Effective July 1, 2024.
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6868 1 forage, including natural and cultivated crops.
6969 2 (b) "Company" means a for-profit sole proprietorship,
7070 3 organization, association, corporation, partnership, joint
7171 4 venture, limited partnership, limited liability partnership,
7272 5 or limited liability company, including a wholly owned
7373 6 subsidiary, majority-owned subsidiary, parent company, or
7474 7 affiliate of those entities or business associations that
7575 8 exists to make a profit; or a non-profit organization.
7676 9 (c) "Critical infrastructure" means systems and assets,
7777 10 whether physical or virtual, so vital to Illinois or the
7878 11 United States of America that the incapacity or destruction of
7979 12 such systems and assets would have a debilitating impact on
8080 13 State or national security, State or national economic
8181 14 security, State or national public health, or any combination
8282 15 of those matters. A critical infrastructure may be publicly or
8383 16 privately owned, and includes, but is not limited to:
8484 17 (1) gas and oil production, storage, or delivery
8585 18 systems;
8686 19 (2) water supply, refinement, storage, or delivery
8787 20 systems;
8888 21 (3) telecommunications networks;
8989 22 (4) electrical power delivery systems;
9090 23 (5) emergency services;
9191 24 (6) transportation systems and services; or
9292 25 (7) personal data or otherwise classified information
9393 26 storage systems, including cybersecurity.
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104104 1 (d) "Cybersecurity" means the measures taken to protect a
105105 2 computer, computer network, computer system, or other
106106 3 technology infrastructure against unauthorized use or access.
107107 4 (e) "Domicile" means either the country in which a company
108108 5 is registered, or where the company's affairs are primarily
109109 6 completed, or where the majority of ownership share is held.
110110 7 (f) "Foreign adversary" means the People's Republic of
111111 8 China, the Russian Federation, the Islamic Republic of Iran,
112112 9 the Democratic People's Republic of Korea, the Republic of
113113 10 Cuba, the Venezuelan regime of Nicolas Maduro, or the Syrian
114114 11 Arab Republic, including any agent of or any other entity
115115 12 under significant control of such foreign adversary, or any
116116 13 other entity deemed by the Governor in consultation with the
117117 14 Attorney General of Illinois.
118118 15 (g) "Foreign entity" means any corporation, business
119119 16 association, partnership, trust, society, or any other entity
120120 17 or group that is not incorporated or organized to do business
121121 18 in the United States, as well as international organizations,
122122 19 foreign governments, and any agency or subdivision of foreign
123123 20 governments.
124124 21 (h) "Foreign principal" means:
125125 22 (1) the government or any official of the government
126126 23 of a foreign adversary;
127127 24 (2) a political party or member of a political party
128128 25 or any subdivision of a political party of a foreign
129129 26 adversary;
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140140 1 (3) a partnership, association, corporation,
141141 2 organization, or other combination of persons organized
142142 3 under the laws of or having its principal place of
143143 4 business in a foreign adversary, or a subsidiary of such
144144 5 entity, or owned or controlled wholly or in part by any
145145 6 person, entity, or collection of persons or entities of a
146146 7 foreign adversary;
147147 8 (4) any person who is domiciled in a foreign adversary
148148 9 and is not a citizen or lawful permanent resident of the
149149 10 United States; or
150150 11 (5) any person, entity, or collection of persons or
151151 12 entities, described in paragraphs (a) through (d) having a
152152 13 controlling interest in a partnership, association,
153153 14 corporation, organization, trust, or any other legal
154154 15 entity or subsidiary formed for the purpose of owning real
155155 16 property.
156156 17 (i) "Non-notified transactions" means foreign investments
157157 18 in the United States that are not voluntarily submitted to the
158158 19 Committee on Foreign Investment in the United States for
159159 20 review under 50 U.S.C. 4565.
160160 21 (j) "Operational software" means computer programs used
161161 22 for the operation, control, maneuver or maintenance of State
162162 23 infrastructure, or any other computer program applications
163163 24 related to State infrastructure.
164164 25 (k) "Software" means any program or routine, or any set of
165165 26 one or more programs or routines, which are used or intended
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176176 1 for use to cause one or more computers or pieces of computer
177177 2 related peripheral equipment, or any combination thereof, to
178178 3 perform a task or set of tasks, as it relates to State
179179 4 infrastructure, or any operational software.
180180 5 (l) "State infrastructure" means Critical Infrastructure
181181 6 and Transportation Infrastructure.
182182 7 (m) "Transportation infrastructure" includes, but is not
183183 8 limited to:
184184 9 (1) Airports, including but not limited to commercial
185185 10 and intermodal airports and heliports; and all airport
186186 11 infrastructure.
187187 12 (2) Roadways, including but not limited to publicly
188188 13 accessible streets, roads, highways, and bridges; and all
189189 14 roadway infrastructure, including but not limited to
190190 15 signage, toll booths, weigh stations, and traffic signals.
191191 16 (3) Railways, including but not limited to all classes
192192 17 of freight rail and passenger rail; and all railway
193193 18 infrastructure, including but not limited to intermodal
194194 19 rail yards and signals.
195195 20 (4) Ports, including but not limited to inland ports,
196196 21 seaports, deepwater ports, inland waterways, and levees;
197197 22 and all port infrastructure, including but not limited to
198198 23 intermodal stations.
199199 24 (5) Public transit, including bus, ferry, cable car,
200200 25 tram, trolley, and other types of publicly accessible
201201 26 transportation; and all public transit infrastructure.
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212212 1 (n) "Military base or installation" means any land,
213213 2 structure, or property owned or controlled by any division of
214214 3 the Department of Defense, Illinois National Guard, or any
215215 4 other department of government, State or federal, critical to
216216 5 the safety and security of Illinois or the United States of
217217 6 America.
218218 7 Section 3. Agricultural land purchases.
219219 8 (a) A foreign principal from a foreign adversary country
220220 9 may not directly or indirectly own, have an interest of
221221 10 greater than 25% in, or acquire by purchase, grant, devise, or
222222 11 descent agricultural land or any interest, except a de minimis
223223 12 indirect interest, in such land in this State. A foreign
224224 13 principal has a de minimis indirect interest if any ownership
225225 14 is the result of the foreign principal's ownership of
226226 15 registered equities in a publicly traded company owning the
227227 16 land and if the foreign principal's ownership in the country
228228 17 is either:
229229 18 (1) less than 5% of any class of registered equities
230230 19 or less than 5% in the aggregate in multiple classes of
231231 20 registered equities; or
232232 21 (2) a noncontrolling interest in an entity controlled
233233 22 by a company that is both registered with the United
234234 23 States Securities and Exchange Commission as an investment
235235 24 advisor under the Investment Advisers Act of 1940, as
236236 25 amended, and is not a foreign entity.
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247247 1 (b) A foreign principal that directly or indirectly owns
248248 2 or otherwise controls agricultural land, as defined in
249249 3 subsection (a), in this State must sell, transfer, or
250250 4 otherwise divest itself of the agricultural land within 180
251251 5 days of the effective date of this Act.
252252 6 (c) A foreign principal that directly or indirectly owns
253253 7 or acquires agricultural land or any interest in such land in
254254 8 this State must register with the Department of Agriculture
255255 9 within 60 days of the enactment of this Act or the date of
256256 10 acquisition, whichever is latest. The Department must
257257 11 establish a form for such registration, which, at minimum,
258258 12 must include all of the following:
259259 13 (1) The name of the owner of the agricultural land or
260260 14 the owner of the interest in such land;
261261 15 (2) The address of the agricultural land, the property
262262 16 appraiser's parcel identification number, and the
263263 17 property's legal description; and
264264 18 (3) The number of acres of the agricultural land.
265265 19 (d) Notwithstanding subsection (a), a foreign principal
266266 20 from a foreign adversary country may acquire agricultural land
267267 21 on or after the passage of this Act, by devise or descent,
268268 22 through the enforcement of security interests, or through the
269269 23 collection of debts, provided that the foreign principal
270270 24 sells, transfers, or otherwise divests itself of the
271271 25 agricultural land within 180 days of acquiring the
272272 26 agricultural land.
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283283 1 (e) Any current deeds, contracts, rental agreements, or
284284 2 other legal agreements in conflict with this Act shall be
285285 3 deemed invalid from the date of adoption unless otherwise
286286 4 provided.
287287 5 (f) The Department of Agriculture shall adopt rules to
288288 6 implement this Section.
289289 7 (g) The responsibility for determining whether an entity
290290 8 is subject to this Section rests solely with the foreign
291291 9 entity, the Attorney General of Illinois, any qualifying
292292 10 whistleblower, and no other individual or entity. An
293293 11 individual or entity who is not a foreign entity shall not be
294294 12 required to determine or inquire whether another person or
295295 13 entity is or may be subject to this Section, and shall bear no
296296 14 civil or criminal liability under this Section.
297297 15 (h) If a foreign principal from a foreign adversary
298298 16 country does not divest the public or private lands as
299299 17 required by this Section, the Attorney General shall commence
300300 18 an action in the circuit court within the jurisdiction of the
301301 19 public or private land.
302302 20 (i) If the public or private land is held in violation of
303303 21 this Section, the circuit court shall order that the public or
304304 22 private land be sold through judicial foreclosure.
305305 23 (j) If a whistleblower referral results in a divestiture
306306 24 of land or other assets held in violation of this Section, the
307307 25 whistleblower shall be entitled to a reward equal to 30% of the
308308 26 proceeds of the land sale that results from the violation of
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319319 1 this Section after payments to lienholders. Proceeds of the
320320 2 sale shall be disbursed in the following order, as applicable:
321321 3 (1) The payment of authorized costs of the sale,
322322 4 including all approved fees and expenses of the referee
323323 5 and any taxes and assessments due.
324324 6 (2) The payment, in an amount approved by the court,
325325 7 to the Attorney General for reimbursement of investigation
326326 8 and litigation costs and expenses.
327327 9 (3) To bona fide lien holders, in their order of
328328 10 priority, except for liens which under the terms of the
329329 11 sale are to remain on the property.
330330 12 (4) To whistleblowers.
331331 13 (5) To the restricted foreign entity.
332332 14 Section 4. Prohibited lease or purchase of land or
333333 15 dwellings near military installations.
334334 16 (a) A foreign principal from a foreign adversary country
335335 17 shall not be allowed to directly or indirectly purchase, hold,
336336 18 rent, or otherwise control any property within 25 miles of a
337337 19 military base or installation.
338338 20 (b) A foreign principal that directly or indirectly
339339 21 controls any property covered by subsection (a), excluding
340340 22 temporary contractual agreements such as rental or lease
341341 23 agreements, must sell, transfer, or otherwise divest itself of
342342 24 the property within 180 days of the passage of this Act.
343343 25 (c) Any current deeds, contracts, rental agreements, or
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354354 1 other legal agreements in conflict with this Act shall be
355355 2 deemed invalid from the date of adoption unless otherwise
356356 3 provided.
357357 4 (d) If a foreign principal from a foreign adversary
358358 5 country does not divest the public or private lands as
359359 6 required by this Section, the Attorney General shall commence
360360 7 an action in the circuit court within the jurisdiction of the
361361 8 public or private land.
362362 9 (e) If the public or private land is held in violation of
363363 10 this Section, the circuit court shall order that the public or
364364 11 private land be sold through judicial foreclosure.
365365 12 (f) If a whistleblower referral results in a divestiture
366366 13 of land or other assets held in violation of this Section, the
367367 14 whistleblower shall be entitled to a reward equal to 30% of the
368368 15 proceeds of the land sale that results from the violation of
369369 16 this Section after payments to lienholders. Proceeds of the
370370 17 sale shall be disbursed in the following order, as applicable:
371371 18 (1) The payment of authorized costs of the sale,
372372 19 including all approved fees and expenses of the referee
373373 20 and any taxes and assessments due.
374374 21 (2) The payment, in an amount approved by the court,
375375 22 to the Attorney General for reimbursement of investigation
376376 23 and litigation costs and expenses.
377377 24 (3) To bona fide lien holders, in their order of
378378 25 priority, except for liens which under the terms of the
379379 26 sale are to remain on the property.
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390390 1 (4) To whistleblowers.
391391 2 (5) To the restricted foreign entity.
392392 3 (g) The responsibility for determining whether an entity
393393 4 is subject to this Section rests solely with the foreign
394394 5 entity, the Attorney General of Illinois, any qualifying
395395 6 whistleblower, and no other individual or entity. An
396396 7 individual or entity who is not a foreign entity shall not be
397397 8 required to determine or inquire whether another person or
398398 9 entity is or may be subject to this Section, and shall bear no
399399 10 civil or criminal liability under this Section.
400400 11 Section 5. Whistleblower enforcement reward.
401401 12 (a) Any individual may act as a whistleblower and provide
402402 13 a referral to the Office of the Illinois Attorney General for
403403 14 violations of Section 3 and Section 4 of this Act.
404404 15 (b) If a whistleblower referral results in a divestiture
405405 16 of land or other assets held in violation of this Act, the
406406 17 whistleblower shall be entitled to a reward equal to 30% of the
407407 18 proceeds of the land sale that results from violation of this
408408 19 Act.
409409 20 (c) The whistleblower enforcement provision takes effect
410410 21 180 days after the effective date of this Act.
411411 22 Section 6. Prohibited access to critical infrastructure.
412412 23 (a) An entity constructing, repairing, operating, or
413413 24 otherwise having significant access to critical infrastructure
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424424 1 may not enter into an agreement relating to critical
425425 2 infrastructure in this State with a foreign principal from a
426426 3 foreign adversary country, or use products or services
427427 4 produced by a foreign principal from a foreign adversary
428428 5 country.
429429 6 (b) A governmental entity may not enter into a contract or
430430 7 other agreement relating to critical infrastructure in this
431431 8 State with a company that is a foreign principal from a foreign
432432 9 adversary country, or use products or services produced by a
433433 10 foreign principal from a foreign adversary country.
434434 11 (c) Notwithstanding subsections (a) and (b), an entity or
435435 12 governmental entity may enter into a contract or agreement
436436 13 relating to critical infrastructure with a foreign principal
437437 14 from a foreign adversary country or use products or services
438438 15 produced by a foreign principal from a foreign adversary
439439 16 country if:
440440 17 (1) there is no other reasonable option for addressing
441441 18 the need relevant to State critical infrastructure;
442442 19 (2) the contract is pre-approved by Illinois Emergency
443443 20 Management Agency and Office of Homeland Security; and
444444 21 (3) not entering into such a contract or agreement
445445 22 would pose a greater threat to the State than the threat
446446 23 associated with entering into the contract.
447447 24 Section 7. Requirements for access to critical
448448 25 infrastructure.
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459459 1 (a) In order to access critical infrastructure, a company
460460 2 must file a certification form with and pay a certification
461461 3 fee to the Illinois Emergency Management Agency and Office of
462462 4 Homeland Security. The Agency shall prescribe the registration
463463 5 form to be filed pursuant to this Section.
464464 6 (b) To maintain registration as a company with access to
465465 7 critical infrastructure, a company must:
466466 8 (1) identify all employee positions in the
467467 9 organization that have access to critical infrastructure;
468468 10 (2) before hiring a person described in subdivision
469469 11 (a) or allowing such person to continue to have access to
470470 12 critical infrastructure, obtain from the Illinois State
471471 13 Police or a private vendor criminal history record
472472 14 information relating to the prospective employee and any
473473 15 other background information considered necessary by the
474474 16 company or required by the Agency to protect critical
475475 17 infrastructure from foreign adversary infiltration or
476476 18 interference;
477477 19 (3) prohibit foreign nationals from an adversary
478478 20 nation from access to critical infrastructure; and
479479 21 (4) be compliant with Section 6 of this Act.
480480 22 (c) The Agency shall set the fee in an amount sufficient to
481481 23 cover the costs of administering the certification process but
482482 24 not to exceed $150.
483483 25 (d) The Agency shall provide that a company is compliant
484484 26 with all requirements of this Section or revoke certification.
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495495 1 Section 8. Prohibitions on certain software in critical
496496 2 infrastructure.
497497 3 (a) All software used in State infrastructure located
498498 4 within or serving Illinois shall henceforth not include any
499499 5 software produced by a federally banned corporation, nor any
500500 6 software banned at the federal level.
501501 7 (b) All software used in State infrastructure located
502502 8 within or serving Illinois shall henceforth not include any
503503 9 software produced in or by a foreign adversary, a State-owned
504504 10 enterprise of a foreign adversary, or a company domiciled
505505 11 within a foreign adversary.
506506 12 (c) All software used in State infrastructure in operation
507507 13 within or serving Illinois, to include any State
508508 14 infrastructure which is not permanently disabled, shall have
509509 15 all software prohibited by subsection (a) or (b)removed and
510510 16 replaced with software that
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512512 17 (a) or (b).
513513 18 (d) Any State infrastructure provider that removes,
514514 19 discontinues, or replaces any prohibited software shall not be
515515 20 required to obtain any additional permits from any State
516516 21 agency or political subdivision for the removal,
517517 22 discontinuance, or replacement of such software as long as the
518518 23 State agency or political subdivision is properly notified of
519519 24 the necessary replacements and the replacement software is
520520 25 similar to the existing software.
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531531 1 Section 9. Reporting non-notified transactions.
532532 2 (a) The Office of the Illinois Attorney General shall
533533 3 establish a process by which local officials, states
534534 4 officials, or other persons may submit information or concerns
535535 5 to the Office regarding non-notified transactions in Illinois.
536536 6 The Office of the Illinois Attorney General may adopt any
537537 7 necessary rules to implement this subsection.
538538 8 (b) The Illinois Attorney General may submit a memorandum
539539 9 or report concerning non-notified transactions the Office of
540540 10 the Attorney General has identified in Illinois to the
541541 11 Committee on Foreign Investment in the United States.
542542 12 (c) The Office of the Illinois Attorney General shall:
543543 13 (1) retain a copy of any documents submitted to the
544544 14 committee described in subsection (b) that are included
545545 15 with a memorandum or report submitted under that
546546 16 subsection; and
547547 17 (2) notify the General Assembly and the Governor as
548548 18 soon as practicable after submitting a memorandum, report,
549549 19 or other information under subsection (b).
550550 20 Section 10. Severability. If any provision of this Act, or
551551 21 the application of any provision to any person or
552552 22 circumstance, is held to be invalid, the remainder of this Act
553553 23 and the application of its provisions to any other person or
554554 24 circumstance shall not be affected thereby.
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