The proposed ordinance seeks to amend Chapter 2-68 of the Municipal Code of Chicago by adding a new Section 2-68-050, which mandates that all City data must be processed, stored, transmitted, and disposed of within the jurisdiction of the United States. This requirement is to be included in any contract entered into by the City after the ordinance's effective date, unless the Chief Information Officer authorizes otherwise. Additionally, the ordinance outlines that the Chief Procurement Officer may allocate an earned credit of six percent of the contract base bid for data stored within the State of Illinois outside the City limits, and eight percent for data stored within the City limits. However, this credit is not applicable if a contract is already receiving a bid preference under Section 2-92-412 or if the Chief Procurement Officer determines it is not in the City's best interest.

The ordinance further details the conditions for the earned credit, including the issuance of an earned credit certificate by the Chief Procurement Officer upon successful completion of the data residency commitment. This certificate is valid for three years and can be applied to future contract bids of equal or greater value. Contractors must maintain accurate records for at least three years after the work is accepted to monitor compliance. The term "City data" is defined within the ordinance, excluding certain types of information such as that provided by other entities, maintained by public safety officials operating outside the U.S., or subject to international exchange agreements. The ordinance is set to take effect on January 1, 2025.