"Distributing" is doing a lot of work here.

A file hosted on foreign server might functionally be a system to "distribute" that file, but it is doubtful if a US state could prevent it from existing.

They could theoretically order US ISP's to cease providing access to said file, but that's a rabbit hole I'm not sure that Illinois or any other state really wants to go down.

Yes, most any law is primary enforced against people within the same legal jurisdiction. It matters less where the server is and more where the relevant people/organizations/assets are.

Major OS providers, including major Linux distributions, are all within reasonable reach of Illinois law.

It’s probably less relevant if you’re a hobbyist working on Hannah Montana Linux on the other side of the planet.