SB3143 EnrolledLRB100 16660 HLH 33717 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Department of Central Management Services
5Law of the Civil Administrative Code of Illinois is amended by
6changing Section 405-300 as follows:
 
7    (20 ILCS 405/405-300)  (was 20 ILCS 405/67.02)
8    Sec. 405-300. Lease or purchase of facilities; training
9programs.
10    (a) To lease or purchase office and storage space,
11buildings, land, and other facilities for all State agencies,
12authorities, boards, commissions, departments, institutions,
13and bodies politic and all other administrative units or
14outgrowths of the executive branch of State government except
15the Constitutional officers, the State Board of Education and
16the State colleges and universities and their governing bodies.
17However, before leasing or purchasing any office or storage
18space, buildings, land or other facilities in any municipality
19the Department shall survey the existing State-owned and
20State-leased property to make a determination of need.
21    The leases shall be for a term not to exceed 5 years,
22except that the leases may contain a renewal clause subject to
23acceptance by the State after that date or an option to

 

 

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1purchase. The purchases shall be made through contracts that
2(i) may provide for the title to the property to transfer
3immediately to the State or a trustee or nominee for the
4benefit of the State, (ii) shall provide for the consideration
5to be paid in installments to be made at stated intervals
6during a certain term not to exceed 30 years from the date of
7the contract, and (iii) may provide for the payment of interest
8on the unpaid balance at a rate that does not exceed a rate
9determined by adding 3 percentage points to the annual yield on
10United States Treasury obligations of comparable maturity as
11most recently published in the Wall Street Journal at the time
12such contract is signed. The leases and purchase contracts
13shall be and shall recite that they are subject to termination
14and cancellation in any year for which the General Assembly
15fails to make an appropriation to pay the rent or purchase
16installments payable under the terms of the lease or purchase
17contract. Additionally, the purchase contract shall specify
18that title to the office and storage space, buildings, land,
19and other facilities being acquired under the contract shall
20revert to the Seller in the event of the failure of the General
21Assembly to appropriate suitable funds. However, this
22limitation on the term of the leases does not apply to leases
23to and with the Illinois Building Authority, as provided for in
24the Building Authority Act. Leases to and with that Authority
25may be entered into for a term not to exceed 30 years and shall
26be and shall recite that they are subject to termination and

 

 

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1cancellation in any year for which the General Assembly fails
2to make an appropriation to pay the rent payable under the
3terms of the lease. These limitations do not apply if the lease
4or purchase contract contains a provision limiting the
5liability for the payment of the rentals or installments
6thereof solely to funds received from the Federal government.
7    (b) To lease from an airport authority office, aircraft
8hangar, and service buildings constructed upon a public airport
9under the Airport Authorities Act for the use and occupancy of
10the State Department of Transportation. The lease may be
11entered into for a term not to exceed 30 years.
12    (c) To establish training programs for teaching State
13leasing procedures and practices to new employees of the
14Department and to keep all employees of the Department informed
15about current leasing practices and developments in the real
16estate industry.
17    (d) To enter into an agreement with a municipality or
18county to construct, remodel, or convert a structure for the
19purposes of its serving as a correctional institution or
20facility pursuant to paragraph (c) of Section 3-2-2 of the
21Unified Code of Corrections.
22    (e) To enter into an agreement with a private individual,
23trust, partnership, or corporation or a municipality or other
24unit of local government, when authorized to do so by the
25Department of Corrections, whereby that individual, trust,
26partnership, or corporation or municipality or other unit of

 

 

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1local government will construct, remodel, or convert a
2structure for the purposes of its serving as a correctional
3institution or facility and then lease the structure to the
4Department for the use of the Department of Corrections. A
5lease entered into pursuant to the authority granted in this
6subsection shall be for a term not to exceed 30 years but may
7grant to the State the option to purchase the structure
8outright.
9    The leases shall be and shall recite that they are subject
10to termination and cancellation in any year for which the
11General Assembly fails to make an appropriation to pay the rent
12payable under the terms of the lease.
13    (f) On and after September 17, 1983, the powers granted to
14the Department under this Section shall be exercised
15exclusively by the Department, and no other State agency may
16concurrently exercise any such power unless specifically
17authorized otherwise by a later enacted law. This subsection is
18not intended to impair any contract existing as of September
1917, 1983.
20    However, no lease for more than 10,000 square feet of space
21shall be executed unless the Director, in consultation with the
22Executive Director of the Capital Development Board, has
23certified that leasing is in the best interest of the State,
24considering programmatic requirements, availability of vacant
25State-owned space, the cost-benefits of purchasing or
26constructing new space, and other criteria as he or she shall

 

 

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1determine. The Director shall not permit multiple leases for
2less than 10,000 square feet to be executed in order to evade
3this provision.
4    (g) To develop and implement, in cooperation with the
5Interagency Energy Conservation Committee, a system for
6evaluating energy consumption in facilities leased by the
7Department, and to develop energy consumption standards for use
8in evaluating prospective lease sites.
9    (h) (1) After June 1, 1998 (the effective date of Public
10    Act 90-520), the Department shall not enter into an
11    agreement for the installment purchase or lease purchase of
12    buildings, land, or facilities unless:
13            (A) the using agency certifies to the Department
14        that the agency reasonably expects that the building,
15        land, or facilities being considered for purchase will
16        meet a permanent space need;
17            (B) the building or facilities will be
18        substantially occupied by State agencies after
19        purchase (or after acceptance in the case of a build to
20        suit);
21            (C) the building or facilities shall be in new or
22        like new condition and have a remaining economic life
23        exceeding the term of the contract;
24            (D) no structural or other major building
25        component or system has a remaining economic life of
26        less than 10 years;

 

 

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1            (E) the building, land, or facilities:
2                (i) is free of any identifiable environmental
3            hazard or
4                (ii) is subject to a management plan, provided
5            by the seller and acceptable to the State, to
6            address the known environmental hazard;
7            (F) the building, land, or facilities satisfy
8        applicable accessibility and applicable building
9        codes; and
10            (G) the State's cost to lease purchase or
11        installment purchase the building, land, or facilities
12        is less than the cost to lease space of comparable
13        quality, size, and location over the lease purchase or
14        installment purchase term.
15        (2) The Department shall establish the methodology for
16    comparing lease costs to the costs of installment or lease
17    purchases. The cost comparison shall take into account all
18    relevant cost factors, including, but not limited to, debt
19    service, operating and maintenance costs, insurance and
20    risk costs, real estate taxes, reserves for replacement and
21    repairs, security costs, and utilities. The methodology
22    shall also provide:
23            (A) that the comparison will be made using level
24        payment plans; and
25            (B) that a purchase price must not exceed the fair
26        market value of the buildings, land, or facilities and

 

 

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1        that the purchase price must be substantiated by an
2        appraisal or by a competitive selection process.
3        (3) If the Department intends to enter into an
4    installment purchase or lease purchase agreement for
5    buildings, land, or facilities under circumstances that do
6    not satisfy the conditions specified by this Section, it
7    must issue a notice to the Secretary of the Senate and the
8    Clerk of the House. The notice shall contain (i) specific
9    details of the State's proposed purchase, including the
10    amounts, purposes, and financing terms; (ii) a specific
11    description of how the proposed purchase varies from the
12    procedures set forth in this Section; and (iii) a specific
13    justification, signed by the Director, stating why it is in
14    the State's best interests to proceed with the purchase.
15    The Department may not proceed with such an installment
16    purchase or lease purchase agreement if, within 60 calendar
17    days after delivery of the notice, the General Assembly, by
18    joint resolution, disapproves the transaction. Delivery
19    may take place on a day and at an hour when the Senate and
20    House are not in session so long as the offices of
21    Secretary and Clerk are open to receive the notice. In
22    determining the 60-day period within which the General
23    Assembly must act, the day on which delivery is made to the
24    Senate and House shall not be counted. If delivery of the
25    notice to the 2 houses occurs on different days, the 60-day
26    period shall begin on the day following the later delivery.

 

 

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1        (4) On or before February 15 of each year, the
2    Department shall submit an annual report to the Director of
3    the Governor's Office of Management and Budget and the
4    General Assembly regarding installment purchases or lease
5    purchases of buildings, land, or facilities that were
6    entered into during the preceding calendar year. The report
7    shall include a summary statement of the aggregate amount
8    of the State's obligations under those purchases; specific
9    details pertaining to each purchase, including the
10    amounts, purposes, and financing terms and payment
11    schedule for each purchase; and any other matter that the
12    Department deems advisable. The report shall also contain
13    an analysis of all leases that meet both of the following
14    criteria: (1) the lease contains a purchase option clause;
15    and (2) the third full year of the lease has been
16    completed. That analysis shall include, without
17    limitation, a recommendation of whether it is in the
18    State's best interest to exercise the purchase option or to
19    seek to renew the lease without exercising the clause.
20        The requirement for reporting to the General Assembly
21    shall be satisfied by filing copies of the report with each
22    of the following: (1) the Auditor General; (2) , the
23    Speaker, the Minority Leader, and the Clerk of the House of
24    Representatives and the President, the Minority Leader,
25    and the Secretary of the Senate, the Chairs of the
26    Appropriations Committees; (3) the Clerk of the House of

 

 

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1    Representatives and the Secretary of the Senate in
2    electronic form only, in the manner that the Clerk and the
3    Secretary shall direct; (4) , and the Legislative Research
4    Unit; and (5) , as required by Section 3.1 of the General
5    Assembly Organization Act, and filing additional copies
6    with the State Government Report Distribution Center for
7    the General Assembly as is required under paragraph (t) of
8    Section 7 of the State Library Act.
9(Source: P.A. 99-143, eff. 7-27-15.)