HB4103 96TH GENERAL ASSEMBLY

LRB096 08449 JAM 18566 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB4103

Introduced 2/27/2009, by Rep. Ronald A. Wait

SYNOPSIS AS INTRODUCED:

30 ILCS 500/40-25

Amends the Illinois Procurement Code. Requires that the conditions of a State lease renewal must be agreed upon within 30 days after lease expiration. Requires that a State agency report a holdover lease to the Procurement Policy Board. Requires that a lessor's failure to negotiate a lease renewal in good faith must be documented and may be considered in the future award of State leases.

A BILL FOR

AN ACT concerning finance.

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

Section 5. The Illinois Procurement Code is amended by changing Section 40-25 as follows:

(30 ILCS 500/40-25)

Sec. 40-25. Length of leases.

(a) Maximum term. Leases shall be for a term not to exceed 10 years and shall include a termination option in favor of the State after 5 years.

(b) Renewal. Leases may include a renewal option. An option to renew may be exercised only when a State purchasing officer determines in writing that renewal is in the best interest of the State and notice of the exercise of the option is published in the appropriate volume of the Procurement Bulletin at least 60 days prior to the exercise of the option. A State agency lessee must agree in writing to the conditions of its lease renewal within 30 days after the expiration of the most recent term of the lease.

A State agency lessee must report to the Procurement Policy Board any expired lease that is continued on a month-to-month or other holdover basis before or on the 31st day after the date of the lease's expiration. The report must include at least (i) a written explanation why the lease was not renewed in a timely manner, (ii) the date activity on the renewal commenced, (iii) a log of all actions taken to renew the lease, and (iv) the reason that the parties are unable to agree on the conditions of renewal. The State agency lessee shall submit updated reports to the Procurement Policy Board weekly until the lease is renewed or the Procurement Policy Board recommends that the State terminate the lease.

A lessor's failure to negotiate lease renewal conditions in good faith must be documented by the State agency lessee to that agency's chief procurement officer and may be considered in the future award of State leases.

(c) Subject to appropriation. All leases shall recite that they are subject to termination and cancellation in any year for which the General Assembly fails to make an appropriation to make payments under the terms of the lease.

(Source: P.A. 90-572, eff. date - See Sec. 99-5.)