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Public Act 100-1109


 

Public Act 1109 100TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 100-1109
 
SB3143 EnrolledLRB100 16660 HLH 33717 b

    AN ACT concerning State government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Department of Central Management Services
Law of the Civil Administrative Code of Illinois is amended by
changing Section 405-300 as follows:
 
    (20 ILCS 405/405-300)  (was 20 ILCS 405/67.02)
    Sec. 405-300. Lease or purchase of facilities; training
programs.
    (a) To lease or purchase office and storage space,
buildings, land, and other facilities for all State agencies,
authorities, boards, commissions, departments, institutions,
and bodies politic and all other administrative units or
outgrowths of the executive branch of State government except
the Constitutional officers, the State Board of Education and
the State colleges and universities and their governing bodies.
However, before leasing or purchasing any office or storage
space, buildings, land or other facilities in any municipality
the Department shall survey the existing State-owned and
State-leased property to make a determination of need.
    The leases shall be for a term not to exceed 5 years,
except that the leases may contain a renewal clause subject to
acceptance by the State after that date or an option to
purchase. The purchases shall be made through contracts that
(i) may provide for the title to the property to transfer
immediately to the State or a trustee or nominee for the
benefit of the State, (ii) shall provide for the consideration
to be paid in installments to be made at stated intervals
during a certain term not to exceed 30 years from the date of
the contract, and (iii) may provide for the payment of interest
on the unpaid balance at a rate that does not exceed a rate
determined by adding 3 percentage points to the annual yield on
United States Treasury obligations of comparable maturity as
most recently published in the Wall Street Journal at the time
such contract is signed. The leases and purchase contracts
shall be and shall recite that they are subject to termination
and cancellation in any year for which the General Assembly
fails to make an appropriation to pay the rent or purchase
installments payable under the terms of the lease or purchase
contract. Additionally, the purchase contract shall specify
that title to the office and storage space, buildings, land,
and other facilities being acquired under the contract shall
revert to the Seller in the event of the failure of the General
Assembly to appropriate suitable funds. However, this
limitation on the term of the leases does not apply to leases
to and with the Illinois Building Authority, as provided for in
the Building Authority Act. Leases to and with that Authority
may be entered into for a term not to exceed 30 years and shall
be and shall recite that they are subject to termination and
cancellation in any year for which the General Assembly fails
to make an appropriation to pay the rent payable under the
terms of the lease. These limitations do not apply if the lease
or purchase contract contains a provision limiting the
liability for the payment of the rentals or installments
thereof solely to funds received from the Federal government.
    (b) To lease from an airport authority office, aircraft
hangar, and service buildings constructed upon a public airport
under the Airport Authorities Act for the use and occupancy of
the State Department of Transportation. The lease may be
entered into for a term not to exceed 30 years.
    (c) To establish training programs for teaching State
leasing procedures and practices to new employees of the
Department and to keep all employees of the Department informed
about current leasing practices and developments in the real
estate industry.
    (d) To enter into an agreement with a municipality or
county to construct, remodel, or convert a structure for the
purposes of its serving as a correctional institution or
facility pursuant to paragraph (c) of Section 3-2-2 of the
Unified Code of Corrections.
    (e) To enter into an agreement with a private individual,
trust, partnership, or corporation or a municipality or other
unit of local government, when authorized to do so by the
Department of Corrections, whereby that individual, trust,
partnership, or corporation or municipality or other unit of
local government will construct, remodel, or convert a
structure for the purposes of its serving as a correctional
institution or facility and then lease the structure to the
Department for the use of the Department of Corrections. A
lease entered into pursuant to the authority granted in this
subsection shall be for a term not to exceed 30 years but may
grant to the State the option to purchase the structure
outright.
    The leases shall be and shall recite that they are subject
to termination and cancellation in any year for which the
General Assembly fails to make an appropriation to pay the rent
payable under the terms of the lease.
    (f) On and after September 17, 1983, the powers granted to
the Department under this Section shall be exercised
exclusively by the Department, and no other State agency may
concurrently exercise any such power unless specifically
authorized otherwise by a later enacted law. This subsection is
not intended to impair any contract existing as of September
17, 1983.
    However, no lease for more than 10,000 square feet of space
shall be executed unless the Director, in consultation with the
Executive Director of the Capital Development Board, has
certified that leasing is in the best interest of the State,
considering programmatic requirements, availability of vacant
State-owned space, the cost-benefits of purchasing or
constructing new space, and other criteria as he or she shall
determine. The Director shall not permit multiple leases for
less than 10,000 square feet to be executed in order to evade
this provision.
    (g) To develop and implement, in cooperation with the
Interagency Energy Conservation Committee, a system for
evaluating energy consumption in facilities leased by the
Department, and to develop energy consumption standards for use
in evaluating prospective lease sites.
    (h) (1) After June 1, 1998 (the effective date of Public
    Act 90-520), the Department shall not enter into an
    agreement for the installment purchase or lease purchase of
    buildings, land, or facilities unless:
            (A) the using agency certifies to the Department
        that the agency reasonably expects that the building,
        land, or facilities being considered for purchase will
        meet a permanent space need;
            (B) the building or facilities will be
        substantially occupied by State agencies after
        purchase (or after acceptance in the case of a build to
        suit);
            (C) the building or facilities shall be in new or
        like new condition and have a remaining economic life
        exceeding the term of the contract;
            (D) no structural or other major building
        component or system has a remaining economic life of
        less than 10 years;
            (E) the building, land, or facilities:
                (i) is free of any identifiable environmental
            hazard or
                (ii) is subject to a management plan, provided
            by the seller and acceptable to the State, to
            address the known environmental hazard;
            (F) the building, land, or facilities satisfy
        applicable accessibility and applicable building
        codes; and
            (G) the State's cost to lease purchase or
        installment purchase the building, land, or facilities
        is less than the cost to lease space of comparable
        quality, size, and location over the lease purchase or
        installment purchase term.
        (2) The Department shall establish the methodology for
    comparing lease costs to the costs of installment or lease
    purchases. The cost comparison shall take into account all
    relevant cost factors, including, but not limited to, debt
    service, operating and maintenance costs, insurance and
    risk costs, real estate taxes, reserves for replacement and
    repairs, security costs, and utilities. The methodology
    shall also provide:
            (A) that the comparison will be made using level
        payment plans; and
            (B) that a purchase price must not exceed the fair
        market value of the buildings, land, or facilities and
        that the purchase price must be substantiated by an
        appraisal or by a competitive selection process.
        (3) If the Department intends to enter into an
    installment purchase or lease purchase agreement for
    buildings, land, or facilities under circumstances that do
    not satisfy the conditions specified by this Section, it
    must issue a notice to the Secretary of the Senate and the
    Clerk of the House. The notice shall contain (i) specific
    details of the State's proposed purchase, including the
    amounts, purposes, and financing terms; (ii) a specific
    description of how the proposed purchase varies from the
    procedures set forth in this Section; and (iii) a specific
    justification, signed by the Director, stating why it is in
    the State's best interests to proceed with the purchase.
    The Department may not proceed with such an installment
    purchase or lease purchase agreement if, within 60 calendar
    days after delivery of the notice, the General Assembly, by
    joint resolution, disapproves the transaction. Delivery
    may take place on a day and at an hour when the Senate and
    House are not in session so long as the offices of
    Secretary and Clerk are open to receive the notice. In
    determining the 60-day period within which the General
    Assembly must act, the day on which delivery is made to the
    Senate and House shall not be counted. If delivery of the
    notice to the 2 houses occurs on different days, the 60-day
    period shall begin on the day following the later delivery.
        (4) On or before February 15 of each year, the
    Department shall submit an annual report to the Director of
    the Governor's Office of Management and Budget and the
    General Assembly regarding installment purchases or lease
    purchases of buildings, land, or facilities that were
    entered into during the preceding calendar year. The report
    shall include a summary statement of the aggregate amount
    of the State's obligations under those purchases; specific
    details pertaining to each purchase, including the
    amounts, purposes, and financing terms and payment
    schedule for each purchase; and any other matter that the
    Department deems advisable. The report shall also contain
    an analysis of all leases that meet both of the following
    criteria: (1) the lease contains a purchase option clause;
    and (2) the third full year of the lease has been
    completed. That analysis shall include, without
    limitation, a recommendation of whether it is in the
    State's best interest to exercise the purchase option or to
    seek to renew the lease without exercising the clause.
        The requirement for reporting to the General Assembly
    shall be satisfied by filing copies of the report with each
    of the following: (1) the Auditor General; (2) , the
    Speaker, the Minority Leader, and the Clerk of the House of
    Representatives and the President, the Minority Leader,
    and the Secretary of the Senate, the Chairs of the
    Appropriations Committees; (3) the Clerk of the House of
    Representatives and the Secretary of the Senate in
    electronic form only, in the manner that the Clerk and the
    Secretary shall direct; (4) , and the Legislative Research
    Unit; and (5) , as required by Section 3.1 of the General
    Assembly Organization Act, and filing additional copies
    with the State Government Report Distribution Center for
    the General Assembly as is required under paragraph (t) of
    Section 7 of the State Library Act.
(Source: P.A. 99-143, eff. 7-27-15.)

Effective Date: 1/1/2019