97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3802

 

Introduced 2/10/2012, by Sen. Terry Link

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 500/1-15.30
30 ILCS 500/20-60
30 ILCS 500/40-25

    Amends the Illinois Procurement Code. Provides that State agreements for performance contracting shall be included in the definition of "contract". Provides that a performance contract shall not be entered into for a period of time exceeding 20 years. Provides that installment payment performance contracts and performance-based lease purchase agreements that guarantee energy or operational cost savings shall be for a term not to exceed 20 years. Effective immediately.


LRB097 20447 PJG 65947 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3802LRB097 20447 PJG 65947 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Procurement Code is amended by
5changing Sections 1-15.30, 20-60, and 40-25 as follows:
 
6    (30 ILCS 500/1-15.30)
7    Sec. 1-15.30. Contract. "Contract" means all types of State
8agreements, including change orders and renewals, regardless
9of what they may be called, for the procurement, use, or
10disposal of supplies, services, professional or artistic
11services, or construction or for leases of real property,
12whether the State is lessor or lessee, or capital improvements,
13or performance contracting, and including master contracts,
14contracts for financing through use of installment or
15lease-purchase arrangements, renegotiated contracts,
16amendments to contracts, and change orders.
17(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
18for the effective date of changes made by P.A. 96-795).)
 
19    (30 ILCS 500/20-60)
20    Sec. 20-60. Duration of contracts.
21    (a) Maximum duration. A contract, other than a contract
22entered into pursuant to the State University Certificates of

 

 

SB3802- 2 -LRB097 20447 PJG 65947 b

1Participation Act or a performance contract that guarantees
2energy or operational cost savings, may be entered into for any
3period of time deemed to be in the best interests of the State
4but not exceeding 10 years inclusive, beginning January 1,
52010, of proposed contract renewals. A performance contract
6shall not be entered into for a period of time exceeding 20
7years, beginning July 1, 2012. The length of a lease for real
8property or capital improvements shall be in accordance with
9the provisions of Section 40-25. A contract for bond or
10mortgage insurance awarded by the Illinois Housing Development
11Authority, however, may be entered into for any period of time
12less than or equal to the maximum period of time that the
13subject bond or mortgage may remain outstanding.
14    (b) Subject to appropriation. All contracts made or entered
15into shall recite that they are subject to termination and
16cancellation in any year for which the General Assembly fails
17to make an appropriation to make payments under the terms of
18the contract.
19    (c) The chief procurement officer shall file a proposed
20extension or renewal of a contract with the Procurement Policy
21Board prior to entering into any extension or renewal if the
22cost associated with the extension or renewal exceeds $249,999.
23The Procurement Policy Board may object to the proposed
24extension or renewal within 30 calendar days and require a
25hearing before the Board prior to entering into the extension
26or renewal. If the Procurement Policy Board does not object

 

 

SB3802- 3 -LRB097 20447 PJG 65947 b

1within 30 calendar days or takes affirmative action to
2recommend the extension or renewal, the chief procurement
3officer may enter into the extension or renewal of a contract.
4This subsection does not apply to any emergency procurement,
5any procurement under Article 40, or any procurement exempted
6by Section 1-10(b) of this Code. If any State agency contract
7is paid for in whole or in part with federal-aid funds, grants,
8or loans and the provisions of this subsection would result in
9the loss of those federal-aid funds, grants, or loans, then the
10contract is exempt from the provisions of this subsection in
11order to remain eligible for those federal-aid funds, grants,
12or loans, and the State agency shall file notice of this
13exemption with the Procurement Policy Board prior to entering
14into the proposed extension or renewal. Nothing in this
15subsection permits a chief procurement officer to enter into an
16extension or renewal in violation of subsection (a). By August
171 each year, the Procurement Policy Board shall file a report
18with the General Assembly identifying for the previous fiscal
19year (i) the proposed extensions or renewals that were filed
20with the Board and whether the Board objected and (ii) the
21contracts exempt from this subsection.
22(Source: P.A. 95-344, eff. 8-21-07; 96-15, eff. 6-22-09;
2396-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 for the
24effective date of changes made by P.A. 96-795); 96-920, eff.
257-1-10; 96-1478, eff. 8-23-10.)
 

 

 

SB3802- 4 -LRB097 20447 PJG 65947 b

1    (30 ILCS 500/40-25)
2    Sec. 40-25. Length of leases.
3    (a) Maximum term. Except for installment payment
4performance contracts and performance-based lease purchase
5agreements, leases Leases shall be for a term not to exceed 10
6years inclusive, beginning January, 1, 2010, of proposed
7contract renewals and shall include a termination option in
8favor of the State after 5 years. Installment payment
9performance contracts and performance-based lease purchase
10agreements that guarantee energy or operational cost savings
11shall be for a term not to exceed 20 years.
12    (b) Renewal. Leases may include a renewal option. An option
13to renew may be exercised only when a State purchasing officer
14determines in writing that renewal is in the best interest of
15the State and notice of the exercise of the option is published
16in the appropriate volume of the Procurement Bulletin at least
1760 days prior to the exercise of the option.
18    (c) Subject to appropriation. All leases shall recite that
19they are subject to termination and cancellation in any year
20for which the General Assembly fails to make an appropriation
21to make payments under the terms of the lease.
22    (d) Holdover. Beginning January 1, 2010, no lease may
23continue on a month-to-month or other holdover basis for a
24total of more than 6 months. Beginning July 1, 2010, the
25Comptroller shall withhold payment of leases beyond this
26holdover period.

 

 

SB3802- 5 -LRB097 20447 PJG 65947 b

1(Source: P.A. 96-15, eff. 6-22-09; 96-795, eff. 7-1-10 (see
2Section 5 of P.A. 96-793 for the effective date of changes made
3by P.A. 96-795).)
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.