Illinois General Assembly - Full Text of SB3828
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Full Text of SB3828  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 1/21/2022, by Sen. Antonio Muñoz


30 ILCS 500/40-25

    Amends the Illinois Procurement Code. Provides that a lease of real property owned by a public institution of higher education (rather than the University of Illinois) to be used for healthcare uses, academic facilities, dormitory facilities, or other support uses may exceed 10 years in length under specified circumstances. Makes conforming changes.

LRB102 23882 RJF 33076 b





SB3828LRB102 23882 RJF 33076 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 Section 40-25 as follows:
6    (30 ILCS 500/40-25)
7    Sec. 40-25. Length of leases.
8    (a) Maximum term. Except as otherwise provided under
9subsection (a-5), leases shall be for a term not to exceed 10
10years inclusive, beginning January, 1, 2010, of proposed
11contract renewals and shall include a termination option in
12favor of the State after 5 years. The length of energy
13conservation program contracts or energy savings contracts or
14leases shall be in accordance with the provisions of Section
16    (a-5) Extended term. A lease for real property owned by a
17public institution of higher education to be used for
18healthcare uses, academic facilities, dormitory facilities, or
19other support uses the University of Illinois to be used by the
20University of Illinois at Chicago for an ambulatory surgical
21center, which would include both clinical services and retail
22space, may exceed 10 years in length when where: (i) the lease
23requires the lessor to make capital improvements in excess of



SB3828- 2 -LRB102 23882 RJF 33076 b

1$100,000; and (ii) the Board of Trustees of the public
2institution of higher education University of Illinois
3determines a term of more than 10 years is necessary and is in
4the best interest of the institution University. A lease under
5this subsection (a-5) may not exceed 30 years in length.
6    (b) Renewal. Leases may include a renewal option. An
7option to renew may be exercised only when a State purchasing
8officer determines in writing that renewal is in the best
9interest of the State and notice of the exercise of the option
10is published in the appropriate volume of the Procurement
11Bulletin at least 30 calendar days prior to the exercise of the
13    (c) Subject to appropriation. All leases shall recite that
14they are subject to termination and cancellation in any year
15for which the General Assembly fails to make an appropriation
16to make payments under the terms of the lease.
17    (d) Holdover. Beginning January 1, 2010, no lease may
18continue on a month-to-month or other holdover basis for a
19total of more than 6 months. Beginning July 1, 2010, the
20Comptroller shall withhold payment of leases beyond this
21holdover period.
22(Source: P.A. 100-23, eff. 7-6-17; 100-1047, eff. 1-1-19;
23101-426, eff. 1-1-20.)