|
| Public Act 100-1109
|
| SB3143 Enrolled | LRB100 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.)
|
