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.
















LRB096 08449 JAM 18566 b

















 


 


A BILL FOR









 











HB4103

LRB096 08449 JAM 18566 b






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    AN ACT concerning finance.

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


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



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    (30 ILCS 500/40-25)



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    Sec. 40-25. Length of leases. 

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    (a) Maximum term.  Leases shall be for a term not to exceed

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10 years and shall include
a termination option in favor of the 
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State after 5 years.

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

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    A State agency lessee must report to the Procurement Policy 
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Board any expired lease that is continued on a month-to-month 
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or other holdover basis before or on the 31st day after the 
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date of the lease's expiration.  The report must include at 
 


 






HB4103
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least (i) a written explanation why the lease was not renewed 
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in a timely manner, (ii) the date activity on the renewal 
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commenced, (iii) a log of all actions taken to renew the lease, 
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and (iv) the reason that the parties are unable to agree on the 
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conditions of renewal.  The State agency lessee shall submit 
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updated reports to the Procurement Policy Board weekly until 
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the lease is renewed or the Procurement Policy Board recommends 
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that the State terminate the lease.
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    A lessor's failure to negotiate lease renewal conditions in 
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good faith must be documented by the State agency lessee to 
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that agency's chief procurement officer and may be considered 
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in the future award of State leases. 
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    (c) Subject to appropriation.  All leases shall recite that

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they are subject to termination
and cancellation in any year 
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for which the General Assembly fails
to make an appropriation 
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to
make payments under the terms of the lease.

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