Illinois General Assembly - Full Text of SB3829
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Full Text of SB3829  102nd General Assembly

SB3829 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB3829

 

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

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 500/40-25

    Amends the Illinois Procurement Code. Provides that the Board of Trustees of a public institution of higher education may enter into a lease for real property for a term in excess of 10 years, but not exceeding the useful life of the real property, upon a determination by the Board of Trustees that a lease term in excess of 10 years is necessary and in the best interest of the public institution of higher education. Provides that in connection with the financing or refinancing of any capital improvements, the Board of Trustees of a public institution of higher education may enter into any financing agreement for a term in excess of 10 years, but not exceeding the useful life of the improvements, upon a determination by the Board of Trustees that a term in excess of 10 years is necessary and in the best interest of the public institution of higher education. Removes provisions concerning a lease for real property owned by the University of Illinois to be used for specified purposes.


LRB102 24181 RJF 33409 b

 

 

A BILL FOR

 

SB3829LRB102 24181 RJF 33409 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
1525-45.
16    (a-5) Extended term. The Board of Trustees of a public
17institution of higher education may enter into a lease for
18real property for a term in excess of 10 years, but not
19exceeding the useful life of the real property, upon a
20determination by the Board of Trustees, in its sole and
21absolute discretion, that a lease term in excess of 10 years is
22necessary and in the best interest of the public institution
23of higher education.

 

 

SB3829- 2 -LRB102 24181 RJF 33409 b

1    In connection with the financing or refinancing of any
2capital improvements, including technology or any other
3related improvements, the Board of Trustees of a public
4institution of higher education may enter into any financing
5agreement, including, but not limited to, a lease or
6installment purchase agreement, for a term in excess of 10
7years, but not exceeding the useful life of the improvements,
8upon a determination by the Board of Trustees, in its sole and
9absolute discretion, that a term in excess of 10 years is
10necessary and in the best interest of the public institution
11of higher education. A lease for real property owned by the
12University of Illinois to be used by the University of
13Illinois at Chicago for an ambulatory surgical center, which
14would include both clinical services and retail space, may
15exceed 10 years in length where: (i) the lease requires the
16lessor to make capital improvements in excess of $100,000; and
17(ii) the Board of Trustees of the University of Illinois
18determines a term of more than 10 years is necessary and is in
19the best interest of the University. A lease under this
20subsection (a-5) may not exceed 30 years in length.
21    (b) Renewal. Leases may include a renewal option. An
22option to renew may be exercised only when a State purchasing
23officer determines in writing that renewal is in the best
24interest of the State and notice of the exercise of the option
25is published in the appropriate volume of the Procurement
26Bulletin at least 30 calendar days prior to the exercise of the

 

 

SB3829- 3 -LRB102 24181 RJF 33409 b

1option.
2    (c) Subject to appropriation. All leases shall recite that
3they are subject to termination and cancellation in any year
4for which the General Assembly fails to make an appropriation
5to make payments under the terms of the lease.
6    (d) Holdover. Beginning January 1, 2010, no lease may
7continue on a month-to-month or other holdover basis for a
8total of more than 6 months. Beginning July 1, 2010, the
9Comptroller shall withhold payment of leases beyond this
10holdover period.
11(Source: P.A. 100-23, eff. 7-6-17; 100-1047, eff. 1-1-19;
12101-426, eff. 1-1-20.)