Full Text of SB3143 100th General Assembly
SB3143enr 100TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning State government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Department of Central Management Services | 5 | | Law of the
Civil Administrative Code of Illinois is amended by | 6 | | changing Section 405-300 as follows:
| 7 | | (20 ILCS 405/405-300) (was 20 ILCS 405/67.02)
| 8 | | Sec. 405-300. Lease or purchase of facilities; training | 9 | | programs.
| 10 | | (a) To lease or purchase office and storage space,
| 11 | | buildings, land, and other
facilities for all State agencies, | 12 | | authorities, boards, commissions,
departments, institutions, | 13 | | and bodies politic and all other administrative
units or | 14 | | outgrowths of the executive branch of State government except | 15 | | the
Constitutional officers, the State Board of Education and | 16 | | the State
colleges and universities and their governing bodies. | 17 | | However, before
leasing or purchasing any office or storage | 18 | | space, buildings, land
or other facilities in any municipality | 19 | | the Department shall survey the
existing State-owned and | 20 | | State-leased property
to make a determination of need.
| 21 | | The leases shall be for
a term not to exceed 5 years, | 22 | | except that the leases
may contain a renewal clause subject to | 23 | | acceptance by the State after
that date or an option to |
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| 1 | | purchase. The purchases shall be made
through
contracts that | 2 | | (i) may provide for the title to the property to
transfer
| 3 | | immediately to the State or a trustee or nominee for the | 4 | | benefit of the
State, (ii) shall provide for the consideration | 5 | | to be
paid in installments to
be made at stated intervals | 6 | | during a certain term not to exceed 30 years
from the date of | 7 | | the contract, and (iii) may provide for the
payment of interest | 8 | | on the unpaid balance at a rate that does not exceed
a rate | 9 | | determined by adding 3 percentage points to the annual yield on
| 10 | | United States Treasury
obligations of comparable maturity as | 11 | | most recently published in the Wall
Street Journal at the time | 12 | | such contract is signed. The leases and
purchase
contracts | 13 | | shall be and shall recite
that they are subject to termination | 14 | | and cancellation in any year for which
the General Assembly | 15 | | fails to make an appropriation to pay the rent or
purchase | 16 | | installments payable
under the terms of the lease or purchase | 17 | | contract.
Additionally, the purchase contract shall specify | 18 | | that title to
the office
and storage space, buildings, land, | 19 | | and other facilities being acquired
under
the contract shall | 20 | | revert to the Seller in the event of the
failure
of the General | 21 | | Assembly to appropriate suitable funds.
However, this | 22 | | limitation on the
term of the leases does not apply to leases | 23 | | to and with the
Illinois
Building Authority, as provided for in | 24 | | the Building Authority Act. Leases to and with that Authority | 25 | | may be
entered into for a term not to exceed 30 years and shall | 26 | | be and shall
recite that they are subject to termination and |
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| 1 | | cancellation in any year
for which the General Assembly fails | 2 | | to make an appropriation to pay the
rent payable under the | 3 | | terms of the lease. These limitations do
not
apply if the lease | 4 | | or purchase contract contains a provision
limiting the | 5 | | liability for
the payment of the rentals or installments | 6 | | thereof solely to funds
received from the Federal government.
| 7 | | (b) To lease from an airport authority office, aircraft | 8 | | hangar, and
service buildings constructed upon a public airport | 9 | | under the Airport
Authorities Act for the use and occupancy of | 10 | | the State Department of
Transportation. The lease may be | 11 | | entered into for a term not
to exceed
30 years.
| 12 | | (c) To establish training programs for teaching State | 13 | | leasing procedures
and practices to new employees of the | 14 | | Department and to keep all employees
of the Department informed | 15 | | about current leasing practices and developments
in the real | 16 | | estate industry.
| 17 | | (d) To enter into an agreement with a municipality or | 18 | | county to
construct, remodel, or convert a structure for the | 19 | | purposes of its serving
as a correctional institution or | 20 | | facility pursuant to paragraph (c) of
Section 3-2-2 of the | 21 | | Unified Code of Corrections.
| 22 | | (e) To enter into an agreement with a private individual,
| 23 | | trust, partnership,
or corporation or a municipality or other | 24 | | unit of local government, when
authorized to do so by the | 25 | | Department of Corrections,
whereby that individual, trust, | 26 | | partnership, or corporation or
municipality or other unit of |
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| 1 | | local government will construct, remodel,
or convert a | 2 | | structure for the purposes of its serving as a correctional
| 3 | | institution or facility and then lease the structure to the
| 4 | | Department
for the use of the Department of Corrections. A | 5 | | lease entered into pursuant
to the authority granted in this
| 6 | | subsection shall be for a
term not to exceed 30 years but may | 7 | | grant to the State the
option to purchase the structure | 8 | | outright.
| 9 | | The leases shall be and shall recite that they are subject | 10 | | to
termination and cancellation in any year for which the | 11 | | General Assembly
fails to make an appropriation to pay the rent | 12 | | payable under the terms of the
lease.
| 13 | | (f) On and after September 17, 1983, the powers granted to
| 14 | | the Department under this Section shall be exercised | 15 | | exclusively by the
Department, and no other State agency may | 16 | | concurrently exercise any such
power unless specifically | 17 | | authorized otherwise by a later enacted law.
This subsection is | 18 | | not intended to impair any contract existing as of
September | 19 | | 17, 1983.
| 20 | | However, no lease for more than 10,000 square feet of space | 21 | | shall be executed
unless the Director, in consultation with the | 22 | | Executive Director of the
Capital
Development Board, has | 23 | | certified that leasing is in the best interest of
the State, | 24 | | considering programmatic requirements, availability of vacant
| 25 | | State-owned space, the cost-benefits of purchasing or | 26 | | constructing new
space,
and other criteria as he or she shall |
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| 1 | | determine. The Director shall not
permit
multiple leases for | 2 | | less than 10,000 square feet to be executed in order
to evade | 3 | | this provision.
| 4 | | (g) To develop and implement, in cooperation with the | 5 | | Interagency
Energy Conservation Committee, a system for | 6 | | evaluating energy consumption in
facilities leased by the | 7 | | Department, and to develop energy consumption
standards for use | 8 | | in evaluating prospective lease sites.
| 9 | | (h) (1) After June 1, 1998 (the effective date of Public | 10 | | Act 90-520), the
Department
shall not
enter into an | 11 | | agreement for the installment purchase or lease purchase of
| 12 | | buildings,
land, or facilities
unless:
| 13 | | (A) the using agency certifies to the Department | 14 | | that the agency
reasonably
expects that the building, | 15 | | land, or facilities being considered for
purchase will
| 16 | | meet a permanent space need;
| 17 | | (B) the building or facilities will be | 18 | | substantially occupied by State
agencies
after | 19 | | purchase (or after acceptance in the case of a build to | 20 | | suit);
| 21 | | (C) the building or facilities shall be in new or | 22 | | like new condition and
have a
remaining economic life | 23 | | exceeding the term of the contract;
| 24 | | (D) no structural or other major building | 25 | | component or system has a
remaining economic life of | 26 | | less than 10 years;
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| 1 | | (E) the building, land, or facilities:
| 2 | | (i) is free of any identifiable environmental | 3 | | hazard or
| 4 | | (ii) is subject to a management plan, provided | 5 | | by the seller and
acceptable to the State, to | 6 | | address the known environmental
hazard;
| 7 | | (F) the building, land, or facilities satisfy | 8 | | applicable
accessibility
and applicable building | 9 | | codes; and
| 10 | | (G) the State's cost to lease purchase or | 11 | | installment purchase the
building,
land, or facilities | 12 | | is less than the cost to lease space of comparable
| 13 | | quality, size, and location over the lease purchase or | 14 | | installment purchase
term.
| 15 | | (2) The Department shall establish the methodology for | 16 | | comparing lease
costs to
the costs of installment or lease | 17 | | purchases. The cost comparison shall take
into account all
| 18 | | relevant cost factors, including, but not limited to, debt | 19 | | service,
operating
and maintenance costs,
insurance and | 20 | | risk costs, real estate taxes, reserves for replacement and
| 21 | | repairs, security costs,
and utilities. The methodology | 22 | | shall also provide:
| 23 | | (A) that the comparison will be made using level | 24 | | payment plans; and
| 25 | | (B) that a purchase price must not exceed the fair | 26 | | market value of the
buildings, land, or facilities and |
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| 1 | | that the purchase price
must be substantiated by
an | 2 | | appraisal or by a competitive selection process.
| 3 | | (3) If the Department intends to enter into an | 4 | | installment purchase or
lease purchase agreement for | 5 | | buildings, land, or facilities under circumstances
that do | 6 | | not satisfy the conditions specified by this Section, it | 7 | | must issue a
notice to the Secretary of the Senate and the | 8 | | Clerk of the House. The notice
shall contain (i) specific | 9 | | details of the State's proposed purchase, including
the | 10 | | amounts, purposes, and financing terms; (ii) a specific | 11 | | description of how
the proposed purchase varies from the | 12 | | procedures set forth in this Section; and
(iii) a specific | 13 | | justification, signed by the Director, stating why
it is in | 14 | | the
State's best interests to proceed with the purchase. | 15 | | The Department may not
proceed with such an installment | 16 | | purchase or lease purchase agreement if,
within 60 calendar | 17 | | days after delivery of the notice, the General Assembly, by
| 18 | | joint resolution, disapproves the transaction. Delivery | 19 | | may take place on a
day and at an hour when the Senate and | 20 | | House are not in session so long as the
offices of | 21 | | Secretary and Clerk are open to receive the notice. In | 22 | | determining
the 60-day period within which the General | 23 | | Assembly must act,
the day on which
delivery is made to the | 24 | | Senate and House shall not be counted. If delivery of
the | 25 | | notice to the 2 houses occurs on different days, the 60-day
| 26 | | period shall begin on the day following the later delivery.
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| 1 | | (4) On or before February 15 of each year, the | 2 | | Department shall submit an
annual report to the Director of | 3 | | the
Governor's Office of Management and Budget and the | 4 | | General
Assembly regarding installment purchases or lease | 5 | | purchases of buildings, land,
or facilities that were | 6 | | entered into during the preceding calendar year. The
report | 7 | | shall include a summary statement of the aggregate amount | 8 | | of the State's
obligations under those purchases; specific | 9 | | details pertaining to
each purchase,
including the | 10 | | amounts, purposes, and financing terms and payment | 11 | | schedule
for each
purchase; and any other matter that the | 12 | | Department deems advisable. The report shall also contain | 13 | | an analysis of all leases that meet both of the following | 14 | | criteria: (1) the lease contains a purchase option clause; | 15 | | and (2) the third full year of the lease has been | 16 | | completed. That analysis shall include, without | 17 | | limitation, a recommendation of whether it is in the | 18 | | State's best interest to exercise the purchase option or to | 19 | | seek to renew the lease without exercising the clause.
| 20 | | The requirement for reporting to the General Assembly | 21 | | shall be satisfied by
filing copies of the report with each | 22 | | of the following: (1) the Auditor General ; (2) , the | 23 | | Speaker, the Minority
Leader, and the Clerk of the House of | 24 | | Representatives and the President,
the
Minority Leader,
| 25 | | and the Secretary of the Senate, the Chairs of the | 26 | | Appropriations Committees ; (3) the Clerk of the House of |
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| 1 | | Representatives and the Secretary of the Senate in | 2 | | electronic form only, in the manner that the Clerk and the | 3 | | Secretary shall direct; (4) ,
and the Legislative Research | 4 | | Unit ; and (5) , as required
by Section 3.1 of the General | 5 | | Assembly Organization Act, and filing
additional
copies | 6 | | with the State Government Report Distribution Center for | 7 | | the General
Assembly as is required under paragraph (t) of | 8 | | Section 7 of the State Library
Act.
| 9 | | (Source: P.A. 99-143, eff. 7-27-15.)
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