Full Text of HB5107 097th General Assembly
HB5107 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB5107 Introduced 2/8/2012, by Rep. Karen May SYNOPSIS AS INTRODUCED: |
| 30 ILCS 500/1-15.30 | | 30 ILCS 500/20-60 | | 30 ILCS 500/40-25 | |
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Amends the Illinois Procurement Code. Provides that State agreements for performance contracting shall be included in the definition of "contract". Provides that a performance contract shall not be entered into for a period of time exceeding 20 years. Provides that installment payment performance contracts and performance-based lease purchase agreements that guarantee energy or operational cost savings shall be for a term not to exceed 20 years. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning finance.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Procurement Code is amended by | 5 | | changing Sections 1-15.30, 20-60, and 40-25 as follows:
| 6 | | (30 ILCS 500/1-15.30)
| 7 | | Sec. 1-15.30. Contract. "Contract" means all types of
State | 8 | | agreements, including change orders and renewals, regardless
| 9 | | of what they may be called, for the procurement, use, or | 10 | | disposal
of supplies, services,
professional or artistic | 11 | | services, or construction or for leases of real
property, | 12 | | whether the State is lessor or lessee, or
capital improvements, | 13 | | or performance contracting,
and including master contracts, | 14 | | contracts for financing through
use of installment or
| 15 | | lease-purchase arrangements, renegotiated contracts, | 16 | | amendments to contracts, and change orders.
| 17 | | (Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 | 18 | | for the effective date of changes made by P.A. 96-795) .)
| 19 | | (30 ILCS 500/20-60) | 20 | | Sec. 20-60. Duration of contracts. | 21 | | (a) Maximum duration. A contract, other than a contract | 22 | | entered into pursuant to the State University Certificates of |
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| 1 | | Participation Act or a performance contract that guarantees | 2 | | energy or operational cost savings , may be entered into for
any | 3 | | period of time deemed
to be in the best interests of the State | 4 | | but not
exceeding 10 years inclusive, beginning January 1, | 5 | | 2010, of proposed contract renewals. A performance contract | 6 | | shall not be entered into for a period of time exceeding 20 | 7 | | years, beginning July 1, 2012. The length of
a lease for real | 8 | | property or capital improvements shall be in
accordance with | 9 | | the provisions of
Section 40-25. A contract for bond or | 10 | | mortgage insurance awarded by the Illinois Housing Development | 11 | | Authority, however, may be entered into for any period of time | 12 | | less than or equal to the maximum period of time that the | 13 | | subject bond or mortgage may remain outstanding.
| 14 | | (b) Subject to appropriation. All contracts made or entered
| 15 | | into shall recite that they are
subject to termination and | 16 | | cancellation in any year for which the
General Assembly fails | 17 | | to make
an appropriation to make payments under the terms of | 18 | | the contract. | 19 | | (c) The chief procurement officer shall file a proposed | 20 | | extension or renewal of a contract with the Procurement Policy | 21 | | Board prior to entering into any extension or renewal if the | 22 | | cost associated with the extension or renewal exceeds $249,999. | 23 | | The Procurement Policy Board may object to the proposed | 24 | | extension or renewal within 30 calendar days and require a | 25 | | hearing before the Board prior to entering into the extension | 26 | | or renewal. If the Procurement Policy Board does not object |
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| 1 | | within 30 calendar days or takes affirmative action to | 2 | | recommend the extension or renewal, the chief procurement | 3 | | officer may enter into the extension or renewal of a contract. | 4 | | This subsection does not apply to any emergency procurement, | 5 | | any procurement under Article 40, or any procurement exempted | 6 | | by Section 1-10(b) of this Code. If any State agency contract | 7 | | is paid for in whole or in part with federal-aid funds, grants, | 8 | | or loans and the provisions of this subsection would result in | 9 | | the loss of those federal-aid funds, grants, or loans, then the | 10 | | contract is exempt from the provisions of this subsection in | 11 | | order to remain eligible for those federal-aid funds, grants, | 12 | | or loans, and the State agency shall file notice of this | 13 | | exemption with the Procurement Policy Board prior to entering | 14 | | into the proposed extension or renewal. Nothing in this | 15 | | subsection permits a chief procurement officer to enter into an | 16 | | extension or renewal in violation of subsection (a). By August | 17 | | 1 each year, the Procurement Policy Board shall file a report | 18 | | with the General Assembly identifying for the previous fiscal | 19 | | year (i) the proposed extensions or renewals that were filed | 20 | | with the Board and whether the Board objected and (ii) the | 21 | | contracts exempt from this subsection. | 22 | | (Source: P.A. 95-344, eff. 8-21-07; 96-15, eff. 6-22-09; | 23 | | 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 for the | 24 | | effective date of changes made by P.A. 96-795); 96-920, eff. | 25 | | 7-1-10; 96-1478, eff. 8-23-10.)
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| 1 | | (30 ILCS 500/40-25)
| 2 | | Sec. 40-25. Length of leases.
| 3 | | (a) Maximum term. Except for installment payment | 4 | | performance contracts and performance-based lease purchase | 5 | | agreements, leases Leases shall be for a term not to exceed
10 | 6 | | years inclusive, beginning January, 1, 2010, of proposed | 7 | | contract renewals and shall include
a termination option in | 8 | | favor of the State after 5 years. Installment payment | 9 | | performance contracts and performance-based lease purchase | 10 | | agreements that guarantee energy or operational cost savings | 11 | | shall be for a term not to exceed 20 years.
| 12 | | (b) Renewal. Leases may include a renewal option. An
option | 13 | | to renew may be
exercised only when a State purchasing officer | 14 | | determines in
writing that renewal is in the best
interest of | 15 | | the State and notice of the exercise of the option is published | 16 | | in
the appropriate volume of the Procurement Bulletin at least | 17 | | 60 days prior to
the exercise of the option.
| 18 | | (c) Subject to appropriation. All leases shall recite that
| 19 | | they are subject to termination
and cancellation in any year | 20 | | for which the General Assembly fails
to make an appropriation | 21 | | to
make payments under the terms of the lease.
| 22 | | (d) Holdover. Beginning January 1, 2010, no lease may | 23 | | continue on a month-to-month or other holdover basis for a | 24 | | total of more than 6 months. Beginning July 1, 2010, the | 25 | | Comptroller shall withhold payment of leases beyond this | 26 | | holdover period. |
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| 1 | | (Source: P.A. 96-15, eff. 6-22-09; 96-795, eff. 7-1-10 (see | 2 | | Section 5 of P.A. 96-793 for the effective date of changes made | 3 | | by P.A. 96-795).)
| 4 | | Section 99. Effective date. This Act takes effect upon | 5 | | becoming law.
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