90th General Assembly
Summary of SB0747
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Senate Sponsors:
FITZGERALD.

House Sponsors:
SCHOENBERG-GASH-JONES,LOU-FLOWERS-DART

Short description: 
REAL ESTATE LEASING ACT                                                    

Synopsis of Bill as introduced:
        Amends the State Finance Act by making technical changes  to  the      
   short Section.                                                              
        HOUSE AMENDMENT NO. 2.                                                 
          Deletes reference to:                                                
          30 ILCS 105/1.1                                                      
          Adds reference to:                                                   
          New Act                                                              
          20 ILCS 405/67.02               from Ch. 127, par. 63b13.2           
          30 ILCS 105/9                   from Ch. 127, par. 145               
        Deletes  everything.  Creates  the  Real  Estate   Leasing   Act.      
   Provides  that  State  contracts  for leases of real property shall be      
   awarded by  a  request  for  information  process  except  in  certain      
   circumstances.   Exempts  the  purchase  of real property, including a      
   lease purchase, from the Act.  Provides that the Director  of  Central      
   Management  Services  shall  be  authorized to procure leases for real      
   property.  Provides that the Director may enter into purchase  options      
   if   it   would  be  appropriate  for  the  State.  Amends  the  Civil      
   Administrative Code.  Provides certain requirements that must  be  met      
   before the Department of Central Management Services may enter into an      
   agreement for the installment purchase or lease purchase of buildings,      
   land,  or  facilities.  Provides that the Department shall establish a      
   methodology for cost comparisons of  lease  costs  or  installment  or      
   lease   purchases.    Provides  that  in  certain  instances,  if  the      
   Department intends to enter into  an  installment  purchase  or  lease      
   purchase  agreement,  it  must  issue a notice to the Secretary of the      
   Senate and the Clerk of the House of Representatives including but not      
   limited to financing details and a specific justification of why it is      
   in the State's best interest to proceed with  the  purchase.  Provides      
   that the General Assembly may, by resolution, prohibit the installment      
   purchase  or  lease  purchase  agreement.   Requires the Department to      
   submit an annual report to the Bureau of the Budget  and  the  General      
   Assembly   regarding  installment  purchases  or  lease  purchases  of      
   buildings, land, or facilities. Amends the State Finance Act. Provides      
   that certificates of participation may  be  issued  or  caused  to  be      
   issued  if the Director of the Bureau of the Budget determines that it      
   is financially desirable and in the best interest of the State to  use      
   the certificates to finance or refinance installment purchase or lease      
   purchase  contracts  entered  into  by State departments, agencies, or      
   universities or to refund or advance refund  prior  issuances  of  the      
   certificates or similar instruments. Provides that the maximum term of      
   the  certificates  is  10 years for personal property and 25 years for      
   real property, except that in  no  case  shall  the  term  exceed  the      
   expected  useful  life  of  the property being financed.  Requires the      
   Director  of  the  Bureau  of  the  Budget  for  real   property   and      
   improvements  and personal property related thereto and the Department      
   to issue a notice to certain parties 10 days before  the  issuance  of      
   the  certificates of purchase.  Authorizes the Bureau of the Budget to      
   issue general obligation bonds to  finance  or  refinance  installment      
   purchase   or   lease   purchase   contracts  entered  into  by  State      
   departments, agencies, or universities or to refund or advance  refund      
   prior   issuances   of   certificates   of  participation  or  similar      
   instruments.  Makes other changes.                                          
        HOUSE AMENDMENT NO. 3.                                                 
        Provides  that,  in  addition   to   the   publication   of   the      
   advertisement  in  the  newspaper,  the  Director  may  also authorize      
   publication in electronic form (now, publication in electronic form is      
   an alternative to newspaper publication).                                   
 
Last action on Bill: PUBLIC ACT.............................. 90-0520

   Last action date: 97-08-22

           Location: Senate

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   2     SENATE -   0


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