Full Text of SB0227 103rd General Assembly
SB0227 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 SB0227 Introduced 1/31/2023, by Sen. Doris Turner SYNOPSIS AS INTRODUCED: |
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20 ILCS 405/405-300 | was 20 ILCS 405/67.02 |
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Amends the Department of Central Management Services Law of the
Civil Administrative Code of Illinois. Deletes a provision which specifies that no lease for more than 10,000 square feet of space shall be executed
unless the Director of the Central Management Services, in consultation with the Executive Director of the
Capital
Development Board, has certified that leasing is in the best interest of
the State, considering programmatic requirements, availability of vacant
State-owned space, the cost-benefits of purchasing or constructing new
space,
and other criteria as the Director shall determine. Effective immediately.
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| | A BILL FOR |
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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 | 17 | | bodies. However, before
leasing or purchasing any office or | 18 | | storage space, buildings, land
or other facilities in any | 19 | | municipality the Department shall survey the
existing | 20 | | State-owned and State-leased property
to make a determination | 21 | | of need.
| 22 | | The leases shall be for
a term not to exceed 5 years, | 23 | | except that the leases
may contain a renewal clause subject to |
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| 1 | | acceptance by the State after
that date or an option to | 2 | | purchase. The purchases shall be made
through
contracts that | 3 | | (i) may provide for the title to the property to
transfer
| 4 | | immediately to the State or a trustee or nominee for the | 5 | | benefit of the
State, (ii) shall provide for the consideration | 6 | | to be
paid in installments to
be made at stated intervals | 7 | | during a certain term not to exceed 30 years
from the date of | 8 | | the contract, and (iii) may provide for the
payment of | 9 | | interest on the unpaid balance at a rate that does not exceed
a | 10 | | rate determined by adding 3 percentage points to the annual | 11 | | yield on
United States Treasury
obligations of comparable | 12 | | maturity as most recently published in the Wall
Street Journal | 13 | | at the time such contract is signed. The leases and
purchase
| 14 | | contracts shall be and shall recite
that they are subject to | 15 | | termination and cancellation in any year for which
the General | 16 | | Assembly fails to make an appropriation to pay the rent or
| 17 | | purchase installments payable
under the terms of the lease or | 18 | | purchase contract.
Additionally, the purchase contract shall | 19 | | specify that title to
the office
and storage space, buildings, | 20 | | land, and other facilities being acquired
under
the contract | 21 | | shall revert to the Seller in the event of the
failure
of the | 22 | | General Assembly to appropriate suitable funds.
However, this | 23 | | limitation on the
term of the leases does not apply to leases | 24 | | to and with the
Illinois
Building Authority, as provided for | 25 | | in the Building Authority Act. Leases to and with that | 26 | | Authority may be
entered into for a term not to exceed 30 years |
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| 1 | | and shall be and shall
recite that they are subject to | 2 | | termination and cancellation in any year
for which the General | 3 | | Assembly fails to make an appropriation to pay the
rent | 4 | | payable under the terms of the lease. These limitations do
not
| 5 | | apply if the lease or purchase contract contains a provision
| 6 | | limiting the liability for
the payment of the rentals or | 7 | | installments thereof solely to funds
received from the Federal | 8 | | government.
| 9 | | (b) To lease from an airport authority office, aircraft | 10 | | hangar, and
service buildings constructed upon a public | 11 | | airport under the Airport
Authorities Act for the use and | 12 | | occupancy of the State Department of
Transportation. The lease | 13 | | may be entered into for a term not
to exceed
30 years.
| 14 | | (c) To establish training programs for teaching State | 15 | | leasing procedures
and practices to new employees of the | 16 | | Department and to keep all employees
of the Department | 17 | | informed about current leasing practices and developments
in | 18 | | the real estate industry.
| 19 | | (d) To enter into an agreement with a municipality or | 20 | | county to
construct, remodel, or convert a structure for the | 21 | | purposes of its serving
as a correctional institution or | 22 | | facility pursuant to paragraph (c) of
Section 3-2-2 of the | 23 | | Unified Code of Corrections.
| 24 | | (e) To enter into an agreement with a private individual,
| 25 | | trust, partnership,
or corporation or a municipality or other | 26 | | unit of local government, when
authorized to do so by the |
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| 1 | | Department of Corrections,
whereby that individual, trust, | 2 | | partnership, or corporation or
municipality or other unit of | 3 | | local government will construct, remodel,
or convert a | 4 | | structure for the purposes of its serving as a correctional
| 5 | | institution or facility and then lease the structure to the
| 6 | | Department
for the use of the Department of Corrections. A | 7 | | lease entered into pursuant
to the authority granted in this
| 8 | | subsection shall be for a
term not to exceed 30 years but may | 9 | | grant to the State the
option to purchase the structure | 10 | | outright.
| 11 | | The leases shall be and shall recite that they are subject | 12 | | to
termination and cancellation in any year for which the | 13 | | General Assembly
fails to make an appropriation to pay the | 14 | | rent payable under the terms of the
lease.
| 15 | | (f) On and after September 17, 1983, the powers granted to
| 16 | | the Department under this Section shall be exercised | 17 | | exclusively by the
Department, and no other State agency may | 18 | | concurrently exercise any such
power unless specifically | 19 | | authorized otherwise by a later enacted law.
This subsection | 20 | | is not intended to impair any contract existing as of
| 21 | | September 17, 1983.
| 22 | | However, no lease for more than 10,000 square feet of | 23 | | space shall be executed
unless the Director, in consultation | 24 | | with the Executive Director of the
Capital
Development Board, | 25 | | has certified that leasing is in the best interest of
the | 26 | | State, considering programmatic requirements, availability of |
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| 1 | | vacant
State-owned space, the cost-benefits of purchasing or | 2 | | constructing new
space,
and other criteria as he or she shall | 3 | | determine. The Director shall not
permit
multiple leases for | 4 | | less than 10,000 square feet to be executed in order
to evade | 5 | | this provision.
| 6 | | (g) To develop and implement, in cooperation with the | 7 | | Interagency
Energy Conservation Committee, a system for | 8 | | evaluating energy consumption in
facilities leased by the | 9 | | Department, and to develop energy consumption
standards for | 10 | | use in evaluating prospective lease sites.
| 11 | | (h) (1) After June 1, 1998 (the effective date of Public | 12 | | Act 90-520), the
Department
shall not
enter into an | 13 | | agreement for the installment purchase or lease purchase | 14 | | of
buildings,
land, or facilities
unless:
| 15 | | (A) the using agency certifies to the Department | 16 | | that the agency
reasonably
expects that the building, | 17 | | land, or facilities being considered for
purchase will
| 18 | | meet a permanent space need;
| 19 | | (B) the building or facilities will be | 20 | | substantially occupied by State
agencies
after | 21 | | purchase (or after acceptance in the case of a build to | 22 | | suit);
| 23 | | (C) the building or facilities shall be in new or | 24 | | like new condition and
have a
remaining economic life | 25 | | exceeding the term of the contract;
| 26 | | (D) no structural or other major building |
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| 1 | | component or system has a
remaining economic life of | 2 | | less than 10 years;
| 3 | | (E) the building, land, or facilities:
| 4 | | (i) is free of any identifiable environmental | 5 | | hazard or
| 6 | | (ii) is subject to a management plan, provided | 7 | | by the seller and
acceptable to the State, to | 8 | | address the known environmental
hazard;
| 9 | | (F) the building, land, or facilities satisfy | 10 | | applicable
accessibility
and applicable building | 11 | | codes; and
| 12 | | (G) the State's cost to lease purchase or | 13 | | installment purchase the
building,
land, or facilities | 14 | | is less than the cost to lease space of comparable
| 15 | | quality, size, and location over the lease purchase or | 16 | | installment purchase
term.
| 17 | | (2) The Department shall establish the methodology for | 18 | | comparing lease
costs to
the costs of installment or lease | 19 | | purchases. The cost comparison shall take
into account all
| 20 | | relevant cost factors, including, but not limited to, debt | 21 | | service,
operating
and maintenance costs,
insurance and | 22 | | risk costs, real estate taxes, reserves for replacement | 23 | | and
repairs, security costs,
and utilities. The | 24 | | methodology shall also provide:
| 25 | | (A) that the comparison will be made using level | 26 | | payment plans; and
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| 1 | | (B) that a purchase price must not exceed the fair | 2 | | market value of the
buildings, land, or facilities and | 3 | | that the purchase price
must be substantiated by
an | 4 | | appraisal or by a competitive selection process.
| 5 | | (3) If the Department intends to enter into an | 6 | | installment purchase or
lease purchase agreement for | 7 | | buildings, land, or facilities under circumstances
that do | 8 | | not satisfy the conditions specified by this Section, it | 9 | | must issue a
notice to the Secretary of the Senate and the | 10 | | Clerk of the House. The notice
shall contain (i) specific | 11 | | details of the State's proposed purchase, including
the | 12 | | amounts, purposes, and financing terms; (ii) a specific | 13 | | description of how
the proposed purchase varies from the | 14 | | procedures set forth in this Section; and
(iii) a specific | 15 | | justification, signed by the Director, stating why
it is | 16 | | in the
State's best interests to proceed with the | 17 | | purchase. The Department may not
proceed with such an | 18 | | installment purchase or lease purchase agreement if,
| 19 | | within 60 calendar days after delivery of the notice, the | 20 | | General Assembly, by
joint resolution, disapproves the | 21 | | transaction. Delivery may take place on a
day and at an | 22 | | hour when the Senate and House are not in session so long | 23 | | as the
offices of Secretary and Clerk are open to receive | 24 | | the notice. In determining
the 60-day period within which | 25 | | the General Assembly must act,
the day on which
delivery | 26 | | is made to the Senate and House shall not be counted. If |
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| 1 | | delivery of
the notice to the 2 houses occurs on different | 2 | | days, the 60-day
period shall begin on the day following | 3 | | the later delivery.
| 4 | | (4) On or before February 15 of each year, the | 5 | | Department shall submit an
annual report to the Director | 6 | | of the
Governor's Office of Management and Budget and the | 7 | | General
Assembly regarding installment purchases or lease | 8 | | purchases of buildings, land,
or facilities that were | 9 | | entered into during the preceding calendar year. The
| 10 | | report shall include a summary statement of the aggregate | 11 | | amount of the State's
obligations under those purchases; | 12 | | specific details pertaining to
each purchase,
including | 13 | | the amounts, purposes, and financing terms and payment | 14 | | schedule
for each
purchase; and any other matter that the | 15 | | Department deems advisable. The report shall also contain | 16 | | an analysis of all leases that meet both of the following | 17 | | criteria: (1) the lease contains a purchase option clause; | 18 | | and (2) the third full year of the lease has been | 19 | | completed. That analysis shall include, without | 20 | | limitation, a recommendation of whether it is in the | 21 | | State's best interest to exercise the purchase option or | 22 | | to seek to renew the lease without exercising the clause.
| 23 | | The requirement for reporting shall be satisfied by
| 24 | | filing copies of the report with each of the following: | 25 | | (1) the Auditor General; (2) the Chairs of the | 26 | | Appropriations Committees; (3) the General Assembly and |
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| 1 | | the Commission on Government Forecasting and | 2 | | Accountability as required by Section 3.1 of the General | 3 | | Assembly Organizations Act; and (4) the State Government | 4 | | Report Distribution Center for the General
Assembly as is | 5 | | required under paragraph (t) of Section 7 of the State | 6 | | Library
Act.
| 7 | | (Source: P.A. 99-143, eff. 7-27-15; 100-1109, eff. 1-1-19; | 8 | | 100-1148, eff. 12-10-18.)
| 9 | | Section 99. Effective date. This Act takes effect upon | 10 | | becoming law.
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