2023 Illinois Compiled Statutes › Chapter 30 - FINANCE › 30 ILCS 500/ - Illinois Procurement Code. › Article 40 - Real Property and Capital Improvement Leases

(30 ILCS 500/Art. 40 heading)
ARTICLE 40
REAL PROPERTY AND CAPITAL IMPROVEMENT LEASES
(30 ILCS 500/40-5)
Sec. 40-5. Applicability. All leases for real property
or capital improvements,
including office and storage space, buildings, and other
facilities for State agencies where the State is the lessee, shall be
procured in accordance with the provisions of this Article. All State agencies, with the exception of public institutions of higher education, shall, in consultation with the Department of Central Management Services, evaluate the State's existing lease portfolio prior to engaging in a procurement for real property or capital improvements.
(Source: P.A. 98-1076, eff. 1-1-15.)
(30 ILCS 500/40-10)
Sec. 40-10. 
		Authority. 
		State purchasing officers shall
have the authority to procure
leases for real property or capital improvements.
(Source: P.A. 90-572, eff. date - See Sec. 99-5.)
(30 ILCS 500/40-15)
Sec. 40-15. Method of source selection.
(a) Request for information.  Except as provided in
subsections (b) and (c), all State
contracts for leases of real property or capital improvements
shall be awarded by a request for
information process in accordance with Section 40-20.
(b) Other methods.  A request for information process need
not be used in procuring any
of the following leases:
(1) Property of less than 10,000 square feet with     rent of less than $100,000 per year.
(2) (Blank).
(3) Duration of less than one year that cannot be     renewed.
(4) Specialized space available at only one location.
(5) Renewal or extension of a lease; provided that:     (i) the chief procurement officer determines in writing that the renewal or extension is in the best interest of the State; (ii) the chief procurement officer submits his or her written determination and the renewal or extension to the Board; (iii) the Board does not object in writing to the renewal or extension within 30 calendar days after its submission; and (iv) the chief procurement officer publishes the renewal or extension in the appropriate volume of the Procurement Bulletin.
(c) Leases with governmental units.  Leases with other
governmental units may be
negotiated without using the request for information process when
deemed by the chief procurement officer to be
in the best interest of the State.
(Source: P.A. 98-1076, eff. 1-1-15.)
(30 ILCS 500/40-20)
Sec. 40-20. Request for information.
(a) Conditions for use.  Leases shall be procured by request
for information except as
otherwise provided in Section 40-15.
(b) Form.  A request for information shall be issued and
shall include:
(1) the type of property to be leased;
(2) the proposed uses of the property;
(3) the duration of the lease;
(4) the preferred location of the property; and
(5) a general description of the configuration     desired.
(c) Public notice.  Public notice of the request for
information for the availability of real
property to lease shall be published in the appropriate volume of the Illinois
Procurement Bulletin at least 14 calendar days before
the date set forth in the request for receipt of responses and
shall also be published in similar
manner in a newspaper of general circulation in the community or
communities where the using
agency is seeking space.
(d) Response.  The request for information response shall
consist of written information
sufficient to show that the respondent can meet minimum criteria
set forth in the request.  State
purchasing officers may enter into discussions with respondents
for the purpose of clarifying
State needs and the information supplied by the respondents.  On
the basis of the information
supplied and discussions, if any, a State purchasing officer shall
make a written determination
identifying the responses that meet the minimum criteria set forth
in the request for information.
Negotiations shall be entered into with all qualified respondents
for the purpose of securing a
lease that is in the best interest of the State.  A written report
of the negotiations shall be
retained in the lease files and shall include the reasons for the
final selection.  All leases shall
be reduced to writing; one copy shall be filed with the Comptroller in accordance with the provisions
of Section 20-80, and one copy each shall be filed with the Board and the Commission on Equity and Inclusion.
When the lowest response by price is not selected, the State purchasing
officer shall forward to the chief procurement officer, along with the lease,
notice of the identity of the lowest respondent by price and written reasons
for the selection of a different response.  The chief procurement officer shall
publish the written reasons in the next volume of the Illinois Procurement
Bulletin.
(e) Board and Commission on Equity and Inclusion review. Upon receipt of (1) any proposed lease of real property of 10,000 or more square feet or (2) any proposed lease of real property with annual rent payments of $100,000 or more, the Procurement Policy Board and the Commission on Equity and Inclusion shall jointly have 30 calendar days to review the proposed lease. The Board and Commission have 30 calendar days to submit a joint objection. If no joint objection is submitted, then the proposed lease shall become effective according to its terms as submitted. The leasing agency shall make any and all materials available to the Board and the Commission on Equity and Inclusion to assist in the review process.
(Source: P.A. 101-657, eff. 1-1-22; 102-29, eff. 6-25-21.)
(30 ILCS 500/40-25)
Sec. 40-25. Length of leases.
(a) Maximum term.  Except as otherwise provided under subsection (a-5), leases shall be for a term not to exceed
10 years inclusive, beginning January, 1, 2010, of proposed contract renewals and shall include
a termination option in favor of the State after 5 years. The length of energy conservation program contracts or energy savings contracts or leases shall be in accordance with the provisions of Section 25-45.
(a-5) Extended term. A lease for real property owned by a public institution of higher education to be used for healthcare uses, academic facilities, dormitory facilities, or other support uses may exceed 10 years in length when: (i) the lease requires the lessor to make capital improvements in excess of $100,000; and (ii) the Board of Trustees of the public institution of higher education determines a term of more than 10 years is necessary and is in the best interest of the institution. A lease under this subsection (a-5) may not exceed 30 years in length.
(b) Renewal.  Leases may include a renewal option.  An
option to renew may be
exercised only when a State purchasing officer determines in
writing that renewal is in the best
interest of the State and notice of the exercise of the option is published in
the appropriate volume of the Procurement Bulletin at least 30 calendar days prior to
the exercise of the option.
(c) Subject to appropriation.  All leases shall recite that
they are subject to termination
and cancellation in any year for which the General Assembly fails
to make an appropriation to
make payments under the terms of the lease.
(d) Holdover. Beginning January 1, 2010, no lease may continue on a month-to-month or other holdover basis for a total of more than 6 months. Beginning July 1, 2010, the Comptroller shall withhold payment of leases beyond this holdover period.
(e) On December 31, 2023, and every year thereafter, any institution of higher education that enters into a lease under this Section shall file with both houses of the General Assembly a report outlining each lease entered into under this Section that is current as of the date of the report.
(Source: P.A. 101-426, eff. 1-1-20; 102-721, eff. 1-1-23.)
(30 ILCS 500/40-30)
Sec. 40-30. Purchase option. Leases of all space
in entire, free-standing
buildings shall include an option to purchase exercisable by the
State, unless the purchasing officer determines that inclusion of such purchase
option is not in the State's best interest and makes that determination in
writing along with the reasons for making that determination and publishes the
written determination in the appropriate volume of the Illinois Procurement Bulletin.
Leases from governmental units and not-for-profit entities are exempt from
the requirements of this Section.
(Source: P.A. 100-43, eff. 8-9-17; 100-201, eff. 8-18-17.)
(30 ILCS 500/40-33)
Sec. 40-33. Leased property square footage reduction. When operational needs indicate that reduction in the square footage of a leased property is necessary and in the best interests of the State, a contract for the  lease of real property may be amended to reduce the square footage of the leased property, regardless of the method of procurement or source selection.
(Source: P.A. 102-18, eff. 6-25-21.)
(30 ILCS 500/40-35)
Sec. 40-35. 
		Rent without occupancy. 
		Except when deemed
by the Board to be in the
best interest of the State, no State agency may incur rental
obligations before occupying the
space rented.
(Source: P.A. 90-572, eff. date - See Sec. 99-5.)
(30 ILCS 500/40-40)
Sec. 40-40. 
		Local site preferences. 
		Upon the request of
the chief executive officer
of a unit of local government, leasing preferences may be given to
sites located in enterprise
zones, tax increment districts, or redevelopment districts.
(Source: P.A. 90-572, eff. date - See Sec. 99-5.)
(30 ILCS 500/40-45)
Sec. 40-45. 
		Leases exempt from Article. 
		A lease entered into by the State
under Section 7.4 of the State Property Control Act is not subject to the
provisions of this Article.
(Source: P.A. 93-19, eff. 6-20-03.)
(30 ILCS 500/40-46)
Sec. 40-46. 
		Leases exempt from Article. 
		A lease entered into under
Section 7.5 of the State Property Control Act is not subject to the
provisions of this Article.
(Source: P.A. 93-19, eff. 6-20-03.)
(30 ILCS 500/40-55)
Sec. 40-55. Lessor's failure to make improvements.   Each lease must provide for actual or
liquidated damages upon the lessor's failure to make improvements agreed upon in the lease.  The actual or liquidated damages shall consist of a reduction in lease payments equal to the corresponding percentage of the improvement value to the lease value.  The actual or
liquidated damages shall continue until the lessor complies with the lease and the improvements are certified by the chief procurement officer and the leasing State agency.
(Source: P.A. 98-1076, eff. 1-1-15.)
(30 ILCS 500/40-150)
Sec. 40-150. Proposed contracts; Procurement Policy Board. This Article is subject to Section 5-30 of this Code.
(Source: P.A. 93-839, eff. 7-30-04.)