Sec. 40-25. Length of leases.

361 words·~2 min read·/il/chapter-30/act-500/40-25

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(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.