100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB2999

 

Introduced , by Rep. Sara Wojcicki Jimenez

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 605/7.1  from Ch. 127, par. 133b10.1

    Amends the State Property Control Act. Makes changes to the definition of "surplus real property". Provides that the Administrator shall obtain 2 (rather than 3) appraisals of the value of certain real property, and shall only obtain a third appraisal if the first 2 appraisals differ by more than 15%. Provides that appraisals shall include any known liabilities, including, but not limited to, environmental costs. Changes Allows real property to conveyed for less than the fair market value if the Administrator makes a written determination that the conveyance is in the best interests of the State. Allows the Executive Ethics Commission to review the determination. Makes changes to the acquisition of surplus real property by other State agencies. Reduces the notice period to State agencies and local governments of the existence of surplus real property from 60 days to a notice period of at least 14 days. Allows the Administrator to engage in negotiations to allow other State agencies and local governments to acquire surplus real property. Allows the Administrator to use electronic auction or sealed bids for the disposal of surplus real property.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2999LRB100 04375 MLM 14381 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Property Control Act is amended by
5changing Section 7.1 as follows:
 
6    (30 ILCS 605/7.1)  (from Ch. 127, par. 133b10.1)
7    Sec. 7.1. (a) Except as otherwise provided by law, all
8surplus real property held by the State of Illinois shall be
9disposed of by the administrator as provided in this Section.
10"Surplus real property," as used in this Section, means any
11real property to which the State holds fee simple title or
12lesser interest, and is determined by the head of the State
13agency to no longer be required for the State agency's needs
14and responsibilities vacant, unoccupied or unused and which has
15no foreseeable use by the owning agency.
16    (b) All responsible officers shall submit an Annual Real
17Property Utilization Report to the Administrator, or annual
18update of such report, on forms required by the Administrator,
19by July 31 of each year. The Administrator may require such
20documentation as he deems reasonably necessary in connection
21with this Report, and shall require that such Report include
22the following information:
23    (1) A legal description of all real property owned by the

 

 

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1State under the control of the responsible officer.
2    (2) A description of the use of the real property listed
3under (1).
4    (3) A list of any improvements made to such real property
5during the previous year.
6    (4) The dates on which the State first acquired its
7interest in such real property, and the purchase price and
8source of the funds used to acquire the property.
9    (5) Plans for the future use of currently unused real
10property.
11    (6) A declaration of any surplus real property. On or
12before October 31 of each year the Administrator shall furnish
13copies of each responsible officer's report along with a list
14of surplus property indexed by legislative district to the
15General Assembly.
16    This report shall be filed with the Speaker, the Minority
17Leader and the Clerk of the House of Representatives and the
18President, the Minority Leader and the Secretary of the Senate
19and shall be duplicated and made available to the members of
20the General Assembly for evaluation by such members for
21possible liquidation of unused public property at public sale.
22    (c) Following receipt of the Annual Real Property
23Utilization Report required under paragraph (b), the
24Administrator shall notify all State agencies by October 31 of
25all declared surplus real property. Any State agency may submit
26a written request to the Administrator, within 60 days of the

 

 

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1date of such notification, to have control of surplus real
2property transferred to that agency. Such request must indicate
3the reason for the transfer and the intended use to be made of
4such surplus real property. The Administrator may deny any or
5all such requests by a State agency or agencies if the
6Administrator determines that it is more advantageous to the
7State to dispose of the surplus real property under paragraph
8(d). In case requests for the same surplus real property are
9received from more than one State agency, the Administrator
10shall weigh the benefits to the State and determine to which
11agency, if any, to transfer control of such property. The
12Administrator shall coordinate the use and disposal of State
13surplus real property with any State space utilization program.
14    (d) Any surplus real property which is not transferred to
15the control of another State agency under paragraph (c) shall
16be disposed of by the Administrator. No appraisal is required
17if during his initial survey of surplus real property the
18Administrator determines such property has a fair market value
19of less than $5,000. If the value of such property is
20determined by the Administrator in his initial survey to be
21$5,000 or more, then the Administrator shall obtain 2 3
22appraisals of such real property, which shall include any known
23liabilities, including, but not limited to, environmental
24costs one of which shall be performed by an appraiser residing
25in the county in which said surplus real property is located.
26The average of these 2 3 appraisals, plus the costs of

 

 

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1obtaining the appraisals, shall represent the fair market value
2of the surplus real property. However, if the 2 appraisals
3differ by more than 15%, then the Administrator shall obtain a
4third appraisal, and the fair market value shall be the average
5of these 3 appraisals.
6    No surplus real property may be conveyed by the
7Administrator for less than the fair market value, unless the
8Administrator makes a written determination that it is in the
9best interests of the State to establish a different value.
10That written determination shall be published in the Illinois
11Procurement Bulletin. Such written determination, along with
12an affidavit setting forth the conditions and circumstances
13that make the use of a different value in the best interests of
14the State, shall also be filed with the Executive Ethics
15Commission. The Executive Ethics Commission shall have 30 days
16to review the written determination. The Executive Ethics
17Commission may order an additional 30 days to review the
18written determination. The Administrator shall provide the
19Executive Ethics Commission with any information requested by
20the Executive Ethics Commission related to the Administrator's
21determination of the value of the surplus real property. If the
22Executive Ethics Commission objects in writing to the value
23determined by the Administrator, then the Administrator shall
24not convey the surplus real property for less than either the
25fair market value as determined by the average of appraisals or
26an amount agreed upon by the Executive Ethics Commission and

 

 

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1the Administrator. Circumstances in which it is in the best
2interest of the State to establish a different value may
3include, but are not limited to, the following: an auction did
4not yield any bids at the established fair market value; a unit
5of local government is interested in acquiring the surplus real
6property; or the costs to the State of maintaining such surplus
7real property are sufficiently high that it would be reasonable
8to a prudent person to sell such surplus real property for less
9than the fair market value established by the average of the
10appraisals.
11    Prior to offering the surplus real property for sale to the
12public the Administrator shall give notice in writing of the
13existence and fair market value of the surplus real property to
14each State agency and to the governing bodies of the county and
15of all cities, villages and incorporated towns in the county in
16which such real property is located. Any such State agency or
17governing body may notify the Administrator of its interest in
18acquiring exercise its option to acquire the surplus real
19property for the fair market value within the notice period set
20by the Administrator of at least 14 days 60 days of the notice.
21If any State agency notifies the Administrator of its interest
22in acquiring the surplus property, the Administrator may deny
23any such requests by such agency if the Administrator
24determines that it is more advantageous to the State to dispose
25of the surplus real property to a governing body or the public.
26If a governing body notifies the Administrator of its interest

 

 

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1in acquiring the property, then the Administrator shall wait a
2minimum of 30 additional days during which to engage in
3negotiations with such governing body for the sale of the
4surplus real property. After the notice period as set by the
5Administrator of at least 14 days 60 day period has passed, the
6Administrator may sell the surplus real property by public
7auction, which may include an electronic auction or the use of
8sealed bids, following notice of such sale by publication on 3
9separate days not less than 15 nor more than 30 days prior to
10the sale in the State newspaper and in a newspaper having
11general circulation in the county in which the surplus real
12property is located. The Administrator shall post "For Sale"
13signs of a conspicuous nature on such surplus real property
14offered for sale to the public. If no acceptable offers for the
15surplus real property are received, the Administrator may have
16new appraisals of such property made. The Administrator shall
17have all power necessary to convey surplus real property under
18this Section. All moneys received for the sale of surplus real
19property shall be deposited in the General Revenue Fund, except
20that:
21        (1) Where moneys expended for the acquisition of such
22    real property were from a special fund which is still a
23    special fund in the State treasury, this special fund shall
24    be reimbursed in the amount of the original expenditure and
25    any amount in excess thereof shall be deposited in the
26    General Revenue Fund.

 

 

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1        (2) Whenever a State mental health facility operated by
2    the Department of Human Services is closed and the real
3    estate on which the facility is located is sold by the
4    State, the net proceeds of the sale of the real estate
5    shall be deposited into the Community Mental Health
6    Medicaid Trust Fund.
7        (3) Whenever a State developmental disabilities
8    facility operated by the Department of Human Services is
9    closed and the real estate on which the facility is located
10    is sold by the State, the net proceeds of the sale of the
11    real estate shall be deposited into the Community
12    Developmental Disability Services Medicaid Trust Fund.
13    The Administrator shall have authority to order such
14surveys, abstracts of title, or commitments for title insurance
15as may, in his reasonable discretion, be deemed necessary to
16demonstrate to prospective purchasers or bidders good and
17marketable title in any property offered for sale pursuant to
18this Section. Unless otherwise specifically authorized by the
19General Assembly, all conveyances of property made by the
20Administrator shall be by quit claim deed.
21    (e) The Administrator shall submit an annual report on or
22before February 1 to the Governor and the General Assembly
23containing a detailed statement of surplus real property either
24transferred or conveyed under this Section.
25(Source: P.A. 96-527, eff. 1-1-10; 96-660, eff. 8-25-09;
2696-1000, eff. 7-2-10.)