97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1101

 

Introduced 02/07/11, by Rep. Michael W. Tryon

 

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

    Amends the State Property Control Act. Provides that "surplus real property" means any real property to which the State holds fee simple title or lesser interest, and (i) that has not been used by the State for at least the past 3 years and for which there is no foreseeable use in the next 3 years, (ii) that has not been used by the State for at least the past 6 years, or (iii) that is reported or transferred to the Director of Central Management Services as unused property and for which there is no foreseeable use by the Department of Central Management Services. Provides that, if the fair market value of surplus real property is $1,000,000 or more, then the transfer of that property to any entity other than a State agency must be approved by the General Assembly by statute, whether or not the transfer is made for an amount that exceeds, is less than, or is equal to the fair market value of the property. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB1101LRB097 06410 PJG 46492 b

1    AN ACT concerning State government.
 
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 and by adding Section 7d 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 (i) that has not been used by the State
13for at least the past 3 years and for which there is no
14foreseeable use in the next 3 years, (ii) that has not been
15used by the State for at least the past 6 years, or (iii) that
16is reported or transferred to the Director of Central
17Management Services as unused property and for which there is
18no foreseeable use by the Department of Central Management
19Services is vacant, unoccupied or unused and which has no
20foreseeable use by the owning agency.
21    (b) All responsible officers shall submit an Annual Real
22Property Utilization Report to the Administrator, or annual
23update of such report, on forms required by the Administrator,

 

 

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1by July 31 of each year. The Administrator may require such
2documentation as he deems reasonably necessary in connection
3with this Report, and shall require that such Report include
4the following information:
5    (1) A legal description of all real property owned by the
6State under the control of the responsible officer.
7    (2) A description of the use of the real property listed
8under (1).
9    (3) A list of any improvements made to such real property
10during the previous year.
11    (4) The dates on which the State first acquired its
12interest in such real property, and the purchase price and
13source of the funds used to acquire the property.
14    (5) Plans for the future use of currently unused real
15property.
16    (6) A declaration of any surplus real property. On or
17before October 31 of each year the Administrator shall furnish
18copies of each responsible officer's report along with a list
19of surplus property indexed by legislative district to the
20General Assembly.
21    This report shall be filed with the Speaker, the Minority
22Leader and the Clerk of the House of Representatives and the
23President, the Minority Leader and the Secretary of the Senate
24and shall be duplicated and made available to the members of
25the General Assembly for evaluation by such members for
26possible liquidation of unused public property at public sale.

 

 

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1    (c) Following receipt of the Annual Real Property
2Utilization Report required under paragraph (b), the
3Administrator shall notify all State agencies by October 31 of
4all declared surplus real property. Any State agency may submit
5a written request to the Administrator, within 60 days of the
6date of such notification, to have control of surplus real
7property transferred to that agency. Such request must indicate
8the reason for the transfer and the intended use to be made of
9such surplus real property. The Administrator may deny any or
10all such requests by a State agency or agencies if the
11Administrator determines that it is more advantageous to the
12State to dispose of the surplus real property under paragraph
13(d). In case requests for the same surplus real property are
14received from more than one State agency, the Administrator
15shall weigh the benefits to the State and determine to which
16agency, if any, to transfer control of such property. The
17Administrator shall coordinate the use and disposal of State
18surplus real property with any State space utilization program.
19    (d) Any surplus real property which is not transferred to
20the control of another State agency under paragraph (c) shall
21be disposed of by the Administrator. No appraisal is required
22if during his initial survey of surplus real property the
23Administrator determines such property has a fair market value
24of less than $5,000. If the value of such property is
25determined by the Administrator in his initial survey to be
26$5,000 or more, then the Administrator shall obtain 3

 

 

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1appraisals of such real property, one of which shall be
2performed by an appraiser residing in the county in which said
3surplus real property is located. The average of these 3
4appraisals, plus the costs of obtaining the appraisals, shall
5represent the fair market value of the surplus real property.
6No surplus real property may be conveyed by the Administrator
7for less than the fair market value. Prior to offering the
8surplus real property for sale to the public the Administrator
9shall give notice in writing of the existence and fair market
10value of the surplus real property to the governing bodies of
11the county and of all cities, villages and incorporated towns
12in the county in which such real property is located. Any such
13governing body may exercise its option to acquire the surplus
14real property for the fair market value within 60 days of the
15notice. After the 60 day period has passed, the Administrator
16may sell the surplus real property by public auction following
17notice of such sale by publication on 3 separate days not less
18than 15 nor more than 30 days prior to the sale in the State
19newspaper and in a newspaper having general circulation in the
20county in which the surplus real property is located. The
21Administrator shall post "For Sale" signs of a conspicuous
22nature on such surplus real property offered for sale to the
23public. If no acceptable offers for the surplus real property
24are received, the Administrator may have new appraisals of such
25property made. The Administrator shall have all power necessary
26to convey surplus real property under this Section. All moneys

 

 

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1received for the sale of surplus real property shall be
2deposited in the General Revenue Fund, except that:
3        (1) Where moneys expended for the acquisition of such
4    real property were from a special fund which is still a
5    special fund in the State treasury, this special fund shall
6    be reimbursed in the amount of the original expenditure and
7    any amount in excess thereof shall be deposited in the
8    General Revenue Fund.
9        (2) Whenever a State mental health facility operated by
10    the Department of Human Services is closed and the real
11    estate on which the facility is located is sold by the
12    State, the net proceeds of the sale of the real estate
13    shall be deposited into the Community Mental Health
14    Medicaid Trust Fund.
15        (3) Whenever a State developmental disabilities
16    facility operated by the Department of Human Services is
17    closed and the real estate on which the facility is located
18    is sold by the State, the net proceeds of the sale of the
19    real estate shall be deposited into the Community
20    Developmental Disability Services Medicaid Trust Fund.
21    The Administrator shall have authority to order such
22surveys, abstracts of title, or commitments for title insurance
23as may, in his reasonable discretion, be deemed necessary to
24demonstrate to prospective purchasers or bidders good and
25marketable title in any property offered for sale pursuant to
26this Section. Unless otherwise specifically authorized by the

 

 

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1General Assembly, all conveyances of property made by the
2Administrator shall be by quit claim deed.
3    (d-5) Notwithstanding any other provision of law, if the
4fair market value of surplus real property, as determined under
5subsection (d) of this Section, is $1,000,000 or more, then the
6transfer of that property to any entity other than a State
7agency must be approved by the General Assembly by statute,
8whether or not the transfer is made for an amount that exceeds,
9is less than, or is equal to the fair market value of the
10property.
11    (e) The Administrator shall submit an annual report on or
12before February 1 to the Governor and the General Assembly
13containing a detailed statement of surplus real property either
14transferred or conveyed under this Section.
15(Source: P.A. 96-527, eff. 1-1-10; 96-660, eff. 8-25-09;
1696-1000, eff. 7-2-10.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.