101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5049

 

Introduced 2/18/2020, by Rep. Marcus C. Evans, Jr.

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/21-305

    Amends the Property Tax Code. In provisions concerning payments from the indemnity fund, provides that any award issued in favor of any Public Guardian as guardian for the party claiming indemnity shall be paid no later than 31 days from the date the judgment is entered, provided the judgment order has been tendered to the county treasurer as trustee of the indemnity fund for payment and unless otherwise extended by order of court. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5049LRB101 17333 HLH 66738 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Section 21-305 as follows:
 
6    (35 ILCS 200/21-305)
7    Sec. 21-305. Payments from Indemnity Fund.
8    (a) Any owner of property sold under any provision of this
9Code who sustains loss or damage by reason of the issuance of a
10tax deed under Section 21-445 or 22-40 and who is barred or is
11in any way precluded from bringing an action for the recovery
12of the property shall have the right to indemnity for the loss
13or damage sustained, limited as follows:
14        (1) An owner who resided on property that contained 4
15    or less dwelling units on the last day of the period of
16    redemption and who is equitably entitled to compensation
17    for the loss or damage sustained has the right to
18    indemnity. An equitable indemnity award shall be limited to
19    the fair cash value of the property as of the date the tax
20    deed was issued less any mortgages or liens on the
21    property, and the award will not exceed $99,000. The Court
22    shall liberally construe this equitable entitlement
23    standard to provide compensation wherever, in the

 

 

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1    discretion of the Court, the equities warrant the action.
2        An owner of a property that contained 4 or less
3    dwelling units who requests an award in excess of $99,000
4    must prove that the loss of his or her property was not
5    attributable to his or her own fault or negligence before
6    an award in excess of $99,000 will be granted.
7        (2) An owner who sustains the loss or damage of any
8    property occasioned by reason of the issuance of a tax
9    deed, without fault or negligence of his or her own, has
10    the right to indemnity limited to the fair cash value of
11    the property less any mortgages or liens on the property.
12    In determining the existence of fault or negligence, the
13    court shall consider whether the owner exercised ordinary
14    reasonable diligence under all of the relevant
15    circumstances.
16        (3) In determining the fair cash value of property less
17    any mortgages or liens on the property, the fair cash value
18    shall be reduced by the principal amount of all taxes paid
19    by the tax purchaser or his or her assignee before the
20    issuance of the tax deed.
21        (4) If an award made under paragraph (1) or (2) is
22    subject to a reduction by the amount of an outstanding
23    mortgage or lien on the property, other than the principal
24    amount of all taxes paid by the tax purchaser or his or her
25    assignee before the issuance of the tax deed and the
26    petitioner would be personally liable to the mortgagee or

 

 

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1    lienholder for all or part of that reduction amount, the
2    court shall order an additional indemnity award to be paid
3    directly to the mortgagee or lienholder sufficient to
4    discharge the petitioner's personal liability. The court,
5    in its discretion, may order the joinder of the mortgagee
6    or lienholder as an additional party to the indemnity
7    action.
8    (b) Indemnity fund; subrogation.
9        (1) Any person claiming indemnity hereunder shall
10    petition the Court which ordered the tax deed to issue,
11    shall name the County Treasurer, as Trustee of the
12    indemnity fund, as defendant to the petition, and shall ask
13    that judgment be entered against the County Treasurer, as
14    Trustee, in the amount of the indemnity sought. The
15    provisions of the Civil Practice Law shall apply to
16    proceedings under the petition, except that neither the
17    petitioner nor County Treasurer shall be entitled to trial
18    by jury on the issues presented in the petition. The Court
19    shall liberally construe this Section to provide
20    compensation wherever in the discretion of the Court the
21    equities warrant such action.
22        (2) The County Treasurer, as Trustee of the indemnity
23    fund, shall be subrogated to all parties in whose favor
24    judgment may be rendered against him or her, and by third
25    party complaint may bring in as a defendant any person,
26    other than the tax deed grantee and its successors in

 

 

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1    title, not a party to the action who is or may be liable to
2    him or her, as subrogee, for all or part of the
3    petitioner's claim against him or her.
4    (c) Any contract involving the proceeds of a judgment for
5indemnity under this Section, between the tax deed grantee or
6its successors in title and the indemnity petitioner or his or
7her successors, shall be in writing. In any action brought
8under Section 21-305, the Collector shall be entitled to
9discovery regarding, but not limited to, the following:
10        (1) the identity of all persons beneficially
11    interested in the contract, directly or indirectly,
12    including at least the following information: the names and
13    addresses of any natural persons; the place of
14    incorporation of any corporation and the names and
15    addresses of its shareholders unless it is publicly held;
16    the names and addresses of all general and limited partners
17    of any partnership; the names and addresses of all persons
18    having an ownership interest in any entity doing business
19    under an assumed name, and the county in which the assumed
20    business name is registered; and the nature and extent of
21    the interest in the contract of each person identified;
22        (2) the time period during which the contract was
23    negotiated and agreed upon, from the date of the first
24    direct or indirect contact between any of the contracting
25    parties to the date of its execution;
26        (3) the name and address of each natural person who

 

 

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1    took part in negotiating the contract, and the identity and
2    relationship of the party that the person represented in
3    the negotiations; and
4        (4) the existence of an agreement for payment of
5    attorney's fees by or on behalf of each party.
6    Any information disclosed during discovery may be subject
7to protective order as deemed appropriate by the court. The
8terms of the contract shall not be used as evidence of value.
9    (d) A petition of indemnity under this Section must be
10filed within 10 years after the date the tax deed was issued.
11    (e) Any award made under this Section issued in favor of
12any Public Guardian as guardian for the party claiming
13indemnity shall be paid no later than 31 days from the date the
14judgment is entered, provided the judgment order has been
15tendered to the county treasurer as trustee of the indemnity
16fund for payment and unless otherwise extended by order of
17court.
18(Source: P.A. 97-557, eff. 7-1-12.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.