103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3569

 

Introduced 2/9/2024, by Sen. Erica Harriss

 

SYNOPSIS AS INTRODUCED:
 
5 ILCS 420/3A-55 new
5 ILCS 430/99-15 new
20 ILCS 3805/36 new

    Amends the Illinois Housing Development Act. Creates the Fairness in Property Tax Foreclosure Task Force. Sets forth the membership of the Task Force. Provides that the Task Force shall study and make recommendations concerning issues associated with property foreclosure for failure to pay property taxes. Amends the Illinois Governmental Ethics Act and the State Officials and Employees Ethics Act to make conforming changes. Effective immediately.


LRB103 36541 HLH 69571 b

 

 

A BILL FOR

 

SB3569LRB103 36541 HLH 69571 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 Illinois Governmental Ethics Act is amended
5by adding Section 3A-55 as follows:
 
6    (5 ILCS 420/3A-55 new)
7    Sec. 3A-55. Exemption. Members of the Fairness in Property
8Tax Foreclosure Task Force are, in their capacity as members
9of the Fairness in Property Tax Foreclosure Task Force, exempt
10from any training, disclosure, or filing requirements under
11this Act.
 
12    Section 10. The State Officials and Employees Ethics Act
13is amended by adding Section 99-15 as follows:
 
14    (5 ILCS 430/99-15 new)
15    Sec. 99-15. Exemption. The Fairness in Property Tax
16Foreclosure Task Force are, in their capacity as members of
17the Fairness in Property Tax Foreclosure Task Force, exempt
18from any training, disclosure, or filing requirements under
19this Act.
 
20    Section 15. The Illinois Housing Development Act is

 

 

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1amended by adding Section 36 as follows:
 
2    (20 ILCS 3805/36 new)
3    Sec. 36. The Fairness in Property Tax Foreclosure Task
4Force.
5    (a) The General Assembly finds that:
6        (1) homeownership has long been viewed as a foundation
7    for building wealth;
8        (2) for many Illinoisans, the equity in their home is
9    the single greatest asset they have;
10        (3) the loss of owner-occupied homes following the
11    annual tax sale results in a loss of home equity for
12    impacted households and negatively impacts the ability of
13    those households to build generational wealth; and
14        (4) the redemption process in Illinois can often be
15    complicated, confusing, and burdensome, resulting in the
16    loss of homeownership as well as the equity the homeowner
17    built up over time.
18    (b) The Fairness in Property Tax Foreclosure Task Force is
19hereby created. The Task Force shall consist of the following
20members:
21        (1) one member, who shall serve as co-chairperson of
22    the Task Force, appointed by the President of the Senate;
23        (2) one member, who shall serve as co-chairperson of
24    the Task Force, appointed by the Speaker of the House of
25    Representatives;

 

 

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1        (3) one member appointed by the Minority Leader of the
2    Senate;
3        (4) one member appointed by the Minority Leader of the
4    House of Representatives;
5        (5) the Attorney General or his or her designee;
6        (6) one member appointed by the Governor from a
7    statewide organization representing the interests of
8    assessors;
9        (7) one member appointed by the Governor from a
10    statewide organization that represents the interests of
11    municipalities;
12        (8) one member appointed by the Governor from a
13    statewide organization representing the interests of
14    realtors;
15        (9) one member appointed by the Governor from a
16    statewide organization that represents commercial bankers;
17        (10) one member appointed by the Governor from a
18    statewide organization that represents attorneys working
19    in the field of property title law;
20        (11) one member appointed by the Governor from a
21    statewide organization that represents the interests of
22    county clerks and recorders;
23        (12) one member appointed by the Governor from a
24    statewide organization that represents the interests of
25    county treasurers;
26        (13) one member appointed by the Governor from a

 

 

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1    statewide organization representing the interests of
2    circuit court clerks;
3        (14) one member appointed by the Governor from a
4    statewide organization representing the interests of
5    counties;
6        (15) up to 2 members, appointed by the co-chairpersons
7    of the Task Force, representing nonprofit affordable
8    housing organizations, housing counseling organizations,
9    or homeownership organizations; and
10        (16) up to 3 members, appointed by the co-chairpersons
11    of the Task Force, representing taxing districts, other
12    than municipalities, that contain a significant number of
13    properties that are included in the annual tax sale.
14    At the discretion of both of the co-chairpersons of the
15Task Force, additional individuals may participate as
16nonvoting members of the Task Force.
17    (c) Members of the Task Force shall be appointed no later
18than 30 days after the effective date of this amendatory Act of
19the 103rd General Assembly. If any members are not appointed
20within that 30-day period, the appointing authority shall be
21deemed to have waived the right to make that appointment.
22Vacancies in the Task Force, other than a vacancy occurring
23because of a waiver by the appointing authority under this
24subsection, shall be filled by the original appointing
25authority.
26    (d) Members of the Task Force shall serve without

 

 

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1compensation but may be reimbursed for necessary expenses
2incurred in connection with the Task Force. The Illinois
3Housing Development Authority shall provide administrative
4support to the Task Force as needed.
5    (e) The members of the Task Force are, in their capacity as
6members of the Fairness in Property Tax Foreclosure Task
7Force, exempt from any training, disclosure, or filing
8requirements under the State Officials and Employees Ethics
9Act, the Illinois Governmental Ethics Act, or any other
10applicable State law or rule imposing training, disclosure, or
11filing requirements.
12    (f) Once all of the members of the Task Force have been
13appointed, other than members appointed under items (15) or
14(16) of subsection (b) or members whose appointments have been
15waived under subsection (c), the Task Force shall meet not
16less than 4 times at the call of one or both of the
17co-chairpersons to carry out the duties prescribed in this
18Section. Members of the Task Force may attend those meetings
19virtually.
20    (g) The Task Force shall study and make recommendations
21concerning issues associated with property foreclosures due to
22failure of the owner to pay property taxes. Those issues shall
23include, but shall not be limited to:
24        (1) the recent decision of the United States Supreme
25    Court in Tyler v. Hennepin County, 598 U.S. 631, regarding
26    the retention of excess revenue by a government entity

 

 

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1    after the sale of property acquired following a tax sale
2    and foreclosure;
3        (2) the requirements of the Illinois and United States
4    Constitutions, especially with respect to due process and
5    takings, and the impact of those provisions on the
6    property tax sale process, including the sufficiency of
7    notice requirements to delinquent taxpayers and related
8    entities, such as lienholders and mortgagees, and
9    conditions under which the holder of the tax deed or any
10    subsequent owner is or should be entitled to retain excess
11    funds acquired through the sale of property that has been
12    acquired during a tax sale;
13        (3) the role of land bank authorities, mortgage
14    holders, and other lienholders and the rights of each in
15    the tax sale and foreclosure process;
16        (4) whether the tax lien foreclosure process is or
17    should be the same for both residential property and
18    commercial property or whether differences are necessary
19    or desirable;
20        (5) the rights of former owners, commercial lenders or
21    lienholders, and government entities when property has
22    been acquired for nonpayment of property taxes and the tax
23    deed grantee does not intend to sell the property; and
24        (6) the sufficiency of any current redemption periods
25    or statutes of limitations with respect to property tax
26    sales.

 

 

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1    The recommendations of the Task Force may, but need not
2be, in the form of proposed legislation.
3    (g) A report detailing the Task Force's findings,
4conclusions, and recommendations shall be filed with the
5General Assembly, in accordance with Section 3.1 of the
6General Assembly Organization Act, by no later than December
730, 2024. The Task Force is dissolved upon submission of the
8report.
9    (h) This Section is repealed on January 1, 2025.
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.