HB3988 96TH GENERAL ASSEMBLY

LRB096 03410 HLH 13434 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB3988

Introduced 2/26/2009, by Rep. Brandon W. Phelps

SYNOPSIS AS INTRODUCED:

35 ILCS 200/21-205
30 ILCS 105/5.719 new

Amends the Property Tax Code. In a Section concerning automated tax sales, provides that the automated sales must be conducted in a manner that is consistent with the rules promulgated by the Department of Revenue and the procedures set forth in the Code. Requires the Department of Revenue to (i) promulgate rules by which collectors may conduct automated tax sales, and (ii) approve all automated tax sale systems in use on the effective date of the amendatory Act. Provides that the Department shall (i) conduct an annual inspection of all equipment used in an automated tax sale, (ii) conduct an errorless public test of each automated tax sale system, and (iii) provide a public demonstration of the automated tax sale system. Requires that vendors of automated tax sale systems must obtain a license from the Department of Revenue, and provides that the Department may charge each vendor an annual application fee not to exceed $500 per vendor. Provides that the application fees shall be deposited into the Automated Tax Sale Implementation Fund, and amends the State Finance Act to create the Fund. Requires computer operators of automated systems to maintain certain logs. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Property Tax Code is amended by changing Section 21-205 as follows:

(35 ILCS 200/21-205)

Sec. 21-205. Tax sale procedures. The collector, in person or by deputy, shall attend, on the day and in the place specified in the notice for the sale of property for taxes, and shall, between 9:00 a.m. and 4:00 p.m., or later at the collector's discretion, proceed to offer for sale, separately and in consecutive order, all property in the list on which the taxes, special assessments, interest or costs have not been paid. However, in any county with 3,000,000 or more inhabitants, the offer for sale shall be made between 8:00 a.m. and 8:00 p.m. The collector's office shall be kept open during all hours in which the sale is in progress. The sale shall be continued from day to day, until all property in the delinquent list has been offered for sale. However, any city, village or incorporated town interested in the collection of any tax or special assessment, may, in default of bidders, withdraw from collection the special assessment levied against any property by the corporate authorities of the city, village or incorporated town. In case of a withdrawal, there shall be no sale of that property on account of the delinquent special assessment thereon.

In every sale of property pursuant to the provisions of this Code, the collector may employ any automated means that the collector deems appropriate, provided that bidders are required to personally attend the sale and any such automated sale must be conducted in a manner that is consistent with the rules of the Department and the procedures set forth in this Code. The changes made by this amendatory Act of the 94th General Assembly are declarative of existing law.

Within 6 months after the effective date of this amendatory Act of the 96th General Assembly, the Department shall (i) promulgate rules by which collectors may conduct automated tax sales, and (ii) approve all automated tax sale systems in use on the effective date of this amendatory Act of the 96th General Assembly. The rules must set forth the procedures to be used by the county in an automated tax sale, including, but not limited to, the placement of computer bidding equipment at the tax sale site and the amount of time the collector must allow between each electronic bid. Rulemaking authority to implement this amendatory Act of the 96th General Assembly, if any, is conditioned on the rules being adopted in accordance with all provisions of the Illinois Administrative Procedure Act and all rules and procedures of the Joint Committee on Administrative Rules; any purported rule not so adopted, for whatever reason, is unauthorized.

The Department shall conduct an annual inspection of all equipment used in an automated tax sale. The Department must also conduct an errorless public test of each automated tax sale system at least 10 days but not more than 20 days prior to the annual tax sale, and shall provide a public demonstration of the automated tax sale system at least 30 days but not more than 60 days prior to the annual tax sale.

Beginning in the first calendar year after the effective date of this amendatory Act of the 96th General Assembly, each vendor that provides automated tax sale equipment and technology to a county must obtain a license issued by the Department. Each license shall be subject to renewal annually. The Department may charge each vendor an application fee not to exceed $500 per vendor. Those license fees shall be deposited into the Automated Tax Sale Implementation Fund, a special fund created in the State treasury. Moneys in the Fund shall be appropriated to the Department to cover the costs associated with implementing and enforcing this Section.

Any computer operator of an automated tax sale system shall maintain a log with the following information: alterations made to programs associated with the tax sale process; the starting time of the tax sale; the winning bid for each parcel sold; the amount of taxes, interest, and county fees paid for each parcel sold; and any equipment problems or delays in the auction process. The log shall be made available for public inspection.

(Source: P.A. 94-922, eff. 1-1-07.)

Section 10. The State Finance Act is amended by adding Section 5.719 as follows:

(30 ILCS 105/5.719 new)

Sec. 5.719. The Automated Tax Sale Implementation Fund.

Section 99. Effective date. This Act takes effect upon becoming law.