Illinois General Assembly - Full Text of SB1719
Illinois General Assembly

Previous General Assemblies

Full Text of SB1719  102nd General Assembly

SB1719 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB1719

 

Introduced 2/26/2021, by Sen. Steve Stadelman

 

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

    Amends the State Property Control Act. Modifies the definition of the term "surplus real property". Provides that title to surplus real property may, if approved by the Director of Central Management Services as Administrator, remain with the owning agency throughout the disposition process; however, the Administrator and the Department of Central Management Services have sole responsibility and authority for disposing of the property. Requires the Administrator to obtain 2 (currently, 3) appraisals of surplus real property if the value of the property is determined in the initial survey to be $5,000 or more. Provides that no surplus real property may be conveyed by the Administrator for less than the fair market value, unless the Administrator makes a written determination that it is in the best interests of the State to establish a different value. Provides further requirements concerning the Administrator's written determination. Provides that prior to offering the surplus real property for sale to the public, the Administrator shall give notice in writing of the surplus real property to each State agency and to the governing bodies of the county and of all cities, villages, and incorporated towns in the county in which the real property is located. Provides further requirements concerning a State agency's or governing body's interest in acquiring surplus real property. Makes other changes. Effective immediately.


LRB102 16260 RJF 21642 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1719LRB102 16260 RJF 21642 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 owning
13agency to no longer be required for the State agency's needs
14and responsibilities. Title to the surplus real property may,
15if approved by the Administrator, remain with the owning
16agency throughout the disposition process; however, the
17Administrator and the Department of Central Management
18Services have sole responsibility and authority for disposing
19of the property as set forth in this Section vacant,
20unoccupied or unused and which has no foreseeable use by the
21owning agency.
22    (b) All responsible officers shall submit an Annual Real
23Property Utilization Report to the Administrator, or annual

 

 

SB1719- 2 -LRB102 16260 RJF 21642 b

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

 

 

SB1719- 3 -LRB102 16260 RJF 21642 b

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

 

 

SB1719- 4 -LRB102 16260 RJF 21642 b

1determined by the Administrator in his initial survey to be
2$5,000 or more, then the Administrator shall obtain 2 3
3appraisals of such real property, one of which shall be
4performed by an appraiser residing in the county in which said
5surplus real property is located. The average of these 2 3
6appraisals, plus the costs of obtaining the appraisals, shall
7represent the fair market value of the surplus real property.
8    No surplus real property may be conveyed by the
9Administrator for less than the fair market value, unless the
10Administrator makes a written determination that it is in the
11best interests of the State to establish a different value.
12That written determination shall be published in the Illinois
13Procurement Bulletin. The written determination, along with an
14affidavit setting forth the conditions and circumstances that
15make the use of a different value in the best interests of the
16State, shall also be filed with the Executive Ethics
17Commission. The Executive Ethics Commission shall have 30 days
18to review the written determination. The Executive Ethics
19Commission may order an additional 30 days to review the
20written determination. The Administrator shall provide the
21Executive Ethics Commission with any information requested by
22the Executive Ethics Commission related to the Administrator's
23determination of the value of the surplus real property. If
24the Executive Ethics Commission objects in writing to the
25value determined by the Administrator, then the Administrator
26shall not convey the surplus real property for less than

 

 

SB1719- 5 -LRB102 16260 RJF 21642 b

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

 

 

SB1719- 6 -LRB102 16260 RJF 21642 b

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

 

 

SB1719- 7 -LRB102 16260 RJF 21642 b

1    shall be reimbursed in the amount of the original
2    expenditure and any amount in excess thereof shall be
3    deposited in the General Revenue Fund.
4        (2) Whenever a State mental health facility operated
5    by the Department of Human Services is closed and the real
6    estate on which the facility is located is sold by the
7    State, the net proceeds of the sale of the real estate
8    shall be deposited into the Community Mental Health
9    Medicaid Trust Fund.
10        (3) Whenever a State developmental disabilities
11    facility operated by the Department of Human Services is
12    closed and the real estate on which the facility is
13    located is sold by the State, the net proceeds of the sale
14    of the real estate shall be deposited into the Community
15    Developmental Disability Services Medicaid Trust Fund.
16    The Administrator shall have authority to order such
17surveys, abstracts of title, or commitments for title
18insurance as may, in his reasonable discretion, be deemed
19necessary to demonstrate to prospective purchasers or bidders
20good and marketable title in any property offered for sale
21pursuant to this Section. Unless otherwise specifically
22authorized by the General Assembly, all conveyances of
23property made by the Administrator shall be by quit claim
24deed.
25    (e) The Administrator shall submit an annual report on or
26before February 1 to the Governor and the General Assembly

 

 

SB1719- 8 -LRB102 16260 RJF 21642 b

1containing a detailed statement of surplus real property
2either transferred or conveyed under this Section.
3(Source: P.A. 96-527, eff. 1-1-10; 96-660, eff. 8-25-09;
496-1000, eff. 7-2-10.)
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.