SB2409eng 93RD GENERAL ASSEMBLY

SB2409 Engrossed LRB093 20514 SJM 46309 b

AN ACT concerning taxes.

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 adding Section 22-31 as follows:

(35 ILCS 200/22-31 new)

Sec. 22-31. Procedure to prevent unjust issuance of deed.

(a) Definitions. For purposes of this Section:

"Residential property" means any real estate that is improved with a single family residence or residential condominium units or a multiple dwelling structure containing single family dwelling units for 6 or fewer families living independently of each other and includes a condominium unit. The use of a portion of residential real estate for non-residential purposes does not affect the characterization of that real estate as residential real estate.

"Person designated to receive service" means the public guardian of the county in which the property is located, or his or her designee, or such other person as the chief judge of the circuit court of that county so designates.

(b) Notice of tax deed petition after redemption period has expired. In all proceedings for the issuance of a tax deed that concern residential properties for which the owner of record has not redeemed the taxes within the redemption period, including any extensions of the redemption period, the tax purchaser, or his or her assignee, shall serve the person designated to receive notice with a copy of the notice required by Section 22-10. The manner of service shall be made pursuant to Supreme Court Rule 105(b)(1) or Supreme Court Rule 105(b)(2). With regard to any residential property, no tax deed shall issue until 60 days after the date that the person designated to receive notice has been formally served with notice of the tax deed proceeding.

(c) Investigation of owner of record's capacity. Upon receipt of the notice referred to in subsection (b), the person designated to receive notice shall conduct an investigation of the owner of record's capacity. The investigation shall be concluded within 60 days after the receipt of that notice. On petition to the court in the tax deed proceeding, with notice to the tax purchaser, the time to conclude the investigation may be extended for an additional 60 days for good cause shown. No tax deed shall issue during any such extension of time. The person designated to receive notice has the right to have the clerk of the court issue subpoenas and the right to petition the court in the tax deed proceeding for additional assistance, including a request to be named guardian ad litem, as may be necessary to conduct the investigation that is required by this Section.

(d) Appointment of guardian. If the person designated to receive notice concludes that the owner of record may be a disabled person, as defined in Article XIa of the Probate Act of 1975, and that appointment of a guardian under Article XIa of the Probate Act of 1975 may be necessary to protect the interests of the owner of record, then the person designated to receive notice shall cause a petition for guardianship to be filed in the appropriate court in the county in which the property is located. The tax deed petitioner shall be served with formal notice of the petition for guardianship. The notice shall include a copy of the petition for guardianship. The manner of service shall be made pursuant to Supreme Court Rule 105(b)(1) or Supreme Court Rule 105(b)(2). The tax deed petitioner may appear in the guardianship proceeding in order to object to a finding that the owner of record was disabled during any portion of the redemption period or to seek a ruling that the owner of record was not disabled during the redemption period.

Upon the filing of a petition for guardianship, all further proceedings in the tax deed proceeding shall be stayed until further order of the court in which the guardianship proceeding is pending. If, as a result of the petition for guardianship, the probate court adjudges the owner of record to be a disabled person and appoints a guardian of the estate pursuant to Section 11a-3 of the Probate Act of 1975, the court shall also determine by a preponderance of the evidence whether the owner of record was disabled and unable to manage his or her estate during any portion of the redemption period. If the court determines that the owner of record was disabled and unable to manage his or her estate during any portion of the redemption period, the guardian shall be entitled to redeem from the tax sale within 6 months after the date of the appointment of the guardian. Unless the court determines that the owner of record was disabled and was unable to manage his or her estate throughout the redemption period, the court shall enter an order lifting the stay of the tax deed proceedings. A finding that the owner of record was not disabled during any portion of the redemption period does not preclude that person from raising any other available defenses to the issuance of a tax deed in the tax deed proceeding.

(e) Reimbursement to the person entitled to notice. The person entitled to notice is entitled to reimbursement for the reasonable costs of the investigation undertaken pursuant to this Section, including reasonable attorney's fees, whether or not a guardian is appointed, provided that the amount of reimbursement is approved by the court. The person entitled to receive notice may bring a petition for reimbursement of costs and attorney's fees in either the court hearing the guardianship proceeding or the court hearing the tax deed proceeding. The reimbursement for costs and attorney's fees approved by the court shall be paid from the indemnity fund created in the county under Section 21-295 of this Act. If a guardian of the estate for the owner of record is appointed, the guardian shall petition the court in the probate proceeding for authority to reimburse the indemnity fund from the estate of the owner of record for any costs paid from the indemnity fund that relate to the investigation of the owner of record under this Section. Upon that petition, the court shall order reimbursement unless that reimbursement will cause substantial hardship to the owner of record.

(f) This Section applies only in Cook County.