HB5226 94TH GENERAL ASSEMBLY

LRB094 16683 DRH 51953 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB5226

Introduced 01/24/06, by Rep. Robert Rita

SYNOPSIS AS INTRODUCED:

605 ILCS 10/9.12

Amends the Toll Highway Act. Provides that, if a privately held corporation with more than 400 shareholders holds a beneficial interest in land intended to be used or acquired for toll highway purposes, only those persons or entities holding a beneficial interest in excess of 5% must be disclosed. Provides that disclosure must be made by a written statement filed with the Illinois State Toll Highway Authority prior to (rather than contemporaneously with) its execution of the agreement or understanding for the use or acquisition of the property. Provides that the Authority must file the written statement of disclosure for recordation prior to its execution of the agreement or understanding or within 15 business days after the statement is filed with the Authority, whichever is earlier (rather than providing that the statement must be filed for recordation within 3 business days of its filing with the Authority). Effective immediately.

A BILL FOR

AN ACT concerning transportation.

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

Section 5. The Toll Highway Act is amended by changing Section 9.12 as follows:

(605 ILCS 10/9.12)

Sec. 9.12. Land disclosure requirements.

(a) Disclosure required. The Authority may not enter into any agreement or understanding for the use or acquisition of land that is intended to be used or acquired for toll highway purposes unless full disclosure of all beneficial interests in the land is made under this Section.

(b) Condemnation proceedings. If the Authority commences condemnation proceedings to acquire land that is intended to be used or acquired for toll highway purposes, the holders of all beneficial interests in the land must make full disclosure under this Section unless the court determines that the disclosure would cause irreparable harm to one or more holders of a beneficial interest.

(c) Beneficial interests. Each holder of any beneficial interest in the land, including without limitation beneficial interests in a land trust, must be disclosed, including both individuals and other entities. If any beneficial interest is held by an entity, other than an entity whose shares are publicly traded, and not by an individual, then all the holders of any beneficial interest in that entity must be disclosed. If the entity is a privately held corporation with more than 400 shareholders, only those persons or entities holding a beneficial interest in excess of 5% must be disclosed. This requirement continues at each level of holders of beneficial interests until all beneficial interests of all individuals in all entities, other than entities whose shares are publicly traded or that are privately held and have more than 400 shareholders, have been disclosed.

(d) Written statement. Disclosure must be made by a written statement filed (i) with the Authority prior to its contemporaneously with the execution of the agreement or understanding or (ii) in the case of a condemnation proceeding, with the Authority and the court within a time period ordered by the court. Each individual and entity must be disclosed by name and address and by a description of the interest held, including the percentage interest in the land held by the individual or entity. The statement must be verified, subject to penalty of perjury, by the individual or entity that who holds the greatest percentage of beneficial interest in the land.

(e) Recordation. The Authority must file the statement of record with the recorder of each county in which any part of the land is located prior to its execution of the agreement or understanding or within 15 3 business days after the statement is filed with the Authority, whichever is earlier.

(f) Agreements and understandings void. Any agreement or understanding in violation of this Act is void.

(g) Penalty. A person who knowingly violates this Section is guilty of a business offense and shall be fined $10,000.

(h) Other disclosure requirements. The disclosure required under this Act is in addition to, and not in lieu of, any other disclosure required by law.

(Source: P.A. 92-759, eff. 8-2-02.)

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