Full Text of SB2291 101st General Assembly
SB2291 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB2291 Introduced 10/28/2019, by Sen. Pat McGuire SYNOPSIS AS INTRODUCED: |
| 30 ILCS 605/7.1 | from Ch. 127, par. 133b10.1 |
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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.
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| | A BILL FOR |
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| 1 | | AN ACT concerning finance.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The State Property Control Act is amended by | 5 | | changing 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 | 8 | | surplus real
property held by the State of Illinois shall be | 9 | | disposed of by the
administrator as provided in this Section. | 10 | | "Surplus real property," as
used in this Section, means any | 11 | | real property to which the State holds fee
simple title or
| 12 | | lesser interest, and is determined by the head of the owning | 13 | | agency to no longer be required for the State agency's needs | 14 | | and responsibilities. Title to the surplus real property may, | 15 | | if approved by the Administrator, remain with the owning agency | 16 | | throughout the disposition process; however, the Administrator | 17 | | and the Department of Central Management Services have sole | 18 | | responsibility and authority for disposing of the property as | 19 | | set forth in this Section vacant, unoccupied or unused and | 20 | | which has no
foreseeable use by the owning agency .
| 21 | | (b) All responsible officers shall submit an Annual Real | 22 | | Property
Utilization Report to the Administrator, or annual | 23 | | update of such
report, on forms required by the Administrator, |
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| 1 | | by July 31 of each year.
The Administrator may require such | 2 | | documentation as he deems reasonably
necessary in connection | 3 | | with this Report, and shall require that such
Report include | 4 | | the following information:
| 5 | | (1) A legal description of all real property owned by the | 6 | | State
under the control of the responsible officer.
| 7 | | (2) A description of the use of the real property listed | 8 | | under (1).
| 9 | | (3) A list of any improvements made to such real property | 10 | | during the
previous year.
| 11 | | (4) The dates on which the State first acquired its | 12 | | interest in such
real property, and the purchase price and | 13 | | source of the funds used to
acquire the property.
| 14 | | (5) Plans for the future use of currently unused real | 15 | | property.
| 16 | | (6) A declaration of any surplus real property.
On or | 17 | | before October 31 of each year the Administrator shall furnish
| 18 | | copies of each responsible officer's report along with a list | 19 | | of surplus
property indexed by legislative district to the | 20 | | General Assembly.
| 21 | | This report shall be filed with the Speaker, the Minority | 22 | | Leader and the
Clerk of the House of Representatives and the | 23 | | President, the Minority
Leader and the Secretary of the Senate | 24 | | and shall be duplicated and made
available to the members of | 25 | | the General Assembly for evaluation by such
members for | 26 | | possible liquidation of unused public property at public sale.
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| 1 | | (c) Following receipt of the Annual Real Property | 2 | | Utilization Report
required under paragraph (b), the | 3 | | Administrator shall notify all State
agencies by October 31 of | 4 | | all declared surplus real
property. Any State
agency may submit | 5 | | a written request to the Administrator, within 60 days
of the | 6 | | date of such notification, to have control of surplus real
| 7 | | property transferred to that agency. Such request must indicate | 8 | | the
reason for the transfer and the intended use to be made of | 9 | | such surplus
real property. The Administrator may deny any or | 10 | | all such requests by a
State agency or agencies if the | 11 | | Administrator determines that it is more
advantageous to the | 12 | | State to dispose of the surplus real property under
paragraph | 13 | | (d). In case requests for the same surplus real property are
| 14 | | received from more than one State agency, the Administrator | 15 | | shall weigh
the benefits to the State and determine to which | 16 | | agency, if any, to
transfer control of such property. The | 17 | | Administrator shall coordinate
the use and disposal of State | 18 | | surplus real property with any State space
utilization program.
| 19 | | (d) Any surplus real property which is not transferred to | 20 | | the
control of another State agency under paragraph (c) shall | 21 | | be disposed of
by the Administrator. No appraisal is required | 22 | | if during his initial
survey of surplus real property the | 23 | | Administrator determines such
property has a fair market value | 24 | | of less than $5,000. If the value of
such property is | 25 | | determined by the Administrator in his initial survey
to be | 26 | | $5,000 or more, then the Administrator shall obtain 2 3 |
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| 1 | | appraisals
of such real property , one of which shall be | 2 | | performed by an appraiser
residing in the county in which said | 3 | | surplus real property is located .
The average of these 2 3 | 4 | | appraisals , plus the costs of obtaining the
appraisals, shall | 5 | | represent the fair market value of the surplus real
property. | 6 | | No surplus real property may be conveyed by the | 7 | | Administrator
for less than the fair market value , unless the | 8 | | Administrator makes a written determination that it is in the | 9 | | best interests of the State to establish a different value. | 10 | | That written determination shall be published in the Illinois | 11 | | Procurement Bulletin. The written determination, along with an | 12 | | affidavit setting forth the conditions and circumstances that | 13 | | make the use of a different value in the best interests of the | 14 | | State, shall also be filed with the Executive Ethics | 15 | | Commission. The Executive Ethics Commission shall have 30 days | 16 | | to review the written determination. The Executive Ethics | 17 | | Commission may order an additional 30 days to review the | 18 | | written determination. The Administrator shall provide the | 19 | | Executive Ethics Commission with any information requested by | 20 | | the Executive Ethics Commission related to the Administrator's | 21 | | determination of the value of the surplus real property. If the | 22 | | Executive Ethics Commission objects in writing to the value | 23 | | determined by the Administrator, then the Administrator shall | 24 | | not convey the surplus real property for less than either the | 25 | | fair market value as determined by the average of appraisals or | 26 | | an amount agreed upon by the Executive Ethics Commission and |
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| 1 | | the Administrator. Circumstances in which it is in the best | 2 | | interests of the State to establish a different value may | 3 | | include, but are not limited to, the following: (1) an auction | 4 | | did not yield any bids at the established fair market value; | 5 | | (2) a unit of local government is interested in acquiring the | 6 | | surplus real property; or (3) the costs to the State of | 7 | | maintaining the surplus real property are sufficiently high | 8 | | that it would be reasonable to a prudent person to sell the | 9 | | surplus real property for less than the fair market value | 10 | | established by the average of the appraisals . | 11 | | Prior to offering the surplus real
property for sale to the | 12 | | public the Administrator shall give notice in
writing of the | 13 | | existence and fair market value of the surplus real
property to | 14 | | each State agency and to the governing bodies of the county and | 15 | | of all cities,
villages and incorporated towns in the county in | 16 | | which such real
property is located. Any such State agency or | 17 | | governing body may notify the Administrator of its interest in | 18 | | acquiring exercise its option to
acquire the surplus real | 19 | | property for the fair market value within the notice period set | 20 | | by the Administrator of at least 14 days 60
days of the notice . | 21 | | If any State agency notifies the Administrator of its interest | 22 | | in acquiring the surplus property, the Administrator may deny | 23 | | any such requests by a State agency if the Administrator | 24 | | determines that it is more advantageous to the State to dispose | 25 | | of the surplus real property to a governing body or the public. | 26 | | If a governing body notifies the Administrator of its interest |
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| 1 | | in acquiring the property, then the Administrator shall wait a | 2 | | minimum of 30 additional days during which the Administrator | 3 | | may engage in negotiations with the governing body for the sale | 4 | | of the surplus real property. After the notice period as set by | 5 | | the Administrator of at least 14 days 60 day period has passed, | 6 | | the
Administrator may sell the surplus real property by public | 7 | | auction , which may include an electronic auction or the use of | 8 | | sealed bids,
following notice of such sale by publication on 3 | 9 | | separate days not less
than 15 nor more than 30 days prior to | 10 | | the sale in the State newspaper
and in a newspaper having | 11 | | general circulation in the county in which the
surplus real | 12 | | property is located. The Administrator shall post "For
Sale" | 13 | | signs of a conspicuous nature on such surplus real property
| 14 | | offered for sale to the public. If no acceptable offers for the | 15 | | surplus
real property are received, the Administrator may have | 16 | | new appraisals of
such property made. The Administrator shall | 17 | | have all power necessary to
convey surplus real property under | 18 | | this Section. All moneys received
for the sale of surplus real | 19 | | property shall be deposited in the General
Revenue Fund, except | 20 | | that: | 21 | | (1) Where moneys expended for the acquisition of such
| 22 | | real property were from a special fund which is still a | 23 | | special fund in
the State treasury, this special fund shall | 24 | | be reimbursed in the amount
of the original expenditure and | 25 | | any amount in excess thereof shall be
deposited in the | 26 | | General Revenue Fund. |
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| 1 | | (2) Whenever a State mental health facility operated by | 2 | | the Department of Human Services is closed and the real | 3 | | estate on which the facility is located is sold by the | 4 | | State, the net proceeds of the sale of the real estate | 5 | | shall be deposited into the Community Mental Health | 6 | | Medicaid Trust Fund. | 7 | | (3) Whenever a State developmental disabilities | 8 | | facility operated by the Department of Human Services is | 9 | | closed and the real estate on which the facility is located | 10 | | is sold by the State, the net proceeds of the sale of the | 11 | | real estate shall be deposited into the Community | 12 | | Developmental Disability Services Medicaid Trust Fund.
| 13 | | The Administrator shall have authority to order such | 14 | | surveys, abstracts
of title, or commitments for title insurance | 15 | | as may, in his reasonable
discretion, be deemed necessary to | 16 | | demonstrate to prospective purchasers or
bidders good and | 17 | | marketable title in any property offered for sale pursuant
to | 18 | | this Section. Unless otherwise specifically authorized by the | 19 | | General
Assembly, all conveyances of property made by the | 20 | | Administrator shall be by
quit claim deed.
| 21 | | (e) The Administrator shall submit an annual report on or | 22 | | before
February 1 to the Governor and the General Assembly | 23 | | containing a
detailed statement of surplus real property either | 24 | | transferred or
conveyed under this Section.
| 25 | | (Source: P.A. 96-527, eff. 1-1-10; 96-660, eff. 8-25-09; | 26 | | 96-1000, eff. 7-2-10.)
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| 1 | | Section 99. Effective date. This Act takes effect upon | 2 | | becoming law.
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