Illinois General Assembly - Full Text of SB2291
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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

    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.


LRB101 14531 RJF 63429 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2291LRB101 14531 RJF 63429 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 agency
16throughout the disposition process; however, the Administrator
17and the Department of Central Management Services have sole
18responsibility and authority for disposing of the property as
19set forth in this Section vacant, unoccupied or unused and
20which has no foreseeable use by the owning agency.
21    (b) All responsible officers shall submit an Annual Real
22Property Utilization Report to the Administrator, or annual
23update of such report, on forms required by the Administrator,

 

 

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

 

 

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1    (c) Following receipt of the Annual Real Property
2Utilization Report required under paragraph (b), the
3Administrator shall notify all State agencies by October 31 of
4all declared surplus real property. Any State agency may submit
5a written request to the Administrator, within 60 days of the
6date of such notification, to have control of surplus real
7property transferred to that agency. Such request must indicate
8the reason for the transfer and the intended use to be made of
9such surplus real property. The Administrator may deny any or
10all such requests by a State agency or agencies if the
11Administrator determines that it is more advantageous to the
12State to dispose of the surplus real property under paragraph
13(d). In case requests for the same surplus real property are
14received from more than one State agency, the Administrator
15shall weigh the benefits to the State and determine to which
16agency, if any, to transfer control of such property. The
17Administrator shall coordinate the use and disposal of State
18surplus real property with any State space utilization program.
19    (d) Any surplus real property which is not transferred to
20the control of another State agency under paragraph (c) shall
21be disposed of by the Administrator. No appraisal is required
22if during his initial survey of surplus real property the
23Administrator determines such property has a fair market value
24of less than $5,000. If the value of such property is
25determined 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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1appraisals of such real property, one of which shall be
2performed by an appraiser residing in the county in which said
3surplus real property is located. The average of these 2 3
4appraisals, plus the costs of obtaining the appraisals, shall
5represent the fair market value of the surplus real property.
6    No surplus real property may be conveyed by the
7Administrator for less than the fair market value, unless the
8Administrator makes a written determination that it is in the
9best interests of the State to establish a different value.
10That written determination shall be published in the Illinois
11Procurement Bulletin. The written determination, along with an
12affidavit setting forth the conditions and circumstances that
13make the use of a different value in the best interests of the
14State, shall also be filed with the Executive Ethics
15Commission. The Executive Ethics Commission shall have 30 days
16to review the written determination. The Executive Ethics
17Commission may order an additional 30 days to review the
18written determination. The Administrator shall provide the
19Executive Ethics Commission with any information requested by
20the Executive Ethics Commission related to the Administrator's
21determination of the value of the surplus real property. If the
22Executive Ethics Commission objects in writing to the value
23determined by the Administrator, then the Administrator shall
24not convey the surplus real property for less than either the
25fair market value as determined by the average of appraisals or
26an amount agreed upon by the Executive Ethics Commission and

 

 

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

 

 

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1in acquiring the property, then the Administrator shall wait a
2minimum of 30 additional days during which the Administrator
3may engage in negotiations with the governing body for the sale
4of the surplus real property. After the notice period as set by
5the Administrator of at least 14 days 60 day period has passed,
6the Administrator may sell the surplus real property by public
7auction, which may include an electronic auction or the use of
8sealed bids, following notice of such sale by publication on 3
9separate days not less than 15 nor more than 30 days prior to
10the sale in the State newspaper and in a newspaper having
11general circulation in the county in which the surplus real
12property is located. The Administrator shall post "For Sale"
13signs of a conspicuous nature on such surplus real property
14offered for sale to the public. If no acceptable offers for the
15surplus real property are received, the Administrator may have
16new appraisals of such property made. The Administrator shall
17have all power necessary to convey surplus real property under
18this Section. All moneys received for the sale of surplus real
19property shall be deposited in the General Revenue Fund, except
20that:
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
14surveys, abstracts of title, or commitments for title insurance
15as may, in his reasonable discretion, be deemed necessary to
16demonstrate to prospective purchasers or bidders good and
17marketable title in any property offered for sale pursuant to
18this Section. Unless otherwise specifically authorized by the
19General Assembly, all conveyances of property made by the
20Administrator shall be by quit claim deed.
21    (e) The Administrator shall submit an annual report on or
22before February 1 to the Governor and the General Assembly
23containing a detailed statement of surplus real property either
24transferred or conveyed under this Section.
25(Source: P.A. 96-527, eff. 1-1-10; 96-660, eff. 8-25-09;
2696-1000, eff. 7-2-10.)
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.