State of Illinois
2021 and 2022


Introduced 1/29/2021, by Sen. John Connor


30 ILCS 605/7.1  from Ch. 127, par. 133b10.1

    Amends the State Property Control Act. Provides that "surplus real property" means property that is vacant and determined by the head of the owning agency to no longer be required for the State agency's needs and responsibilities and has no foreseeable use by the owning agency (currently, vacant, unoccupied or unused and having no foreseeable use by the owning agency). Makes changes concerning transfers of surplus real property to State agencies. Provides that surplus real property may be conveyed by the Administrator for less than fair market value if the Administrator makes a written determination that it is in the best interests of the State to establish a different value. Provides that the determination shall be published in the Illinois Procurement Bulletin and filed with the Executive Ethics Commission. Makes other changes concerning the sale and acquisition of surplus real property. Effective immediately.

LRB102 02809 RJF 12817 b





SB0060LRB102 02809 RJF 12817 b

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



SB0060- 2 -LRB102 02809 RJF 12817 b

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



SB0060- 3 -LRB102 02809 RJF 12817 b

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



SB0060- 4 -LRB102 02809 RJF 12817 b

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



SB0060- 5 -LRB102 02809 RJF 12817 b

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



SB0060- 6 -LRB102 02809 RJF 12817 b

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



SB0060- 7 -LRB102 02809 RJF 12817 b

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



SB0060- 8 -LRB102 02809 RJF 12817 b

2    (e) The Administrator shall submit an annual report on or
3before February 1 to the Governor and the General Assembly
4containing a detailed statement of surplus real property
5either transferred or conveyed under this Section.
6(Source: P.A. 96-527, eff. 1-1-10; 96-660, eff. 8-25-09;
796-1000, eff. 7-2-10.)
8    Section 99. Effective date. This Act takes effect upon
9becoming law.