SB3569 103RD GENERAL ASSEMBLY

LRB103 36541 HLH 69571 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3569

Introduced 2/9/2024, by Sen. Erica Harriss

SYNOPSIS AS INTRODUCED:

5 ILCS 420/3A-55 new
5 ILCS 430/99-15 new
20 ILCS 3805/36 new

Amends the Illinois Housing Development Act. Creates the Fairness in Property Tax Foreclosure Task Force. Sets forth the membership of the Task Force. Provides that the Task Force shall study and make recommendations concerning issues associated with property foreclosure for failure to pay property taxes. Amends the Illinois Governmental Ethics Act and the State Officials and Employees Ethics Act to make conforming changes. Effective immediately.

A BILL FOR

AN ACT concerning revenue.

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

Section 5. The Illinois Governmental Ethics Act is amended by adding Section 3A-55 as follows:

(5 ILCS 420/3A-55 new)

Sec. 3A-55. Exemption. Members of the Fairness in Property Tax Foreclosure Task Force are, in their capacity as members of the Fairness in Property Tax Foreclosure Task Force, exempt from any training, disclosure, or filing requirements under this Act.

Section 10. The State Officials and Employees Ethics Act is amended by adding Section 99-15 as follows:

(5 ILCS 430/99-15 new)

Sec. 99-15. Exemption. The Fairness in Property Tax Foreclosure Task Force are, in their capacity as members of the Fairness in Property Tax Foreclosure Task Force, exempt from any training, disclosure, or filing requirements under this Act.

Section 15. The Illinois Housing Development Act is amended by adding Section 36 as follows:

(20 ILCS 3805/36 new)

Sec. 36. The Fairness in Property Tax Foreclosure Task Force.

(a) The General Assembly finds that:

(1) homeownership has long been viewed as a foundation for building wealth;

(2) for many Illinoisans, the equity in their home is the single greatest asset they have;

(3) the loss of owner-occupied homes following the annual tax sale results in a loss of home equity for impacted households and negatively impacts the ability of those households to build generational wealth; and

(4) the redemption process in Illinois can often be complicated, confusing, and burdensome, resulting in the loss of homeownership as well as the equity the homeowner built up over time.

(b) The Fairness in Property Tax Foreclosure Task Force is hereby created. The Task Force shall consist of the following members:

(1) one member, who shall serve as co-chairperson of the Task Force, appointed by the President of the Senate;

(2) one member, who shall serve as co-chairperson of the Task Force, appointed by the Speaker of the House of Representatives;

(3) one member appointed by the Minority Leader of the Senate;

(4) one member appointed by the Minority Leader of the House of Representatives;

(5) the Attorney General or his or her designee;

(6) one member appointed by the Governor from a statewide organization representing the interests of assessors;

(7) one member appointed by the Governor from a statewide organization that represents the interests of municipalities;

(8) one member appointed by the Governor from a statewide organization representing the interests of realtors;

(9) one member appointed by the Governor from a statewide organization that represents commercial bankers;

(10) one member appointed by the Governor from a statewide organization that represents attorneys working in the field of property title law;

(11) one member appointed by the Governor from a statewide organization that represents the interests of county clerks and recorders;

(12) one member appointed by the Governor from a statewide organization that represents the interests of county treasurers;

(13) one member appointed by the Governor from a statewide organization representing the interests of circuit court clerks;

(14) one member appointed by the Governor from a statewide organization representing the interests of counties;

(15) up to 2 members, appointed by the co-chairpersons of the Task Force, representing nonprofit affordable housing organizations, housing counseling organizations, or homeownership organizations; and

(16) up to 3 members, appointed by the co-chairpersons of the Task Force, representing taxing districts, other than municipalities, that contain a significant number of properties that are included in the annual tax sale.

At the discretion of both of the co-chairpersons of the Task Force, additional individuals may participate as nonvoting members of the Task Force.

(c) Members of the Task Force shall be appointed no later than 30 days after the effective date of this amendatory Act of the 103rd General Assembly. If any members are not appointed within that 30-day period, the appointing authority shall be deemed to have waived the right to make that appointment. Vacancies in the Task Force, other than a vacancy occurring because of a waiver by the appointing authority under this subsection, shall be filled by the original appointing authority.

(d) Members of the Task Force shall serve without compensation but may be reimbursed for necessary expenses incurred in connection with the Task Force. The Illinois Housing Development Authority shall provide administrative support to the Task Force as needed.

(e) The members of the Task Force are, in their capacity as members of the Fairness in Property Tax Foreclosure Task Force, exempt from any training, disclosure, or filing requirements under the State Officials and Employees Ethics Act, the Illinois Governmental Ethics Act, or any other applicable State law or rule imposing training, disclosure, or filing requirements.

(f) Once all of the members of the Task Force have been appointed, other than members appointed under items (15) or (16) of subsection (b) or members whose appointments have been waived under subsection (c), the Task Force shall meet not less than 4 times at the call of one or both of the co-chairpersons to carry out the duties prescribed in this Section. Members of the Task Force may attend those meetings virtually.

(g) The Task Force shall study and make recommendations concerning issues associated with property foreclosures due to failure of the owner to pay property taxes. Those issues shall include, but shall not be limited to:

(1) the recent decision of the United States Supreme Court in Tyler v. Hennepin County, 598 U.S. 631, regarding the retention of excess revenue by a government entity after the sale of property acquired following a tax sale and foreclosure;

(2) the requirements of the Illinois and United States Constitutions, especially with respect to due process and takings, and the impact of those provisions on the property tax sale process, including the sufficiency of notice requirements to delinquent taxpayers and related entities, such as lienholders and mortgagees, and conditions under which the holder of the tax deed or any subsequent owner is or should be entitled to retain excess funds acquired through the sale of property that has been acquired during a tax sale;

(3) the role of land bank authorities, mortgage holders, and other lienholders and the rights of each in the tax sale and foreclosure process;

(4) whether the tax lien foreclosure process is or should be the same for both residential property and commercial property or whether differences are necessary or desirable;

(5) the rights of former owners, commercial lenders or lienholders, and government entities when property has been acquired for nonpayment of property taxes and the tax deed grantee does not intend to sell the property; and

(6) the sufficiency of any current redemption periods or statutes of limitations with respect to property tax sales.

The recommendations of the Task Force may, but need not be, in the form of proposed legislation.

(g) A report detailing the Task Force's findings, conclusions, and recommendations shall be filed with the General Assembly, in accordance with Section 3.1 of the General Assembly Organization Act, by no later than December 30, 2024. The Task Force is dissolved upon submission of the report.

(h) This Section is repealed on January 1, 2025.

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