SB2580 93RD GENERAL ASSEMBLY

LRB093 20848 MKM 46780 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
SB2580

Introduced 2/4/2004, by George P. Shadid, Vince Demuzio

SYNOPSIS AS INTRODUCED:

20 ILCS 405/405-305	was 20 ILCS 405/67.06
30 ILCS 605/1.01	from Ch. 127, par. 133b2
30 ILCS 605/7.1	from Ch. 127, par. 133b10.1
30 ILCS 605/9	from Ch. 127, par. 133b12

Amends the Department of Central Management Services Law of the Civil Administrative Code of Illinois. Requires that unused State property leased by the Department of Central Management Services may not be leased at less than 60% of the fair market rental value rate unless specified conditions are met. Provides procedures for determining the fair market rental value. Provides that the Director of Central Management Services may lease property for nominal consideration only under certain circumstances. Makes a first violation a Class B misdemeanor. Makes a second or subsequent violation a Class A misdemeanor. Amends the State Property Control Act. Redefines the term "responsible officer" to exclude college presidents. When disposing of surplus real property, prohibits the Administrator from selling the property if any State agency requests its transfer. Makes changes in the procedures the Administrator must follow prior to disposal or division of the property. Provides that an appraisal is not required if the property is not being transferred to another State agency and the fair market value of the property is less that $15,000 (rather than $5,000). Makes a second or subsequent violation of the Act a Class A misdemeanor. Makes other changes. Effective immediately.

CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT in relation to property.

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

Section 5. The Department of Central Management Services Law of the Civil Administrative Code of Illinois is amended by changing Section 405-305 as follows:

(20 ILCS 405/405-305) (was 20 ILCS 405/67.06)

Sec. 405-305. Lease of unused or unproductive State land. To lease, at the fair market rental value rate, the unused or unproductive land under the jurisdiction of any of the several departments on terms and conditions that in the judgement of the Director are in the best interests of the State. The Department may lease property at a rate less than 60% of the fair market rental value rate only if (i) the Director certifies in writing the reasons for leasing the property at that rate and (ii) the rate constitutes fair and adequate compensation. The Director may not lease property for nominal consideration, except with the approval of the General Assembly by joint resolution. In the event of an emergency when the General Assembly is not in session, the Director may lease property for nominal consideration and shall seek the approval of the General Assembly by joint resolution upon the next meeting of the General Assembly. For the purposes of this Section, "nominal consideration" means less than 10% of the fair market rental value.

No appraisal is required if during its initial survey of the property the Department determines the property has an annual fair market rental value of less than $10 per square foot. If the annual fair market rental value of the property is determined by the Department in its initial survey to be $10 per square foot or more, then the Department shall obtain an appraisal by a State certified real estate appraiser. The appraisal shall represent the fair market rental value of the property.

Any responsible officer, person, or employee of the State government who knowingly violates this Section is guilty of a Class B misdemeanor. A second or subsequent violation of this Section by that officer, person, or employee is a Class A misdemeanor.

(Source: P.A. 91-239, eff. 1-1-00.)

Section 10. The State Property Control Act is amended by changing Sections 1.01, 7.1, and 9 as follows:

(30 ILCS 605/1.01) (from Ch. 127, par. 133b2)

Sec. 1.01. "Responsible officer" means and includes all elective State officers; directors of the executive code departments; presidents of State universities and colleges; chairmen of executive boards, bureaus, and commissions; and all other officers in charge of the property of the State of Illinois, including subordinates of responsible officers deputized by them to carry out some or all of their duties under this Act.

(Source: P.A. 82-1047.)

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

Sec. 7.1. (a) Except as otherwise provided by law, all surplus real property held by the State of Illinois shall be disposed of by the administrator as provided in this Section. "Surplus real property," as used in this Section, means any real property to which the State holds fee simple title or lesser interest, and is vacant, unoccupied or unused and which has no foreseeable use by the owning agency.

(b) All responsible officers shall submit an Annual Real Property Utilization Report to the Administrator, or annual update of such report, on forms required by the Administrator, by October 30 of each year. The Administrator may require such documentation as he deems reasonably necessary in connection with this Report, and shall require that such Report include the following information:

(1) A legal description of all real property owned by the State under the control of the responsible officer.

(2) A description of the use of the real property listed under (1).

(3) A list of any improvements made to such real property during the previous year.

(4) The dates on which the State first acquired its interest in such real property, and the purchase price and source of the funds used to acquire the property.

(5) Plans for the future use of currently unused real property.

(6) A declaration of any surplus real property. On or before November 30 December 31 of each year the Administrator shall furnish copies of each responsible officer's report along with a list of surplus property indexed by legislative district to the General Assembly.

This report shall be filed with the Speaker, the Minority Leader and the Clerk of the House of Representatives and the President, the Minority Leader and the Secretary of the Senate and shall be duplicated and made available to the members of the General Assembly for evaluation by such members for possible liquidation of unused public property at public sale. The members of the General Assembly shall review the list of surplus properties and submit any comments to the Administrator by January 15 of the year following the reports submission to the General Assembly. The Administrator must consider these comments when disposing of the property.

(c) Following receipt of the Annual Real Property Utilization Report required under paragraph (b), the Administrator shall notify all State agencies by December 31 of all declared surplus real property. Any State agency may submit a written request to the Administrator, within 60 days of the date of such notification, to have control of surplus real property transferred to that agency. Such request must indicate the reason for the transfer and the intended use to be made of such surplus real property. The Administrator may not deny a request any or all such requests by a State agency unless or agencies if the Administrator determines that it is more advantageous to the State to dispose of the surplus real property under paragraph (d). In case requests for the same surplus real property are received from more than one State agency requests the same property, in which case the Administrator shall weigh the benefits to the State and determine to which agency, if any, to transfer control of the such property or determine how the property shall be divided. The Administrator shall coordinate the use and disposal of State surplus real property with any State space utilization program.

(d) Any Surplus real property which is not transferred to the control of another State agency under paragraph (c) shall be disposed of by the Administrator. No appraisal is required if during his initial survey of surplus real property the Administrator determines such property has a fair market value of less than $15,000 $5,000. If the value of such property is determined by the Administrator in his initial survey to be $15,000 $5,000 or more, then the Administrator shall obtain 3 appraisals of such real property, one of which shall be performed by an appraiser residing in the county in which the said surplus real property is located. The average of these 3 appraisals, plus the costs of obtaining the appraisals, shall represent the fair market value of the surplus real property. No surplus real property may be conveyed by the Administrator for less than the fair market value. Prior to offering the surplus real property for sale to the public the Administrator shall give notice in writing of the existence and fair market value of the surplus real property to the governing bodies of the county and of all cities, villages and incorporated towns in the county in which such real property is located. Any such governing body may exercise its option to acquire the surplus real property for the fair market value within 60 days of the notice. After the 60 day period has passed, the Administrator may sell the surplus real property by public auction following notice of such sale by publication on 3 separate days not less than 15 nor more than 30 days prior to the sale in the State newspaper and in a newspaper having general circulation in the county in which the surplus real property is located. The Administrator shall post "For Sale" signs of a conspicuous nature on such surplus real property offered for sale to the public. If no acceptable offers for the surplus real property are received, the Administrator may have new appraisals of such property made. The Administrator shall have all power necessary to convey surplus real property under this Section. All moneys received for the sale of surplus real property shall be deposited in the General Revenue Fund, except where moneys expended for the acquisition of such real property were from a special fund which is still a special fund in the State treasury, this special fund shall be reimbursed in the amount of the original expenditure and any amount in excess thereof shall be deposited in the General Revenue Fund.

The Administrator shall have authority to order such surveys, abstracts of title, or commitments for title insurance as may, in his reasonable discretion, be deemed necessary to demonstrate to prospective purchasers or bidders good and marketable title in any property offered for sale pursuant to this Section. Unless otherwise specifically authorized by the General Assembly, all conveyances of property made by the Administrator shall be by quit claim deed.

(e) The Administrator shall submit an annual report by on or before February 1 to the Governor and the General Assembly containing a detailed statement of surplus real property either transferred or conveyed under this Section.

(Source: P.A. 85-315.)

(30 ILCS 605/9) (from Ch. 127, par. 133b12)

Sec. 9. Any responsible officer, person, or employee of the State government who knowingly violates any of the provisions, rules, regulations, directions and orders as set forth in this Act is shall be guilty of a Class B misdemeanor. A second or subsequent violation by that officer, person, or employee is a Class A misdemeanor.

(Source: P.A. 77-2598.)

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