101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB0810

 

Introduced , by Rep. Sonya M. Harper

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 605/7.1  from Ch. 127, par. 133b10.1
35 ILCS 200/15-55

    Amends the State Property Control Act. Provides that the Director of Central Management Services as Administrator may convey any surplus real property covered by the State Property Control Act, by sale or lease, to a duly incorporated, charitable, non-profit organization or association for the cultivation and sale of fresh fruits and vegetables on a tract of land of less than 5 acres within any local governmental unit, provided that the non-profit organization or association is not controlled, directly or indirectly, by any agricultural, commercial, or other business. Provides that the non-profit organization or association shall be authorized to sell fresh fruits and vegetables either on the land that was conveyed, off that land, or both, provided, that the sales are related or incidental to the non-profit purposes of the organization or association, and the net proceeds received by the non-profit organization or association are used to further the non-profit purposes of the organization or association. Provides that the lease of any real property to any duly incorporated non-profit organization or association shall be in accordance with the Illinois Procurement Code. Amends the Property Tax Code to provide a property tax exemption for non-profit organizations using land for the cultivation and sale of fresh fruits and vegetables.


LRB101 04945 RJF 49954 b

 

 

A BILL FOR

 

HB0810LRB101 04945 RJF 49954 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 vacant, unoccupied or unused and which
13has no foreseeable use by the owning agency.
14    (b) All responsible officers shall submit an Annual Real
15Property Utilization Report to the Administrator, or annual
16update of such report, on forms required by the Administrator,
17by July 31 of each year. The Administrator may require such
18documentation as he deems reasonably necessary in connection
19with this Report, and shall require that such Report include
20the following information:
21    (1) A legal description of all real property owned by the
22State under the control of the responsible officer.
23    (2) A description of the use of the real property listed

 

 

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1under (1).
2    (3) A list of any improvements made to such real property
3during the previous year.
4    (4) The dates on which the State first acquired its
5interest in such real property, and the purchase price and
6source of the funds used to acquire the property.
7    (5) Plans for the future use of currently unused real
8property.
9    (6) A declaration of any surplus real property. On or
10before October 31 of each year the Administrator shall furnish
11copies of each responsible officer's report along with a list
12of surplus property indexed by legislative district to the
13General Assembly.
14    This report shall be filed with the Speaker, the Minority
15Leader and the Clerk of the House of Representatives and the
16President, the Minority Leader and the Secretary of the Senate
17and shall be duplicated and made available to the members of
18the General Assembly for evaluation by such members for
19possible liquidation of unused public property at public sale.
20    (c) Following receipt of the Annual Real Property
21Utilization Report required under paragraph (b), the
22Administrator shall notify all State agencies by October 31 of
23all declared surplus real property. Any State agency may submit
24a written request to the Administrator, within 60 days of the
25date of such notification, to have control of surplus real
26property transferred to that agency. Such request must indicate

 

 

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1the reason for the transfer and the intended use to be made of
2such surplus real property. The Administrator may deny any or
3all such requests by a State agency or agencies if the
4Administrator determines that it is more advantageous to the
5State to dispose of the surplus real property under paragraph
6(d). In case requests for the same surplus real property are
7received from more than one State agency, the Administrator
8shall weigh the benefits to the State and determine to which
9agency, if any, to transfer control of such property. The
10Administrator shall coordinate the use and disposal of State
11surplus real property with any State space utilization program.
12    (d) Any surplus real property which is not transferred to
13the control of another State agency under paragraph (c) shall
14be disposed of by the Administrator. No appraisal is required
15if during his initial survey of surplus real property the
16Administrator determines such property has a fair market value
17of less than $5,000. If the value of such property is
18determined by the Administrator in his initial survey to be
19$5,000 or more, then the Administrator shall obtain 3
20appraisals of such real property, one of which shall be
21performed by an appraiser residing in the county in which said
22surplus real property is located. The average of these 3
23appraisals, plus the costs of obtaining the appraisals, shall
24represent the fair market value of the surplus real property.
25No surplus real property may be conveyed by the Administrator
26for less than the fair market value. Prior to offering the

 

 

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1surplus real property for sale to the public the Administrator
2shall give notice in writing of the existence and fair market
3value of the surplus real property to the governing bodies of
4the county and of all cities, villages and incorporated towns
5in the county in which such real property is located. Any such
6governing body may exercise its option to acquire the surplus
7real property for the fair market value within 60 days of the
8notice. After the 60 day period has passed, the Administrator
9may sell the surplus real property by public auction following
10notice of such sale by publication on 3 separate days not less
11than 15 nor more than 30 days prior to the sale in the State
12newspaper and in a newspaper having general circulation in the
13county in which the surplus real property is located. The
14Administrator shall post "For Sale" signs of a conspicuous
15nature on such surplus real property offered for sale to the
16public. If no acceptable offers for the surplus real property
17are received, the Administrator may have new appraisals of such
18property made. The Administrator shall have all power necessary
19to convey surplus real property under this Section. All moneys
20received for the sale of surplus real property shall be
21deposited in the General Revenue Fund, except that:
22        (1) Where moneys expended for the acquisition of such
23    real property were from a special fund which is still a
24    special fund in the State treasury, this special fund shall
25    be reimbursed in the amount of the original expenditure and
26    any amount in excess thereof shall be deposited in the

 

 

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1    General Revenue Fund.
2        (2) Whenever a State mental health facility operated by
3    the Department of Human Services is closed and the real
4    estate on which the facility is located is sold by the
5    State, the net proceeds of the sale of the real estate
6    shall be deposited into the Community Mental Health
7    Medicaid Trust Fund.
8        (3) Whenever a State developmental disabilities
9    facility operated by the Department of Human Services is
10    closed and the real estate on which the facility is located
11    is sold by the State, the net proceeds of the sale of the
12    real estate shall be deposited into the Community
13    Developmental Disability Services Medicaid Trust Fund.
14    The Administrator shall have authority to order such
15surveys, abstracts of title, or commitments for title insurance
16as may, in his reasonable discretion, be deemed necessary to
17demonstrate to prospective purchasers or bidders good and
18marketable title in any property offered for sale pursuant to
19this Section. Unless otherwise specifically authorized by the
20General Assembly, all conveyances of property made by the
21Administrator shall be by quit claim deed.
22    (d-5) Notwithstanding any other provision of this Act, the
23Administrator may convey any surplus real property covered by
24this Act, by sale or lease, to a duly incorporated, charitable,
25non-profit organization or association for the cultivation and
26sale of fresh fruits and vegetables on a tract of land of less

 

 

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1than 5 acres within any local governmental unit, provided that
2the non-profit organization or association is not controlled,
3directly or indirectly, by any agricultural, commercial, or
4other business. The non-profit organization or association
5under this subsection (d-5) shall be authorized to sell fresh
6fruits and vegetables either on the land that was conveyed, off
7that land, or both, provided, that the sales are related or
8incidental to the non-profit purposes of the organization or
9association, and the net proceeds received by the non-profit
10organization or association are used to further the non-profit
11purposes of the organization or association. The lease of any
12real property to any duly incorporated non-profit organization
13or association shall be in accordance with the Illinois
14Procurement Code.
15    (e) The Administrator shall submit an annual report on or
16before February 1 to the Governor and the General Assembly
17containing a detailed statement of surplus real property either
18transferred or conveyed under this Section.
19(Source: P.A. 96-527, eff. 1-1-10; 96-660, eff. 8-25-09;
2096-1000, eff. 7-2-10.)
 
21    Section 10. The Property Tax Code is amended by changing
22Section 15-55 as follows:
 
23    (35 ILCS 200/15-55)
24    Sec. 15-55. State property.

 

 

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1    (a) All property belonging to the State of Illinois is
2exempt. However, the State agency holding title shall file the
3certificate of ownership and use required by Section 15-10,
4together with a copy of any written lease or agreement, in
5effect on March 30 of the assessment year, concerning parcels
6of 1 acre or more, or an explanation of the terms of any oral
7agreement under which the property is leased, subleased or
8rented.
9    The leased property shall be assessed to the lessee and the
10taxes thereon extended and billed to the lessee, and collected
11in the same manner as for property which is not exempt. The
12lessee shall be liable for the taxes and no lien shall attach
13to the property of the State.
14    For the purposes of this Section, the word "leases"
15includes licenses, franchises, operating agreements and other
16arrangements under which private individuals, associations or
17corporations are granted the right to use property of the
18Illinois State Toll Highway Authority and includes all property
19of the Authority used by others without regard to the size of
20the leased parcel.
21    (b) However, all property of every kind belonging to the
22State of Illinois, which is or may hereafter be leased to the
23Illinois Prairie Path Corporation, shall be exempt from all
24assessments, taxation or collection, despite the making of any
25such lease, if it is used for:
26        (1) conservation, nature trail or any other

 

 

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1    charitable, scientific, educational or recreational
2    purposes with public benefit, including the preserving and
3    aiding in the preservation of natural areas, objects,
4    flora, fauna or biotic communities;
5        (2) the establishment of footpaths, trails and other
6    protected areas;
7        (3) the conservation of the proper use of natural
8    resources or the promotion of the study of plant and animal
9    communities and of other phases of ecology, natural history
10    and conservation;
11        (4) the promotion of education in the fields of nature,
12    preservation and conservation; or
13        (5) similar public recreational activities conducted
14    by the Illinois Prairie Path Corporation.
15    No lien shall attach to the property of the State. No tax
16liability shall become the obligation of or be enforceable
17against Illinois Prairie Path Corporation.
18    (b-5) However, all property of every kind belonging to the
19State of Illinois, which is or may be sold or leased to a
20non-profit organization specified under subsection (d-5) of
21Section 7.1 of the State Property Control Act, shall be exempt
22from all assessments, taxation, or collection, despite the
23making of any such sale or lease, if it is used for the
24cultivation and sale of fresh fruits and vegetables, and the
25net proceeds received by the non-profit organization or
26association are used to further the non-profit purposes of the

 

 

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1organization or association.
2    (c) If the State sells the James R. Thompson Center or the
3Elgin Mental Health Center and surrounding land located at 750
4S. State Street, Elgin, Illinois, as provided in subdivision
5(a)(2) of Section 7.4 of the State Property Control Act, to
6another entity whose property is not exempt and immediately
7thereafter enters into a leaseback or other agreement that
8directly or indirectly gives the State a right to use, control,
9and possess the property, that portion of the property leased
10and occupied exclusively by the State shall remain exempt under
11this Section. For the property to remain exempt under this
12subsection (c), the State must retain an option to purchase the
13property at a future date or, within the limitations period for
14reverters, the property must revert back to the State.
15    If the property has been conveyed as described in this
16subsection (c), the property is no longer exempt pursuant to
17this Section as of the date when:
18        (1) the right of the State to use, control, and possess
19    the property has been terminated; or
20        (2) the State no longer has an option to purchase or
21    otherwise acquire the property and there is no provision
22    for a reverter of the property to the State within the
23    limitations period for reverters.
24    Pursuant to Sections 15-15 and 15-20 of this Code, the
25State shall notify the chief county assessment officer of any
26transaction under this subsection (c). The chief county

 

 

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1assessment officer shall determine initial and continuing
2compliance with the requirements of this Section for tax
3exemption. Failure to notify the chief county assessment
4officer of a transaction under this subsection (c) or to
5otherwise comply with the requirements of Sections 15-15 and
615-20 of this Code shall, in the discretion of the chief county
7assessment officer, constitute cause to terminate the
8exemption, notwithstanding any other provision of this Code.
9    (c-1) If the Illinois State Toll Highway Authority sells
10the Illinois State Toll Highway Authority headquarters
11building and surrounding land, located at 2700 Ogden Avenue,
12Downers Grove, Illinois as provided in subdivision (a)(2) of
13Section 7.5 of the State Property Control Act, to another
14entity whose property is not exempt and immediately thereafter
15enters into a leaseback or other agreement that directly or
16indirectly gives the State or the Illinois State Toll Highway
17Authority a right to use, control, and possess the property,
18that portion of the property leased and occupied exclusively by
19the State or the Authority shall remain exempt under this
20Section. For the property to remain exempt under this
21subsection (c), the Authority must retain an option to purchase
22the property at a future date or, within the limitations period
23for reverters, the property must revert back to the Authority.
24    If the property has been conveyed as described in this
25subsection (c), the property is no longer exempt pursuant to
26this Section as of the date when:

 

 

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1        (1) the right of the State or the Authority to use,
2    control, and possess the property has been terminated; or
3        (2) the Authority no longer has an option to purchase
4    or otherwise acquire the property and there is no provision
5    for a reverter of the property to the Authority within the
6    limitations period for reverters.
7    Pursuant to Sections 15-15 and 15-20 of this Code, the
8Authority shall notify the chief county assessment officer of
9any transaction under this subsection (c). The chief county
10assessment officer shall determine initial and continuing
11compliance with the requirements of this Section for tax
12exemption. Failure to notify the chief county assessment
13officer of a transaction under this subsection (c) or to
14otherwise comply with the requirements of Sections 15-15 and
1515-20 of this Code shall, in the discretion of the chief county
16assessment officer, constitute cause to terminate the
17exemption, notwithstanding any other provision of this Code.
18    (d) The fair market rent of each parcel of real property in
19Will County owned by the State of Illinois for the purpose of
20developing an airport by the Department of Transportation shall
21include the assessed value of leasehold tax. The lessee of each
22parcel of real property in Will County owned by the State of
23Illinois for the purpose of developing an airport by the
24Department of Transportation shall not be liable for the taxes
25thereon. In order for the State to compensate taxing districts
26for the leasehold tax under this paragraph the Will County

 

 

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1Supervisor of Assessments shall certify, in writing, to the
2Department of Transportation, the amount of leasehold taxes
3extended for the 2002 property tax year for each such exempt
4parcel. The Department of Transportation shall pay to the Will
5County Treasurer, from the Tax Recovery Fund, on or before July
61 of each year, the amount of leasehold taxes for each such
7exempt parcel as certified by the Will County Supervisor of
8Assessments. The tax compensation shall terminate on December
931, 2020. It is the duty of the Department of Transportation to
10file with the Office of the Will County Supervisor of
11Assessments an affidavit stating the termination date for
12rental of each such parcel due to airport construction. The
13affidavit shall include the property identification number for
14each such parcel. In no instance shall tax compensation for
15property owned by the State be deemed delinquent or bear
16interest. In no instance shall a lien attach to the property of
17the State. In no instance shall the State be required to pay
18leasehold tax compensation in excess of the Tax Recovery Fund's
19balance.
20    (e) Public Act 81-1026 applies to all leases or agreements
21entered into or renewed on or after September 24, 1979.
22    (f) Notwithstanding anything to the contrary in this Code,
23all property owned by the State that is the Illiana Expressway,
24as defined in the Public Private Agreements for the Illiana
25Expressway Act, and that is used for transportation purposes
26and that is leased for those purposes to another entity whose

 

 

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1property is not exempt shall remain exempt, and any leasehold
2interest in the property shall not be subject to taxation under
3Section 9-195 of this Act.
4    (g) Notwithstanding anything to the contrary in this
5Section, all property owned by the State or the Illinois State
6Toll Highway Authority that is defined as a transportation
7project under the Public-Private Partnerships for
8Transportation Act and that is used for transportation purposes
9and that is leased for those purposes to another entity whose
10property is not exempt shall remain exempt, and any leasehold
11interest in the property shall not be subject to taxation under
12Section 9-195 of this Act.
13    (h) Notwithstanding anything to the contrary in this Code,
14all property owned by the State that is the South Suburban
15Airport, as defined in the Public-Private Agreements for the
16South Suburban Airport Act, and that is used for airport
17purposes and that is leased for those purposes to another
18entity whose property is not exempt shall remain exempt, and
19any leasehold interest in the property shall not be subject to
20taxation under Section 9-195 of this Act.
21(Source: P.A. 97-502, eff. 8-23-11; 98-109, eff. 7-25-13.)