Illinois General Assembly - Full Text of SB0060
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Full Text of SB0060  102nd General Assembly




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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



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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



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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



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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



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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
16appraisals. In no event shall the Administrator sell surplus
17real property for less than 75% of fair market value and before
18such property has been offered to an interested unit of local
19government or made available at public auction.
20    Prior to offering the surplus real property for sale to
21the public the Administrator shall give notice in writing of
22the existence and fair market value of the surplus real
23property to each State agency and to the governing bodies of
24the county and of all cities, villages and incorporated towns
25in the county in which such real property is located. Any such
26State agency or governing body may notify the Administrator of



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



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



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1pursuant to this Section. Unless otherwise specifically
2authorized by the General Assembly, all conveyances of
3property made by the Administrator shall be by quit claim
5    (e) The Administrator shall submit an annual report on or
6before February 1 to the Governor and the General Assembly
7containing a detailed statement of surplus real property
8either transferred or conveyed under this Section.
9(Source: P.A. 96-527, eff. 1-1-10; 96-660, eff. 8-25-09;
1096-1000, eff. 7-2-10.)
11    Section 10. The School Code is amended by changing Section
1218-4.4 as follows:
13    (105 ILCS 5/18-4.4)  (from Ch. 122, par. 18-4.4)
14    Sec. 18-4.4. Tax Equivalent Grants. When any State
15institution is located in a school district in which the State
16owns 45% or more of the total land area of the district, the
17State Superintendent of Education shall annually direct the
18State Comptroller to pay the amount of the tax-equivalent
19grants provided in this Section, and the State Comptroller
20shall draw his warrant upon the State Treasurer for the
21payment of the grants. For fiscal year 1995 and each fiscal
22year thereafter, the grant shall equal 0.5% of the equalized
23assessed valuation of the land owned by the State (computing
24that equalized assessed valuation by multiplying the average



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1value per taxable acre of the school district by the total
2number of acres of land owned by the State). Annually on or
3before September 15, 1994 and July 1, thereafter, the district
4superintendent shall certify to the State Board of Education
5the following matters:
6        1. The name of the State institution.
7        2. The total land area of the district in acres.
8        3. The total ownership of the land of the State in
9    acres.
10        4. The total equalized assessed value of all the land
11    in the district.
12        5. The rate of school tax payable in the year.
13        6. The computed amount of the tax-equivalent grant
14    claimed.
15    Failure of any district superintendent to certify the
16claim for the tax-equivalent grant on or before September 15,
171994 or July 1 of a subsequent year shall constitute a
18forfeiture by the district of its right to such grant for the
19school year.
20    Notwithstanding any provision of law to the contrary or
21the disposition of State property which would affect the
22allocation of grants under this Section, a tax-equivalent
23grant may be awarded to a school district in which the State
24owns 40% or more of the total land area of the district if, as
25of the effective date of this amendatory Act of the 102nd
26General Assembly, the school district would otherwise qualify



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1for a tax-equivalent grant under this Section as a district in
2which the State owns 45% or more of the total land area.
3(Source: P.A. 91-723, eff. 6-2-00.)
4    Section 99. Effective date. This Act takes effect upon
5becoming law.