Illinois General Assembly - Full Text of HB5722
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Full Text of HB5722  100th General Assembly

HB5722ham001 100TH GENERAL ASSEMBLY

Rep. Sonya M. Harper

Filed: 4/6/2018

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 5722

2    AMENDMENT NO. ______. Amend House Bill 5722 by replacing
3everything after the enacting clause with the following:
 
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,

 

 

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1by July 31 of each year. The Administrator may require such
2documentation as he deems reasonably necessary in connection
3with this Report, and shall require that such Report include
4the following information:
5    (1) A legal description of all real property owned by the
6State under the control of the responsible officer.
7    (2) A description of the use of the real property listed
8under (1).
9    (3) A list of any improvements made to such real property
10during the previous year.
11    (4) The dates on which the State first acquired its
12interest in such real property, and the purchase price and
13source of the funds used to acquire the property.
14    (5) Plans for the future use of currently unused real
15property.
16    (6) A declaration of any surplus real property. On or
17before October 31 of each year the Administrator shall furnish
18copies of each responsible officer's report along with a list
19of surplus property indexed by legislative district to the
20General Assembly.
21    This report shall be filed with the Speaker, the Minority
22Leader and the Clerk of the House of Representatives and the
23President, the Minority Leader and the Secretary of the Senate
24and shall be duplicated and made available to the members of
25the General Assembly for evaluation by such members for
26possible liquidation of unused public property at public sale.

 

 

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1    (c) Following receipt of the Annual Real Property
2Utilization Report required under paragraph (b), the
3Administrator shall notify all State agencies by October 31 of
4all declared surplus real property. Any State agency may submit
5a written request to the Administrator, within 60 days of the
6date of such notification, to have control of surplus real
7property transferred to that agency. Such request must indicate
8the reason for the transfer and the intended use to be made of
9such surplus real property. The Administrator may deny any or
10all such requests by a State agency or agencies if the
11Administrator determines that it is more advantageous to the
12State to dispose of the surplus real property under paragraph
13(d). In case requests for the same surplus real property are
14received from more than one State agency, the Administrator
15shall weigh the benefits to the State and determine to which
16agency, if any, to transfer control of such property. The
17Administrator shall coordinate the use and disposal of State
18surplus real property with any State space utilization program.
19    (d) Any surplus real property which is not transferred to
20the control of another State agency under paragraph (c) shall
21be disposed of by the Administrator. No appraisal is required
22if during his initial survey of surplus real property the
23Administrator determines such property has a fair market value
24of less than $5,000. If the value of such property is
25determined by the Administrator in his initial survey to be
26$5,000 or more, then the Administrator shall obtain 3

 

 

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1appraisals of such real property, one of which shall be
2performed by an appraiser residing in the county in which said
3surplus real property is located. The average of these 3
4appraisals, plus the costs of obtaining the appraisals, shall
5represent the fair market value of the surplus real property.
6No surplus real property may be conveyed by the Administrator
7for less than the fair market value. Prior to offering the
8surplus real property for sale to the public the Administrator
9shall give notice in writing of the existence and fair market
10value of the surplus real property to the governing bodies of
11the county and of all cities, villages and incorporated towns
12in the county in which such real property is located. Any such
13governing body may exercise its option to acquire the surplus
14real property for the fair market value within 60 days of the
15notice. After the 60 day period has passed, the Administrator
16may sell the surplus real property by public auction following
17notice of such sale by publication on 3 separate days not less
18than 15 nor more than 30 days prior to the sale in the State
19newspaper and in a newspaper having general circulation in the
20county in which the surplus real property is located. The
21Administrator shall post "For Sale" signs of a conspicuous
22nature on such surplus real property offered for sale to the
23public. If no acceptable offers for the surplus real property
24are received, the Administrator may have new appraisals of such
25property made. The Administrator shall have all power necessary
26to convey surplus real property under this Section. All moneys

 

 

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

 

 

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1General Assembly, all conveyances of property made by the
2Administrator shall be by quit claim deed.
3    (d-5) Notwithstanding any other provision of this Act, the
4Administrator may convey any surplus real property covered by
5this Act, by sale or lease, to a duly incorporated, charitable,
6non-profit organization or association for the cultivation and
7sale of fresh fruits and vegetables on a tract of land of less
8than 5 acres within any local governmental unit, provided that
9the non-profit organization or association is not controlled,
10directly or indirectly, by any agricultural, commercial, or
11other business. The non-profit organization or association
12under this subsection (d-5) shall be authorized to sell fresh
13fruits and vegetables either on the land that was conveyed, off
14that land, or both, provided, that the sales are related or
15incidental to the non-profit purposes of the organization or
16association, and the net proceeds received by the non-profit
17organization or association are used to further the non-profit
18purposes of the organization or association. The lease of any
19real property to any duly incorporated non-profit organization
20or association shall be in accordance with the Illinois
21Procurement Code.
22    (e) The Administrator shall submit an annual report on or
23before February 1 to the Governor and the General Assembly
24containing a detailed statement of surplus real property either
25transferred or conveyed under this Section.
26(Source: P.A. 96-527, eff. 1-1-10; 96-660, eff. 8-25-09;

 

 

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196-1000, eff. 7-2-10.)
 
2    Section 10. The Property Tax Code is amended by changing
3Section 15-55 as follows:
 
4    (35 ILCS 200/15-55)
5    Sec. 15-55. State property.
6    (a) All property belonging to the State of Illinois is
7exempt. However, the State agency holding title shall file the
8certificate of ownership and use required by Section 15-10,
9together with a copy of any written lease or agreement, in
10effect on March 30 of the assessment year, concerning parcels
11of 1 acre or more, or an explanation of the terms of any oral
12agreement under which the property is leased, subleased or
13rented.
14    The leased property shall be assessed to the lessee and the
15taxes thereon extended and billed to the lessee, and collected
16in the same manner as for property which is not exempt. The
17lessee shall be liable for the taxes and no lien shall attach
18to the property of the State.
19    For the purposes of this Section, the word "leases"
20includes licenses, franchises, operating agreements and other
21arrangements under which private individuals, associations or
22corporations are granted the right to use property of the
23Illinois State Toll Highway Authority and includes all property
24of the Authority used by others without regard to the size of

 

 

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

 

 

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1non-profit organization specified under subsection (d-5) of
2Section 7.1 of the State Property Control Act, shall be exempt
3from all assessments, taxation, or collection, despite the
4making of any such sale or lease, if it is used for the
5cultivation and sale of fresh fruits and vegetables, and the
6net proceeds received by the non-profit organization or
7association are used to further the non-profit purposes of the
8organization or association.
9    (c) If the State sells the James R. Thompson Center or the
10Elgin Mental Health Center and surrounding land located at 750
11S. State Street, Elgin, Illinois, as provided in subdivision
12(a)(2) of Section 7.4 of the State Property Control Act, to
13another entity whose property is not exempt and immediately
14thereafter enters into a leaseback or other agreement that
15directly or indirectly gives the State a right to use, control,
16and possess the property, that portion of the property leased
17and occupied exclusively by the State shall remain exempt under
18this Section. For the property to remain exempt under this
19subsection (c), the State must retain an option to purchase the
20property at a future date or, within the limitations period for
21reverters, the property must revert back to the State.
22    If the property has been conveyed as described in this
23subsection (c), the property is no longer exempt pursuant to
24this Section as of the date when:
25        (1) the right of the State to use, control, and possess
26    the property has been terminated; or

 

 

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1        (2) the State no longer has an option to purchase or
2    otherwise acquire the property and there is no provision
3    for a reverter of the property to the State within the
4    limitations period for reverters.
5    Pursuant to Sections 15-15 and 15-20 of this Code, the
6State shall notify the chief county assessment officer of any
7transaction under this subsection (c). The chief county
8assessment officer shall determine initial and continuing
9compliance with the requirements of this Section for tax
10exemption. Failure to notify the chief county assessment
11officer of a transaction under this subsection (c) or to
12otherwise comply with the requirements of Sections 15-15 and
1315-20 of this Code shall, in the discretion of the chief county
14assessment officer, constitute cause to terminate the
15exemption, notwithstanding any other provision of this Code.
16    (c-1) If the Illinois State Toll Highway Authority sells
17the Illinois State Toll Highway Authority headquarters
18building and surrounding land, located at 2700 Ogden Avenue,
19Downers Grove, Illinois as provided in subdivision (a)(2) of
20Section 7.5 of the State Property Control Act, to another
21entity whose property is not exempt and immediately thereafter
22enters into a leaseback or other agreement that directly or
23indirectly gives the State or the Illinois State Toll Highway
24Authority a right to use, control, and possess the property,
25that portion of the property leased and occupied exclusively by
26the State or the Authority shall remain exempt under this

 

 

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1Section. For the property to remain exempt under this
2subsection (c), the Authority must retain an option to purchase
3the property at a future date or, within the limitations period
4for reverters, the property must revert back to the Authority.
5    If the property has been conveyed as described in this
6subsection (c), the property is no longer exempt pursuant to
7this Section as of the date when:
8        (1) the right of the State or the Authority to use,
9    control, and possess the property has been terminated; or
10        (2) the Authority no longer has an option to purchase
11    or otherwise acquire the property and there is no provision
12    for a reverter of the property to the Authority within the
13    limitations period for reverters.
14    Pursuant to Sections 15-15 and 15-20 of this Code, the
15Authority shall notify the chief county assessment officer of
16any transaction under this subsection (c). The chief county
17assessment officer shall determine initial and continuing
18compliance with the requirements of this Section for tax
19exemption. Failure to notify the chief county assessment
20officer of a transaction under this subsection (c) or to
21otherwise comply with the requirements of Sections 15-15 and
2215-20 of this Code shall, in the discretion of the chief county
23assessment officer, constitute cause to terminate the
24exemption, notwithstanding any other provision of this Code.
25    (d) The fair market rent of each parcel of real property in
26Will County owned by the State of Illinois for the purpose of

 

 

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1developing an airport by the Department of Transportation shall
2include the assessed value of leasehold tax. The lessee of each
3parcel of real property in Will County owned by the State of
4Illinois for the purpose of developing an airport by the
5Department of Transportation shall not be liable for the taxes
6thereon. In order for the State to compensate taxing districts
7for the leasehold tax under this paragraph the Will County
8Supervisor of Assessments shall certify, in writing, to the
9Department of Transportation, the amount of leasehold taxes
10extended for the 2002 property tax year for each such exempt
11parcel. The Department of Transportation shall pay to the Will
12County Treasurer, from the Tax Recovery Fund, on or before July
131 of each year, the amount of leasehold taxes for each such
14exempt parcel as certified by the Will County Supervisor of
15Assessments. The tax compensation shall terminate on December
1631, 2020. It is the duty of the Department of Transportation to
17file with the Office of the Will County Supervisor of
18Assessments an affidavit stating the termination date for
19rental of each such parcel due to airport construction. The
20affidavit shall include the property identification number for
21each such parcel. In no instance shall tax compensation for
22property owned by the State be deemed delinquent or bear
23interest. In no instance shall a lien attach to the property of
24the State. In no instance shall the State be required to pay
25leasehold tax compensation in excess of the Tax Recovery Fund's
26balance.

 

 

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1    (e) Public Act 81-1026 applies to all leases or agreements
2entered into or renewed on or after September 24, 1979.
3    (f) Notwithstanding anything to the contrary in this Code,
4all property owned by the State that is the Illiana Expressway,
5as defined in the Public Private Agreements for the Illiana
6Expressway Act, and that is used for transportation purposes
7and that is leased for those purposes to another entity whose
8property is not exempt shall remain exempt, and any leasehold
9interest in the property shall not be subject to taxation under
10Section 9-195 of this Act.
11    (g) Notwithstanding anything to the contrary in this
12Section, all property owned by the State or the Illinois State
13Toll Highway Authority that is defined as a transportation
14project under the Public-Private Partnerships for
15Transportation Act and that is used for transportation purposes
16and that is leased for those purposes to another entity whose
17property is not exempt shall remain exempt, and any leasehold
18interest in the property shall not be subject to taxation under
19Section 9-195 of this Act.
20    (h) Notwithstanding anything to the contrary in this Code,
21all property owned by the State that is the South Suburban
22Airport, as defined in the Public-Private Agreements for the
23South Suburban Airport Act, and that is used for airport
24purposes and that is leased for those purposes to another
25entity whose property is not exempt shall remain exempt, and
26any leasehold interest in the property shall not be subject to

 

 

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1taxation under Section 9-195 of this Act.
2(Source: P.A. 97-502, eff. 8-23-11; 98-109, eff. 7-25-13.)".