102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0277

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 unit of local government, 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.
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A BILL FOR

HB0277LRB102 10043 RJF 15363 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
24submit a written request to the Administrator, within 60 days
25of the date of such notification, to have control of surplus
26real property transferred to that agency. Such request must

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1indicate the reason for the transfer and the intended use to be
2made of such surplus real property. The Administrator may deny
3any or all 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
12program.
13 (d) Any surplus real property which is not transferred to
14the control of another State agency under paragraph (c) shall
15be disposed of by the Administrator. No appraisal is required
16if during his initial survey of surplus real property the
17Administrator determines such property has a fair market value
18of less than $5,000. If the value of such property is
19determined by the Administrator in his initial survey to be
20$5,000 or more, then the Administrator shall obtain 3
21appraisals of such real property, one of which shall be
22performed by an appraiser residing in the county in which said
23surplus real property is located. The average of these 3
24appraisals, plus the costs of obtaining the appraisals, shall
25represent the fair market value of the surplus real property.
26No surplus real property may be conveyed by the Administrator

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

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

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1charitable, non-profit organization or association for the
2cultivation and sale of fresh fruits and vegetables on a tract
3of land of less than 5 acres within any unit of local
4government, provided that the non-profit organization or
5association is not controlled, directly or indirectly, by any
6agricultural, commercial, or other business. The non-profit
7organization or association under this subsection (d-5) shall
8be authorized to sell fresh fruits and vegetables either on
9the land that was conveyed, off that land, or both, provided,
10that the sales are related or incidental to the non-profit
11purposes of the organization or association, and the net
12proceeds received by the non-profit organization or
13association are used to further the non-profit purposes of the
14organization or association. The lease of any real property to
15any duly incorporated non-profit organization or association
16shall be in accordance with the Illinois Procurement Code.
17 (e) The Administrator shall submit an annual report on or
18before February 1 to the Governor and the General Assembly
19containing a detailed statement of surplus real property
20either transferred or conveyed under this Section.
21(Source: P.A. 96-527, eff. 1-1-10; 96-660, eff. 8-25-09;
2296-1000, eff. 7-2-10.)
23 Section 10. The Property Tax Code is amended by changing
24Section 15-55 as follows:

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1 (35 ILCS 200/15-55)
2 Sec. 15-55. State property.
3 (a) All property belonging to the State of Illinois is
4exempt. However, the State agency holding title shall file the
5certificate of ownership and use required by Section 15-10,
6together with a copy of any written lease or agreement, in
7effect on March 30 of the assessment year, concerning parcels
8of 1 acre or more, or an explanation of the terms of any oral
9agreement under which the property is leased, subleased or
10rented.
11 The leased property shall be assessed to the lessee and
12the taxes thereon extended and billed to the lessee, and
13collected in the same manner as for property which is not
14exempt. The lessee shall be liable for the taxes and no lien
15shall attach to the property of the State.
16 For the purposes of this Section, the word "leases"
17includes licenses, franchises, operating agreements and other
18arrangements under which private individuals, associations or
19corporations are granted the right to use property of the
20Illinois State Toll Highway Authority and includes all
21property of the Authority used by others without regard to the
22size of the leased parcel.
23 (b) However, all property of every kind belonging to the
24State of Illinois, which is or may hereafter be leased to the
25Illinois Prairie Path Corporation, shall be exempt from all
26assessments, taxation or collection, despite the making of any

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

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

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1 Pursuant to Sections 15-15 and 15-20 of this Code, the
2State shall notify the chief county assessment officer of any
3transaction under this subsection (c). The chief county
4assessment officer shall determine initial and continuing
5compliance with the requirements of this Section for tax
6exemption. Failure to notify the chief county assessment
7officer of a transaction under this subsection (c) or to
8otherwise comply with the requirements of Sections 15-15 and
915-20 of this Code shall, in the discretion of the chief county
10assessment officer, constitute cause to terminate the
11exemption, notwithstanding any other provision of this Code.
12 (c-1) If the Illinois State Toll Highway Authority sells
13the Illinois State Toll Highway Authority headquarters
14building and surrounding land, located at 2700 Ogden Avenue,
15Downers Grove, Illinois as provided in subdivision (a)(2) of
16Section 7.5 of the State Property Control Act, to another
17entity whose property is not exempt and immediately thereafter
18enters into a leaseback or other agreement that directly or
19indirectly gives the State or the Illinois State Toll Highway
20Authority a right to use, control, and possess the property,
21that portion of the property leased and occupied exclusively
22by the State or the Authority shall remain exempt under this
23Section. For the property to remain exempt under this
24subsection (c), the Authority must retain an option to
25purchase the property at a future date or, within the
26limitations period for reverters, the property must revert

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1back to the Authority.
2 If the property has been conveyed as described in this
3subsection (c), the property is no longer exempt pursuant to
4this Section as of the date when:
5 (1) the right of the State or the Authority to use,
6 control, and possess the property has been terminated; or
7 (2) the Authority no longer has an option to purchase
8 or otherwise acquire the property and there is no
9 provision for a reverter of the property to the Authority
10 within the limitations period for reverters.
11 Pursuant to Sections 15-15 and 15-20 of this Code, the
12Authority shall notify the chief county assessment officer of
13any transaction under this subsection (c). The chief county
14assessment officer shall determine initial and continuing
15compliance with the requirements of this Section for tax
16exemption. Failure to notify the chief county assessment
17officer of a transaction under this subsection (c) or to
18otherwise comply with the requirements of Sections 15-15 and
1915-20 of this Code shall, in the discretion of the chief county
20assessment officer, constitute cause to terminate the
21exemption, notwithstanding any other provision of this Code.
22 (d) For tax years prior to 2019, the fair market rent of
23each parcel of real property in Will County owned by the State
24of Illinois for the purpose of developing an airport by the
25Department of Transportation shall include the assessed value
26of leasehold tax. The lessee of each parcel of real property in

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1Will County owned by the State of Illinois for the purpose of
2developing an airport by the Department of Transportation
3shall not be liable for the taxes thereon. In order for the
4State to compensate taxing districts for the loss of revenue
5under this paragraph, the Will County Supervisor of
6Assessments shall annually certify, in writing, to the
7Department of Transportation, the following amounts: (1) for
8tax years prior to 2019, the amount of leasehold taxes
9extended for the 2002 property tax year for each such exempt
10parcel; and (2) for tax years 2019 through 2030, the amount of
11taxes that would have been extended for the current tax year
12for each such exempt parcel if those parcels had been owned by
13a person whose property is not exempt. The Department of
14Transportation shall pay to the Will County Treasurer, from
15the Tax Recovery Fund, on or before July 1 of each year, the
16amount certified by the Will County Supervisor of Assessments.
17The tax compensation shall terminate on December 31, 2030. It
18is the duty of the Department of Transportation to file with
19the Office of the Will County Supervisor of Assessments an
20affidavit stating the termination date for rental of each such
21parcel due to airport construction. The affidavit shall
22include the property identification number for each such
23parcel. In no instance shall tax compensation for property
24owned by the State be deemed delinquent or bear interest. In no
25instance shall a lien attach to the property of the State. In
26no instance shall the State be required to pay compensation

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1under this subsection in excess of the lesser of (i) the Tax
2Recovery Fund's balance or (ii) $600,000 in any tax year.
3 (e) Public Act 81-1026 applies to all leases or agreements
4entered into or renewed on or after September 24, 1979.
5 (f) Notwithstanding anything to the contrary in this Code,
6all property owned by the State that is the Illiana
7Expressway, as defined in the Public Private Agreements for
8the Illiana Expressway Act, and that is used for
9transportation purposes and that is leased for those purposes
10to another entity whose property is not exempt shall remain
11exempt, and any leasehold interest in the property shall not
12be subject to taxation under Section 9-195 of this Act.
13 (g) Notwithstanding anything to the contrary in this
14Section, all property owned by the State or the Illinois State
15Toll Highway Authority that is defined as a transportation
16project under the Public-Private Partnerships for
17Transportation Act and that is used for transportation
18purposes and that is leased for those purposes to another
19entity whose property is not exempt shall remain exempt, and
20any leasehold interest in the property shall not be subject to
21taxation under Section 9-195 of this Act.
22 (h) Notwithstanding anything to the contrary in this Code,
23all property owned by the State that is the South Suburban
24Airport, as defined in the Public-Private Agreements for the
25South Suburban Airport Act, and that is used for airport
26purposes and that is leased for those purposes to another

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1entity whose property is not exempt shall remain exempt, and
2any leasehold interest in the property shall not be subject to
3taxation under Section 9-195 of this Act.
4(Source: P.A. 101-532, eff. 8-23-19.)