Bill Text: IL HB0352 | 2019-2020 | 101st General Assembly | Introduced


Bill Title: Amends the State Property Control Act. Provides that "surplus real property" means property that is determined by the head of the owning agency to no longer be required for the State agency's needs and responsibilities (currently, vacant, unoccupied or unused and having no foreseeable use by the owning agency). Makes changes concerning transfers of surplus real property to State agencies. Provides that surplus real property may be conveyed by the Administrator for less than fair market value if the Administrator makes a written determination that it is in the best interests of the State to establish a different value. Provides that the determination shall be published in the Illinois Procurement Bulletin and filed with the Executive Ethics Commission. Provides that the proceeds from the sale of surplus real property shall be deposited into the Deferred Maintenance Property Fund and shall be used for the maintenance and repair of State properties. Amends the State Finance Act to create the Deferred Maintenance Property Fund.

Spectrum: Bipartisan Bill

Status: (Introduced) 2019-03-29 - Rule 19(a) / Re-referred to Rules Committee [HB0352 Detail]

Download: Illinois-2019-HB0352-Introduced.html


101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB0352

Introduced , by Rep. Thomas M. Bennett

SYNOPSIS AS INTRODUCED:
30 ILCS 105/5.891 new
30 ILCS 105/6z-65.1 new
30 ILCS 605/7.1 from Ch. 127, par. 133b10.1

Amends the State Property Control Act. Provides that "surplus real property" means property that is determined by the head of the owning agency to no longer be required for the State agency's needs and responsibilities (currently, vacant, unoccupied or unused and having no foreseeable use by the owning agency). Makes changes concerning transfers of surplus real property to State agencies. Provides that surplus real property may be conveyed by the Administrator for less than fair market value if the Administrator makes a written determination that it is in the best interests of the State to establish a different value. Provides that the determination shall be published in the Illinois Procurement Bulletin and filed with the Executive Ethics Commission. Provides that the proceeds from the sale of surplus real property shall be deposited into the Deferred Maintenance Property Fund and shall be used for the maintenance and repair of State properties. Amends the State Finance Act to create the Deferred Maintenance Property Fund.
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FISCAL NOTE ACT MAY APPLY

A BILL FOR

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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 Finance Act is amended by adding
5Sections 5.891 and 6z-65.1 as follows:
6 (30 ILCS 105/5.891 new)
7 Sec. 5.891. The Deferred Maintenance Property Fund.
8 (30 ILCS 105/6z-65.1 new)
9 Sec. 6z-65.1. The Deferred Maintenance Property Fund.
10 (a) The Deferred Maintenance Property Fund is created as a
11special fund in the State treasury. The proceeds of a sale of
12surplus property by the Department of Central Management
13Services shall be deposed into the Fund.
14 (b) Revenue derived from the sale of surplus property shall
15be expended only for the following purposes: payment of
16property obligations; costs for construction, reconstruction,
17maintenance, repair, and any betterment of State owned
18properties; and other statutory purposes.
19 (c) Any federal funds in the Deferred Maintenance Property
20Fund may be spent for any purposes authorized by federal law.
21 (d) None of the revenues described in this Section shall,
22by transfer, offset, or otherwise, be diverted to any other

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1purpose.
2 Section 10. The State Property Control Act is amended by
3changing Section 7.1 as follows:
4 (30 ILCS 605/7.1) (from Ch. 127, par. 133b10.1)
5 Sec. 7.1. (a) Except as otherwise provided by law, all
6surplus real property held by the State of Illinois shall be
7disposed of by the administrator as provided in this Section.
8"Surplus real property," as used in this Section, means any
9real property to which the State holds fee simple title or
10lesser interest, and is determined by the head of the owning
11agency to no longer be required for the State agency's needs
12and responsibilities vacant, unoccupied or unused and which has
13no 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
24under (1).

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

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

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1third appraisal, and the fair market value shall be the average
2of these 3 appraisals.
3 No surplus real property may be conveyed by the
4Administrator for less than the fair market value unless the
5Administrator makes a written determination that it is in the
6best interests of the State to establish a different value.
7That written determination shall be published in the Illinois
8Procurement Bulletin. Such written determination, along with
9an affidavit setting forth the conditions and circumstances
10that make the use of a different value in the best interests of
11the State, shall also be filed with the Executive Ethics
12Commission. The Executive Ethics Commission shall have 30 days
13to review the written determination. The Executive Ethics
14Commission may order an additional 30 days to review the
15written determination. The Administrator shall provide the
16Executive Ethics Commission with any information requested by
17the Executive Ethics Commission related to the Administrator's
18determination of the value of the surplus real property. If the
19Executive Ethics Commission objects in writing to the value
20determined by the Administrator, then the Administrator shall
21not convey the surplus real property for less than either the
22fair market value as determined by the average of appraisals or
23an amount agreed upon by the Executive Ethics Commission and
24the Administrator. Circumstances in which it is in the best
25interest of the State to establish a different value may
26include, but are not limited to, the following: an auction did

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1not yield any bids at the established fair market value; a unit
2of local government is interested in acquiring the surplus real
3property; or the costs to the State of maintaining such surplus
4real property are sufficiently high that it would be reasonable
5to a prudent person to sell such surplus real property for less
6than the fair market value established by the average of the
7appraisals.
8 Prior to offering the surplus real property for sale to the
9public the Administrator shall give notice in writing of the
10existence and fair market value of the surplus real property to
11each State agency and to the governing bodies of the county and
12of all cities, villages and incorporated towns in the county in
13which such real property is located. Any such State agency or
14governing body may notify the Administrator of its interest in
15acquiring exercise its option to acquire the surplus real
16property for the fair market value within a notice period set
17by the Administrator of at least 14 days. If any State agency
18notifies the Administrator of its interest in acquiring the
19surplus property, the Administrator may deny any such requests
20by such agency if the Administrator determines that it is more
21advantageous to the State to dispose of the surplus real
22property to a governing body or the public. If a governing body
23notifies the Administrator of its interest in acquiring the
24property, then the Administrator shall wait a minimum of 30
25additional days during which the Administrator may engage in
26negotiations with such governing body for the sale of the

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1surplus real property 60 days of the notice. After the notice
2period set by the Administrator of at least 14 days the 60 day
3period has passed, the Administrator may sell the surplus real
4property by public auction, which may include an electronic
5auction or the use of sealed bids, following notice of such
6sale by publication on 3 separate days not less than 15 nor
7more than 30 days prior to the sale in the State newspaper and
8in a newspaper having general circulation in the county in
9which the surplus real property is located. The Administrator
10shall post "For Sale" signs of a conspicuous nature on such
11surplus real property offered for sale to the public. If no
12acceptable offers for the surplus real property are received,
13the Administrator may have new appraisals of such property
14made. The Administrator shall have all power necessary to
15convey surplus real property under this Section. All moneys
16received for the sale of surplus real property shall be
17deposited into the Deferred Maintenance Property Fund and shall
18be used for the maintenance and repair of State properties in
19the General Revenue Fund, except that:
20 (1) Where moneys expended for the acquisition of such
21 real property were from a special fund which is still a
22 special fund in the State treasury, this special fund shall
23 be reimbursed in the amount of the original expenditure and
24 any amount in excess thereof shall be deposited in the
25 General Revenue Fund.
26 (2) Whenever a State mental health facility operated by

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1 the Department of Human Services is closed and the real
2 estate on which the facility is located is sold by the
3 State, the net proceeds of the sale of the real estate
4 shall be deposited into the Community Mental Health
5 Medicaid Trust Fund.
6 (3) Whenever a State developmental disabilities
7 facility operated by the Department of Human Services is
8 closed and the real estate on which the facility is located
9 is sold by the State, the net proceeds of the sale of the
10 real estate shall be deposited into the Community
11 Developmental Disability Services Medicaid Trust Fund.
12 (4) Any net proceeds from the sale of the James R.
13 Thompson Center shall be deposited into the General Revenue
14 Fund.
15 The Administrator shall have authority to order such
16surveys, abstracts of title, or commitments for title insurance
17as may, in his reasonable discretion, be deemed necessary to
18demonstrate to prospective purchasers or bidders good and
19marketable title in any property offered for sale pursuant to
20this Section. Unless otherwise specifically authorized by the
21General Assembly, all conveyances of property made by the
22Administrator shall be by quit claim deed.
23 (e) The Administrator shall submit an annual report on or
24before February 1 to the Governor and the General Assembly
25containing a detailed statement of surplus real property either
26transferred or conveyed under this Section.

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1(Source: P.A. 96-527, eff. 1-1-10; 96-660, eff. 8-25-09;
296-1000, eff. 7-2-10.)
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