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

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

Download: Illinois-2019-HB0352-Introduced.html

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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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AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Finance Act is amended by adding
Sections 5.891 and 6z-65.1 as follows:
(30 ILCS 105/5.891 new)
Sec. 5.891. The Deferred Maintenance Property Fund.
(30 ILCS 105/6z-65.1 new)
Sec. 6z-65.1. The Deferred Maintenance Property Fund.
(a) The Deferred Maintenance Property Fund is created as a
special fund in the State treasury. The proceeds of a sale of
surplus property by the Department of Central Management
Services shall be deposed into the Fund.
(b) Revenue derived from the sale of surplus property shall
be expended only for the following purposes: payment of
property obligations; costs for construction, reconstruction,
maintenance, repair, and any betterment of State owned
properties; and other statutory purposes.
(c) Any federal funds in the Deferred Maintenance Property
Fund may be spent for any purposes authorized by federal law.
(d) None of the revenues described in this Section shall,
by transfer, offset, or otherwise, be diverted to any other

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purpose.
Section 10. The State Property Control Act is amended by
changing Section 7.1 as follows:
(30 ILCS 605/7.1) (from Ch. 127, par. 133b10.1)
Sec. 7.1. (a) Except as otherwise provided by law, all
surplus real property held by the State of Illinois shall be
disposed of by the administrator as provided in this Section.
"Surplus real property," as used in this Section, means any
real property to which the State holds fee simple title or
lesser interest, and is determined by the head of the owning
agency to no longer be required for the State agency's needs
and responsibilities vacant, unoccupied or unused and which has
no foreseeable use by the owning agency.
(b) All responsible officers shall submit an Annual Real
Property Utilization Report to the Administrator, or annual
update of such report, on forms required by the Administrator,
by July 31 of each year. The Administrator may require such
documentation as he deems reasonably necessary in connection
with this Report, and shall require that such Report include
the following information:
(1) A legal description of all real property owned by the
State under the control of the responsible officer.
(2) A description of the use of the real property listed
under (1).

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

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

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

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

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

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

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