Bill Text: IL HB0810 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: 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 local governmental unit, 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-03-29 - Rule 19(a) / Re-referred to Rules Committee [HB0810 Detail]

Download: Illinois-2019-HB0810-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB0810 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 local governmental unit, 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
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AN ACT concerning finance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. 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 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

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under (1).
(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

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the reason for the transfer and the intended use to be made of
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 3
appraisals of such real property, 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 3
appraisals, plus the costs of obtaining the appraisals, shall
represent the fair market value of the surplus real property.
No surplus real property may be conveyed by the Administrator
for less than the fair market value. Prior to offering the

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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 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
governing body may exercise its option to acquire the surplus
real property for the fair market value within 60 days of the
notice. After the 60 day period has passed, the Administrator
may sell the surplus real property by public auction 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 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

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General Revenue Fund.
(2) Whenever a State mental health 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 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.
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.
(d-5) Notwithstanding any other provision of this Act, the
Administrator may convey any surplus real property covered by
this 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

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than 5 acres within any local governmental unit, provided that
the non-profit organization or association is not controlled,
directly or indirectly, by any agricultural, commercial, or
other business. The non-profit organization or association
under this subsection (d-5) 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. The lease of any
real property to any duly incorporated non-profit organization
or association shall be in accordance with the Illinois
Procurement Code.
(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.
(Source: P.A. 96-527, eff. 1-1-10; 96-660, eff. 8-25-09;
96-1000, eff. 7-2-10.)
Section 10. The Property Tax Code is amended by changing
Section 15-55 as follows:
(35 ILCS 200/15-55)
Sec. 15-55. State property.

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(a) All property belonging to the State of Illinois is
exempt. However, the State agency holding title shall file the
certificate of ownership and use required by Section 15-10,
together with a copy of any written lease or agreement, in
effect on March 30 of the assessment year, concerning parcels
of 1 acre or more, or an explanation of the terms of any oral
agreement under which the property is leased, subleased or
rented.
The leased property shall be assessed to the lessee and the
taxes thereon extended and billed to the lessee, and collected
in the same manner as for property which is not exempt. The
lessee shall be liable for the taxes and no lien shall attach
to the property of the State.
For the purposes of this Section, the word "leases"
includes licenses, franchises, operating agreements and other
arrangements under which private individuals, associations or
corporations are granted the right to use property of the
Illinois State Toll Highway Authority and includes all property
of the Authority used by others without regard to the size of
the leased parcel.
(b) However, all property of every kind belonging to the
State of Illinois, which is or may hereafter be leased to the
Illinois Prairie Path Corporation, shall be exempt from all
assessments, taxation or collection, despite the making of any
such lease, if it is used for:
(1) conservation, nature trail or any other

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charitable, scientific, educational or recreational
purposes with public benefit, including the preserving and
aiding in the preservation of natural areas, objects,
flora, fauna or biotic communities;
(2) the establishment of footpaths, trails and other
protected areas;
(3) the conservation of the proper use of natural
resources or the promotion of the study of plant and animal
communities and of other phases of ecology, natural history
and conservation;
(4) the promotion of education in the fields of nature,
preservation and conservation; or
(5) similar public recreational activities conducted
by the Illinois Prairie Path Corporation.
No lien shall attach to the property of the State. No tax
liability shall become the obligation of or be enforceable
against Illinois Prairie Path Corporation.
(b-5) However, all property of every kind belonging to the
State of Illinois, which is or may be sold or leased to a
non-profit organization specified under subsection (d-5) of
Section 7.1 of the State Property Control Act, shall be exempt
from all assessments, taxation, or collection, despite the
making of any such sale or lease, if it is used for the
cultivation and sale of fresh fruits and vegetables, and the
net proceeds received by the non-profit organization or
association are used to further the non-profit purposes of the

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organization or association.
(c) If the State sells the James R. Thompson Center or the
Elgin Mental Health Center and surrounding land located at 750
S. State Street, Elgin, Illinois, as provided in subdivision
(a)(2) of Section 7.4 of the State Property Control Act, to
another entity whose property is not exempt and immediately
thereafter enters into a leaseback or other agreement that
directly or indirectly gives the State a right to use, control,
and possess the property, that portion of the property leased
and occupied exclusively by the State shall remain exempt under
this Section. For the property to remain exempt under this
subsection (c), the State must retain an option to purchase the
property at a future date or, within the limitations period for
reverters, the property must revert back to the State.
If the property has been conveyed as described in this
subsection (c), the property is no longer exempt pursuant to
this Section as of the date when:
(1) the right of the State to use, control, and possess
the property has been terminated; or
(2) the State no longer has an option to purchase or
otherwise acquire the property and there is no provision
for a reverter of the property to the State within the
limitations period for reverters.
Pursuant to Sections 15-15 and 15-20 of this Code, the
State shall notify the chief county assessment officer of any
transaction under this subsection (c). The chief county

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assessment officer shall determine initial and continuing
compliance with the requirements of this Section for tax
exemption. Failure to notify the chief county assessment
officer of a transaction under this subsection (c) or to
otherwise comply with the requirements of Sections 15-15 and
15-20 of this Code shall, in the discretion of the chief county
assessment officer, constitute cause to terminate the
exemption, notwithstanding any other provision of this Code.
(c-1) If the Illinois State Toll Highway Authority sells
the Illinois State Toll Highway Authority headquarters
building and surrounding land, located at 2700 Ogden Avenue,
Downers Grove, Illinois as provided in subdivision (a)(2) of
Section 7.5 of the State Property Control Act, to another
entity whose property is not exempt and immediately thereafter
enters into a leaseback or other agreement that directly or
indirectly gives the State or the Illinois State Toll Highway
Authority a right to use, control, and possess the property,
that portion of the property leased and occupied exclusively by
the State or the Authority shall remain exempt under this
Section. For the property to remain exempt under this
subsection (c), the Authority must retain an option to purchase
the property at a future date or, within the limitations period
for reverters, the property must revert back to the Authority.
If the property has been conveyed as described in this
subsection (c), the property is no longer exempt pursuant to
this Section as of the date when:

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(1) the right of the State or the Authority to use,
control, and possess the property has been terminated; or
(2) the Authority no longer has an option to purchase
or otherwise acquire the property and there is no provision
for a reverter of the property to the Authority within the
limitations period for reverters.
Pursuant to Sections 15-15 and 15-20 of this Code, the
Authority shall notify the chief county assessment officer of
any transaction under this subsection (c). The chief county
assessment officer shall determine initial and continuing
compliance with the requirements of this Section for tax
exemption. Failure to notify the chief county assessment
officer of a transaction under this subsection (c) or to
otherwise comply with the requirements of Sections 15-15 and
15-20 of this Code shall, in the discretion of the chief county
assessment officer, constitute cause to terminate the
exemption, notwithstanding any other provision of this Code.
(d) The fair market rent of each parcel of real property in
Will County owned by the State of Illinois for the purpose of
developing an airport by the Department of Transportation shall
include the assessed value of leasehold tax. The lessee of each
parcel of real property in Will County owned by the State of
Illinois for the purpose of developing an airport by the
Department of Transportation shall not be liable for the taxes
thereon. In order for the State to compensate taxing districts
for the leasehold tax under this paragraph the Will County

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Supervisor of Assessments shall certify, in writing, to the
Department of Transportation, the amount of leasehold taxes
extended for the 2002 property tax year for each such exempt
parcel. The Department of Transportation shall pay to the Will
County Treasurer, from the Tax Recovery Fund, on or before July
1 of each year, the amount of leasehold taxes for each such
exempt parcel as certified by the Will County Supervisor of
Assessments. The tax compensation shall terminate on December
31, 2020. It is the duty of the Department of Transportation to
file with the Office of the Will County Supervisor of
Assessments an affidavit stating the termination date for
rental of each such parcel due to airport construction. The
affidavit shall include the property identification number for
each such parcel. In no instance shall tax compensation for
property owned by the State be deemed delinquent or bear
interest. In no instance shall a lien attach to the property of
the State. In no instance shall the State be required to pay
leasehold tax compensation in excess of the Tax Recovery Fund's
balance.
(e) Public Act 81-1026 applies to all leases or agreements
entered into or renewed on or after September 24, 1979.
(f) Notwithstanding anything to the contrary in this Code,
all property owned by the State that is the Illiana Expressway,
as defined in the Public Private Agreements for the Illiana
Expressway Act, and that is used for transportation purposes
and that is leased for those purposes to another entity whose

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property is not exempt shall remain exempt, and any leasehold
interest in the property shall not be subject to taxation under
Section 9-195 of this Act.
(g) Notwithstanding anything to the contrary in this
Section, all property owned by the State or the Illinois State
Toll Highway Authority that is defined as a transportation
project under the Public-Private Partnerships for
Transportation Act and that is used for transportation purposes
and that is leased for those purposes to another entity whose
property is not exempt shall remain exempt, and any leasehold
interest in the property shall not be subject to taxation under
Section 9-195 of this Act.
(h) Notwithstanding anything to the contrary in this Code,
all property owned by the State that is the South Suburban
Airport, as defined in the Public-Private Agreements for the
South Suburban Airport Act, and that is used for airport
purposes and that is leased for those purposes to another
entity whose property is not exempt shall remain exempt, and
any leasehold interest in the property shall not be subject to
taxation under Section 9-195 of this Act.
(Source: P.A. 97-502, eff. 8-23-11; 98-109, eff. 7-25-13.)