98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB6272

Introduced , by Rep. Rich Brauer

SYNOPSIS AS INTRODUCED:
30 ILCS 605/7.1 from Ch. 127, par. 133b10.1
35 ILCS 200/15-60

Amends the State Property Control Act. Provides that (i) if an agency conveys surplus real property to the State by quitclaim deed and (ii) if that surplus real property remains titled to the State and remains subject to the jurisdiction of the Administrator 15 years after the execution of that quitclaim deed, then the Administrator shall convey the surplus real property by quitclaim deed to the municipality in which the property is located or, if the property is located in an unincorporated area of a county, to the county. Amends the Property Tax Code. Provides that surplus property that is conveyed to a county or municipality in that manner is not exempt from taxation in any taxable year in which the municipality or county owns the property. Effective immediately.
LRB098 21484 HLH 60000 b
FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

HB6272LRB098 21484 HLH 60000 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
22 the State under the control of the responsible officer.
23 (2) A description of the use of the real property

HB6272- 2 -LRB098 21484 HLH 60000 b
1 listed under (1).
2 (3) A list of any improvements made to such real
3 property during the previous year.
4 (4) The dates on which the State first acquired its
5 interest in such real property, and the purchase price and
6 source of the funds used to acquire the property.
7 (5) Plans for the future use of currently unused real
8 property.
9 (6) A declaration of any surplus real property. On or
10 before October 31 of each year the Administrator shall
11 furnish copies of each responsible officer's report along
12 with a list of surplus property indexed by legislative
13 district to the General 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 submit
24a written request to the Administrator, within 60 days of the
25date of such notification, to have control of surplus real
26property transferred to that agency. Such request must indicate

HB6272- 3 -LRB098 21484 HLH 60000 b
1the reason for the transfer and the intended use to be made of
2such surplus real property. The Administrator may deny any or
3all 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 program.
12 (d) Any surplus real property which is not transferred to
13the control of another State agency under paragraph (c) shall
14be disposed of by the Administrator. No appraisal is required
15if during his initial survey of surplus real property the
16Administrator determines such property has a fair market value
17of less than $5,000. If the value of such property is
18determined by the Administrator in his initial survey to be
19$5,000 or more, then the Administrator shall obtain 3
20appraisals of such real property, one of which shall be
21performed by an appraiser residing in the county in which said
22surplus real property is located. The average of these 3
23appraisals, plus the costs of obtaining the appraisals, shall
24represent the fair market value of the surplus real property.
25No surplus real property may be conveyed by the Administrator
26for less than the fair market value. Prior to offering the

HB6272- 4 -LRB098 21484 HLH 60000 b
1surplus real property for sale to the public the Administrator
2shall give notice in writing of the existence and fair market
3value of the surplus real property to the governing bodies of
4the county and of all cities, villages and incorporated towns
5in the county in which such real property is located. Any such
6governing body may exercise its option to acquire the surplus
7real property for the fair market value within 60 days of the
8notice. After the 60 day period has passed, the Administrator
9may sell the surplus real property by public auction following
10notice of such sale by publication on 3 separate days not less
11than 15 nor more than 30 days prior to the sale in the State
12newspaper and in a newspaper having general circulation in the
13county in which the surplus real property is located. The
14Administrator shall post "For Sale" signs of a conspicuous
15nature on such surplus real property offered for sale to the
16public. If no acceptable offers for the surplus real property
17are received, the Administrator may have new appraisals of such
18property made. The Administrator shall have all power necessary
19to convey surplus real property under this Section. All moneys
20received for the sale of surplus real property shall be
21deposited in the General Revenue Fund, except that:
22 (1) Where moneys expended for the acquisition of such
23 real property were from a special fund which is still a
24 special fund in the State treasury, this special fund shall
25 be reimbursed in the amount of the original expenditure and
26 any amount in excess thereof shall be deposited in the

HB6272- 5 -LRB098 21484 HLH 60000 b
1 General Revenue Fund.
2 (2) Whenever a State mental health facility operated by
3 the Department of Human Services is closed and the real
4 estate on which the facility is located is sold by the
5 State, the net proceeds of the sale of the real estate
6 shall be deposited into the Community Mental Health
7 Medicaid Trust Fund.
8 (3) Whenever a State developmental disabilities
9 facility operated by the Department of Human Services is
10 closed and the real estate on which the facility is located
11 is sold by the State, the net proceeds of the sale of the
12 real estate shall be deposited into the Community
13 Developmental Disability Services Medicaid Trust Fund.
14 The Administrator shall have authority to order such
15surveys, abstracts of title, or commitments for title insurance
16as may, in his reasonable discretion, be deemed necessary to
17demonstrate to prospective purchasers or bidders good and
18marketable title in any property offered for sale pursuant to
19this Section. Unless otherwise specifically authorized by the
20General Assembly, all conveyances of property made by the
21Administrator shall be by quit claim deed.
22 (d-5) Notwithstanding subsection (d) of this Section or any
23other provision of law, if, 15 years after the execution of a
24quitclaim deed under 44 Ill. Adm. Code 5000.760(a), the surplus
25real property transferred remains titled to the State of
26Illinois and remains subject to the jurisdiction of the

HB6272- 6 -LRB098 21484 HLH 60000 b
1Administrator under this Act, then the Administrator shall
2convey the surplus real property by quitclaim deed as follows:
3if the surplus real property is located within the corporate
4limits of a municipality, then it shall be conveyed to that
5municipality; if the surplus real property is located in an
6unincorporated area of a county, then it shall be conveyed to
7the county in which it is located. The municipality or county
8receiving the surplus real property under this subsection (d-5)
9shall receive title to the surplus real property in fee simple
10absolute and may use or dispose of all or a portion of the
11surplus real property in such manner as the corporate
12authorities of the municipality or county may, by resolution,
13determine.
14 (e) The Administrator shall submit an annual report on or
15before February 1 to the Governor and the General Assembly
16containing a detailed statement of surplus real property either
17transferred or conveyed under this Section.
18(Source: P.A. 96-527, eff. 1-1-10; 96-660, eff. 8-25-09;
1996-1000, eff. 7-2-10.)
20 Section 10. The Property Tax Code is amended by changing
21Section 15-60 as follows:
22 (35 ILCS 200/15-60)
23 Sec. 15-60. Taxing district property. All property
24belonging to any county or municipality used exclusively for

HB6272- 7 -LRB098 21484 HLH 60000 b
1the maintenance of the poor is exempt, as is all property owned
2by a taxing district that is being held for future expansion or
3development, except if leased by the taxing district to lessees
4for use for other than public purposes.
5 Also exempt are:
6 (a) all swamp or overflowed lands belonging to any
7 county;
8 (b) all public buildings belonging to any county,
9 township, or municipality, with the ground on which the
10 buildings are erected;
11 (c) all property owned by any municipality located
12 within its incorporated limits. Any such property leased by
13 a municipality shall remain exempt, and the leasehold
14 interest of the lessee shall be assessed under Section
15 9-195 of this Act, (i) for a lease entered into on or after
16 January 1, 1994, unless the lease expressly provides that
17 this exemption shall not apply; (ii) for a lease entered
18 into on or after the effective date of Public Act 87-1280
19 and before January 1, 1994, unless the lease expressly
20 provides that this exemption shall not apply or unless
21 evidence other than the lease itself substantiates the
22 intent of the parties to the lease that this exemption
23 shall not apply; and (iii) for a lease entered into before
24 the effective date of Public Act 87-1280, if the terms of
25 the lease do not bind the lessee to pay the taxes on the
26 leased property or if, notwithstanding the terms of the

HB6272- 8 -LRB098 21484 HLH 60000 b
1 lease, the municipality has filed or hereafter files a
2 timely exemption petition or complaint with respect to
3 property consisting of or including the leased property for
4 an assessment year which includes part or all of the first
5 12 months of the lease period. The foregoing clause (iii)
6 added by Public Act 87-1280 shall not operate to exempt
7 property for any assessment year as to which no timely
8 exemption petition or complaint has been filed by the
9 municipality or as to which an administrative or court
10 decision denying exemption has become final and
11 nonappealable. For each assessment year or portion thereof
12 that property is made exempt by operation of the foregoing
13 clause (iii), whether such year or portion is before or
14 after the effective date of Public Act 87-1280, the
15 leasehold interest of the lessee shall, if necessary, be
16 considered omitted property for purposes of this Act;
17 (c-5) Notwithstanding clause (i) of subsection (c),
18 all property owned by a municipality with a population of
19 over 500,000 that is used for toll road or toll bridge
20 purposes and that is leased for those purposes to another
21 entity whose property is not exempt shall remain exempt,
22 and any leasehold interest in the property shall not be
23 subject to taxation under Section 9-195 of this Act;
24 (d) all property owned by any municipality located
25 outside its incorporated limits but within the same county
26 when used as a tuberculosis sanitarium, farm colony in

HB6272- 9 -LRB098 21484 HLH 60000 b
1 connection with a house of correction, or nursery, garden,
2 or farm, or for the growing of shrubs, trees, flowers,
3 vegetables, and plants for use in beautifying,
4 maintaining, and operating playgrounds, parks, parkways,
5 public grounds, buildings, and institutions owned or
6 controlled by the municipality;
7 (e) all property owned by a township and operated as
8 senior citizen housing under Sections 35-50 through
9 35-50.6 of the Township Code; and
10 (f) all property owned by the Executive Board of the
11 Mutual Aid Box Alarm System (MABAS), a unit of
12 intergovernmental cooperation, that is used for the public
13 purpose of disaster preparedness and response for units of
14 local government and the State of Illinois pursuant to
15 Section 10 of Article VII of the Illinois Constitution and
16 the Intergovernmental Cooperation Act.
17 All property owned by any municipality outside of its
18corporate limits is exempt if used exclusively for municipal or
19public purposes.
20 Notwithstanding this Section or any other provision of law,
21if real property is conveyed to a municipality or a county
22under subsection (d-5) of Section 7.1 of the State Property
23Control Act, then that property is not entitled to an exemption
24under this Section or any other Section of this Code in any
25taxable year in which the municipality or county owns the
26property.

HB6272- 10 -LRB098 21484 HLH 60000 b
1 For purposes of this Section, "municipality" means a
2municipality, as defined in Section 1-1-2 of the Illinois
3Municipal Code.
4(Source: P.A. 98-206, eff. 1-1-14.)
5 Section 99. Effective date. This Act takes effect upon
6becoming law.