Bill Text: IL SB2291 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the State Property Control Act. Modifies the definition of the term "surplus real property". Provides that title to surplus real property may, if approved by the Director of Central Management Services as Administrator, remain with the owning agency throughout the disposition process; however, the Administrator and the Department of Central Management Services have sole responsibility and authority for disposing of the property. Requires the Administrator to obtain 2 (currently, 3) appraisals of surplus real property if the value of the property is determined in the initial survey to be $5,000 or more. Provides that 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. Provides further requirements concerning the Administrator's written determination. Provides that prior to offering the surplus real property for sale to the public, the Administrator shall give notice in writing 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 the real property is located. Provides further requirements concerning a State agency's or governing body's interest in acquiring surplus real property. Makes other changes. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Failed) 2021-01-13 - Session Sine Die [SB2291 Detail]

Download: Illinois-2019-SB2291-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB2291 Introduced 10/28/2019, by Sen. Pat McGuire SYNOPSIS AS INTRODUCED:
30 ILCS 605/7.1 from Ch. 127, par. 133b10.1
Amends the State Property Control Act. Modifies the definition of the term "surplus real property". Provides that title to surplus real property may, if approved by the Director of Central Management Services as Administrator, remain with the owning agency throughout the disposition process; however, the Administrator and the Department of Central Management Services have sole responsibility and authority for disposing of the property. Requires the Administrator to obtain 2 (currently, 3) appraisals of surplus real property if the value of the property is determined in the initial survey to be $5,000 or more. Provides that 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. Provides further requirements concerning the Administrator's written determination. Provides that prior to offering the surplus real property for sale to the public, the Administrator shall give notice in writing 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 the real property is located. Provides further requirements concerning a State agency's or governing body's interest in acquiring surplus real property. Makes other changes. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
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 determined by the head of the owning
agency to no longer be required for the State agency's needs
and responsibilities. Title to the surplus real property may,
if approved by the Administrator, remain with the owning agency
throughout the disposition process; however, the Administrator
and the Department of Central Management Services have sole
responsibility and authority for disposing of the property as
set forth in this Section 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,

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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).
(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.

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(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
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

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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 2 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, 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. The 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

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the Administrator. Circumstances in which it is in the best
interests of the State to establish a different value may
include, but are not limited to, the following: (1) an auction
did not yield any bids at the established fair market value;
(2) a unit of local government is interested in acquiring the
surplus real property; or (3) the costs to the State of
maintaining the surplus real property are sufficiently high
that it would be reasonable to a prudent person to sell the
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 the notice period set
by the Administrator of at least 14 days 60 days of the notice.
If any State agency notifies the Administrator of its interest
in acquiring the surplus property, the Administrator may deny
any such requests by a State 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

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in acquiring the property, then the Administrator shall wait a
minimum of 30 additional days during which the Administrator
may engage in negotiations with the governing body for the sale
of the surplus real property. After the notice period as set by
the Administrator of at least 14 days 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 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.

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(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.
(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.)

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Section 99. Effective date. This Act takes effect upon
becoming law.