103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2794 Introduced , by Rep. Gregg Johnson SYNOPSIS AS INTRODUCED: 605 ILCS 5/4-508 from Ch. 121, par. 4-508 Amends the Illinois Highway Code. Allows, under certain circumstances, the Department of Transportation to sell certain real property related to the Interstate 74 Iowa-Illinois Corridor Project and declared excess. Effective immediately. LRB103 27135 MXP 53504 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2794 Introduced , by Rep. Gregg Johnson SYNOPSIS AS INTRODUCED: 605 ILCS 5/4-508 from Ch. 121, par. 4-508 605 ILCS 5/4-508 from Ch. 121, par. 4-508 Amends the Illinois Highway Code. Allows, under certain circumstances, the Department of Transportation to sell certain real property related to the Interstate 74 Iowa-Illinois Corridor Project and declared excess. Effective immediately. LRB103 27135 MXP 53504 b LRB103 27135 MXP 53504 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2794 Introduced , by Rep. Gregg Johnson SYNOPSIS AS INTRODUCED: 605 ILCS 5/4-508 from Ch. 121, par. 4-508 605 ILCS 5/4-508 from Ch. 121, par. 4-508 605 ILCS 5/4-508 from Ch. 121, par. 4-508 Amends the Illinois Highway Code. Allows, under certain circumstances, the Department of Transportation to sell certain real property related to the Interstate 74 Iowa-Illinois Corridor Project and declared excess. Effective immediately. LRB103 27135 MXP 53504 b LRB103 27135 MXP 53504 b LRB103 27135 MXP 53504 b A BILL FOR HB2794LRB103 27135 MXP 53504 b HB2794 LRB103 27135 MXP 53504 b HB2794 LRB103 27135 MXP 53504 b 1 AN ACT concerning transportation. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Highway Code is amended by 5 changing Section 4-508 as follows: 6 (605 ILCS 5/4-508) (from Ch. 121, par. 4-508) 7 Sec. 4-508. Sale of land, rights, or other property by 8 Department. 9 (a) Except as provided in paragraphs (c) and (d) of this 10 Section, and subject to the written approval of the Governor 11 and, if required by federal law or regulation, the Federal 12 Highway Administration, the Department may dispose of, by 13 public sale, at auction or by sealed bids, any land, 14 dedications, easements, access rights, or any interest in the 15 real estate that it holds, or other properties, real or 16 personal, acquired for but no longer needed for highway 17 purposes or remnants acquired under the provisions of Section 18 4-501. Such sale may be made at the fair market value of such 19 land, rights, or property, as determined by the Department. 20 The fair market value of the land, rights, or property may be 21 based on one or more appraisals completed by a qualified 22 appraiser approved by the Department or a valuation waiver 23 prepared by the Department. A sale below the fair market 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2794 Introduced , by Rep. Gregg Johnson SYNOPSIS AS INTRODUCED: 605 ILCS 5/4-508 from Ch. 121, par. 4-508 605 ILCS 5/4-508 from Ch. 121, par. 4-508 605 ILCS 5/4-508 from Ch. 121, par. 4-508 Amends the Illinois Highway Code. Allows, under certain circumstances, the Department of Transportation to sell certain real property related to the Interstate 74 Iowa-Illinois Corridor Project and declared excess. Effective immediately. LRB103 27135 MXP 53504 b LRB103 27135 MXP 53504 b LRB103 27135 MXP 53504 b A BILL FOR 605 ILCS 5/4-508 from Ch. 121, par. 4-508 LRB103 27135 MXP 53504 b HB2794 LRB103 27135 MXP 53504 b HB2794- 2 -LRB103 27135 MXP 53504 b HB2794 - 2 - LRB103 27135 MXP 53504 b HB2794 - 2 - LRB103 27135 MXP 53504 b 1 value, as established by this Section, shall be justified, in 2 writing, by Department staff, which shall include 3 consideration of all relevant information, including, but not 4 limited to, findings regarding the best interests of the 5 Department, other public benefits such as divestment of 6 liabilities, or changed circumstances. The Department shall 7 develop a policy to assign a monetary value of all such 8 considerations in valuation determinations. An appraisal may 9 be paid for by any interested party. The form of the conveyance 10 or release shall be in a form approved by the Department. 11 (b) Except as provided in paragraphs (c) and (d) of this 12 Section, and subject to the written approval of the Governor, 13 the Department may exchange any land, rights or property no 14 longer needed for highway purposes or remnants acquired under 15 the provisions of Section 4-501 of this Code for equivalent 16 interests in land, rights or property needed for highway 17 purposes. Where such interests are not of equivalent value 18 cash may be paid or received for the difference in value. 19 (c) If at the time any property previously determined by 20 the Department to be needed for highway purposes is declared 21 excess and no longer needed for the Department's purposes, and 22 before making the property available for public sale as 23 provided in subsection (a), the Department shall offer that 24 real property as follows: 25 (1) To the person from whom such real property was 26 acquired that still owns and has continuously owned land HB2794 - 2 - LRB103 27135 MXP 53504 b HB2794- 3 -LRB103 27135 MXP 53504 b HB2794 - 3 - LRB103 27135 MXP 53504 b HB2794 - 3 - LRB103 27135 MXP 53504 b 1 adjacent to or abutting such real property since the 2 acquisition by the Department, the Department shall first 3 offer the property, in writing, for the fair market value 4 of the property. If the Department's offer to such a 5 person is accepted, in writing, within 60 days of the date 6 of the written offer, the Department, subject to the 7 written approval of the Governor, is authorized to dispose 8 of such property to that person. If the offer is not 9 accepted, in writing, within 60 days of the date of the 10 written offer, all rights under this paragraph shall 11 terminate. 12 (2) If the option in paragraph (1) does not exist or an 13 offer is made and not accepted, or a sale otherwise is not 14 consummated, the Department shall offer, in writing, at 15 the value determined by the Department, the real property 16 declared excess to the local municipality in which the 17 property is situated and located, or, if the property is 18 situated and located in an unincorporated area, to the 19 county and township, if applicable, in which the property 20 is situated and located. If a letter of intent to accept 21 the offer is received by the Department, in writing, 22 within 15 days of the date of the offer, the local 23 governmental entity shall have 45 days from the date on 24 the offer to accept the offer formally by resolution of 25 its governing body. If the offer is formally accepted 26 within 45 days of the date of the written offer, the HB2794 - 3 - LRB103 27135 MXP 53504 b HB2794- 4 -LRB103 27135 MXP 53504 b HB2794 - 4 - LRB103 27135 MXP 53504 b HB2794 - 4 - LRB103 27135 MXP 53504 b 1 Department, subject to the written approval of the 2 Governor, is authorized to convey the property to the 3 governing body upon payment of the value stated in the 4 offer and may include a reversion for failure to continue 5 public ownership and use if conveyed for less than fair 6 market value. If a timely letter of intent to accept and a 7 formal acceptance is received from a county and a 8 township, the county shall be given priority. If a letter 9 of intent is not received within 15 days of the offer, all 10 rights under this paragraph shall terminate. If the letter 11 of intent is received within the 15 days, but the formal 12 acceptance is not received within 45 days of the date of 13 the written offer, all rights under this paragraph shall 14 terminate. If the unit of local government does not tender 15 the funds in the full amount of the accepted offer within 16 90 days of the date of the offer, all rights under this 17 paragraph shall terminate. If a county fails to tender the 18 funds in the full amount of the written accepted offer and 19 a township tenders the full amount of a timely accepted 20 offer within 15 days of the county's failure to timely 21 tender, the Department shall sell the land, rights, or 22 property to the township. The Department shall have the 23 right to revoke, in writing, any offer made under this 24 paragraph at any time before the funds in the full amount 25 of the offer are tendered to the Department. 26 (3) If the option in paragraph (1) or (2) does not HB2794 - 4 - LRB103 27135 MXP 53504 b HB2794- 5 -LRB103 27135 MXP 53504 b HB2794 - 5 - LRB103 27135 MXP 53504 b HB2794 - 5 - LRB103 27135 MXP 53504 b 1 exist or a sale is not otherwise consummated, the 2 Department shall offer, in writing, at fair market value, 3 the real property declared excess to an adjacent or 4 abutting property owner if the property owner is the only 5 reasonable party as determined by the Department. If the 6 Department's offer is accepted by the property owner, in 7 writing, within 60 days of the date of the written offer, 8 the Department, subject to the written approval of the 9 Governor, is authorized to convey the property to the 10 property owner upon payment of the fair market value. If 11 the offer is not accepted, in writing, within 60 days of 12 the date of the written offer, all rights under this 13 paragraph shall terminate. 14 (c-1) With respect only to property related to the 15 Interstate 74 Iowa-Illinois Corridor Project, if the options 16 in paragraph (c) do not exist or an offer is made and not 17 accepted within 60 days of the date of a written offer, or a 18 sale otherwise is not consummated, the Department shall offer, 19 in writing, at either the current appraised value or at such 20 other value as may be determined by the Department, the real 21 property declared excess to the municipality where the 22 property is located. If a letter of intent to accept the offer 23 is received by the Department, in writing, within 30 days of 24 the date of the offer, the municipality shall have 45 days from 25 the date of the offer to accept the offer formally by 26 resolution of its corporate authorities. If the offer is HB2794 - 5 - LRB103 27135 MXP 53504 b HB2794- 6 -LRB103 27135 MXP 53504 b HB2794 - 6 - LRB103 27135 MXP 53504 b HB2794 - 6 - LRB103 27135 MXP 53504 b 1 formally accepted within 45 days of the date of the written 2 offer, the Department, subject to the written approval of the 3 Governor, is authorized to convey the property to the 4 municipality upon payment of the value stated in the offer and 5 may include a reversion for failure to continue public 6 ownership and use if conveyed for less than the fair market 7 value. If a letter of intent is not received within 15 days of 8 the offer, the offer shall terminate. If the letter of intent 9 is received within 30 days, but the formal acceptance is not 10 received within 45 days of the date of the written offer, the 11 offer shall terminate. If the municipality does not tender the 12 funds in the full amount of the accepted offer within 90 days 13 after the date of adoption of the resolution by the 14 municipality's corporate authorities accepting the offer, the 15 offer shall terminate. The Department has the right to revoke 16 in writing any offer made under this subsection at any time 17 before the funds in the full amount of the offer are tendered 18 to the Department. 19 (d) If the Department enters into or currently has a 20 written contract with another highway authority for the 21 transfer of jurisdiction of any highway or portion thereof, 22 the Department is authorized to convey, subject to the written 23 approval of the Governor, without compensation, any land, 24 dedications, easements, access rights, or any interest in the 25 real estate that it holds to that specific highway or portion 26 thereof to the highway authority that is accepting or has HB2794 - 6 - LRB103 27135 MXP 53504 b HB2794- 7 -LRB103 27135 MXP 53504 b HB2794 - 7 - LRB103 27135 MXP 53504 b HB2794 - 7 - LRB103 27135 MXP 53504 b 1 accepted jurisdiction. However, no part of the transferred 2 property can be vacated or disposed of without the approval of 3 the Department, which may require compensation for non-public 4 use. 5 (e) Except as provided in paragraph (c) of this Section, 6 if the Department obtains or obtained fee simple title to, or 7 any lesser interest, in any land, right, or other property and 8 must comply with subdivision (f)(3) of Section 6 of Title I of 9 the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460 10 l-8(f)(3)), the Historic Bridge Program established under 11 Title 23, United States Code, Section 144, subsection (o) (23 12 U.S.C. 144(o)), the National Historic Preservation Act (16 13 U.S.C. Sec. 470), the Interagency Wetland Policy Act of 1989, 14 or the Illinois State Agency Historic Resources Preservation 15 Act, the Department, subject to the written approval of the 16 Governor and concurrence of the grantee, is authorized to 17 convey the title or interest in the land, right, or other 18 property to another governmental agency, or a not-for-profit 19 organization that will use the property for purposes 20 consistent with the appropriate law. 21 The Department may retain rights to protect the public 22 interest. 23 (Source: P.A. 102-974, eff. 1-1-23.) 24 Section 99. Effective date. This Act takes effect upon 25 becoming law. HB2794 - 7 - LRB103 27135 MXP 53504 b