104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1176 Introduced 1/24/2025, by Sen. Michael W. Halpin SYNOPSIS AS INTRODUCED: 30 ILCS 605/7.1 from Ch. 127, par. 133b10.1 Amends the State Property Control Act. In a provision concerning submission of an Annual Real Property Utilization Report, changes the due date for the Report from July 31 to August 31 of each year. LRB104 06302 BDA 16337 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1176 Introduced 1/24/2025, by Sen. Michael W. Halpin SYNOPSIS AS INTRODUCED: 30 ILCS 605/7.1 from Ch. 127, par. 133b10.1 30 ILCS 605/7.1 from Ch. 127, par. 133b10.1 Amends the State Property Control Act. In a provision concerning submission of an Annual Real Property Utilization Report, changes the due date for the Report from July 31 to August 31 of each year. LRB104 06302 BDA 16337 b LRB104 06302 BDA 16337 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1176 Introduced 1/24/2025, by Sen. Michael W. Halpin SYNOPSIS AS INTRODUCED: 30 ILCS 605/7.1 from Ch. 127, par. 133b10.1 30 ILCS 605/7.1 from Ch. 127, par. 133b10.1 30 ILCS 605/7.1 from Ch. 127, par. 133b10.1 Amends the State Property Control Act. In a provision concerning submission of an Annual Real Property Utilization Report, changes the due date for the Report from July 31 to August 31 of each year. LRB104 06302 BDA 16337 b LRB104 06302 BDA 16337 b LRB104 06302 BDA 16337 b A BILL FOR SB1176LRB104 06302 BDA 16337 b SB1176 LRB104 06302 BDA 16337 b SB1176 LRB104 06302 BDA 16337 b 1 AN ACT concerning finance. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The State Property Control Act is amended by 5 changing 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 8 surplus real property held by the State of Illinois shall be 9 disposed of by the administrator as provided in this Section. 10 "Surplus real property," as used in this Section, means any 11 real property to which the State holds fee simple title or 12 lesser interest, and is vacant and determined by the head of 13 the owning agency to no longer be required for the State 14 agency's needs and responsibilities and has no foreseeable use 15 by the owning agency. Title to the surplus real property may 16 remain with the owning agency throughout the disposition 17 process if approved by the Administrator; however, the 18 Administrator and the Department of Central Management 19 Services shall have sole responsibility and authority for 20 disposing of the property as set out in this Section. 21 (b) All responsible officers shall submit an Annual Real 22 Property Utilization Report to the Administrator, or annual 23 update of such report, on forms required by the Administrator, 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1176 Introduced 1/24/2025, by Sen. Michael W. Halpin SYNOPSIS AS INTRODUCED: 30 ILCS 605/7.1 from Ch. 127, par. 133b10.1 30 ILCS 605/7.1 from Ch. 127, par. 133b10.1 30 ILCS 605/7.1 from Ch. 127, par. 133b10.1 Amends the State Property Control Act. In a provision concerning submission of an Annual Real Property Utilization Report, changes the due date for the Report from July 31 to August 31 of each year. LRB104 06302 BDA 16337 b LRB104 06302 BDA 16337 b LRB104 06302 BDA 16337 b A BILL FOR 30 ILCS 605/7.1 from Ch. 127, par. 133b10.1 LRB104 06302 BDA 16337 b SB1176 LRB104 06302 BDA 16337 b SB1176- 2 -LRB104 06302 BDA 16337 b SB1176 - 2 - LRB104 06302 BDA 16337 b SB1176 - 2 - LRB104 06302 BDA 16337 b 1 by August July 31 of each year. The Administrator may require 2 such documentation as he deems reasonably necessary in 3 connection with this Report, and shall require that such 4 Report include the following information: 5 (1) A legal description of all real property owned by 6 the State under the control of the responsible officer. 7 (2) A description of the use of the real property 8 listed under (1). 9 (3) A list of any improvements made to such real 10 property during the previous year. 11 (4) The dates on which the State first acquired its 12 interest in such real property, and the purchase price and 13 source of the funds used to acquire the property. 14 (5) Plans for the future use of currently unused real 15 property. 16 (6) A declaration of any surplus real property. On or 17 before October 31 of each year the Administrator shall 18 furnish copies of each responsible officer's report along 19 with a list of surplus property indexed by legislative 20 district to the General Assembly. 21 This report shall be filed with the Speaker, the Minority 22 Leader and the Clerk of the House of Representatives and the 23 President, the Minority Leader and the Secretary of the Senate 24 and shall be duplicated and made available to the members of 25 the General Assembly for evaluation by such members for 26 possible liquidation of unused public property at public sale. SB1176 - 2 - LRB104 06302 BDA 16337 b SB1176- 3 -LRB104 06302 BDA 16337 b SB1176 - 3 - LRB104 06302 BDA 16337 b SB1176 - 3 - LRB104 06302 BDA 16337 b 1 (c) Following receipt of the Annual Real Property 2 Utilization Report required under paragraph (b), the 3 Administrator shall notify all State agencies by October 31 of 4 all declared surplus real property. 5 (d) Any surplus real property shall be disposed of by the 6 Administrator. No appraisal is required if during his initial 7 survey of surplus real property the Administrator determines 8 such property has a fair market value of less than $5,000. If 9 the value of such property is determined by the Administrator 10 in his initial survey to be $5,000 or more, then the 11 Administrator shall obtain 2 appraisals of such real property, 12 which shall include known liabilities, including, but not 13 limited to, environmental costs. The average of these 2 14 appraisals shall represent the fair market value of the 15 surplus real property. 16 No surplus real property may be conveyed by the 17 Administrator for less than the fair market value, unless the 18 Administrator makes a written determination that it is in the 19 best interests of the State to establish a different value. 20 That written determination shall be published in the Illinois 21 Procurement Bulletin. Such written determination, along with 22 an affidavit setting forth the conditions and circumstances 23 that make the use of a different value in the best interests of 24 the State, shall also be filed with the Executive Ethics 25 Commission. The Executive Ethics Commission shall have 30 days 26 to review the written determination. The Executive Ethics SB1176 - 3 - LRB104 06302 BDA 16337 b SB1176- 4 -LRB104 06302 BDA 16337 b SB1176 - 4 - LRB104 06302 BDA 16337 b SB1176 - 4 - LRB104 06302 BDA 16337 b 1 Commission may order an additional 30 days to review the 2 written determination. The Administrator shall provide the 3 Executive Ethics Commission with any information requested by 4 the Executive Ethics Commission related to the Administrator's 5 determination of the value of the surplus real property. If 6 the Executive Ethics Commission objects in writing to the 7 value determined by the Administrator, then the Administrator 8 shall not convey the surplus real property for less than 9 either the fair market value as determined by the average of 10 appraisals or an amount agreed upon by the Executive Ethics 11 Commission and the Administrator. Circumstances in which it is 12 in the best interests of the State to establish a different 13 value may include, but are not limited to, the following: (i) 14 an auction did not yield any bids at the established fair 15 market value; (ii) a unit of local government is interested in 16 acquiring the surplus real property; or (iii) the costs to the 17 State of maintaining such surplus real property are 18 sufficiently high that it would be reasonable to a prudent 19 person to sell such surplus real property for less than the 20 fair market value established by the average of the 21 appraisals. In no event shall the Administrator sell surplus 22 real property for less than 75% of fair market value and before 23 such property has been offered to an interested unit of local 24 government or made available at public auction. 25 Prior to offering the surplus real property for sale to 26 the public the Administrator shall give notice in writing of SB1176 - 4 - LRB104 06302 BDA 16337 b SB1176- 5 -LRB104 06302 BDA 16337 b SB1176 - 5 - LRB104 06302 BDA 16337 b SB1176 - 5 - LRB104 06302 BDA 16337 b 1 the existence of the surplus real property to each State 2 agency and to the governing bodies of the county and of all 3 cities, villages and incorporated towns in the county in which 4 such real property is located. Any such State agency or 5 governing body may notify the Administrator of its interest in 6 acquiring the surplus real property within a notice period set 7 by the Administrator of at least 30 days. If any State agency 8 notifies the Administrator of its interest in acquiring the 9 surplus property, the Administrator may deny any such requests 10 by such agency if the Administrator determines that it is more 11 advantageous to the State to dispose of the surplus real 12 property to a governing body or the public. If a governing body 13 notifies the Administrator of its interest in acquiring the 14 property, then the Administrator shall wait a minimum of 30 15 additional days during which the Administrator may engage in 16 negotiations with such governing body for the sale of the 17 surplus real property. After the notice period set by the 18 Administrator of at least 30 days has passed, the 19 Administrator may sell the surplus real property by public 20 auction, which may include an electronic auction or the use of 21 sealed bids, following notice of such sale by publication on 3 22 separate days not less than 15 nor more than 30 days prior to 23 the sale in the State newspaper and in a newspaper having 24 general circulation in the county in which the surplus real 25 property is located. The Administrator shall post "For Sale" 26 signs of a conspicuous nature on such surplus real property SB1176 - 5 - LRB104 06302 BDA 16337 b SB1176- 6 -LRB104 06302 BDA 16337 b SB1176 - 6 - LRB104 06302 BDA 16337 b SB1176 - 6 - LRB104 06302 BDA 16337 b 1 offered for sale to the public. If no acceptable offers for the 2 surplus real property are received, the Administrator may have 3 new appraisals of such property made. The Administrator shall 4 have all power necessary to convey surplus real property under 5 this Section. All moneys received for the sale of surplus real 6 property shall be deposited in the General Revenue Fund, 7 except that: 8 (1) Where moneys expended for the acquisition of such 9 real property were from a special fund which is still a 10 special fund in the State treasury, this special fund 11 shall be reimbursed in the amount of the original 12 expenditure and any amount in excess thereof shall be 13 deposited in the General Revenue Fund. 14 (2) Whenever a State mental health facility operated 15 by the Department of Human Services is closed and the real 16 estate on which the facility is located is sold by the 17 State, the net proceeds of the sale of the real estate 18 shall be deposited into the Community Mental Health 19 Medicaid Trust Fund. 20 (3) Whenever a State developmental disabilities 21 facility operated by the Department of Human Services is 22 closed and the real estate on which the facility is 23 located is sold by the State, the net proceeds of the sale 24 of the real estate shall be deposited into the Community 25 Developmental Disability Services Medicaid Trust Fund. 26 The Administrator shall have authority to order such SB1176 - 6 - LRB104 06302 BDA 16337 b SB1176- 7 -LRB104 06302 BDA 16337 b SB1176 - 7 - LRB104 06302 BDA 16337 b SB1176 - 7 - LRB104 06302 BDA 16337 b SB1176 - 7 - LRB104 06302 BDA 16337 b