Bill Text: IL SB3569 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Housing Development Act. Creates the Fairness in Property Tax Foreclosure Task Force. Sets forth the membership of the Task Force. Provides that the Task Force shall study and make recommendations concerning issues associated with property foreclosure for failure to pay property taxes. Amends the Illinois Governmental Ethics Act and the State Officials and Employees Ethics Act to make conforming changes. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-02-09 - Referred to Assignments [SB3569 Detail]

Download: Illinois-2023-SB3569-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3569 Introduced 2/9/2024, by Sen. Erica Harriss SYNOPSIS AS INTRODUCED:
5 ILCS 420/3A-55 new
5 ILCS 430/99-15 new
20 ILCS 3805/36 new
Amends the Illinois Housing Development Act. Creates the Fairness in Property Tax Foreclosure Task Force. Sets forth the membership of the Task Force. Provides that the Task Force shall study and make recommendations concerning issues associated with property foreclosure for failure to pay property taxes. Amends the Illinois Governmental Ethics Act and the State Officials and Employees Ethics Act to make conforming changes. Effective immediately.
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A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Governmental Ethics Act is amended
by adding Section 3A-55 as follows:
(5 ILCS 420/3A-55 new)
Sec. 3A-55. Exemption. Members of the Fairness in Property
Tax Foreclosure Task Force are, in their capacity as members
of the Fairness in Property Tax Foreclosure Task Force, exempt
from any training, disclosure, or filing requirements under
this Act.
Section 10. The State Officials and Employees Ethics Act
is amended by adding Section 99-15 as follows:
(5 ILCS 430/99-15 new)
Sec. 99-15. Exemption. The Fairness in Property Tax
Foreclosure Task Force are, in their capacity as members of
the Fairness in Property Tax Foreclosure Task Force, exempt
from any training, disclosure, or filing requirements under
this Act.
Section 15. The Illinois Housing Development Act is

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amended by adding Section 36 as follows:
(20 ILCS 3805/36 new)
Sec. 36. The Fairness in Property Tax Foreclosure Task
Force.
(a) The General Assembly finds that:
(1) homeownership has long been viewed as a foundation
for building wealth;
(2) for many Illinoisans, the equity in their home is
the single greatest asset they have;
(3) the loss of owner-occupied homes following the
annual tax sale results in a loss of home equity for
impacted households and negatively impacts the ability of
those households to build generational wealth; and
(4) the redemption process in Illinois can often be
complicated, confusing, and burdensome, resulting in the
loss of homeownership as well as the equity the homeowner
built up over time.
(b) The Fairness in Property Tax Foreclosure Task Force is
hereby created. The Task Force shall consist of the following
members:
(1) one member, who shall serve as co-chairperson of
the Task Force, appointed by the President of the Senate;
(2) one member, who shall serve as co-chairperson of
the Task Force, appointed by the Speaker of the House of
Representatives;

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(3) one member appointed by the Minority Leader of the
Senate;
(4) one member appointed by the Minority Leader of the
House of Representatives;
(5) the Attorney General or his or her designee;
(6) one member appointed by the Governor from a
statewide organization representing the interests of
assessors;
(7) one member appointed by the Governor from a
statewide organization that represents the interests of
municipalities;
(8) one member appointed by the Governor from a
statewide organization representing the interests of
realtors;
(9) one member appointed by the Governor from a
statewide organization that represents commercial bankers;
(10) one member appointed by the Governor from a
statewide organization that represents attorneys working
in the field of property title law;
(11) one member appointed by the Governor from a
statewide organization that represents the interests of
county clerks and recorders;
(12) one member appointed by the Governor from a
statewide organization that represents the interests of
county treasurers;
(13) one member appointed by the Governor from a

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statewide organization representing the interests of
circuit court clerks;
(14) one member appointed by the Governor from a
statewide organization representing the interests of
counties;
(15) up to 2 members, appointed by the co-chairpersons
of the Task Force, representing nonprofit affordable
housing organizations, housing counseling organizations,
or homeownership organizations; and
(16) up to 3 members, appointed by the co-chairpersons
of the Task Force, representing taxing districts, other
than municipalities, that contain a significant number of
properties that are included in the annual tax sale.
At the discretion of both of the co-chairpersons of the
Task Force, additional individuals may participate as
nonvoting members of the Task Force.
(c) Members of the Task Force shall be appointed no later
than 30 days after the effective date of this amendatory Act of
the 103rd General Assembly. If any members are not appointed
within that 30-day period, the appointing authority shall be
deemed to have waived the right to make that appointment.
Vacancies in the Task Force, other than a vacancy occurring
because of a waiver by the appointing authority under this
subsection, shall be filled by the original appointing
authority.
(d) Members of the Task Force shall serve without

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compensation but may be reimbursed for necessary expenses
incurred in connection with the Task Force. The Illinois
Housing Development Authority shall provide administrative
support to the Task Force as needed.
(e) The members of the Task Force are, in their capacity as
members of the Fairness in Property Tax Foreclosure Task
Force, exempt from any training, disclosure, or filing
requirements under the State Officials and Employees Ethics
Act, the Illinois Governmental Ethics Act, or any other
applicable State law or rule imposing training, disclosure, or
filing requirements.
(f) Once all of the members of the Task Force have been
appointed, other than members appointed under items (15) or
(16) of subsection (b) or members whose appointments have been
waived under subsection (c), the Task Force shall meet not
less than 4 times at the call of one or both of the
co-chairpersons to carry out the duties prescribed in this
Section. Members of the Task Force may attend those meetings
virtually.
(g) The Task Force shall study and make recommendations
concerning issues associated with property foreclosures due to
failure of the owner to pay property taxes. Those issues shall
include, but shall not be limited to:
(1) the recent decision of the United States Supreme
Court in Tyler v. Hennepin County, 598 U.S. 631, regarding
the retention of excess revenue by a government entity

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after the sale of property acquired following a tax sale
and foreclosure;
(2) the requirements of the Illinois and United States
Constitutions, especially with respect to due process and
takings, and the impact of those provisions on the
property tax sale process, including the sufficiency of
notice requirements to delinquent taxpayers and related
entities, such as lienholders and mortgagees, and
conditions under which the holder of the tax deed or any
subsequent owner is or should be entitled to retain excess
funds acquired through the sale of property that has been
acquired during a tax sale;
(3) the role of land bank authorities, mortgage
holders, and other lienholders and the rights of each in
the tax sale and foreclosure process;
(4) whether the tax lien foreclosure process is or
should be the same for both residential property and
commercial property or whether differences are necessary
or desirable;
(5) the rights of former owners, commercial lenders or
lienholders, and government entities when property has
been acquired for nonpayment of property taxes and the tax
deed grantee does not intend to sell the property; and
(6) the sufficiency of any current redemption periods
or statutes of limitations with respect to property tax
sales.

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The recommendations of the Task Force may, but need not
be, in the form of proposed legislation.
(g) A report detailing the Task Force's findings,
conclusions, and recommendations shall be filed with the
General Assembly, in accordance with Section 3.1 of the
General Assembly Organization Act, by no later than December
30, 2024. The Task Force is dissolved upon submission of the
report.
(h) This Section is repealed on January 1, 2025.