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91_HB2086ham003
LRB9103143PTpkam
1 AMENDMENT TO HOUSE BILL 2086
2 AMENDMENT NO. . Amend House Bill 2086 by replacing
3 the title with the following:
4 "AN ACT to amend the Property Tax Code by changing
5 Sections 21-295, 21-305, and 22-40 and adding Sections 21-306
6 and 21-397."; and
7 by replacing everything after the enacting clause with the
8 following:
9 "Section 5. The Property Tax Code is amended by changing
10 Sections 21-295, 21-305, and 22-40 and adding Sections 21-306
11 and 21-397 as follows:
12 (35 ILCS 200/21-295)
13 Sec. 21-295. Creation of indemnity fund.
14 (a) In counties of less than 3,000,000 inhabitants, each
15 person purchasing any property at a sale under this Code
16 shall pay to the County Collector, prior to the issuance of
17 any certificate of purchase, a fee of $20 for each item
18 purchased in counties of less than 3,000,000 inhabitants and
19 $80 in counties of 3,000,000 or more inhabitants. In all
20 counties, A like sum shall be paid for each year that all or
21 a portion of an installment of subsequent taxes, or portion
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1 thereof is are paid by the tax purchaser and posted to the
2 tax judgment, sale, redemption and forfeiture record where
3 the underlying certificate of purchase is recorded. The
4 amount paid prior to issuance of the certificate of purchase
5 shall be included in the purchase price of the property in
6 the certificate of purchase and all amounts paid under this
7 subsection shall be included in the amount required to redeem
8 under Section 21-355.
9 (a-5) In counties of 3,000,000 or more inhabitants, each
10 person purchasing property at a sale under this Code shall
11 pay to the County Collector a fee of $80 for each item
12 purchased plus an additional sum equal to 5% of total taxes,
13 interest, and penalties, including the taxes, interest, and
14 penalties paid under Section 21-240. In these counties, the
15 certificate holder shall also pay to the County Collector a
16 fee of $80 for each year that all or a portion of subsequent
17 taxes are paid by the tax purchaser and posted to the tax
18 judgment, sale, redemption, and forfeiture record, plus an
19 additional sum equal to 5% of all subsequent taxes, interest,
20 and penalties. The additional 5% fee is not required after
21 December 31, 2006.
22 (b) The amount paid prior to issuance of the certificate
23 of purchase pursuant to subsection (a) or (a-5) shall be
24 included in the purchase price of the property in the
25 certificate of purchase and all amounts paid under this
26 Section shall be included in the amount required to redeem
27 under Section 21-355. Except as otherwise provided in
28 subsection (b) of Section 21-300, all money received under
29 subsection (a) or (a-5) shall be paid by the Collector to the
30 County Treasurer of the County in which the land is situated,
31 for the purpose of an indemnity fund. The County Treasurer,
32 as trustee of that fund, shall invest all of that fund,
33 principal and income, in his or her hands from time to time,
34 if not immediately required for payments of indemnities under
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1 subsection (a) of Section 21-305, in investments permitted by
2 the Illinois State Board of Investment under Article 22A of
3 the Illinois Pension Code. The county collector shall report
4 annually to the Circuit Court on the condition and income of
5 the fund. The indemnity fund shall be held to satisfy
6 judgments obtained against the County Treasurer, as trustee
7 of the fund. No payment shall be made from the fund, except
8 upon a judgment of the court which ordered the issuance of a
9 tax deed.
10 (Source: P.A. 86-1028; 86-1431; 88-455.)
11 (35 ILCS 200/21-305)
12 Sec. 21-305. Payments from Indemnity Fund.
13 (a) Any owner of property sold under any provision of
14 this Code who sustains loss or damage by reason of the
15 issuance of a tax deed under Section 21-445 or 22-40 and who
16 is barred or is in any way precluded from bringing an action
17 for the recovery of the property shall have the right to
18 indemnity for the loss or damage sustained, limited as
19 follows:
20 (1) An owner who resided on property that contained
21 4 or less dwelling units on the last day of the period of
22 redemption and who is equitably entitled to compensation
23 for the loss or damage sustained has the right to
24 indemnity. An equitable indemnity award shall be limited
25 to the fair cash value of the property as of the date the
26 tax deed was issued less any mortgages or liens on the
27 property, and the award will not exceed $99,000. The
28 Court shall liberally construe this equitable entitlement
29 standard to provide compensation wherever, in the
30 discretion of the Court, the equities warrant the action.
31 An owner of a property that contained 4 or less
32 dwelling units who requests an award in excess of $99,000
33 must prove that the loss of his or her property was not
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1 attributable to his or her own fault or negligence before
2 an award in excess of $99,000 will be granted.
3 (2) An owner who sustains the loss or damage of any
4 property occasioned by reason of the issuance of a tax
5 deed, without fault or negligence of his or her own, has
6 the right to indemnity limited to the fair cash value of
7 the property less any mortgages or liens on the
8 property. In determining the existence of fault or
9 negligence, the court shall consider whether the owner
10 exercised ordinary reasonable diligence under all of the
11 relevant circumstances.
12 (3) In determining the fair cash value of property
13 less any mortgages or liens on the property, the fair
14 cash value shall be reduced by the principal amount of
15 all taxes paid by the tax purchaser or his or her
16 assignee before the issuance of the tax deed.
17 (4) If an award made under paragraph (1) or (2) is
18 subject to a reduction by the amount of an outstanding
19 mortgage or lien on the property, other than the
20 principal amount of all taxes paid by the tax purchaser
21 or his or her assignee before the issuance of the tax
22 deed and the petitioner would be personally liable to the
23 mortgagee or lienholder for all or part of that reduction
24 amount, the court shall order an additional indemnity
25 award to be paid directly to the mortgagee or lienholder
26 sufficient to discharge the petitioner's personal
27 liability. The court, in its discretion, may order the
28 joinder of the mortgagee or lienholder as an additional
29 party to the indemnity action. Any owner of property sold
30 under any provision of this Code, who without fault or
31 negligence of his or her own sustains loss or damage by
32 reason of the issuance of a tax deed under Sections 22-40
33 or 21-445 and who is barred or in any way precluded from
34 bringing an action for the recovery of the property or
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1 any owner of property containing 4 or less dwelling units
2 who resided thereon the last day of the period of
3 redemption who, in the opinion of the Court which issued
4 the tax deed order, is equitably entitled to just
5 compensation, has the right to indemnity for the loss or
6 damage sustained. Indemnity shall be limited to the fair
7 cash value of the property as of the date that the tax
8 deed was issued, less any mortgages or liens thereon.
9 (b) Indemnity fund; subrogation.
10 (1) Any person claiming indemnity hereunder shall
11 petition the Court which ordered the tax deed to issue,
12 shall name the County Treasurer, as Trustee of the
13 indemnity fund, as defendant to the petition, and shall
14 ask that judgment be entered against the County
15 Treasurer, as Trustee, in the amount of the indemnity
16 sought. The provisions of the Civil Practice Law shall
17 apply to proceedings under the petition, except that
18 neither the petitioner nor County Treasurer shall be
19 entitled to trial by jury on the issues presented in the
20 petition. The Court shall liberally construe this Section
21 to provide compensation wherever in the discretion of the
22 Court the equities warrant such action.
23 (2) The County Treasurer, as Trustee of the
24 indemnity fund, shall be subrogated to all parties in
25 whose favor judgment may be rendered against him or her,
26 and by third party complaint may bring in as a defendant
27 any a person, other than the tax deed grantee and its
28 successors in title, not a party to the action who is or
29 may be liable to him or her, as subrogee, for all or part
30 of the petitioner's claim against him or her.
31 (c) Any contract involving the proceeds of a judgment
32 for indemnity under this Section, between the tax deed
33 grantee or its successors in title and the indemnity
34 petitioner or his or her successors, shall be in writing. In
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1 any action brought under Section 21-305, the Collector shall
2 be entitled to discovery regarding, but not limited to, the
3 following:
4 (1) the identity of all persons beneficially
5 interested in the contract, directly or indirectly,
6 including at least the following information: the names
7 and addresses of any natural persons; the place of
8 incorporation of any corporation and the names and
9 addresses of its shareholders unless it is publicly held;
10 the names and addresses of all general and limited
11 partners of any partnership; the names and addresses of
12 all persons having an ownership interest in any entity
13 doing business under an assumed name, and the county in
14 which the assumed business name is registered; and the
15 nature and extent of the interest in the contract of each
16 person identified;
17 (2) the time period during which the contract was
18 negotiated and agreed upon, from the date of the first
19 direct or indirect contact between any of the contracting
20 parties to the date of its execution;
21 (3) the name and address of each natural person who
22 took part in negotiating the contract, and the identity
23 and relationship of the party that the person represented
24 in the negotiations; and
25 (4) the existence of an agreement for payment of
26 attorney's fees by or on behalf of each party.
27 Any information disclosed during discovery may be subject
28 to protective order as deemed appropriate by the court. The
29 terms of the contract shall not be used as evidence of value.
30
31 (Source: P.A. 86-1028; 86-1431; 88-455.)
32 (35 ILCS 200/21-306 new)
33 Sec. 21-306. Indemnity fund fraud.
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1 (a) A person commits the offense of indemnity fund fraud
2 when that person knowingly:
3 (1) offers or agrees to become a party to, or to
4 acquire an interest in, a contract involving the proceeds
5 of a judgment for indemnity under Section 21-305 before
6 the end of the period of redemption from the tax sale to
7 which the judgment relates;
8 (2) fraudulently induces a party to forego bringing
9 an action for the recovery of the property;
10 (3) makes a deceptive misrepresentation during the
11 course of negotiating an agreement under subsection (c)
12 of Section 21-305; or
13 (4) conspires to violate any of the provisions of
14 this subsection.
15 (b) Commission of any one act described in subsection
16 (a) is a Class A misdemeanor. Commission of more than one act
17 described in subsection (a) during a single course of conduct
18 is a Class 4 felony. A second or subsequent conviction for
19 violation of any portion of this Section is a Class 4 felony.
20 (c) The State's Attorney of the county in which a
21 judgment for indemnity under Section 21-305 is entered may
22 bring a civil action in the name of the People of the State
23 of Illinois against a person who violates paragraph (1), (2),
24 or (3) of subsection (a). Upon a finding of liability in the
25 action the court shall enter judgment in favor of the People
26 in a sum equal to three times the amount of the judgment for
27 indemnity, together with costs of the action and reasonable
28 attorney's fees. The proceeds of any judgment under this
29 subsection shall be paid into the general fund of the county.
30
31 (35 ILCS 200/21-397 new)
32 Sec. 21-397. Notice of order setting aside redemption. In
33 counties with 3,000,000 or more inhabitants, if an order is
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1 entered setting aside a redemption made within the time
2 allowed by law after a petition for tax deed has been filed,
3 the holder of the certificate of purchase shall mail a copy
4 of the order within 7 days of entry of the order by
5 registered or certified mail to the county clerk, to the
6 person who made the redemption, and to all parties entitled
7 to notice of the petition under Section 22-10, 22-15, or
8 22-25. The order shall provide that any person who was
9 entitled to redeem may pay to the county clerk within 30 days
10 after the entry of the order the amount necessary to redeem
11 the property from the sale as of the last day of the period
12 of redemption. The county clerk shall make an entry in the
13 annual tax judgment, sale, redemption, and forfeiture record
14 reflecting the entry of the order and shall immediately upon
15 request provide an estimate of the amount required to effect
16 a redemption as of the last date of the period of redemption.
17 If the amount is paid within 30 days after entry of the
18 order, then the court shall enter an order declaring the
19 taxes to be paid as if the property had been redeemed within
20 the time required by law and dismissing the petition for tax
21 deed. A tax deed shall not be issued within the 30-day
22 period. Upon surrender of the certificate of purchase, the
23 county clerk shall distribute the funds deposited as if a
24 timely redemption had been made. This Section applies to all
25 redemptions that occur after the effective date of this
26 amendatory Act of the 91st General Assembly.
27 (35 ILCS 200/22-40)
28 Sec. 22-40. Issuance of deed; possession.
29 (a) If the redemption period expires and the property
30 has not been redeemed and all taxes and special assessments
31 which became due and payable subsequent to the sale have been
32 paid and all forfeitures and sales which occur subsequent to
33 the sale have been redeemed and the notices required by law
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1 have been given and all advancements of public funds under
2 the police power made by a city, village or town under
3 Section 22-35 have been paid and the petitioner has complied
4 with all the provisions of law entitling him or her to a
5 deed, the court shall so find and shall enter an order
6 directing the county clerk on the production of the
7 certificate of purchase and a certified copy of the order, to
8 issue to the purchaser or his or her assignee a tax deed.
9 The court shall insist on strict compliance with Section
10 22-10 through 22-25. Prior to the entry of an order
11 directing the issuance of a tax deed, the petitioner shall
12 furnish the court with a report of proceedings of the
13 evidence received on the application for tax deed and the
14 report of proceedings shall be filed and made a part of the
15 court record.
16 (b) If taxes for years prior to the year sold remain
17 delinquent at the time of the tax deed hearing, those
18 delinquent taxes may be merged into the tax deed if the court
19 determines that all other requirements for receiving an order
20 directing the issuance of the tax deed are fulfilled and
21 makes a further determination under either paragraph (1) or
22 (2).
23 (1) Incomplete estimate.
24 (A) The property in question was purchased at
25 an annual sale; and
26 (B) the statement and estimate of forfeited
27 general taxes furnished by the county clerk pursuant
28 to Section 21-240 failed to include all delinquent
29 taxes as of the date of that estimate's issuance.
30 (2) Vacating order.
31 (A) The petitioner furnishes the court with a
32 certified copy of an order vacating a prior sale for
33 the subject property;
34 (B) the order vacating the sale was entered
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1 after the date of purchase for the subject taxes;
2 (C) the sale in error was granted pursuant to
3 paragraphs (1), (2), or (4) of subsection (b) of
4 Section 21-310 or Section 22-35; and
5 (D) the tax purchaser who received the sale in
6 error has no affiliation, direct or indirect, with
7 the petitioner in the present proceeding and that
8 petitioner has signed an affidavit attesting to the
9 lack of affiliation.
10 If delinquent taxes are merged into the tax deed pursuant to
11 this subsection, a declaration to that effect shall be
12 included in the order directing issuance of the tax deed.
13 Nothing contained in this Section shall relieve any owner
14 liable for delinquent property taxes under this Code from the
15 payment of the taxes that have been merged into the title
16 upon issuance of the tax deed.
17 (c) The county clerk is entitled to a fee of $10 in
18 counties of 3,000,000 or more inhabitants and $5 in counties
19 with less than 3,000,000 inhabitants for the issuance of the
20 tax deed. The clerk may not include in a tax deed more than
21 one property as listed, assessed and sold in one
22 description, except in cases where several properties are
23 owned by one person.
24 Upon application the court shall, enter an order to place
25 the tax deed grantee in possession of the property and may
26 enter orders and grant relief as may be necessary or
27 desirable to maintain the grantee in possession.
28 (Source: P.A. 86-1158; 86-1431; 86-1475; 87-145; 87-669;
29 87-671; 87-895; 87-1189; 88-455.)".