PROPERTY CONTROL-AIRCRAFT

104th Regular Session Introduced by Terri Bryant

Public Illinois universities with aviation programs can sell qualified aircraft or parts and reinvest the proceeds to maintain or replace their fleet.

Purpose and intent

SB 3455 amends the Illinois State Property Control Act to expand the authority of public universities or colleges that operate aviation programs to sell certain aircraft or aircraft parts. The bill aims to align the disposition of transferable airplanes with the institutions’ educational mission and to provide a mechanism for reinvesting sale proceeds to support aircraft fleets and future replacements.

Key provisions and changes

New authority for public universities/colleges: A board of trustees of a public university or college in Illinois that offers aviation or flight training (or related subjects) may dispose of a qualified transferable airplane, including its parts, by sale to a bona fide purchaser for value and on terms chosen by the board. The sale must be in the best interests of the institution and consistent with its objects and purposes.

Use of sale proceeds: If such a sale occurs, the university/college may retain the proceeds in a separate account. The funds must be used for:

Maintaining the institution’s fleet of aircraft, or
Purchasing replacement aircraft

Auditor General oversight: The Auditor General will examine the separate proceeds account to ensure the use aligns with the stated purposes.

Definition of “qualified transferable airplane”: An airplane owned by the public university/college used for instruction in aviation, flight training, or related subjects.

Administration and transfer framework (existing structure): The bill preserves and integrates with the Administrator’s general powers over transferable property (including transfers to other state agencies or disposition) but creates a specialized exception for eligible universities to sell a qualifying aircraft directly.

Priority for aviation schools: When the Administrator inventories transferable property, priority for transfer (not intended as a trade-in) is given to Illinois public universities/colleges that offer aviation programs and that have listed a need for an airplane.

Who is affected

Affected entities: Public universities and colleges in Illinois that offer aviation, flight training, or other courses involving knowledge of aircraft workings.

Other state actors: The State Property Control Administrator remains responsible for transferable property, with new authority for universities to conduct sales under the defined conditions; the Auditor General will review the separate sale proceeds account.

Procedural and timeline aspects

Effective framework: The amendment modifies Section 7.3 of the State Property Control Act to add subsection (c), specifying the university-led sale process and accounting for proceeds.

Oversight and reporting: The Auditor General reviews the proceeds account to confirm proper use; responsible officers must periodically report transferable property locations to the Administrator.

Internal process alignment: The Administrator continues to manage general transferable property transfers, with the added consideration that qualified aircraft from universities may be disposed of differently under subsection (c).

Practical impact

Enables aviation-focused public institutions to monetize surplus aircraft or parts, directly reinvesting in fleet maintenance and replacement.

Creates accountability through dedicated proceeds accounting and Auditor General oversight.

Prioritizes aviation needs among state-held transferable property, potentially improving access to aircraft for educational purposes.

Bill