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Bill

HB 3690

Relating to assistance for unauthorized noncitizens.

2025 Regular Session Introduced by Werner Reschke

HB 3690 changes tax-sale procedures by adding random or recorded auctions, adjusts redemption penalties by county size, and hikes petition/notice fees.

In committee upon adjournment.
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Bill Summary · HB 3690

Summary — HB 3690 (Reick) — Relating to assistance for unauthorized noncitizens (Property Tax Code amendments)

Note: This bill amends the Property Tax Code (35 ILCS 200/21-205 and 21-355) to change tax-sale procedures, redemption penalties, fees, and bidder rules.

Main purpose

HB 3690 modifies tax-sale and redemption procedures to (1) change the monthly accrued penalty (interest) on tax certificates sold after January 1, 2026; (2) require either randomized automated awarding of winning bids or digital audio/video recording of sales; (3) lower the population threshold for mandatory single-bidder rules; and (4) increase certain fees related to petitions and notices. The stated intent is to adjust penalty rates, increase transparency/antifraud measures at tax sales, and tighten bidding practices.

Key provisions and changes

  • Accrued penalty (redemption interest) for tax certificates sold after Jan 1, 2026:
    • Counties with more than 3,000,000 inhabitants: 0.75% of the certificate amount per month (or portion).
    • Counties with 3,000,000 inhabitants or less: 1.25% per month (or portion).
  • Auction process / transparency:
    • For tax sales, either (a) the collector must use an automated bidding system programmed to accept the winning bidder at random, or (b) all tax sales must be digitally recorded with audio and video.
    • Automated bidding software must be certified by the Department and re‑certified every 5 years.
    • If digitally recorded, recordings must be retained by the collector for at least 3 years.
  • Single-bidder rule:
    • Each county collector in counties with 100,000 or more inhabitants (reduced from 275,000) must adopt a “single bidder” rule to prohibit a tax purchaser from registering more than one related bidding entity.
    • Counties under that threshold may adopt such a rule by ordinance.
    • The rule defines “related” entities (common ownership, common guarantor, etc.) and gives determination authority to the county treasurer or designee.
  • Fee increases:
    • Fee when a petition for tax deed has been filed: raised from $35 to $350.
    • Fee when a specified notice is filed: raised from $4 to $40.
  • Other conforming edits: sale hours in very large counties and procedural clarifications retained/adjusted.

Who is affected

  • County collectors, treasurers, clerks — will need to implement recording or certified automated systems, adopt single-bidder policies, retain recordings, and administer revised fees.
  • Tax purchasers and bidders — bidding mechanics may change (randomized award vs. lowest bid); single-bidder limits may restrict multiple related entities.
  • Property owners seeking redemption — face revised monthly redemption penalty rates depending on county population.
  • Local governments — may see administrative impacts (software, recording equipment, training) and revenue effects from changed penalties/fees.

Timeline & procedural status

  • Introduced: (bill text dated) Feb 18, 2025; filed with Clerk Mar 4, 2025. Primary sponsor: Rep. Steven Reick.
  • Legislative actions: multiple committee referrals (Revenue & Finance, Tax Policy subcommittee, Rules, etc.). Last recorded status: In committee upon adjournment (June 28, 2025).
  • Effective timing in text: penalty rates apply to tax certificates sold after Jan 1, 2026; other provisions apply on or after the bill’s effective date as enacted.

Potential impacts to note

  • Lower penalty rate in largest counties could reduce redemption costs for property owners there; higher penalty (1.25%) applies elsewhere.
  • Increased administrative burdens and upfront costs for counties to certify software or record sales; fee increases may offset some costs.
  • Randomized awarding of winning bidders would substantially change auction dynamics; digital recording increases transparency and auditability.

Compiled from official sources — confirm details with the bill’s official record.

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