093_HB2944

 
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 1        AN ACT concerning agriculture.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  1.  Short  title.  This  Act may be cited as the
 5    Illinois Farm Products Economic Development Act.

 6        Section 5. Findings. The legislature finds  and  declares
 7    that  it  is in the best interest of the people of this State
 8    that the establishment of local grain processing  centers  is
 9    encouraged  in  order  to augment local agricultural markets,
10    promote agricultural diversification, expand rural employment
11    opportunities,  promote  economic   activity,   enhance   the
12    environment,   and  protect  and  better  use  the  land  and
13    agriculture resources of the  State.  The  legislature  finds
14    that  grain  processing  shall  be considered an agricultural
15    pursuit for the purposes of any laws that apply to or provide
16    for the  advancement,  benefit,  or  the  protection  of  the
17    agriculture industry of this State.

18        Section 10. Purpose. The purpose of the Act is to improve
19    the  environment,  create jobs and rural economic growth, and
20    encourage energy self-reliance through the  establishment  of
21    community-sized  grain  processing centers that produce ethyl
22    alcohol and other grain products, encourage the establishment
23    of associated industries,  and  assist  Illinois  farmers  in
24    expanding local markets for their grain production.

25        Section 15. Definitions. For the purpose of this Act;
26        "Associated   industry"   means  an  industry  using  the
27    by-products  of  a  processing  center,  including,  but  not
28    limited to, ethyl alcohol, fermented  grains,  liquid  feeds,
29    carbon dioxide, heat, or any other product resulting from the
 
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 1    processing  of agricultural products and located in proximity
 2    to the processing center.
 3        "Corn" means Illinois-produced corn used in a  processing
 4    center to make ethyl alcohol, fermented grains, solubles, and
 5    carbon dioxide.
 6        "Department" means the Department of Agriculture.
 7        "Director" means the Director of Agriculture.
 8        "Ethyl  alcohol"  means  fermented ethyl alcohol having a
 9    purity  of  at  least  95%  (190  proof)  and  derived   from
10    agriculture products including corn, potatoes, cereal grains,
11    cheese,   whey,   sugar  beets,  forest  products,  or  other
12    renewable resources, including residue  and  waste  generated
13    from   the   production,   processing,   and   marketing   of
14    agricultural  products,  forest products, and other renewable
15    resources.
16        "Processing Center" means a grain  processing  center  at
17    which  ethyl  alcohol is produced by fermenting corn or other
18    organic materials.

19        Section 20. Grain processing payments. The Director shall
20    make cash payments to processors in this State that use  corn
21    to  make  ethyl alcohol and other alternative fuels made with
22    corn-based products. These payments shall apply only to  corn
23    used  to  make ethyl alcohol and other alternative fuels made
24    with corn-based products in this State at a processing center
25    that began production after January 1, 2003.  The  amount  of
26    the  payment for each processor's annual consumption shall be
27    30 cents per bushel of corn for each bushel of corn  used  to
28    produce  ethyl  alcohol and other alternative fuels made with
29    corn-based products in a grain processing center  that  began
30    production  after  January  1, 2003. Payment may be made only
31    during the 5-year period beginning at the same  time  as  the
32    start  of  production.  Payment may be made only on the first
33    5,000,000  bushels  of  corn  consumed   annually   at   each
 
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 1    processing  center.  Each  processor  must  file  a claim for
 2    payment for the bushels of corn used in  a  grain  processing
 3    center  during  the preceding 3 calendar months. These claims
 4    must be filed by the last day of September, December,  March,
 5    and  June  of  each  year.  A  processor  with  more than one
 6    processing  center  must  file  a  separate  claim  for  each
 7    processing center. A processor who files a claim  under  this
 8    Section  must  include  a  statement of the processor's total
 9    corn consumption and total ethyl  alcohol  production  during
10    the  quarter  covered  by  the  claim.  For  each  claim  and
11    statement of production filed under this Act, the volumes and
12    amounts  claimed must be examined by an independent certified
13    public accountant in accordance with standards established by
14    the American Institute of Certified Public Accountants.
15        Payments under this Section shall be made 90  days  after
16    each  claim  has been filed. A separate payment shall be made
17    for each claim  filed.  The  total  quarterly  payment  to  a
18    processor under this Act may not exceed $750,000 if the total
19    amount  for  which  all  processors are eligible in a quarter
20    exceeds $1,500,000.  Total payments, in any event, shall  not
21    exceed  more  than  $6,000,000  per fiscal year. The Director
22    shall make payments in the order  in  which  the  portion  of
23    production   capacity   covered   by  each  claim  went  into
24    production. Only those processors deemed to  be  eligible  by
25    the Director or who have received payments for the quarter or
26    received payments in an earlier quarter are eligible for corn
27    payments under this Act.

28        Section 25. Rulemaking. The Director must adopt emergency
29    and permanent rules to implement this Act.

30        Section  30. Partial Invalidity. If any provision of this
31    Act or the application thereof to any person or  circumstance
32    is   held   invalid,  the  remainder  of  this  Act  and  the
 
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 1    application  of   the   provision   to   other   persons   or
 2    circumstances is not affected thereby.

 3        Section  35.  Repeal.  This Act is repealed on January 1,
 4    2012, and the unobligated balance of each appropriation under
 5    this Act on that date shall revert  to  the  General  Revenue
 6    Fund.

 7        Section  99.  Effective date.  This Act takes effect upon
 8    becoming law.