Sen. John M. Sullivan
Filed: 4/8/2005
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1 | AMENDMENT TO SENATE BILL 214
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2 | AMENDMENT NO. ______. Amend Senate Bill 214 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Grain Code is amended by changing Sections | ||||||
5 | 20-20, 25-20, 30-5, 30-15, and 35-5 as follows:
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6 | (240 ILCS 40/20-20)
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7 | Sec. 20-20. Liquidation expenses ; Asset Preservation | ||||||
8 | Account .
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9 | (a) The Trustee shall pay from the Trust Account all
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10 | reasonable expenses incurred by the trustee on or after the | ||||||
11 | date of failure in
reference to seizing, preserving, and | ||||||
12 | liquidating the grain assets,
equity assets, collateral, and | ||||||
13 | guarantees of or relating to a failed
licensee,
including, but | ||||||
14 | not limited to, the hiring of temporary field
personnel, | ||||||
15 | equipment rental, auction expenses, mandatory commodity | ||||||
16 | check-offs,
and clerical
expenses.
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17 | (b) Except as to claimants holding valid claims, any
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18 | outstanding indebtedness of a failed licensee that has accrued
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19 | before the date of failure shall not be paid by the Trustee and
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20 | shall represent a separate cause of action of the creditor | ||||||
21 | against
the failed licensee.
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22 | (c) The Trustee shall report all expenditures paid from the
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23 | Trust Account to the Corporation at least annually.
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24 | (d) To the extent assets are available under subsection (g) |
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1 | of Section
25-20 and upon presentation of documentation | ||||||
2 | satisfactory to the Trustee, the
Trustee shall transfer from | ||||||
3 | the Trust Account to the Regulatory Fund an amount
not to | ||||||
4 | exceed the expenses incurred by the Department in performance | ||||||
5 | of its
duties under Article 20 of this Code, in reference to | ||||||
6 | the failed licensee. | ||||||
7 | (e) The Department shall establish and maintain an Asset | ||||||
8 | Preservation Account as provided in Section 205-410 of the | ||||||
9 | Department of Agriculture Law of the Civil Administrative Code | ||||||
10 | of Illinois that shall contain a maximum of $50,000. The funds | ||||||
11 | in the Asset Preservation Account are to be used solely by the | ||||||
12 | Trustee for the reasonable expenses incurred by the Department | ||||||
13 | on or after the date of failure for preserving and liquidating | ||||||
14 | grain assets, equity assets, collateral, and guarantees of or | ||||||
15 | relating to a failed licensee, provided that the Department has | ||||||
16 | made a determination that the benefit of preserving and | ||||||
17 | liquidating the grain assets, equity assets, collateral, and | ||||||
18 | guarantees exceeds the anticipated costs of the preservation | ||||||
19 | and liquidation, and only to the extent that all liquid and | ||||||
20 | available moneys in the Grain Indemnity Trust Account relating | ||||||
21 | to the particular failure have been exhausted. The Asset | ||||||
22 | Preservation Account shall be funded by the income earned on | ||||||
23 | the assets in the Fund. The income must be transferred to the | ||||||
24 | Asset Preservation Account on a monthly basis, within 10 | ||||||
25 | business days after the end of each calendar month, and to the | ||||||
26 | extent necessary to maintain the $50,000 balance. The Trustee, | ||||||
27 | or his or her designee, must file a report of all receipts by | ||||||
28 | and disbursements from the Asset Preservation Account with the | ||||||
29 | Board prior to each meeting of the Board.
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30 | (Source: P.A. 93-225, eff. 7-21-03.)
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31 | (240 ILCS 40/25-20)
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32 | Sec. 25-20. Priorities and repayments.
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33 | (a) All valid claims shall be paid from the Trust Account, |
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1 | as
provided in Section 25-10, first from the proceeds
realized | ||||||
2 | from
liquidation of and collection upon the grain assets | ||||||
3 | relating to the failed
licensee, as to warehouse
claimants, and | ||||||
4 | the equity assets as to a secured party or lien holder who has
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5 | consented to the Department liquidating and collecting upon the | ||||||
6 | equity asset as
set forth in subsection (f) of Section 20-15, | ||||||
7 | and the remaining equity assets,
collateral, and guarantees
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8 | relating to the failed licensee, as to grain dealer claimants.
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9 | (b) If the proceeds realized from liquidation of and | ||||||
10 | collection upon the
grain assets, equity assets, collateral, | ||||||
11 | and guarantees relating to the failed
licensee are insufficient | ||||||
12 | to pay all valid claims as provided in
Section 25-10
and | ||||||
13 | subsection (a) of this Section as payment on those claims | ||||||
14 | becomes due, the
Director shall request from the Board | ||||||
15 | sufficient funds to be transferred from
the Fund to the Trust | ||||||
16 | Account to pay the balance owed to claimants as
determined | ||||||
17 | under Section 25-10. If a request is made by the Director for a
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18 | transfer of funds to the Trust Account from the Fund, the Board | ||||||
19 | shall act on
that request within 25 days after the date of that | ||||||
20 | request. Once moneys are
transferred from the Fund to the Trust | ||||||
21 | Account, the Director shall pay the
balance owed to claimants | ||||||
22 | in accordance with Section 25-10.
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23 | (c) Net proceeds from liquidation of grain assets as set | ||||||
24 | forth in subsection
(a) of Section 25-10 received by the | ||||||
25 | Department, to the extent not already paid
to warehouse | ||||||
26 | claimants, shall be prorated among the fund and all
warehouse | ||||||
27 | claimants who have not had their valid claims paid in full.
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28 | (1) The pro rata distribution to the Fund shall be | ||||||
29 | based upon the total
amount of valid claims of all | ||||||
30 | warehouse claimants who have had
their valid
claims paid in | ||||||
31 | full. The pro rata distribution to each warehouse
claimant | ||||||
32 | who
has not had his or her valid claims paid in full shall | ||||||
33 | be based upon the total
amount of that claimant's original | ||||||
34 | valid claims.
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1 | (2) If the net proceeds from the liquidation of grain | ||||||
2 | assets as set forth
in subsection (a) of Section 25-10 | ||||||
3 | exceed all amounts needed to satisfy all
valid claims filed | ||||||
4 | by warehouse claimants, the balance remaining
shall be paid
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5 | into the Trust Account or as set forth in subsection (h).
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6 | (d) Subject to subsections (c) and (h):
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7 | (1) The proceeds realized from liquidation of and
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8 | collection upon the grain assets, equity assets, | ||||||
9 | collateral,
and guarantees relating to the failed licensee | ||||||
10 | or any other
assets relating to the failed licensee that | ||||||
11 | are received by
the Department, to the extent not already | ||||||
12 | paid to claimants,
shall be first used to repay the Fund | ||||||
13 | for moneys transferred
to the Trust Account.
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14 | (2) After the Fund is repaid in full for the moneys
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15 | transferred from it to pay the valid claims in reference to | ||||||
16 | a
failed licensee, any remaining proceeds realized from
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17 | liquidation of and collection upon the grain assets, equity
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18 | assets, collateral, and guarantees relating to the failed
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19 | licensee thereafter received by the Department shall be
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20 | prorated to the claimants holding valid claims who have not
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21 | received 100% of the amount of their valid claims based | ||||||
22 | upon the
unpaid amount of their valid claims.
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23 | (e) After all claimants have received 100% of the amount of | ||||||
24 | their
valid
claims, to the extent moneys are available interest | ||||||
25 | at the rate of 6% per annum
shall be assessed and paid to the | ||||||
26 | Fund on all moneys transferred from the Fund
to the Trust | ||||||
27 | Account.
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28 | (f) After the Fund is paid the interest as provided in | ||||||
29 | subsection (e) of
this Section, then those claims barred and | ||||||
30 | disallowed under items (1) and (2) of subsection (g) of
Section | ||||||
31 | 25-10 shall be paid on a pro rata basis only to the extent that | ||||||
32 | moneys
are available.
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33 | (g) Once all claims become valid claims and have been paid | ||||||
34 | in
full and all interest as provided in subsection (e) of this |
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1 | Section is paid in
full, and all claims are paid in full under | ||||||
2 | subsection (f), and all payments are made as required under | ||||||
3 | Section 20-20(d),
any remaining grain assets, equity assets, | ||||||
4 | collateral, and
guarantees, and the proceeds realized from | ||||||
5 | liquidation of and
collection upon the grain assets, equity | ||||||
6 | assets, collateral, and
guarantees relating to the failed | ||||||
7 | licensee,
shall be returned to the
failed licensee or its | ||||||
8 | assignee, or as otherwise directed by a
court of competent | ||||||
9 | jurisdiction.
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10 | (h) If amounts in the Fund are insufficient to
pay all | ||||||
11 | valid claims,
the Corporation shall transfer from the Reserve | ||||||
12 | Fund to the Fund amounts
sufficient to satisfy the valid | ||||||
13 | claims, and to the extent the amounts thus
transferred are | ||||||
14 | insufficient to pay all valid claims,
the General Assembly | ||||||
15 | shall appropriate to the
Corporation amounts sufficient to | ||||||
16 | satisfy the valid claims. If
for any reason the General | ||||||
17 | Assembly fails to make an
appropriation to satisfy outstanding | ||||||
18 | valid claims, this Code
constitutes an irrevocable and | ||||||
19 | continuing appropriation of all
amounts necessary for that | ||||||
20 | purpose and the irrevocable and
continuing authority for and | ||||||
21 | direction to the State Comptroller and
to the State Treasurer | ||||||
22 | to make the necessary transfers and
disbursements from the | ||||||
23 | revenues and funds of the State for that
purpose. Subject to | ||||||
24 | payments to warehouse claimants as set forth in
subsection (c) | ||||||
25 | of Section 25-20, the State shall be first reimbursed, and
the | ||||||
26 | Reserve Fund shall thereafter be reimbursed to the extent | ||||||
27 | needed to
restore the Reserve Fund to a level of $2,000,000 of | ||||||
28 | principal (not including
income on the assets in the Reserve | ||||||
29 | Fund)
as soon as funds become available for any amounts paid | ||||||
30 | under subsection (g) of
this
Section upon replenishment of the | ||||||
31 | Fund from assessments under subsections
(d), (f), and (g) of | ||||||
32 | Section 5-30 and collection upon grain assets, equity
assets,
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33 | collateral, and guarantees relating to the failed licensee.
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34 | (i) The Department shall have those rights of equitable |
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1 | subrogation which
may result from a claimant receiving from the | ||||||
2 | Fund payment in full of the
obligations of the failed licensee | ||||||
3 | to the claimant.
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4 | (Source: P.A. 93-225, eff. 7-21-03.)
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5 | (240 ILCS 40/30-5)
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6 | Sec. 30-5. Illinois Grain Insurance Corporation.
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7 | (a) The Corporation is a political subdivision, body | ||||||
8 | politic,
and public corporation. The governing powers of the | ||||||
9 | Corporation
are vested in the Board of Directors composed of | ||||||
10 | the Director,
who shall personally serve as president; the | ||||||
11 | Attorney General or
his or her designee, who shall serve as | ||||||
12 | secretary; the State Treasurer or
his or her designee, who | ||||||
13 | shall serve as treasurer; the Director of the
Department of | ||||||
14 | Insurance or his or her designee; and the chief fiscal officer
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15 | of the Department.
Three members of the Board
constitute a
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16 | quorum at any meeting of the Board, and the affirmative vote of
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17 | 3 members is necessary for any action taken by the
Board at a | ||||||
18 | meeting, except that a lesser number may adjourn a
meeting from | ||||||
19 | time to time. A vacancy in the membership of the
Board does not | ||||||
20 | impair the right of a quorum to exercise all the rights
and | ||||||
21 | perform all the duties of the Board and Corporation.
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22 | (b) The Corporation has the following powers, together
with | ||||||
23 | all powers incidental or necessary to the discharge of those | ||||||
24 | powers in
corporate form:
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25 | (1) To have perpetual succession by its corporate name
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26 | as a corporate body.
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27 | (2) To adopt, alter, and repeal bylaws, not
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28 | inconsistent with the provisions of this Code, for the | ||||||
29 | regulation and conduct
of its affairs and business.
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30 | (3) To adopt and make use of a corporate seal and to
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31 | alter the seal at pleasure.
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32 | (4) To avail itself of the use of information, | ||||||
33 | services,
facilities, and employees of the State of |
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1 | Illinois in carrying
out the provisions of this Code.
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2 | (5) To receive funds, printer registration fees, and | ||||||
3 | penalties
assessed by the Department under
this Code.
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4 | (6) To administer the Fund by investing funds of the
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5 | Corporation that the Board may determine are not presently
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6 | needed for its corporate purposes.
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7 | (7) To receive funds from the Trust Account for deposit
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8 | into the Fund.
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9 | (8) Upon the request of the Director, to make payment | ||||||
10 | from the Fund and
the Reserve Fund to the
Trust Account | ||||||
11 | when payment is necessary to compensate claimants in | ||||||
12 | accordance
with the provisions of Section 25-20 or for | ||||||
13 | payment of refunds to licensees in
accordance with the | ||||||
14 | provisions of this Code.
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15 | (9) To authorize, receive, and disburse funds by | ||||||
16 | electronic means.
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17 | (10) To
make any inquiry and investigation deemed | ||||||
18 | appropriate with regard to the
failure of any
licensee, | ||||||
19 | including but not limited to analyzing the causes of and | ||||||
20 | reasons for
the failure; determining the adequacy and | ||||||
21 | accuracy of Department examinations
and other regulatory | ||||||
22 | measures with regard to the failed licensee; and analyzing
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23 | whether the handling of the liquidation and payment process | ||||||
24 | by the Department
was done in a manner that served the | ||||||
25 | interests of those persons whose interests
this Code was | ||||||
26 | designed to protect.
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27 | (11) To have those powers that are necessary or
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28 | appropriate for the exercise of the powers specifically
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29 | conferred upon the Corporation and all incidental powers
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30 | that are customary in corporations. | ||||||
31 | (12) To make payments from the Fund to the Asset | ||||||
32 | Preservation Account in accordance with Section 20-20(e) | ||||||
33 | of this Code.
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34 | (c) A committee of advisors shall be created to provide |
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1 | technical
assistance
and advice and make recommendations to the | ||||||
2 | Board. The advisory committee shall
assist the board in | ||||||
3 | understanding pertinent developments in grain production
and | ||||||
4 | marketing and the grain industry. The advisory committee shall | ||||||
5 | be composed
of one grain producer designated by the Illinois | ||||||
6 | Farm Bureau; one grain
producer designated by the Illinois | ||||||
7 | Farmers Union; one grain producer
designated by the Illinois | ||||||
8 | Corn Growers Association; one grain producer
designated by the | ||||||
9 | Illinois Soybean Association;
2 representatives of the grain | ||||||
10 | industry, designated by the Grain and Feed
Association of
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11 | Illinois; and 2 representatives of the lending industry, one | ||||||
12 | each designated by
the Illinois
Bankers Association and the | ||||||
13 | Community Bankers of Illinois.
Members of the advisory | ||||||
14 | committee shall serve terms of 2 years from the date of
their | ||||||
15 | designation. Members of the advisory committee shall have the | ||||||
16 | right to
attend all meetings of the Board and participate in | ||||||
17 | Board discussions, but
shall not have a vote.
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18 | (Source: P.A. 93-225, eff. 7-21-03.)
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19 | (240 ILCS 40/30-15)
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20 | Sec. 30-15. Investments of the Fund.
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21 | (a) All assessments by the Department under Section
5-30 | ||||||
22 | shall be held by the Corporation in the Fund.
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23 | (b) Subject to applicable law, the assets of the Fund may | ||||||
24 | be
invested and reinvested at the discretion of the | ||||||
25 | Corporation, and
the income from these investments shall be | ||||||
26 | deposited to the credit
of the Fund and shall be available for | ||||||
27 | the same purposes as all
other assets of the Fund.
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28 | (c) Except as provided in Section 20-20(e), the
The assets | ||||||
29 | of the Fund shall not be available for any
purpose other than | ||||||
30 | the payment of valid claims under this
Code and the payment of | ||||||
31 | refunds of amounts that the Board
determines have been | ||||||
32 | inappropriately paid into the Fund, and may
not be transferred | ||||||
33 | to any other fund, other than the Trust Account
when necessary |
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1 | to pay valid claims under this Code or to pay
refunds | ||||||
2 | authorized by the Board.
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3 | (Source: P.A. 89-287, eff. 1-1-96.)
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4 | (240 ILCS 40/35-5)
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5 | Sec. 35-5. Regulatory Fund.
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6 | (a) The Regulatory Fund is created as a trust fund in the | ||||||
7 | State Treasury.
The Regulatory Fund shall receive license, | ||||||
8 | certificate, and extension fees
under Sections 5-10, 5-15, and | ||||||
9 | 5-20 and funds under subsection (g) of Section
25-20 and shall | ||||||
10 | pay expenses as set forth in this Article 35.
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11 | (b) Any funds received by the Director under Sections 5-10, | ||||||
12 | 5-15, and 5-20
and funds disbursed for deposit to the | ||||||
13 | Regulatory Fund under subsection (g) of
Section 25-20 shall be | ||||||
14 | deposited with the Treasurer as ex officio custodian and
held | ||||||
15 | separate and apart from any public money of this State, with | ||||||
16 | interest
accruing on moneys in the Regulatory
Fund deposited | ||||||
17 | into the Regulatory Fund. Disbursement from the Fund for
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18 | expenses as set forth in this Article 35 shall be by voucher | ||||||
19 | ordered by the
Director, accompanied by documentation | ||||||
20 | satisfactory to the Treasurer and the
Comptroller supporting | ||||||
21 | the payment warrant drawn by the Comptroller and
countersigned | ||||||
22 | by the Treasurer. Moneys in the Regulatory Fund shall not be
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23 | subject to
appropriation by the General Assembly but shall be | ||||||
24 | subject to audit by the
Auditor General. Interest earned on | ||||||
25 | moneys deposited into the Regulatory Fund
shall be deposited | ||||||
26 | into the Regulatory Fund.
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27 | (c) Fees deposited into the Regulatory Fund under Sections | ||||||
28 | 5-10, 5-15, and
5-20
shall be expended only for the following | ||||||
29 | program expenses of the Department;
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30 | (1) Implementation and monitoring of programs of the | ||||||
31 | Department solely
under this Code, including an electronic | ||||||
32 | warehouse receipt program.
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33 | (2) Employment or engagement of certified public |
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1 | accountants to assist in
oversight and regulation of | ||||||
2 | licensees in the course of an intermediate or
advanced | ||||||
3 | examination under Section 1-15.
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4 | (3) Training and education of examiners and other | ||||||
5 | Department employees
in reference to Department programs | ||||||
6 | established to implement the Department's
duties solely | ||||||
7 | under the Code.
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8 | (d) Any expenses incurred by the Department in performance | ||||||
9 | of its duties
under Article 20 of the Code shall be reimbursed | ||||||
10 | to the Department out of the
net assets of a liquidation to the | ||||||
11 | extent available under subsection (g)
(q) of
Section 25-20 and | ||||||
12 | shall be
deposited into the Regulatory Fund and shall be | ||||||
13 | expended solely for program
expenses under the Code.
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14 | (Source: P.A. 93-225, eff. 7-21-03.)".
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