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90_SB1707eng
SEE INDEX
Amends the Meat and Poultry Inspection Act. Deletes all
definitions in the Act and replaces them with new
definitions. Provides that failure to meet conditions to
retain a license may result in denial of a renewal of the
license. Provides a $50 penalty for late filing of a license
renewal application. Repeals provisions concerning
nonresident applicants for license and provisions concerning
municipal inspection. Provides that a Type I establishment
shall develop certain sanitation procedures and conduct a
hazard analysis and develop and validate a HACCP plan before
being granted or renewing official inspection. Requires that
a Type I establishment must get Department approval before it
may handle wild game. Deletes provisions concerning
administration of the Act. Deletes provisions requiring a
person employed by an establishment to adhere to certain
cleanliness standards. Removes provisions providing that
only persons specifically designated by the operator of an
establishment may handle meat or poultry products. Raises
the penalty for slaughtering for human food condemned animals
or poultry from a Class A misdemeanor to a Class 4 felony.
Provides that all Type I licensed establishments shall be
conducted under inspections and during approved hours.
Removes the prohibition against failure to disclose a
specified definition of the yield grade when a yield grade is
advertised and against failure to furnish a buyer with a
complete and accurate signed statement at the time of
delivery showing the net weight of meat delivered to the
buyer. Deletes provisions concerning reports by the Director
to the State's Attorney. Makes other changes.
LRB9007910LDdv
SB1707 Engrossed LRB9007910LDdv
1 AN ACT in relation to agricultural matters, amending
2 named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Meat and Poultry Inspection Act is
6 amended by changing Sections 2, 3, 5, 8, 9, 10, 11, 13, 14,
7 15, 16.1, 19, and 19.2 and adding Sections 5.1, 5.2, and
8 19.01 as follows:
9 (225 ILCS 650/2) (from Ch. 56 1/2, par. 302)
10 Sec. 2. Definitions. As used in this Act:
11 "Adulterated" means any carcass, or part of a carcass,
12 meat or meat food product, or poultry or poultry food product
13 if:
14 (1) it bears or contains any poisonous or
15 deleterious substance which may render it injurious to
16 health, but if the substance is not an added substance
17 the article is not adulterated under this paragraph if
18 the quantity of such substance in or on the article does
19 not ordinarily render it injurious to health;
20 (2) it bears or contains, because of the
21 administering of any substance to the live animal,
22 poultry, or other food product, any added poisonous or
23 added deleterious substance other than (A) a pesticide
24 chemical in or on a raw agricultural commodity or (B) a
25 food additive or a color additive that, in the judgment
26 of the Director, may make the article unfit for human
27 food;
28 (3) it is, in whole or in part, a raw agricultural
29 commodity and the commodity bears or contains a pesticide
30 chemical that is unsafe within the meaning of Section 408
31 of the federal Food, Drug, and Cosmetic Act;
SB1707 Engrossed -2- LRB9007910LDdv
1 (4) it bears or contains any food additive that is
2 unsafe within the meaning of Section 409 of the federal
3 Food, Drug, and Cosmetic Act;
4 (5) it bears or contains any color additive which
5 is unsafe within the meaning of Section 706 of the
6 federal Food, Drug, and Cosmetic Act, provided that an
7 article that is not adulterated under paragraph (3), (4),
8 or (5) is nevertheless adulterated if use of the
9 pesticide chemical, food additive, or color additive in
10 or on the article is prohibited under Section 13 or 16 of
11 this Act;
12 (6) it consists in whole or in part of any filthy,
13 putrid, or decomposed substance or is for any reason
14 unsound, unhealthful, unwholesome, or otherwise unfit for
15 human food;
16 (7) it has been prepared, packed, or held under
17 unsanitary conditions whereby it may have become
18 contaminated with filth, or whereby it may have been
19 rendered injurious to health;
20 (8) it is, in whole or in part, the product of an
21 animal or poultry that has died otherwise than by
22 slaughter;
23 (9) its container is composed, in whole or in part,
24 of any poisonous or deleterious substance that may render
25 the contents injurious to health;
26 (10) it has been intentionally subjected to
27 radiation, unless the use of the radiation was in
28 conformity with a regulation or exemption under Section
29 409 of the federal Food, Drug, and Cosmetic Act;
30 (11) any valuable constituent has been in whole or
31 in part omitted or abstracted from the article; any
32 substance has been substituted, wholly or in part; damage
33 or inferiority has been concealed in any manner; or any
34 substance has been added, mixed, or packed with the
SB1707 Engrossed -3- LRB9007910LDdv
1 article to increase its bulk or weight, to reduce its
2 quality or strength, or to make it appear better or of
3 greater value than it is; or
4 (12) it bears or contains sodium benzoate or
5 benzoic acid or any combination thereof, except as
6 permitted in accordance with the federal meat or poultry
7 programs.
8 "Animals" means cattle, calves, American bison (buffalo),
9 catalo, cattalo, sheep, swine, domestic deer, domestic elk,
10 domestic antelope, domestic reindeer, ratites, water buffalo,
11 and goats.
12 "Capable of use as human food" means the carcass of any
13 animal or poultry, or part or product of a carcass of any
14 animal or poultry, unless it is denatured to deter its use as
15 human food or it is naturally inedible by humans.
16 "Custom processing" means the cutting up, packaging,
17 wrapping, storing, freezing, smoking, or curing of meat or
18 poultry products as a service by an establishment for the
19 owner or the agent of the owner of the meat or poultry
20 products exclusively for use in the household of the owner
21 and his or her nonpaying guests and employees.
22 "Custom slaughter" means the slaughtering, skinning,
23 defeathering, eviscerating, cutting up, packaging, or
24 wrapping of animals or poultry as a service by an
25 establishment for the owner or the agent of the owner of the
26 animals or poultry exclusively for use in the household of
27 the owner and his or her nonpaying guests and employees.
28 "Department" means the Department of Agriculture of the
29 State of Illinois.
30 "Director" means, unless otherwise provided, the Director
31 of the Department of Agriculture of the State of Illinois or
32 his or her duly appointed representative.
33 "Establishment" means all premises where animals,
34 poultry, or both, are slaughtered or otherwise prepared
SB1707 Engrossed -4- LRB9007910LDdv
1 either for custom, resale, or retail for food purposes, meat
2 or poultry canneries, sausage factories, smoking or curing
3 operations, restaurants, grocery stores, brokerages, cold
4 storage plants, processing plants, and similar places.
5 "Federal Food, Drug, and Cosmetic Act" means the Act
6 approved June 25, 1938 (52 Stat. 1040), as now or hereafter
7 amended.
8 "Federal inspection" means the meat and poultry
9 inspection service conducted by the United States Department
10 of Agriculture by the authority of the Federal Meat
11 Inspection Act and the Federal Poultry Products Inspection
12 Act.
13 "Federal Meat Inspection Act" means the Act approved
14 March 4, 1907 (34 Stat. 1260), as now or hereafter amended by
15 the Wholesome Meat Act (81 Stat. 584), as now or hereafter
16 amended.
17 "Illinois inspected and condemned" means that the meat or
18 poultry product so identified and marked is unhealthful,
19 unwholesome, adulterated, or otherwise unfit for human food
20 and shall be disposed of in the manner prescribed by the
21 Department.
22 "Illinois inspected and passed" means that the meat or
23 poultry product so stamped and identified has been inspected
24 and passed under the provisions of this Act and the rules and
25 regulations pertaining thereto at the time of inspection and
26 identification was found to be sound, clean, wholesome, and
27 unadulterated.
28 "Illinois retained" means that the meat or poultry
29 product so identified is held for further clinical
30 examination by a veterinary inspector to determine its
31 disposal.
32 "Immediate container" means any consumer package or any
33 other container in which livestock products or poultry
34 products, not consumer packaged, are packed.
SB1707 Engrossed -5- LRB9007910LDdv
1 "Inspector" means any employee of the Department
2 authorized by the Director to inspect animals and poultry or
3 meat and poultry products.
4 "Label" means a display of written, printed, or graphic
5 matter upon any article or the immediate container, not
6 including package liners, of any article.
7 "Labeling" means all labels and other written, printed,
8 or graphic matter (i) upon any article or any of its
9 containers or wrappers or (ii) accompanying the article.
10 "Meat broker", "poultry broker", or "meat and poultry
11 broker" means any person, firm, or corporation engaged in the
12 business of buying, negotiating for purchase of, handling or
13 taking possession of, or selling meat or poultry products on
14 commission or otherwise purchasing or selling of such
15 articles other than for the person's own account in their
16 original containers without changing the character of the
17 products in any way. A broker shall not possess any
18 processing equipment in his or her licensed facility.
19 "Meat food product" means any product capable of use as
20 human food that is made wholly or in part from any meat or
21 other portion of the carcass of any cattle, sheep, swine, or
22 goats, except products that contain meat or other portions of
23 such carcasses only in a relatively small proportion or
24 products that historically have not been considered by
25 consumers as products of the meat food industry and that are
26 exempted from definition as a meat food product by the
27 Director under such conditions as the Director may prescribe
28 to assure that the meat or other portions of such carcass
29 contained in such product are not adulterated and that such
30 products are not represented as meat food products. This
31 term as applied to food products of equines or domestic deer
32 shall have a meaning comparable to that provided in this
33 definition with respect to cattle, sheep, swine, and goats.
34 "Misbranded" means any carcass, part thereof, meat or
SB1707 Engrossed -6- LRB9007910LDdv
1 meat food product, or poultry or poultry food product if:
2 (1) its labeling is false or misleading in any
3 particular;
4 (2) it is offered for sale under the name of
5 another food;
6 (3) it is an imitation of another food, unless its
7 label bears, in type of uniform size and prominence, the
8 word "imitation" followed immediately by the name of the
9 food imitated;
10 (4) its container is made, formed, or filled so as
11 to be misleading;
12 (5) it does not bear a label showing (i) the name
13 and place of business of the manufacturer, packer, or
14 distributor and (ii) an accurate statement of the
15 quantity of the contents in terms of weight, measure, or
16 numerical count; however, reasonable variations in such
17 statement of quantity may be permitted;
18 (6) any word, statement, or other information
19 required by or under authority of this Act to appear on
20 the label or other labeling is not prominently placed
21 thereon with such conspicuousness as compared with other
22 words, statements, designs, or devices in the labeling
23 and in such terms as to make the label likely to be read
24 and understood by the general public under customary
25 conditions of purchase and use;
26 (7) it purports to be or is represented as a food
27 for which a definition and standard of identity or
28 composition is prescribed in Sections 13 and 16 of this
29 Act unless (i) it conforms to such definition and
30 standard and (ii) its label bears the name of the food
31 specified in the definition and standard and, as required
32 by such regulations, the common names of optional
33 ingredients other than spices and flavoring present in
34 such food;
SB1707 Engrossed -7- LRB9007910LDdv
1 (8) it purports to be or is represented as a food
2 for which a standard of fill of container is prescribed
3 in Section 13 of this Act and it falls below the
4 applicable standard of fill of container applicable
5 thereto, unless its label bears, in such manner and form
6 as such regulations specify, a statement that it falls
7 below such standard;
8 (9) it is not subject to the provisions of
9 paragraph (7), unless its label bears (i) the common or
10 usual name of the food, if any, and (ii) if it is
11 fabricated from 2 or more ingredients, the common or
12 usual name of each ingredient, except that spices and
13 flavorings may, when authorized by standards or
14 regulations adopted in or as provided by Sections 13 and
15 16 of this Act, be designated as spices and flavorings
16 without naming each;
17 (10) it purports to be or is represented for
18 special dietary uses, unless its label bears such
19 information concerning its vitamin, mineral, and other
20 dietary properties as determined by the Secretary of
21 Agriculture of the United States in order fully to inform
22 purchasers as to its value for such uses;
23 (11) it bears or contains any artificial flavoring,
24 artificial coloring, or chemical preservative, unless it
25 bears labeling stating that fact or is exempt; or
26 (12) it fails to bear, directly thereon or on its
27 container, the inspection legend and unrestricted by any
28 of the foregoing provisions, such other information as
29 necessary to assure that it will not have false or
30 misleading labeling and that the public will be informed
31 of the manner of handling required to maintain the
32 article in a wholesome condition.
33 "Official establishment" means any establishment as
34 determined by the Director at which inspection of the
SB1707 Engrossed -8- LRB9007910LDdv
1 slaughter of livestock or poultry or the preparation of
2 livestock products or poultry products is maintained under
3 the authority of this Act.
4 "Official mark of inspection" means the official mark of
5 inspection used to identify the status of any meat product or
6 poultry product or animal under this Act as established by
7 rule.
8 Prior to the manufacture, a complete and accurate
9 description and design of all the brands, legends, and
10 symbols shall be submitted to the Director for approval as to
11 compliance with this Act. Each brand or symbol that bears
12 the official mark shall be delivered into the custody of the
13 inspector in charge of the establishment and shall be used
14 only under the supervision of a Department employee. When
15 not in use all such brands and symbols bearing the official
16 mark of inspection shall be secured in a locked locker or
17 compartment, the keys of which shall not leave the possession
18 of Department employees.
19 "Person" means any individual or entity, including, but
20 not limited to, a sole proprietorship, partnership,
21 corporation, cooperative, association, limited liability
22 company, estate, or trust.
23 "Pesticide chemical", "food additive", "color additive",
24 and "raw agricultural commodity" have the same meanings for
25 purposes of this Act as under the federal Food, Drug, and
26 Cosmetic Act.
27 "Poultry" means domesticated birds or rabbits, or both,
28 dead or alive, capable of being used for human food.
29 "Poultry products" means the carcasses or parts of
30 carcasses of poultry produced entirely or in substantial part
31 from such poultry, including but not limited to such products
32 cooked, pressed, smoked, dried, pickled, frozen, or similarly
33 processed.
34 "Poultry Products Inspection Act" means the Act approved
SB1707 Engrossed -9- LRB9007910LDdv
1 August 28, 1957 (71 Stat. 441), as now or hereafter amended
2 by the Wholesome Poultry Products Act, approved August 18,
3 1968 (82 Stat. 791), as now or hereafter amended.
4 "Poultry Raiser" means any person who raises poultry,
5 including rabbits, on his or her own farm or premises who
6 does not qualify as a producer as defined under this Act.
7 "Processor" means any person engaged in the business of
8 preparing animal food, including poultry, derived wholly or
9 in part from livestock or poultry carcasses or parts or
10 products of such carcasses.
11 "Shipping container" means any container used or intended
12 for use in packaging the product packed in an immediate
13 container.
14 "Slaughterer" means an establishment where any or all of
15 the following may be performed on animals or poultry: (i)
16 stunning; (ii) bleeding; (iii) defeathering, dehairing, or
17 skinning; (iv) eviscerating; or (v) preparing carcasses for
18 chilling.
19 "State inspection" means the meat and poultry inspection
20 service conducted by the Department of Agriculture of the
21 State of Illinois by the authority of this Act., unless the
22 context otherwise requires, the terms specified in Sections
23 2.1 through 2.44 have the meanings ascribed to them in those
24 Sections.
25 (Source: P.A. 82-255.)
26 (225 ILCS 650/3) (from Ch. 56 1/2, par. 303)
27 Sec. 3. Licenses.
28 (a) No person shall operate an establishment as defined
29 in Section 2 2.5 or act as a broker as defined in Section 2
30 2.19 without first securing a license from the Department
31 except as otherwise exempted.
32 (b) The following annual fees shall accompany each
33 license application for the license year from July 1 to June
SB1707 Engrossed -10- LRB9007910LDdv
1 30 or any part thereof. These fees are non-refundable not
2 returnable.
3 Meatbroker, Poultry broker or Meat and Poultry
4 broker ..................................................$50
5 Type I Establishment - Processor, Slaughterer, or
6 Processor and Slaughterer Slaughter of Meat, Poultry or Meat
7 and Poultry ..............................................$50
8 Type II Establishment - Processor, Slaughterer, or
9 Processor and Slaughterer of Meat, Poultry or Meat and
10 Poultry ..................................................$50
11 Application for licenses shall be made to the Department
12 in writing on forms prescribed by the Department.
13 (c) The license issued shall be in such form as the
14 Department prescribes, shall be under the seal of the
15 Department and shall contain the name of the licensee, the
16 location for which the license is issued, the type of
17 operation, the period of the license, and such other
18 information as the Department requires. The original license
19 or a certified copy of it shall be conspicuously displayed by
20 the licensee in the establishment.
21 (d) Failure to meet all of the conditions to retain a
22 license may result in a denial of a renewal of a license.
23 The licensee may request an administrative hearing to dispute
24 the denial of renewal, after which the Director shall enter
25 an order either renewing or refusing to renew the license.
26 (e) A penalty of $50 shall be assessed if renewal
27 license applications are not received by July 1 of each year.
28 A penalty of $25 shall be assessed if any such license is not
29 renewed by July 1 of each year.
30 (Source: P.A. 83-759.)
31 (225 ILCS 650/5) (from Ch. 56 1/2, par. 305)
32 Sec. 5. Exemptions - Producers, Retailers, and Custom
33 Slaughterers, Poultry Raisers, and Custom Processors.
SB1707 Engrossed -11- LRB9007910LDdv
1 Within the meaning of this Act
2 The following types of establishments are exempt from the
3 specific provisions of this Act:
4 (A) A "producer" means any person engaged in producing
5 agricultural products, for personal or family use, on whose
6 farm the number of animals or poultry is in keeping with the
7 size of the farm or with the volume or character of the
8 agricultural products produced thereon, but does not mean any
9 person engaged in producing agricultural products who:
10 1. actively engages in buying or trading animals or
11 poultry or both; or
12 2. actively engages directly or indirectly in conducting
13 a business which includes the slaughter of animals or poultry
14 or both, for human food purposes; or
15 3. actively engages, directly or indirectly, in canning,
16 curing, pickling, freezing, salting meat or poultry, or in
17 preparing meat or poultry products for sale; or
18 4. slaughters or permits any person to slaughter on his
19 or their farm animals or poultry not owned by the producer
20 for more than 30 days.
21 The provisions of this Meat and Poultry Inspection Act
22 requiring inspection to be made by the Director of
23 Agriculture do not apply to animals or poultry slaughtered by
24 any producer on his or her farm, nor to animals or poultry
25 slaughtered on the farm of the owners for the personal or
26 family use of such owner, nor to
27 (A-5) Retail dealers or retail butchers with respect to
28 meat or poultry products sold directly to consumers in retail
29 stores; provided, that the only processing operation
30 performed by such retail dealers or retail butchers is the
31 cutting up of meat or poultry products which have been
32 inspected under the provisions of this Act and is incidental
33 to the operation of the retail food store. Meat or poultry
34 products derived from animals or poultry slaughtered by any
SB1707 Engrossed -12- LRB9007910LDdv
1 producer on the farm which are canned, cured, pickled,
2 frozen, salted or otherwise prepared at any place other than
3 by the producer on the farm upon which the animals or poultry
4 were slaughtered are not exempt under the producer's
5 exemption herein provided.
6 Any person who sells or offers for sale or transports
7 meat or poultry products which are unsound, unhealthful,
8 unwholesome, adulterated, or otherwise unfit for human food,
9 or which have not been inspected and passed by Department,
10 Federal or recognized municipal inspection, knowing that such
11 meat or poultry products are intended for human consumption,
12 is guilty of a Class A misdemeanor and shall be punished as
13 provided by Section 19.
14 (B) The following types of establishments are exempt
15 from specific provisions of this Act:
16 1. Poultry raisers with respect to poultry raised on
17 their own farms or premises (a) if such raisers slaughter,
18 eviscerate or further process not more than 1000 poultry
19 during the calendar year for which this exemption is being
20 granted determined; (b) such poultry raisers do not engage in
21 buying or selling poultry products other than those produced
22 from poultry raised on their own farms or premises; (c) such
23 poultry or poultry products are slaughtered, otherwise
24 prepared, sold or delivered to the consumer on or from the
25 premises for which the exemption is given; (d) such slaughter
26 or preparation shall be performed in sanitary facilities, in
27 a sanitary manner, and subject to periodic inspection by
28 Department personnel; (e) persons desiring such exemptions
29 shall submit in writing a request to the Department. The
30 exemption shall be effective upon written notice from the
31 Department and shall remain in effect for a period of 2
32 years, unless revoked. Adequate records must be maintained
33 to assure that not more than the number of exempted poultry
34 are slaughtered or processed in one calendar year. Such
SB1707 Engrossed -13- LRB9007910LDdv
1 records shall be kept for one year following the termination
2 of each exemption. Any advertisement regarding the exempt
3 poultry or poultry products shall reflect the fact of
4 exemption so as not to mislead the consumer to presume
5 official inspection has been made under "The Meat and Poultry
6 Inspection Act".
7 2. Type II Establishments licensed under this Act for
8 custom slaughtering and custom processing as defined in
9 Sections 2.39 and 2.40 of this Act, who do not sell either
10 meat products or poultry products shall:
11 a. Be permitted to receive, for processing, meat
12 products and poultry products from animals and poultry
13 slaughtered by the owner, or for the owner, for his own
14 personal use, or for use by his household.
15 b. Be permitted to receive live animals and poultry
16 presented by the owner to be slaughtered and processed for
17 the owner's own personal use, or for use by his household.
18 c. Be permitted to receive, for processing, inspected
19 meat products and inspected poultry products for the owner's
20 own personal use or for use by his household.
21 d. Stamp the words "NOT FOR SALE" in letters at least
22 3/8 inches in height on all carcasses of animals and poultry
23 slaughtered in such establishment and on all meat products
24 and poultry products processed in such establishment.
25 e. Conspicuously display a license issued by the
26 Department and bearing the words "NO SALES PERMITTED".
27 f. Keep a record of the name and address of the owner of
28 each carcass or portion thereof received in such licensed
29 establishment, the date received, and the dressed weight.
30 Such records shall be maintained for at least one year and
31 shall be available, during reasonable hours, for inspection
32 by Department personnel.
33 g. File an annual statement with the Department to the
34 effect that neither meat products nor poultry products are
SB1707 Engrossed -14- LRB9007910LDdv
1 offered for sale.
2 h. No custom slaughterer or custom processor shall
3 engage in the business of buying or selling any poultry or
4 meat products capable of use as human food, or slaughter of
5 any animals or poultry intended for sale.
6 3. A Type I Establishment licensed under the authority of
7 this Act who sells, or offers for sale, meat, meat product,
8 poultry and poultry product shall except as otherwise
9 provided:
10 a. Be permitted to receive meat, meat product, poultry
11 and poultry product for cutting, processing, preparing,
12 packing, wrapping, chilling, freezing, sharp freezing or
13 storing, provided it bears an official mark of State of
14 Illinois or of Federal Inspection.
15 b. Be permitted to receive live animals and poultry for
16 slaughter provided all animals and poultry are properly
17 presented for prescribed inspection by a Department employee.
18 c. May accept meat, meat product, poultry and poultry
19 product for sharp freezing or storage provided that prior to
20 entry, the meat, meat product, poultry and poultry product
21 has been wrapped or packaged and marked "NOT FOR SALE" as
22 prescribed in subparagraph d of paragraph 4 of subsection (B)
23 of this Section.
24 d. An operator licensed under this Act to slaughter and
25 process poultry shall be permitted to receive for slaughter
26 and cutting up poultry delivered to him by the owner thereof
27 exclusively for use in the household of such owner, by him
28 and members of his household, his nonpaying guests, and
29 employees. Such poultry shall be exempt from inspection
30 provided the operator:
31 (i) Keeps such poultry, poultry carcasses and parts
32 thereof separate from all other meat, meat products, poultry
33 and poultry products at all times while on the premises.
34 (ii) Thoroughly cleans and disinfects all facilities and
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1 equipment with which such poultry or parts come in contact
2 upon completion of slaughter and cutting up.
3 (iii) Stamps the words "NOT FOR SALE" as prescribed in
4 subparagraph d of paragraph 4 of subsection (B) of this
5 Section on each immediate package of such poultry or poultry
6 parts.
7 (iv) Records the following information with regard to
8 poultry slaughtered or cut up in his licensed establishment:
9 (a) Name and address;
10 (b) Date received;
11 (c) Number and dressed weight of carcass.
12 (v) Such records shall be maintained for not less than
13 one year and shall be available for inspection by Department
14 personnel during reasonable business hours.
15 4. Any establishment licensed under the authority of
16 this Act that receives wild game carcasses shall comply with
17 the following requirements:
18 a. Wild game carcasses shall be dressed prior to
19 entering the processing or refrigerated areas of the licensed
20 establishment.
21 b. Wild game carcasses stored in the refrigerated area
22 of the licensed establishment shall be kept separate and
23 apart from inspected products.
24 c. A written request shall be made to the Department for
25 listing of the days and time of day wild game carcasses may
26 be processed.
27 d. All equipment used which comes in contact with wild
28 game shall be thoroughly cleaned and sanitized prior to use
29 on animal or poultry carcasses.
30 5. Establishments in which operations in relation to
31 meat or poultry products consist entirely of storage of such
32 products in individual lockers at or below a temperature of 0
33 degrees F.
34 (Source: P.A. 85-246.)
SB1707 Engrossed -16- LRB9007910LDdv
1 (225 ILCS 650/5.1 new)
2 Sec. 5.1. Type I licenses.
3 (a) A Type I establishment licensed under this Act who
4 sells or offers for sale meat, meat product, poultry, and
5 poultry product shall, except as otherwise provided:
6 (1) Be permitted to receive meat, meat product,
7 poultry, and poultry product for cutting, processing,
8 preparing, packing, wrapping, chilling, freezing, sharp
9 freezing, or storing, provided it bears an official mark
10 of State of Illinois or of Federal Inspection.
11 (2) Be permitted to receive live animals and
12 poultry for slaughter, provided all animals and poultry
13 are properly presented for prescribed inspection to a
14 Department employee.
15 (3) May accept meat, meat product, poultry, and
16 poultry product for sharp freezing or storage provided
17 that the product is inspected product.
18 (b) Before being granted or renewing official
19 inspection, an establishment must develop written sanitation
20 Standard Operating Procedures as required by 8 Ill. Adm. Code
21 125.141.
22 (c) Before being granted official inspection, an
23 establishment must conduct a hazard analysis and develop and
24 validate an HACCP plan as required by 8 Ill. Adm. Code
25 125.142. A conditional grant of inspection shall be issued
26 for a period not to exceed 90 days, during which period the
27 establishment must validate its HACCP plan.
28 (d) Any establishment licensed under the authority of
29 this Act that receives wild game carcasses shall comply with
30 the following requirements regarding wild game carcasses:
31 (1) Wild game carcasses shall be dressed prior to
32 entering the processing or refrigerated areas of the
33 licensed establishment.
34 (2) Wild game carcasses stored in the refrigerated
SB1707 Engrossed -17- LRB9007910LDdv
1 area of the licensed establishment shall be kept separate
2 and apart from inspected products.
3 (3) A written request shall be made to the
4 Department on an annual basis if a licensed establishment
5 is suspending operations regarding amenable product due
6 to handling of wild game carcasses.
7 (4) A written procedure for handling wild game
8 shall be approved by the Department.
9 (5) All equipment used that comes in contact with
10 wild game shall be thoroughly cleaned and sanitized prior
11 to use on animal or poultry carcasses.
12 (225 ILCS 650/5.2 new)
13 Sec. 5.2. Type II licenses.
14 (a) Type II establishments licensed under this Act for
15 custom slaughtering and custom processing shall:
16 (1) Be permitted to receive, for processing, meat
17 products and poultry products from animals and poultry
18 slaughtered by the owner or for the owner for his or her
19 own personal use or for use by his or her household.
20 (2) Be permitted to receive live animals and
21 poultry presented by the owner to be slaughtered and
22 processed for the owner's own personal use or for use by
23 his or her household.
24 (3) Be permitted to receive, for processing,
25 inspected meat products and inspected poultry products
26 for the owner's own personal use or for use by his or
27 her household.
28 (4) Stamp the words "NOT FOR SALE" in letters at
29 least 3/8 inches in height on all carcasses of animals
30 and poultry slaughtered in such establishment and on all
31 meat products and poultry products processed in that
32 establishment.
33 (5) Conspicuously display a license issued by the
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1 Department and bearing the words "NO SALES PERMITTED".
2 (6) Keep a record of the name and address of the
3 owner of each carcass or portion thereof received in
4 such licensed establishment, the date received, and the
5 dressed weight. Such records shall be maintained for at
6 least one year and shall be available, during reasonable
7 hours, for inspection by Department personnel.
8 (b) No custom slaughterer or custom processor shall
9 engage in the business of buying or selling any poultry or
10 meat products capable of use as human food, or slaughter of
11 any animals or poultry intended for sale.
12 (225 ILCS 650/8) (from Ch. 56 1/2, par. 308)
13 Sec. 8. Medical Certificate.
14 The licensee of a Type I establishment operator shall
15 require all employees in his establishment to meet the health
16 requirements established by the Illinois Department of Public
17 Health. The Director may at any time require an employee of
18 an establishment to submit to a health examination by a
19 physician. No person suffering from any communicable disease,
20 including any communicable skin disease, and no person with
21 infected wounds, and no person who is a "carrier" of a
22 communicable disease shall work be employed in any capacity
23 in an establishment. No person shall work or be employed in
24 or about any establishment during the time in which a
25 communicable disease exists in the home in which such person
26 resides unless such person has obtained a certificate from
27 the state or local health authority to the effect that no
28 danger of public contagion or infection or adulteration of
29 product will result from the employment of such person in
30 such establishment. Every person employed by an establishment
31 and engaged in direct physical contact with meat or poultry
32 products during its preparation, processing or storage, shall
33 be clean in person, wear clean washable outer garments and a
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1 suitable cap or other head covering used exclusively in such
2 work. Only persons specifically designated by the operator of
3 an establishment shall be permitted to touch meat or poultry
4 products with their hands, and the persons so designated
5 shall keep their hands scrupulously clean.
6 (Source: P.A. 76-357.)
7 (225 ILCS 650/9) (from Ch. 56 1/2, par. 309)
8 Sec. 9. Antemortem Inspection. The Director Department
9 shall, wherever slaughter operations are conducted at an
10 establishment, cause antemortem inspection to be made by
11 inspectors antemortem inspection where and to the extent it
12 determines necessary regarding of all animals and poultry
13 intended for human food. The owner or operator of any such
14 establishment shall furnish satisfactory facilities and
15 assistance as may be required by the Director to facilitate
16 such antemortem inspection. Facilities shall also be
17 furnished for holding animals or poultry for further clinical
18 examination animals or poultry. Such animals or poultry held
19 for further inspection reinspection shall be identified as
20 "Illinois Suspect" in a manner determined by the Director.
21 Following Such reinspection shall be as conducted by a
22 licensed and approved veterinarian and if a finding is made
23 that the animals or poultry show no symptoms of disease or
24 other abnormal conditions, the animals or poultry may be
25 released for slaughter. Upon reinspection and finding
26 symptoms of disease or other abnormal conditions which would
27 render the animals or poultry unfit for human food, the
28 animals or poultry shall be tagged or permanently identified
29 as "Illinois Inspected and Condemned" and unfit for human
30 food and shall be disposed of in a manner as prescribed by
31 the Director. Any person who slaughters for human food such
32 condemned animals or poultry is guilty of a Class 4 felony A
33 misdemeanor and shall be punished as provided by Section 19.
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1 No owner or person shall be required to hold animals or
2 poultry for a longer period than 72 hours.
3 (Source: P.A. 80-1495.)
4 (225 ILCS 650/10) (from Ch. 56 1/2, par. 310)
5 Sec. 10. Postmortem Inspection.
6 The Director shall provide postmortem inspection of all
7 animals or poultry intended for human food in any Type I
8 establishment in this State except as exempted by Sections 4
9 and 5 of this Act. Under no circumstances shall the carcass
10 of animals or poultry which have died otherwise than by
11 slaughter be brought into any room in which meat or poultry
12 products are slaughtered, processed, handled, or stored. The
13 head, tongue, tail, viscera, and other parts, and blood used
14 in the preparation of meat or poultry products, or medical
15 products shall be retained in such a manner as to preserve
16 their identity until after the postmortem examination has
17 been completed. Carcasses and parts thereof found to be
18 sound, healthful, and wholesome after inspection and
19 otherwise fit for human food shall be passed and may be
20 marked in the following manner: "Illinois Inspected and
21 Passed" or with the inspection legend of an approved
22 municipal inspection department to which has been added the
23 words "Illinois Approved". These marks may also include any
24 number given the establishment by the Department. All animal
25 carcasses or parts thereof which are found on postmortem
26 inspection to be unsound, unhealthful, unwholesome,
27 adulterated, or otherwise unfit for human food shall be
28 marked conspicuously by the inspector at the time of
29 inspection with the words: "Illinois Inspected and
30 Condemned", or with the condemned brand of an approved
31 municipal inspection department. All poultry carcasses or
32 parts thereof which are found on postmortem inspection to be
33 unsound, unhealthful, unwholesome, adulterated or otherwise
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1 unfit for human food shall be condemned by depositing each
2 carcass or part thereof in a suitable, clearly marked
3 "Condemned" container. All condemned carcasses and parts of
4 animals or poultry under the supervision of an inspector
5 shall be rendered unfit for human consumption in a manner
6 approved by the Director. All unborn or stillborn animals
7 shall be condemned and no hide, skin or any other part
8 thereof shall be removed within a room where edible meat or
9 poultry products are handled or prepared.
10 (Source: P.A. 76-357.)
11 (225 ILCS 650/11) (from Ch. 56 1/2, par. 311)
12 Sec. 11. Time of operation. The Director shall may
13 require operations at Type I licensed establishments to be
14 conducted under inspection and during approved reasonable
15 hours of operation. The owner or operator of each licensed
16 establishment shall keep the Director informed in advance of
17 intended hours of operation. When one inspector is assigned
18 to make inspections where few animals or poultry are
19 slaughtered or where small quantities of meat or poultry
20 products are prepared, the Director may designate the hours
21 of the day and the days of the week during which such
22 establishments may be operated. The management of an official
23 establishment, an importer, or an exporter, desiring to work
24 under conditions which will require the services of an
25 inspector employee of the Department on any Saturday, Sunday,
26 or holiday, or for more than an approved established work day
27 on any other day shall, sufficiently in advance of the period
28 of overtime, request the Regional Administrator to furnish
29 inspection service during such overtime period, and, if
30 approved, shall be allowed inspection on an overtime basis
31 pay the Department a fee as set forth by regulation, to
32 reimburse the Department for the cost of the inspection
33 services so furnished. Holidays will be those established by
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1 the Illinois Department of Central Management Services.
2 (Source: P.A. 89-463, eff. 5-31-96.)
3 (225 ILCS 650/13) (from Ch. 56 1/2, par. 313)
4 Sec. 13. Official Inspection Legend, Marking and
5 Labeling.
6 (a) It is unlawful for any person except employees of
7 the United States Department of Agriculture, the Department
8 or an authorized municipal inspection department to possess,
9 use, or keep an inspection stamp, mark, or brand provided or
10 used for stamping, marking, branding, or otherwise
11 identifying carcasses of meat or poultry products, or to
12 possess, use or keep any stamp, mark or brand having thereon
13 a device, words, or insignia the same or similar in character
14 or import to the stamps, marks, or brands provided or used by
15 the United States Department of Agriculture, the State
16 Department of Agriculture or any approved municipal
17 inspection department for stamping, marking, branding or
18 otherwise identifying the carcasses of meat or poultry or
19 meat and poultry products or parts thereof intended for human
20 food.
21 (b) When any meat or meat food product which has been
22 inspected as provided in this Act and marked "Illinois
23 Inspected and Passed" is placed or packed in an immediate
24 container in any can, pot, tin, canvas, or other receptacle
25 or covering in any establishment where inspection under this
26 Act is maintained, the person, firm, or corporation preparing
27 the product shall attach a label as required to the immediate
28 container can, pot, tin, canvas, or other receptacle or
29 covering under supervision of an inspector. The label shall
30 state that the contents have been "Illinois Inspected and
31 Passed" under this Act, and no inspection and examination of
32 meat or meat food products or poultry or poultry food
33 products deposited or enclosed in an immediate container
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1 cans, tins, pots, canvas, or other receptacle or covering in
2 any establishment where inspection under this Act is
3 maintained is complete until the meat or meat food products
4 or poultry or poultry food products have been sealed or
5 enclosed in an immediate container a can, tin, pot, canvas,
6 or other receptacle or covering under the supervision of an
7 inspector. At minimum all amenable products derived from
8 inspected meat, meat food products, poultry, or poultry food
9 products shall bear a mark with an establishment name,
10 owner/customer name, and handling statement.
11 (c) All carcasses, parts of carcasses, meat, meat food
12 products, poultry, or poultry food products inspected at any
13 establishment under the authority of this Act and found to be
14 not adulterated shall at the time they leave the
15 establishment bear in distinctly legible form, directly
16 thereon or on their containers, as the Director may require,
17 the information required under Section 2.20 of this Act.
18 (d) The styles and sizes of type to be used with respect
19 to material required to be incorporated in labeling to avoid
20 misbranding, false or misleading labeling of any articles
21 subject to this Act, definitions and standards of identity or
22 composition for articles subject to this Act, and standards
23 of fill of containers for the articles shall be the standards
24 as established under the Federal Food, Drug, and Cosmetic Act
25 or the Federal Meat Inspection Act.
26 (e) No article subject to this Act shall be sold or
27 offered for sale by any person, firm, or corporation under
28 any name or other marking or labeling which is false or
29 misleading, or in any container of a misleading form or size.
30 Established product names and other marking and labeling and
31 containers which are not false or misleading and which are
32 approved by the Director are permitted.
33 (f) If the Director has reason to believe that any
34 marking or labeling or the size or form of any container in
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1 use or proposed for use with respect to any article subject
2 to this Act is false or misleading in any particular, he may
3 direct that the use be withheld unless the marking, labeling,
4 or container is modified in a manner as he may prescribe so
5 that it will not be false or misleading. If the person, firm,
6 or corporation using or proposing to use the marking,
7 labeling, or container does not accept the determination of
8 the Director, the person, firm, or corporation may request a
9 hearing, but the use of the marking, labeling, or container
10 shall, if the Director so directs, be withheld pending
11 hearing and final determination by the Director. Any
12 determination by the Director shall be conclusive unless
13 within 30 days after receipt of notice of the final
14 determination, the person, firm, or corporation adversely
15 affected appeals to the appropriate authority.
16 (g) No person, firm, or corporation shall advertise for
17 sale, solicit, offer to sell or sell meats or frozen foods
18 intended for storage in locker boxes, home freezers or
19 freezer units by newspapers, handbills, placards, radio,
20 television or other medium unless the advertising is truthful
21 and accurate. The advertising shall not be misleading or
22 deceiving in respect to grade, quality, quantity, price per
23 pound or piece, or in any other manner. For grade
24 determination of meats, the grades shall conform with United
25 States Department of Agriculture standards for designating
26 meat grades and the standards of this Act.
27 No person advertising, offering for sale or selling any
28 carcasses or parts thereof or food plan shall engage in any
29 misleading or deceptive practices and particularly including,
30 but not limited to, the following:
31 (1) Bait selling.
32 (A) Disparage or degrade any product
33 advertised or offered for sale by the seller, or
34 display any product or depiction thereof to any
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1 buyer in order to induce the purchase of another
2 product, or represent that a product is for sale
3 when the representation is used primarily to sell
4 another product.
5 (B) Substitute any product for that ordered by
6 the buyer without the buyer's consent.
7 (C) Fail to have available a sufficient
8 quantity of any product represented as being for
9 sale to meet reasonably anticipated demands.
10 (2) Price representation.
11 (A) Use any price list related to the seller's
12 food plan that contains prices other than the
13 seller's current billing prices.
14 (B) Misrepresent the amount of money that the
15 buyer will save on purchases of any products that
16 are not of the same grade or quality.
17 (C) Fail to disclose fully and conspicuously
18 in at least 10 point type any charge for cutting,
19 wrapping, freezing, delivery or other services.
20 (D) Represent the price of any meat product to
21 be offered for sale in bundles in units larger than
22 one pound in terms other than price per single pound
23 for meat products in at least 10 point type except
24 when the advertisement or offer for sale pertains to
25 containers of meat products weighing 15 pounds or
26 less.
27 (3) Product Representation.
28 (A) Misrepresent the cut, grade, brand or
29 trade name, or weight or measure of any product.
30 (B) Use the abbreviation "U.S." in describing
31 a product not graded by the United States Department
32 of Agriculture, except that product may be described
33 as "U.S. Inspected" when true.
34 (C) Misrepresent a product through the use of
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1 any term similar to a government grade.
2 (D) (Blank) Fail to disclose in uniform 10
3 point type, when a yield grade is advertised, a
4 definition of the yield grade in the following
5 terms:
6 Yield Grade 1 - Extra Lean
7 Yield Grade 2 - Lean
8 Yield Grade 3 - Average Waste
9 Yield Grade 4 - Wasty
10 Yield Grade 5 - Exceptionally Wasty
11 (E) Advertise or offer for sale any
12 combinations of parts of carcasses with one unit
13 price, except when the advertisement or offer for
14 sale pertains to combinations consisting only of
15 poultry or poultry products.
16 (F) Fail to disclose fully and conspicuously
17 the correct government grade for any product if the
18 product is represented as having been graded.
19 (G) Fail to disclose fully and conspicuously
20 that the yield of consumable meat from any carcass
21 or part of a carcass will be less than the weight of
22 the carcass or part thereof. The seller shall, for
23 each carcass or part of carcass advertised, use
24 separately and distinctly (in at least 10 point
25 type) the following disclosure: "Sold hanging
26 weight subject to cutting loss".
27 (H) Misrepresent the amount or proportion of
28 retail cuts that a carcass or part of carcass will
29 yield.
30 (I) (Blank). Fail to furnish the buyer with a
31 complete and accurate signed statement at the time
32 of delivery, showing the net weight of meat
33 delivered to the buyer. If weighed with immediate
34 wrappings, this fact shall be stated. Both the
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1 actual net weight of the product prior to cutting
2 and trimming, and the delivered weight shall be
3 disclosed to the buyer in writing at the time of
4 delivery. This section shall apply separately to
5 each carcass or part of carcass sold on any
6 individual order.
7 (J) Fail to disclose fully and conspicuously
8 whether a quarter of a carcass is the front or hind
9 quarter, and "quarters" or "sides" or "halves" must
10 consist of only anatomically natural proportions of
11 cuts from front or hind quarters. A "pre-trimmed
12 side", "packer-trimmed side" or similar term
13 describing part of a carcass shall not be
14 represented as a side or quarter of beef, and the
15 descriptions shall not be used for comparison to
16 induce the sale of the product.
17 (K) Represent any part of a carcass as a
18 "half" or "side" unless it consists exclusively of a
19 front and hind quarter. Both quarters must be from
20 the same side of the same animal unless the seller
21 discloses fully and conspicuously that they are from
22 different sides or different animals as the case may
23 be. Each quarter shall be of the same grade or
24 quality as the other quarters comprising the half or
25 side and the seller shall advise the buyer of the
26 weight of each quarter prior to sale. In selling
27 quarters individually or as part of a half or side,
28 if actual weights are not known or cannot be
29 determined prior to sale, approximate weights may be
30 used, provided the buyer is informed that the
31 weights are approximate, the weights are so
32 identified on any purchase order or contract, and
33 the seller agrees with the buyer, in writing, to
34 make a cash refund or grant a credit on delivery for
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1 the difference between actual weight and the
2 approximate weight on which the sale was made.
3 (L) Use the words, "bundle", "sample order",
4 "split side", or words of similar import to describe
5 a quantity of meat or poultry unless the seller
6 itemizes each cut and the weight thereof which the
7 buyer will receive.
8 (M) Advertise or offer free, bonus, extra
9 product, or service combined with or conditioned on
10 the purchase of any other product or service unless
11 the additional product or service is accurately
12 described including, whenever applicable, grade, net
13 weight or measure, type, and brand or trade name.
14 The words "free", "bonus", or other words of similar
15 import shall not be used in any advertisement unless
16 the advertisement clearly and conspicuously sets
17 forth the total price or amount that must be paid to
18 entitle the buyer to the additional product or
19 service.
20 (N) Misrepresent the breed, origin, or diet of
21 slaughtered animals or parts thereof offered for
22 sale. Sellers making these claims shall have
23 written records available to substantiate the fact.
24 (Source: P.A. 86-217; 87-165.)
25 (225 ILCS 650/14) (from Ch. 56 1/2, par. 314)
26 Sec. 14. Access to premises.
27 No person shall deny access to any authorized personnel
28 upon the presentation of proper identification at any
29 reasonable time to establishments, broker facilities,
30 warehouses or vehicles used in the transportation of meat and
31 poultry or products thereof and to all parts of such
32 premises for the purposes of making inspections, examination
33 of records, inventories, copying and sampling under this Act.
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1 Samples of products, water, dye, chemicals,
2 preservatives, spices, or other articles in any official or
3 exempted establishment shall be taken, without cost to the
4 Department, for examination as often as necessary for
5 efficient inspection.
6 (Source: P.A. 85-246.)
7 (225 ILCS 650/15) (from Ch. 56 1/2, par. 315)
8 Sec. 15. Seizure.
9 (a) The Director is hereby authorized to prohibit the
10 entrance into channels of trade of any meat or poultry
11 products found to be unwholesome, improperly labeled or
12 otherwise not in accordance with the provisions of this Act
13 or the rules and regulations established hereunder. Any meat
14 or poultry product found in channels of trade by a Department
15 employee that an inspector which is not in compliance with
16 the provisions of this Act shall be subject to seizure and
17 confiscation by the Department.
18 (b) Seized and confiscated meat and poultry products
19 shall be condemned unless it is of such character that it can
20 be made to conform with the provisions of this Act by methods
21 approved by the Director. Condemned meat or poultry products
22 shall be effectively destroyed for human food purposes by the
23 owner of the meat or poultry product under the supervision of
24 a Department employee an inspector in such manner as the
25 Director may prescribe.
26 (Source: Laws 1959, p. 1944.)
27 (225 ILCS 650/16.1) (from Ch. 56 1/2, par. 316.1)
28 Sec. 16.1. Licensees shall comply with bulletins,
29 manuals of procedure and guidelines issued by the United
30 States Department of Agriculture which implement the federal
31 Meat Inspection Act and the Federal Poultry Inspection Act.
32 Such guidelines, bulletins and manuals shall become effective
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1 on the date designated by the United States Department of
2 Agriculture.
3 (Source: P.A. 84-211.)
4 (225 ILCS 650/19) (from Ch. 56 1/2, par. 319)
5 Sec. 19. Criminal offenses Penalties.
6 A. Any person who forcibly assaults, resists, opposes,
7 impedes, intimidates, or interferes with any person while
8 engaged in or on account of the performance of his official
9 duties under this Act shall be guilty of a Class A
10 misdemeanor.
11 B. Any person, firm, or corporation, or any agent or
12 employee of any person, firm, or corporation, who gives,
13 pays, or offers, directly or indirectly, to any inspector,
14 deputy inspector, chief inspector, or any other officer or
15 employee of this State authorized to perform any of the
16 duties prescribed by this Act or by the rules and regulations
17 of the Director, any money or other thing of value, with
18 intent to influence such inspector, deputy inspector, chief
19 inspector, or other officer or employee of this State in the
20 discharge of his duty, is guilty of a Class 4 felony.
21 B-5. Any inspector, deputy inspector, chief inspector,
22 or other officer or employee of this State authorized to
23 perform any of the duties prescribed by this Act who accepts
24 any money, gift, or other thing of value from any person,
25 firm, or corporation, or officers, agents, or employees
26 thereof, given with intent to influence his official action,
27 or who receives or accepts from any person, firm, or
28 corporation any gift, money, or other thing of value given
29 with any purpose of intent whatsoever, is guilty of a Class 4
30 felony and upon conviction, shall be summarily discharged
31 from office.
32 C. Any person violating any provision of this Act or any
33 rule or regulation established hereunder, except any
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1 provisions of or rule or regulation established under Section
2 9 or Section 10, is guilty of a Class A misdemeanor. Any
3 person violating any provision of Section 9 or Section 10 of
4 this Act, or any rule or regulation applicable thereto, is
5 guilty of a Class A misdemeanor.
6 D. Any person who sells or offers for sale or transports
7 meat or poultry products that are unsound, unhealthful,
8 unwholesome, adulterated, or otherwise unfit for human food
9 or which have not been inspected and passed by Department,
10 federal, or recognized municipal inspection, knowing that
11 such meat or poultry products are intended for human
12 consumption, is guilty of a Class A misdemeanor. Any person,
13 firm, or corporation who violates any provision of this Act
14 for which no other criminal penalty, is provided by this Act
15 is guilty of a Class A misdemeanor.
16 E. The Director is also authorized to refuse issuance of
17 a license, to suspend, or revoke a license for violations by
18 any establishment of the provisions of this Act or the rules
19 and regulations adopted hereunder when any one or more of the
20 following items are applicable:
21 (1) Material misstatement in the application for
22 original license or in the application for any renewal
23 license under this Act;
24 (2) Willful disregard or willful violation of this Act
25 or of any regulations or rules adopted pursuant thereto;
26 (3) Willfully aiding or abetting another in the
27 violation of this Act or of any regulation or rule adopted
28 pursuant thereto;
29 (4) Allowing one's license under this Act to be used by
30 an unlicensed person;
31 (5) Conviction of any crime an essential element of
32 which is misstatement, fraud or dishonesty or conviction of
33 any felony relative to the provisions of this Act, if the
34 Department determines, after investigation, that such person
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1 has not been sufficiently rehabilitated to warrant the public
2 trust;
3 (6) Conviction of a violation of any law of Illinois
4 except minor violations such as traffic violations and
5 violations not related to the disposition of this Act or any
6 rule or regulation of the Department relating thereto;
7 (7) Making willful misrepresentations or false promises
8 of a character likely to influence, persuade or induce in
9 connection with the business of a licensee under this Act;
10 (8) Pursuing a continued course of willful
11 misrepresentation of or making false promises through
12 advertising, salesman, agents or otherwise in connection with
13 the business of a licensee under this Act; or
14 (9) Failure to possess the necessary qualifications or
15 to meet the requirements of this Act for the issuance or
16 holding of a license.
17 F. The Department may, upon its own motion, and shall,
18 upon the verified complaint in writing of any person setting
19 forth facts which if proven would constitute grounds for
20 refusal, suspension or revocation under this Act, investigate
21 the actions of any applicant or any person or persons holding
22 or claiming to hold a license. At least 10 days prior to the
23 date set for hearing the Department shall, before refusing to
24 issue or renew, and before suspension or revocation of a
25 license, notify in writing the applicant for or holder of a
26 license, hereinafter called the respondent, that on the date
27 designated a hearing will be held to determine whether the
28 respondent is privileged to hold such license and shall
29 afford the respondent an opportunity to be heard in person or
30 by counsel. Such written notice may be served personally on
31 the respondent, or by registered or certified mail sent to
32 the respondent's business address as shown in his latest
33 notification to the Department. At the hearing, both the
34 respondent and the complainant shall be afforded ample
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1 opportunity to present in person or by counsel such
2 statements, testimony, evidence and argument as may be
3 pertinent to the charges or to any defense thereto. The
4 Department may continue such hearing from time to time.
5 The Director or any employee of the Department of
6 Agriculture designated by him for such purpose may hold
7 hearings, administer oaths, sign and issue subpoenas, examine
8 witnesses, receive evidence and require by subpoena the
9 attendance and testimony of witnesses and the production of
10 such accounts, records and memoranda as may be material for
11 the determination of any complaint under this Act. In case
12 of the refusal of any person to comply with any subpoena or
13 on the refusal of a witness to testify to any matter
14 regarding which he lawfully may be interrogated hereunder,
15 the judge of any circuit court of the county in which such
16 investigation or hearing is being conducted may, on
17 application of the Director or the employee of the Department
18 designated by the Director to conduct such investigation or
19 hearing, compel obedience by proceedings for contempt as in
20 the case of disobedience to an order of such court.
21 (Source: P.A. 83-759.)
22 (225 ILCS 650/19.01 new)
23 Sec. 19.01. Suspension and revocation of license.
24 (a) The Director may suspend a license if the Department
25 has reason to believe that any of the following has occurred:
26 (1) A licensee had made a material misstatement in
27 the application for original license or in the
28 application for any renewal license under this Act;
29 (2) A licensee has violated any of the provisions
30 of this Act or of any rules adopted pursuant thereto and
31 the violation or pattern of violations indicates an
32 immediate danger to public health;
33 (3) Aiding or abetting another in the violation of
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1 this Act or of any rule adopted pursuant thereto and the
2 violation or pattern of violations indicates an immediate
3 danger to public health;
4 (4) Allowing one's license under this Act to be
5 used by an unlicensed person;
6 (5) Conviction of any crime an essential element of
7 which is misstatement, fraud, or dishonesty or conviction
8 of any felony relative to the provisions of this Act;
9 (6) Pursuing a continued course of willful
10 misrepresentation of or making false promises through
11 advertising, salesman, agents, or otherwise in connection
12 with the business of a licensee under this Act; or
13 (7) Failure to possess the necessary qualifications
14 or to meet the requirements of this Act for the issuance
15 or holding of a license.
16 (b) Within 10 days after suspension of a license an
17 administrative hearing shall be commenced to determine
18 whether the license shall be reinstated or revoked. Whenever
19 an administrative hearing is scheduled, the licensee shall be
20 served with written notice of the date, place, and time of
21 the hearing at least 5 days before the hearing date. The
22 notice may be served by personal service on the licensee or
23 by mailing it by registered or certified mail, return receipt
24 requested, to the licensee's place of business. The Director
25 may, after a hearing, issue an order either revoking or
26 reinstating the license.
27 (225 ILCS 650/19.2) (from Ch. 56 1/2, par. 319.2)
28 Sec. 19.2. Administrative hearings and penalties.
29 When an administrative hearing is held, the hearing
30 officer, upon determination of a violation of this Act or
31 rules promulgated under this Act, may assess the following
32 administrative penalties in addition to or instead of a
33 suspension or revocation of the license as provided in
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1 Section 19 of this Act:
2 (a) $150 for illegal advertising.
3 (b) $200 for operating without being licensed as a meat
4 broker, poultry broker, or meat and poultry broker.
5 (c) $300 for misbranding as defined in Section 2.20 of
6 this Act.
7 (d) no less than $500 and no greater than $5,000 for
8 sale of uninspected meat.
9 (e) no less than $500 and no greater than $5,000 for
10 product adulteration.
11 (e-5) $500 for detaching, breaking, changing, or
12 tampering with any official seal, seizure tag, rejected tag,
13 or retained tag in any way whatsoever.
14 (f) $500 for selling a product in violation of the
15 approved label specifications.
16 (g) $500 for removal of meat or poultry products under
17 seizure.
18 (h) (Blank).
19 (h-5) no less than $500, but no more than $5,000 for
20 operating outside approved hours of operation or approved
21 overtime.
22 (i) No less than $500 but no more than $5,000 for
23 operating without being licensed as a meat processor or
24 slaughterer.
25 In the case of a second or subsequent violation within 3
26 years of the first violation, the penalty shall be doubled.
27 Penalties not paid within 60 days of notice from the
28 Department shall be submitted to the Attorney General's
29 office or an approved private collection agency for
30 collection or referred for prosecution to the States
31 Attorney's office in the county where the violation occurred.
32 (Source: P.A. 89-463, eff. 5-31-96.)
33 (225 ILCS 650/2.1 rep.)
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1 (225 ILCS 650/2.2 rep.)
2 (225 ILCS 650/2.3 rep.)
3 (225 ILCS 650/2.4 rep.)
4 (225 ILCS 650/2.5 rep.)
5 (225 ILCS 650/2.6 rep.)
6 (225 ILCS 650/2.7 rep.)
7 (225 ILCS 650/2.8 rep.)
8 (225 ILCS 650/2.9 rep.)
9 (225 ILCS 650/2.9a rep.)
10 (225 ILCS 650/2.10 rep.)
11 (225 ILCS 650/2.11 rep.)
12 (225 ILCS 650/2.12 rep.)
13 (225 ILCS 650/2.13 rep.)
14 (225 ILCS 650/2.14 rep.)
15 (225 ILCS 650/2.15 rep.)
16 (225 ILCS 650/2.16 rep.)
17 (225 ILCS 650/2.17 rep.)
18 (225 ILCS 650/2.18 rep.)
19 (225 ILCS 650/2.19 rep.)
20 (225 ILCS 650/2.20 rep.)
21 (225 ILCS 650/2.21 rep.)
22 (225 ILCS 650/2.22 rep.)
23 (225 ILCS 650/2.23 rep.)
24 (225 ILCS 650/2.24 rep.)
25 (225 ILCS 650/2.25 rep.)
26 (225 ILCS 650/2.26 rep.)
27 (225 ILCS 650/2.28 rep.)
28 (225 ILCS 650/2.29 rep.)
29 (225 ILCS 650/2.30 rep.)
30 (225 ILCS 650/2.31 rep.)
31 (225 ILCS 650/2.32 rep.)
32 (225 ILCS 650/2.33 rep.)
33 (225 ILCS 650/2.34 rep.)
34 (225 ILCS 650/2.35 rep.)
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1 (225 ILCS 650/2.36 rep.)
2 (225 ILCS 650/2.37 rep.)
3 (225 ILCS 650/2.38 rep.)
4 (225 ILCS 650/2.39 rep.)
5 (225 ILCS 650/2.40 rep.)
6 (225 ILCS 650/2.41 rep.)
7 (225 ILCS 650/2.42 rep.)
8 (225 ILCS 650/2.43 rep.)
9 (225 ILCS 650/2.44 rep.)
10 (225 ILCS 650/3.1 rep.)
11 (225 ILCS 650/4 rep.)
12 (225 ILCS 650/7 rep.)
13 (225 ILCS 650/19.1 rep.)
14 Section 10. The Meat and Poultry Inspection Act is
15 amended by repealing Sections 2.1, 2.2, 2.4, 2.5, 2.6, 2.7,
16 2.8, 2.9, 2.9a, 2.10, 2.11, 2.12, 2.13, 2.14, 2.15, 2.16,
17 2.17, 2.18, 2.19, 2.20, 2.21, 2.22, 2.23, 2.24, 2.25, 2.26,
18 2.28, 2.29, 2.30, 2.31, 2.32, 2.33, 2.34, 2.35, 2.36, 2.37,
19 2.38, 2.39, 2.40, 2.41, 2.42, 2.43, 2.44, 3.1, 4, 7, and
20 19.1.
21 Section 15. The Grain Code is amended by changing
22 Sections 1-10, 1-15, 5-30, 10-10, 10-15, 10-25, 25-10, 25-20,
23 and 30-5 as follows:
24 (240 ILCS 40/1-10)
25 Sec. 1-10. Definitions. As used in this Act:
26 "Board" means the governing body of the Illinois Grain
27 Insurance Corporation.
28 "Certificate" means a document, other than the license,
29 issued by the Department that certifies that a grain dealer's
30 license has been issued and is in effect.
31 "Claimant" means:
32 (a) a person, including, without limitation, a lender:
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1 (1) who possesses warehouse receipts issued from an
2 Illinois location covering grain owned or stored by a
3 failed warehouseman; or
4 (2) who has other written evidence of a storage
5 obligation of a failed warehouseman issued from an
6 Illinois location in favor of the holder, including, but
7 not limited to, scale tickets, settlement sheets, and
8 ledger cards; or
9 (3) who has loaned money to a warehouseman and was
10 to receive a warehouse receipt issued from an Illinois
11 location as security for that loan, who surrendered
12 warehouse receipts as part of a grain sale at an Illinois
13 location, or who delivered grain out of storage with the
14 warehouseman as part of a grain sale at an Illinois
15 location; and
16 (i) the grain dealer or warehouseman failed
17 within 21 days after the loan of money, the
18 surrender of warehouse receipts, or the delivery of
19 grain, as the case may be, and no warehouse receipt
20 was issued or payment in full was not made on the
21 grain sale, as the case may be; or
22 (ii) written notice was given by the person to
23 the Department within 21 days after the loan of
24 money, the surrender of warehouse receipts, or the
25 delivery of grain, as the case may be, stating that
26 no warehouse receipt was issued or payment in full
27 made on the grain sale, as the case may be; or
28 (b) a producer not included in item (a)(3) in the
29 definition of "Claimant" who possesses evidence of the sale
30 at an Illinois location of grain delivered to a failed grain
31 dealer and who was not paid in full.
32 "Class I warehouseman" means a warehouseman who is
33 authorized to issue negotiable and non-negotiable warehouse
34 receipts.
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1 "Class II warehouseman" means a warehouseman who is
2 authorized to issue only non-negotiable warehouse receipts.
3 "Code" means the Grain Code.
4 "Collateral" means:
5 (a) irrevocable letters of credit;
6 (b) certificates of deposit;
7 (c) cash or a cash equivalent; or
8 (d) any other property acceptable to the Department to
9 the extent there exists equity in that property. For the
10 purposes of this item (d), "equity" is the amount by which
11 the fair market value of the property exceeds the amount owed
12 to a creditor who has a valid, prior, perfected security
13 interest in or other lien on the property.
14 "Corporation" means the Illinois Grain Insurance
15 Corporation.
16 "Daily position record" means a grain inventory
17 accountability record maintained on a daily basis that
18 includes an accurate reflection of changes in grain
19 inventory, storage obligations, company-owned inventory by
20 commodity, and other information that is required by the
21 Department.
22 "Daily grain transaction report" means a record of the
23 daily transactions of a grain dealer showing the amount of
24 all grain received and shipped during each day and the amount
25 on hand at the end of each day.
26 "Date of delivery of grain" means:
27 (a) the date grain is delivered to a grain dealer for
28 the purpose of sale;
29 (b) the date grain is delivered to a warehouseman for
30 the purpose of storage; or
31 (c) in reference to grain in storage with a
32 warehouseman, the date a warehouse receipt representing
33 stored grain is delivered to the issuer of the warehouse
34 receipt for the purpose of selling the stored grain or, if no
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1 warehouse receipt was issued:
2 (1) the date the purchase price for stored grain is
3 established; or
4 (2) if sold by price later contract, the date of
5 the price later contract.
6 "Department" means the Illinois Department of
7 Agriculture.
8 "Depositor" means a person who has evidence of a storage
9 obligation from a warehouseman.
10 "Director", unless otherwise provided, means the Illinois
11 Director of Agriculture, or the Director's designee.
12 "Emergency storage" means space measured in bushels and
13 used for a period of time not to exceed 3 months for storage
14 of grain as a consequence of an emergency situation.
15 "Equity assets" means:
16 (a) The equity in any property of the licensee or failed
17 licensee, other than grain assets. For purposes of this item
18 (a):
19 (1) "equity" is the amount by which the fair market
20 value of the property exceeds the amount owed to a
21 creditor who has a valid security interest in or other
22 lien on the property that was perfected before the date
23 of failure of the licensee;
24 (2) a creditor is not deemed to have a valid
25 security interest or other lien on property if (i) the
26 property can be directly traced as being from the sale of
27 grain by the licensee or failed licensee; (ii) the
28 security interest was taken as additional collateral on
29 account of an antecedent debt owed to the creditor; and
30 (iii) the security interest or other lien was perfected
31 (A) on or within 90 days before the date of failure of
32 the licensee or (B) when the creditor is a related
33 person, within one year of the date of failure of the
34 licensee.
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1 "Failure" means, in reference to a licensee:
2 (a) a formal declaration of insolvency;
3 (b) a revocation of a license;
4 (c) a failure to apply for license renewal, leaving
5 indebtedness to claimants;
6 (d) a denial of license renewal, leaving indebtedness to
7 claimants; or
8 (e) a voluntary surrender of a license, leaving
9 indebtedness to claimants.
10 "Federal warehouseman" means a warehouseman licensed by
11 the United States government under the United States
12 Warehouse Act (7 U.S.C. 241 et seq.).
13 "Fund" means the Illinois Grain Insurance Fund.
14 "Grain" means corn, soybeans, wheat, oats, rye, barley,
15 grain sorghum, canola, buckwheat, flaxseed, edible soybeans,
16 and other like agricultural commodities designated by rule.
17 "Grain assets" means:
18 (a) all grain owned and all grain stored by a licensee
19 or failed licensee, wherever located;
20 (b) redeposited grain of a licensee or failed licensee;
21 (c) identifiable proceeds, including, but not limited
22 to, insurance proceeds, received by or due to a licensee or
23 failed licensee resulting from the sale, exchange,
24 destruction, loss, or theft of grain, or other disposition of
25 grain by the licensee or failed licensee; or
26 (d) assets in hedging or speculative margin accounts
27 held by commodity or security exchanges on behalf of a
28 licensee or failed licensee and any moneys due or to become
29 due to a licensee or failed licensee, less any secured
30 financing directly associated with those assets or moneys,
31 from any transactions on those exchanges.
32 For purposes of this Act, storage charges, drying
33 charges, price later contract service charges, and other
34 grain service charges received by or due to a licensee or
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1 failed licensee shall not be deemed to be grain assets, nor
2 shall such charges be deemed to be proceeds from the sale or
3 other disposition of grain by a licensee or a failed
4 licensee, or to have been directly or indirectly traceable
5 from, to have resulted from, or to have been derived in whole
6 or in part from, or otherwise related to, the sale or other
7 disposition of grain by the licensee or failed licensee.
8 "Grain dealer" means a person who is licensed by the
9 Department to engage in the business of buying grain from
10 producers.
11 "Grain Indemnity Trust Account" means a trust account
12 established by the Director under Section 40.23 of the Civil
13 Administrative Code of Illinois that is used for the receipt
14 and disbursement of moneys paid from the Fund and proceeds
15 from the liquidation of and collection upon grain assets,
16 equity assets, collateral, or guarantees of or relating to
17 failed licensees. The Grain Indemnity Trust Account shall be
18 used to pay valid claims, authorized refunds from the Fund,
19 and expenses incurred in preserving, liquidating, and
20 collecting upon grain assets, equity assets, collateral, and
21 guarantees relating to failed licensees.
22 "Guarantor" means a person who assumes all or part of the
23 obligations of a licensee to claimants.
24 "Guarantee" means a document executed by a guarantor by
25 which the guarantor assumes all or part of the obligations of
26 a licensee to claimants.
27 "Incidental grain dealer" means a grain dealer who
28 purchases grain only in connection with a feed milling
29 operation and whose total purchases of grain from producers
30 during the grain dealer's fiscal year do not exceed $100,000.
31 "Licensed storage capacity" means the maximum grain
32 storage capacity measured in bushels approved by the
33 applicable licensing agency for use by a warehouseman.
34 "Licensee" means a grain dealer or warehouseman who is
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1 licensed by the Department and a federal warehouseman that is
2 a participant in the Fund, under subsection (c) of Section
3 30-10.
4 "Official grain standards" means the official grade
5 designations as adopted by the United States Department of
6 Agriculture under the United States Grain Standards Act and
7 regulations adopted under that Act (7 U.S.C. 71 et seq. and 7
8 CFR 810.201 et seq.).
9 "Permanent storage capacity" means the capacity of
10 permanent structures available for storage of grain on a
11 regular and continuous basis and measured in bushels.
12 "Person" means any individual or entity, including, but
13 not limited to, a sole proprietorship, a partnership, a
14 corporation, a cooperative, an association, a limited
15 liability company, an estate, or a trust.
16 "Price later contract" means a written contract for the
17 sale of grain whereby any part of the purchase price may be
18 established by the seller after delivery of the grain to a
19 grain dealer according to a pricing formula contained in the
20 contract. Title to the grain passes to the grain dealer at
21 the time of delivery. The precise form and the general terms
22 and conditions of the contract shall be established by rule.
23 "Producer" means the owner, tenant, or operator of land
24 who has an interest in and receives all or part of the
25 proceeds from the sale of the grain produced on the land.
26 "Producer protection holding corporation" means a holding
27 corporation to receive, hold title to, and liquidate assets
28 of or relating to a failed licensee, including assets in
29 reference to collateral or guarantees relating to a failed
30 licensee.
31 "Related persons" means affiliates of a licensee, key
32 persons of a licensee, owners of a licensee, and persons who
33 have control over a licensee. For the purposes of this
34 definition:
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1 (a) "Affiliate" means a person who has direct or
2 indirect control of a licensee, is controlled by a
3 licensee, or is under common control with a licensee.
4 (b) "Key person" means an officer, a director, a
5 trustee, a partner, a proprietor, a manager, a managing
6 agent, or the spouse of a licensee. An officer or a
7 director of an entity organized or operating as a
8 cooperative, however, shall not be considered to be a
9 "key person".
10 (c) "Owner" means the holder of: over 10% of the
11 total combined voting power of a corporation or over 10%
12 of the total value of shares of all classes of stock of a
13 corporation; over a 10% interest in a partnership; over
14 10% of the value of a trust computed actuarially; or over
15 10% of the legal or beneficial interest in any other
16 business, association, endeavor, or entity that is a
17 licensee. For purposes of computing these percentages, a
18 holder is deemed to own stock or other interests in a
19 business entity whether the ownership is direct or
20 indirect.
21 (d) "Control" means the power to exercise authority
22 over or direct the management or policies of a business
23 entity.
24 (e) "Indirect" means an interest in a business held
25 by the holder not through the holder's actual holdings in
26 the business, but through the holder's holdings in other
27 businesses.
28 (f) Notwithstanding any other provision of this
29 Act, the term "related person" does not include a lender,
30 secured party, or other lien holder solely by reason of
31 the existence of the loan, security interest, or lien, or
32 solely by reason of the lender, secured party, or other
33 lien holder having or exercising any right or remedy
34 provided by law or by agreement with a licensee or a
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1 failed licensee.
2 "Successor agreement" means an agreement by which a
3 licensee succeeds to the grain obligations of a former
4 licensee.
5 "Temporary storage space" means space measured in bushels
6 and used for 6 months or less for storage of grain on a
7 temporary basis due to a need for additional storage in
8 excess of permanent storage capacity.
9 "Trust account" means the Grain Indemnity Trust Account.
10 "Valid claim" means a claim, submitted by a claimant,
11 whose amount and category have been determined by the
12 Department, to the extent that determination is not subject
13 to further administrative review or appeal.
14 "Warehouse" means a building, structure, or enclosure in
15 which grain is stored for the public for compensation,
16 whether grain of different owners is commingled or whether
17 identity of different lots of grain is preserved.
18 "Warehouse receipt" means a receipt for the storage of
19 grain issued by a warehouseman.
20 "Warehouseman" means a person who is licensed:
21 (a) by the Department to engage in the business of
22 storing grain for compensation; or
23 (b) under the United States Warehouse Act who
24 participates in the Fund under subsection (c) of Section
25 30-10.
26 (Source: P.A. 89-287, eff. 1-1-96.)
27 (240 ILCS 40/1-15)
28 Sec. 1-15. Powers and duties of Director. The Director
29 has all powers necessary and proper to fully and effectively
30 execute the provisions of this Code and has the general duty
31 to implement this Code. The Director's powers and duties
32 include, but are not limited to, the following:
33 (1) The Director may, upon application, issue or refuse
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1 to issue licenses under this Code, and the Director may
2 extend, renew, reinstate, suspend, revoke, or accept
3 voluntary surrender of licenses under this Code.
4 (2) The Director shall examine and inspect each licensee
5 at least once each calendar year. The Director may inspect
6 the premises used by a licensee at any time. The books,
7 accounts, records, and papers of a licensee are at all times
8 during business hours subject to inspection by the Director.
9 Each licensee may also be required to make reports of its
10 activities, obligations, and transactions that are deemed
11 necessary by the Director to determine whether the interests
12 of producers and the holders of warehouse receipts are
13 adequately protected and safeguarded. The Director may take
14 action or issue orders that in the opinion of the Director
15 are necessary to prevent fraud upon or discrimination against
16 producers or depositors by a licensee.
17 (3) The Director may, upon his or her initiative or upon
18 the written verified complaint of any person setting forth
19 facts that if proved would constitute grounds for a refusal
20 to issue or renew a license or for a suspension or revocation
21 of a license, investigate the actions of any person applying
22 for, holding, or claiming to hold a license or any related
23 party of that person.
24 (4) The Director (but not the Director's designee) may
25 issue subpoenas and bring before the Department any person
26 and take testimony either at an administrative hearing or by
27 deposition with witness fees and mileage fees and in the same
28 manner as prescribed in the Code of Civil Procedure. The
29 Director or the Director's designee may administer oaths to
30 witnesses at any proceeding that the Department is authorized
31 by law to conduct. The Director (but not the Director's
32 designee) may issue subpoenas duces tecum to command the
33 production of records relating to a licensee, guarantor,
34 related business, related person, or related party. Subpoenas
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1 are subject to the rules of the Department.
2 (5) Notwithstanding other judicial remedies, the
3 Director may file a complaint and apply for a temporary
4 restraining order or preliminary or permanent injunction
5 restraining or enjoining any person from violating or
6 continuing to violate this Code or its rules.
7 (6) The Director shall act as Trustee for the Trust
8 Account, act as Trustee over all collateral, guarantees,
9 grain assets, and equity assets held by the Department for
10 the benefit of claimants, and exercise certain powers and
11 perform related duties under Section 20-5 of this Code and
12 Section 40.23 of the Civil Administrative Code of Illinois,
13 except that the provisions of the Trust and Trustees Act do
14 not apply to the Trust Account or any other trust created
15 under this Code.
16 (7) The Director shall personally serve as president of
17 the Corporation.
18 (8) The Director shall collect and deposit all monetary
19 penalties, printer registration fees, funds, and assessments
20 authorized under this Code into the Fund.
21 (9) The Director may initiate any action necessary to
22 pay refunds from the Fund.
23 (10) The Director shall maintain a holding corporation
24 to receive, hold title to, and liquidate assets of or
25 relating to a failed licensee, including assets in reference
26 to collateral or guarantees, and deposit the proceeds into
27 the Fund.
28 (11) The Director may initiate, participate in, or
29 withdraw from any proceedings to liquidate and collect upon
30 grain assets, equity assets, collateral, and guarantees
31 relating to a failed licensee, including, but not limited to,
32 all powers needed to carry out the provisions of Section
33 20-15.
34 (12) The Director, as Trustee or otherwise, may take any
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1 action that may be reasonable or appropriate to enforce this
2 Code and its rules.
3 (Source: P.A. 89-287, eff. 1-1-96.)
4 (240 ILCS 40/5-30)
5 Sec. 5-30. Grain Insurance Fund assessments. The
6 Illinois Grain Insurance Fund is established as a
7 continuation of the fund created under the Illinois Grain
8 Insurance Act, now repealed. Licensees and applicants for a
9 new license shall pay assessments as set forth in this
10 Section.
11 (a) Subject to subsection (e) of this Section, a
12 licensee that is newly licensed after the effective date of
13 this Code shall pay an assessment into the Fund for 3
14 consecutive years. Except as provided in item (6) of
15 subsection (b) of this Section, the first assessment shall be
16 paid at the time of or before the issuance of a new license,
17 the second assessment shall be paid on or before the first
18 anniversary date of the issuance of the new license, and the
19 third assessment shall be paid on or before the second
20 anniversary date of the issuance of the new license. For a
21 grain dealer, the initial payment of each of the 3
22 assessments shall be based upon the total estimated value of
23 grain purchases by the grain dealer for the applicable year
24 with the final assessment amount determined as set forth in
25 item (6) of subsection (b) of this Section. After the
26 licensee has paid or was required to pay the first 3
27 assessments to the Department for payment into the Fund, the
28 licensee shall be subject to subsequent assessments as set
29 forth in subsection (d) of this Section.
30 (b) Grain dealer assessments.
31 (1) The first assessment for a grain dealer shall
32 be an amount equal to:
33 (A) $0.000145 multiplied by the total value of
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1 grain purchases for the grain dealer's first fiscal
2 year as shown in the final financial statement for
3 that year provided to the Department under Section
4 5-20; and
5 (B) $0.000255 multiplied by that portion of
6 the value of grain purchases for the grain dealer's
7 first fiscal year that exceeds the adjusted equity
8 of the licensee multiplied by 20, as shown on the
9 final financial statement for the licensee's first
10 fiscal year provided to the Department under Section
11 5-20.
12 (2) The minimum assessment for the first assessment
13 shall be $1,000 and the maximum shall be $10,000.
14 (3) The second assessment for a grain dealer shall
15 be an amount equal to:
16 (A) $0.0000725 multiplied by the total value
17 of grain purchases for the grain dealer's second
18 fiscal year as shown in the final financial
19 statement for that year provided to the Department
20 under Section 5-20; and
21 (B) $0.0001275 multiplied by that portion of
22 the value of grain purchases for the grain dealer's
23 second fiscal year that exceeds the adjusted equity
24 of the licensee multiplied by 20, as shown on the
25 final financial statement for the licensee's second
26 fiscal year provided to the Department under Section
27 5-20.
28 (4) The third assessment for a grain dealer shall
29 be an amount equal to:
30 (A) $0.0000725 multiplied by the total value
31 of grain purchases for the grain dealer's third
32 fiscal year as shown in the final financial
33 statement for that year provided to the Department
34 under Section 5-20; and
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1 (B) $0.0001275 multiplied by that portion of
2 the value of grain purchases for the grain dealer's
3 third fiscal year that exceeds the adjusted equity
4 of the licensee multiplied by 20, as shown on the
5 final financial statement for the licensee's third
6 fiscal year.
7 (5) The minimum second and third assessments shall
8 be $500 per year and the maximum for each year shall be
9 $5,000.
10 (6) Each of the first 3 assessments shall be
11 adjusted up or down based upon the actual annual grain
12 purchases for each year as shown in the final financial
13 statement for that year provided to the Department under
14 Section 5-20. The adjustments shall be determined by the
15 Department within 30 days of the date of approval of
16 renewal of a license. Refunds shall be paid out of the
17 Fund within 60 days after the Department's determination.
18 Additional amounts owed for assessments shall be paid as
19 provided in subsection (f) of this Section.
20 (7) For the purposes of grain dealer assessments
21 under subsection (b) of this Section, the total value of
22 grain purchases shall be the total value of first time
23 grain purchases by at Illinois locations from producers.
24 (c) Warehouseman assessments.
25 (1) The first assessment for a warehouseman shall
26 be an amount equal to:
27 (A) $0.00085 multiplied by the total permanent
28 storage capacity of the warehouseman at the time of
29 license issuance; and
30 (B) $0.00099 multiplied by that portion of the
31 permanent storage capacity of the warehouseman at
32 the time of license issuance that exceeds the
33 adjusted equity of the licensee multiplied by 5, all
34 as shown on the final financial statement for the
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1 licensee provided to the Department under Section
2 5-10.
3 (2) The minimum assessment for the first assessment
4 shall be $1,000 and the maximum shall be $10,000.
5 (3) The second and third assessments shall be an
6 amount equal to:
7 (A) $0.000425 multiplied by the total
8 permanent storage capacity of the warehouseman at
9 the time of license issuance; and
10 (B) $0.000495 multiplied by that portion of
11 the permanent licensed storage capacity of the
12 warehouseman at the time of license issuance that
13 exceeds the adjusted equity of the licensee
14 multiplied by 5, as shown on the final financial
15 statement for the licensee's last completed fiscal
16 year provided to the Department under Section 5-20.
17 (4) The minimum assessment for the second and third
18 assessments shall be $500 per assessment and the maximum
19 for each assessment shall be $5,000.
20 (5) Every warehouseman shall pay an assessment when
21 increasing available permanent storage capacity in an
22 amount equal to $0.001 multiplied by the total number of
23 bushels to be added to permanent storage capacity. The
24 minimum assessment on any increase in permanent storage
25 capacity shall be $50 and the maximum assessment shall be
26 $20,000. The assessment based upon an increase in
27 permanent storage capacity shall be paid at or before the
28 time of approval of the increase in permanent storage
29 capacity. This assessment on the increased permanent
30 storage capacity does not relieve the warehouseman of any
31 assessments as set forth in subsection (d) of this
32 Section.
33 (6) Every warehouseman shall pay an assessment of
34 $0.0005 per bushel when increasing available storage
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1 capacity by use of temporary storage space. The minimum
2 assessment on temporary storage space shall be $100. The
3 assessment based upon temporary storage space shall be
4 paid at or before the time of approval of the amount of
5 the temporary storage space. This assessment on the
6 temporary storage space capacity does not relieve the
7 warehouseman of any assessments as set forth in
8 subsection (d) of this Section.
9 (7) Every warehouseman shall pay an assessment of
10 $0.001 per bushel of emergency storage space. The
11 minimum assessment on any emergency storage space shall
12 be $100. The assessment based upon emergency storage
13 space shall be paid at or before the time of approval of
14 the amount of the emergency storage space. This
15 assessment on the emergency storage space does not
16 relieve the warehouseman of any assessments as set forth
17 in subsection (d) of this Section.
18 (d) Subsequent assessments.
19 (1) If the equity in the Fund is below $3,000,000
20 on September 1st of any year, every grain dealer who has,
21 or was required to have, already paid the first, second,
22 and third assessments shall be assessed by the Department
23 an amount equal to:
24 (A) $0.0000725 multiplied by the total value
25 of grain purchases for the grain dealer's last
26 completed fiscal year as shown in the final
27 financial statement for that year provided to the
28 Department under Section 5-20; and
29 (B) $0.0001275 multiplied by that portion of
30 the value of grain purchases for the grain dealer's
31 last completed fiscal year that exceeds the adjusted
32 equity of the licensee multiplied by 20, as shown on
33 the final financial statement for the licensee's
34 last completed fiscal year provided to the
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1 Department under Section 5-20.
2 The minimum amount for a subsequent assessment shall
3 be $500 per year and the maximum amount shall be $5,000
4 per year. For the purposes of grain dealer assessments
5 under this item (1) of subsection (d) of this Section,
6 the total value of grain purchases shall be the total
7 value of first time grain purchases by of Illinois
8 locations from producers.
9 (2) If the equity in the Fund is below $3,000,000
10 on September 1st of any year, every warehouseman who has,
11 or was required to have, already paid the first, second,
12 and third assessments shall be assessed by the Department
13 an amount equal to:
14 (A) $0.000425 multiplied by the total licensed
15 storage capacity of the warehouseman as of September
16 1st of that year; and
17 (B) $0.000495 multiplied by that portion of
18 the licensed storage capacity of the warehouseman as
19 of September 1st of that year that exceeds the
20 adjusted equity of the licensee multiplied by 5, as
21 shown on the final financial statement for the
22 licensee's last completed fiscal year provided to
23 the Department under Section 5-20.
24 The minimum amount for a subsequent assessment shall
25 be $500 per year and the maximum amount shall be $5,000
26 per year.
27 (3) If the due date for the payment by a licensee
28 of the third assessment is after September 1st in a year
29 when the equity in the Fund is below $3,000,000, that
30 licensee shall not be subject to a subsequent assessment
31 for that year.
32 (e) Newly licensed; exemptions.
33 (1) For the purpose of assessing fees for the Fund
34 under subsection (a) of this Section, and subject to the
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1 provisions of item (e)(2) of this Section, the Department
2 shall consider the following to be newly licensed:
3 (A) A person that becomes a licensee for the
4 first time after the effective date of this Code.
5 (B) A licensee who has a lapse in licensing of
6 more than 30 days. A license shall not be
7 considered to be lapsed after its revocation or
8 termination if an administrative or judicial action
9 is pending or if an order from an administrative or
10 judicial body continues an existing license.
11 (C) A grain dealer that is a general
12 partnership in which there is a change in
13 partnership interests and that change is greater
14 than 50% during the partnership's fiscal year.
15 (D) A grain dealer that is a limited
16 partnership in which there is a change in the
17 controlling interest of a general partner and that
18 change is greater than 50% of the total controlling
19 interest during the limited partnership's fiscal
20 year.
21 (E) A grain dealer that is a limited liability
22 company in which there is a change in membership
23 interests and that change is greater than 50% during
24 the limited liability company's fiscal year.
25 (F) A grain dealer that is the result of a
26 statutory consolidation if that person has adjusted
27 equity of less than 90% of the combined adjusted
28 equity of the predecessor persons who consolidated.
29 For the purposes of this paragraph, the adjusted
30 equity of the resulting person shall be determined
31 from the approved or certified financial statement
32 submitted to the Department for the first fiscal
33 year of the resulting person. For the purpose of
34 this paragraph, the combined adjusted equity of the
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1 predecessor persons shall be determined by combining
2 the adjusted equity of each predecessor person as
3 set forth in the most recent approved or certified
4 financial statement of each predecessor person
5 submitted to the Department.
6 (G) A grain dealer that is the result of a
7 statutory merger if that person has adjusted equity
8 of less than 90% of the combined adjusted equity of
9 the predecessor persons who merged. For the
10 purposes of this paragraph, the adjusted equity of
11 the resulting person shall be determined from the
12 approved or certified financial statement submitted
13 to the Department for the first fiscal year of the
14 resulting person ending after the merger. For the
15 purposes of this paragraph, the combined adjusted
16 equity of the predecessor persons shall be
17 determined by combining the adjusted equity of each
18 predecessor person as set forth in the most recent
19 approved or certified financial statement submitted
20 to the Department for the last fiscal year of each
21 predecessor person ending on the date of or before
22 the merger.
23 (H) A grain dealer that is a general
24 partnership in which there is a change in
25 partnership interests and that change is 50% or less
26 during the partnership's fiscal year if the adjusted
27 equity of the partnership after the change is less
28 than 90% of the adjusted equity of the partnership
29 before the change. For the purpose of this
30 paragraph, the adjusted equity of the partnership
31 after the change shall be determined from the
32 approved or certified financial statement submitted
33 to the Department for the first fiscal year ending
34 after the change. For the purposes of this
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1 paragraph, the adjusted equity of the partnership
2 before the change shall be determined from the
3 approved or certified financial statement submitted
4 to the Department for the last fiscal year of the
5 partnership ending on the date of or before the
6 change.
7 (I) A grain dealer that is a limited
8 partnership in which there is a change in the
9 controlling interest of a general partner and that
10 change is 50% or less of the total controlling
11 interest during the partnership's fiscal year if the
12 adjusted equity of the partnership after the change
13 is less than 90% of the adjusted equity of the
14 partnership before the change. For the purposes of
15 this paragraph, the adjusted equity of the
16 partnership after the change shall be determined
17 from the approved or certified financial statement
18 submitted to the Department for the first fiscal
19 year ending after the change. For the purposes of
20 this paragraph, the adjusted equity of the
21 partnership before the change shall be determined
22 from the approved or certified financial statement
23 submitted to the Department for the last fiscal year
24 of the partnership ending on the date of or before
25 the change.
26 (J) A grain dealer that is a limited liability
27 company in which there is a change in membership
28 interests and that change is 50% or less of the
29 total membership interests during the limited
30 liability company's fiscal year if the adjusted
31 equity of the limited liability company after the
32 change is less than 90% of the adjusted equity of
33 the limited liability company before the change.
34 For the purposes of this paragraph, the adjusted
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1 equity of the limited liability company after the
2 change shall be determined from the approved or
3 certified financial statement submitted to the
4 Department for the first fiscal year ending after
5 the change. For the purposes of this paragraph, the
6 adjusted equity of the limited liability company
7 before the change shall be determined from the
8 approved or certified financial statement submitted
9 to the Department for the last fiscal year of the
10 limited liability company ending on the date of or
11 before the change.
12 (K) A grain dealer that is the result of a
13 statutory consolidation or merger if one or more of
14 the predecessor persons that consolidated or merged
15 into the resulting grain dealer was not a licensee
16 under this Code at the time of the consolidation or
17 merger.
18 (2) For the purpose of assessing fees for the Fund
19 as set forth in subsection (a) of this Section, the
20 Department shall consider the following as not being
21 newly licensed and, therefore, exempt from further
22 assessment unless an assessment is required by subsection
23 (d) of this Section:
24 (A) A person resulting solely from a name
25 change of a licensee.
26 (B) A warehouseman changing from a Class I
27 warehouseman to a Class II warehouseman or from a
28 Class II warehouseman to a Class I warehouseman
29 under this Code.
30 (C) A licensee that becomes a wholly owned
31 subsidiary of another licensee.
32 (D) Subject to item (e)(1)(K) of this Section,
33 a person that is the result of a statutory
34 consolidation if that person has adjusted equity
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1 greater than or equal to 90% of the combined
2 adjusted equity of the predecessor persons who
3 consolidated. For the purposes of this paragraph,
4 the adjusted equity of the resulting person shall be
5 determined from the approved or certified financial
6 statement submitted to the Department for the first
7 fiscal year of the resulting person. For the
8 purpose of this paragraph, the combined adjusted
9 equity of the predecessor persons shall be
10 determined by combining the net worth of each
11 predecessor person as set forth in the most recent
12 approved or certified financial statement of each
13 predecessor person submitted to the Department.
14 (E) Subject to item (e)(1)(K) of this Section,
15 a person that is the result of a statutory merger if
16 that person has adjusted equity greater than or
17 equal to 90% of the combined adjusted equity of the
18 predecessor persons who merged. For the purposes of
19 this paragraph, the adjusted equity of the resulting
20 person shall be determined from the approved or
21 certified financial statement submitted to the
22 Department for the first fiscal year of the
23 resulting person ending after the merger. For the
24 purposes of this paragraph, the combined adjusted
25 equity of the predecessor persons shall be
26 determined by combining the adjusted equity of each
27 predecessor person as set forth in the most recent
28 approved or certified financial statement, submitted
29 to the Department for the last fiscal year of each
30 predecessor person ending on the date of or before
31 the merger.
32 (F) A general partnership in which there is a
33 change in partnership interests and that change is
34 50% or less during the partnership's fiscal year and
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1 the adjusted equity of the partnership after the
2 change is greater than or equal to 90% of the
3 adjusted equity of the partnership before the
4 change. For the purposes of this paragraph, the
5 adjusted equity of the partnership after the change
6 shall be determined from the approved or certified
7 financial statement submitted to the Department for
8 the first fiscal year ending after the change. For
9 the purposes of this paragraph, the adjusted equity
10 of the partnership before the change shall be
11 determined from the approved or certified financial
12 statement submitted to the Department for the last
13 fiscal year of the partnership ending on the date of
14 or before the change.
15 (G) A limited partnership in which there is a
16 change in the controlling interest of a general
17 partner and that change is 50% or less of the total
18 controlling interest during the partnership's fiscal
19 year and the adjusted equity of the partnership
20 after the change is greater than or equal to 90% of
21 the adjusted equity of the partnership before the
22 change. For the purposes of this paragraph, the
23 adjusted equity of the partnership after the change
24 shall be determined from the approved or certified
25 financial statement submitted to the Department for
26 the first fiscal year ending after the change. For
27 the purposes of this paragraph, the adjusted equity
28 of the partnership before the change shall be
29 determined from the approved or certified financial
30 statement submitted to the Department for the last
31 fiscal year of the partnership ending on the date of
32 or before the change.
33 (H) A limited liability company in which there
34 is a change in membership interests and that change
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1 is 50% or less of the total membership interests
2 during the limited liability company's fiscal year
3 if the adjusted equity of the limited liability
4 company after the change is greater than or equal to
5 90% of the adjusted equity of the limited liability
6 company before the change. For the purposes of this
7 paragraph, the adjusted equity of the limited
8 liability company after the change shall be
9 determined from the approved or certified financial
10 statement submitted to the Department for the first
11 fiscal year ending after the change. For the
12 purposes of this paragraph, the adjusted equity of
13 the limited liability company before the change
14 shall be determined from the approved or certified
15 financial statement submitted to the Department for
16 the last fiscal year of the limited liability
17 company ending on the date of or before the change.
18 (I) A licensed warehouseman that is the result
19 of a statutory merger or consolidation to the extent
20 the combined storage capacity of the resulting
21 warehouseman has been assessed under this Code
22 before the statutory merger or consolidation, except
23 that any storage capacity of the resulting
24 warehouseman that has not previously been assessed
25 under this Code shall be assessed as provided in
26 items (c)(5), (c)(6), and (c)(7) of this Section.
27 (J) A federal warehouseman who participated in
28 the Fund under Section 30-10 and who subsequently
29 received an Illinois license to the extent the
30 storage capacity of the warehouseman was assessed
31 under this Code prior to Illinois licensing.
32 (f) Except for the first assessment made under this
33 Section, and assessments under items (c)(5), (c)(6), and
34 (c)(7) of this Section, all assessments shall be paid to the
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1 Department within 60 days after the date posted on the
2 written notice of assessment. The Department shall forward
3 all paid assessments to the Fund.
4 (Source: P.A. 89-287, eff. 1-1-96.)
5 (240 ILCS 40/10-10)
6 Sec. 10-10. Duties and requirements of grain dealers.
7 (a) Long and short market position.
8 (1) Grain dealers shall at all times maintain an
9 accurate and current long and short market position
10 record for each grain commodity. The position record
11 shall at a minimum contain the net position of all grain
12 owned, wherever located, grain purchased and sold, and
13 any grain option contract purchased or sold.
14 (2) Grain dealers, except grain dealers regularly
15 and continuously reporting to the Commodity Futures
16 Trading Commission or grain dealers who have obtained the
17 permission of the Department to have different open long
18 or short market positions, may maintain an open position
19 in the grain commodity of which the grain dealer buys the
20 greatest number of bushels per fiscal year not to exceed
21 one bushel for each $10 of adjusted equity at fiscal year
22 end up to a maximum open position of 50,000 bushels and
23 one-half that number of bushels up to 25,000 bushels for
24 all other grain commodities that the grain dealer buys. A
25 grain dealer, however, may maintain an open position of
26 up to 5,000 bushels for each grain commodity the grain
27 dealer buys.
28 (b) The license issued by the Department to a grain
29 dealer shall be posted in the principal office of the
30 licensee in this State. A certificate shall be posted in
31 each location where the licensee engages in business as a
32 grain dealer. In the case of a licensee operating a truck or
33 tractor trailer unit for the purpose of purchasing grain, the
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1 licensee shall have a certificate carried in each truck or
2 tractor trailer unit used in connection with the licensee's
3 grain dealer business.
4 (c) The licensee must have at all times sufficient
5 financial resources to pay producers on demand for grain
6 purchased from them.
7 (d) A licensee that is solely a grain dealer shall on a
8 daily basis maintain an accurate and current daily grain
9 transaction report.
10 (e) A licensee that is both a grain dealer and a
11 warehouseman shall at all times maintain an accurate and
12 current daily position record.
13 (f) In the case of a change of ownership of a grain
14 dealer, the obligations of a grain dealer do not cease until
15 the grain dealer its successor is properly licensed under
16 this Code, it has surrendered all unused price later
17 contracts to the Department and the successor has executed a
18 successor's agreement, or the successor has otherwise
19 provided for the grain obligations of its predecessor.
20 (g) If a grain dealer proposes to cease doing business
21 as a grain dealer and there is no successor, it is the duty
22 of the grain dealer to surrender all unused price later
23 contracts to the Department, together with an affidavit
24 accounting for all grain dealer obligations setting forth the
25 arrangements made with producers for final disposition of the
26 grain dealer obligations and indicating the procedure for
27 payment in full of all outstanding grain obligations. It is
28 the duty of the Department to give notice by publication that
29 a grain dealer has ceased doing business without a successor.
30 After payment in full of all outstanding grain obligations,
31 it is the duty of the grain dealer to surrender its license.
32 (Source: P.A. 89-287, eff. 1-1-96.)
33 (240 ILCS 40/10-15)
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1 Sec. 10-15. Price later contracts.
2 (a) Price later contracts shall be written on forms
3 prescribed by the Department. Price later contract forms
4 shall be printed by a person authorized to print those
5 contracts by the Department after that person has agreed to
6 comply with each of the following:
7 (1) That all price later contracts shall be printed
8 as prescribed by the Department and shall be printed
9 only for a licensed grain dealer.
10 (2) That all price later contracts shall be
11 numbered consecutively and a complete record of these
12 contracts shall be retained showing for whom printed and
13 the consecutive numbers printed on the contracts.
14 (3) That a duplicate copy of all invoices rendered
15 for printing price later contracts that will show the
16 consecutive numbers printed on the contracts, and the
17 number of contracts printed, shall be promptly forwarded
18 to the Department.
19 (4) that the person shall register with the
20 Department and pay an annual registration fee of $100 to
21 print price later contracts.
22 (b) A grain dealer purchasing grain by price later
23 contract shall at all times own grain, rights in grain,
24 proceeds from the sale of grain, and other assets acceptable
25 to the Department as set forth in this Code totaling 90% of
26 the unpaid balance of the grain dealer's obligations for
27 grain purchased by price later contract. That amount shall
28 at all times remain unencumbered and shall be represented by
29 the aggregate of the following:
30 (1) Grain owned by the grain dealer valued by means
31 of the hedging procedures method that includes marking
32 open contracts to market.
33 (2) Cash on hand.
34 (3) Cash held on account in federally or State
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1 licensed financial institutions.
2 (4) Investments held in time accounts with
3 federally or State licensed financial institutions.
4 (5) Direct obligations of the U.S. government.
5 (6) Funds on deposit Balances in grain margin
6 accounts determined by marking to market.
7 (7) Balances due or to become due to the licensee
8 on price later contracts.
9 (8) Marketable securities, including mutual funds.
10 (9) Irrevocable letters of credit in favor of the
11 Department and acceptable to the Department.
12 (10) Price later contract service charges due or to
13 become due to the licensee.
14 (11) Other evidence of proceeds from or of grain
15 that is acceptable to the Department.
16 (c) For the purpose of computing the dollar value of
17 grain and the balance due on price later contract
18 obligations, the value of grain shall be figured at the
19 current market price.
20 (d) Title to grain sold by price later contract shall
21 transfer to a grain dealer on the date of delivery of the
22 grain. Therefore, no storage charges shall be made with
23 respect to grain purchased by price later contract. A
24 service charge for handling the contract, however, may be
25 made.
26 (e) Subject to subsection (f) of this Section, if a
27 price later contract is not signed by all parties within 30
28 days of the last date of delivery of grain intended to be
29 sold by price later contract, then the grain intended to be
30 sold by price later contract shall be priced on the next
31 business day after 30 days from the last date of delivery of
32 grain intended to be sold by price later contract at the
33 market price of the grain at the close of the next business
34 day after the 29th day. When the grain is priced under this
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1 subsection, the grain dealer shall send notice to the seller
2 of the grain within 10 days. The notice shall contain the
3 number of bushels sold, the price per bushel, all applicable
4 discounts, the net proceeds, and a notice that states that
5 the Grain Insurance Fund shall provide protection for a
6 period of only 160 days from the date of pricing of the
7 grain.
8 (f) If grain is in storage with a warehouseman and is
9 intended to be sold by price later contract, that grain shall
10 be considered as remaining in storage and not be deemed sold
11 by price later contract until the date the price later
12 contract is signed by all parties.
13 (g) Scale tickets or other approved documents with
14 respect to grain purchased by a grain dealer by price later
15 contract shall contain the following: "Sold Grain; Price
16 Later".
17 (h) Price later contracts shall be issued consecutively
18 and recorded by the grain dealer as established by rule.
19 (i) A grain dealer shall not issue a collateral
20 warehouse receipt on grain purchased by a price later
21 contract to the extent the purchase price has not been paid
22 by the grain dealer.
23 (j) Failure to comply with the requirements of this
24 Section may result in suspension of the privilege to purchase
25 grain by price later contract for up to one year.
26 (Source: P.A. 89-287, eff. 1-1-96.)
27 (240 ILCS 40/10-25)
28 Sec. 10-25. Warehouse receipts and storage of grain.
29 (a) When grain is delivered to a warehouseman at a
30 location where grain is also purchased, the licensee shall
31 give written evidence of delivery of grain and that written
32 evidence shall be marked to indicate whether the grain is
33 delivered for storage or for sale. In the absence of
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1 adequate evidence of sale, the grain shall be construed to be
2 in storage.
3 (b) Upon demand by a depositor, a warehouseman shall
4 issue warehouse receipts for grain delivered into storage.
5 (c) There shall be no charge for the first warehouse
6 receipt issued to a depositor for a given lot of grain.
7 Charges for any additional warehouse receipts for grain
8 previously covered by a warehouse receipt must be
9 commensurate with the cost of issuance of the additional
10 warehouse receipt.
11 (d) A warehouseman shall issue warehouse receipts only
12 in accordance with the following requirements:
13 (1) Warehouse receipts shall be consecutively
14 numbered in a form prescribed by the Department and when
15 issued from the same warehouse shall be consecutively by
16 the warehouseman numbered.
17 (2) In the case of a lost or destroyed warehouse
18 receipt, the new warehouse receipt shall bear the same
19 date as the original and shall be plainly marked on its
20 face "duplicate in lieu of lost or destroyed warehouse
21 receipt number .......", and the warehouseman shall duly
22 fill in the blank with the appropriate warehouse receipt
23 number.
24 (3) Warehouse receipts shall be printed by a person
25 authorized printer approved by the Department. The person
26 shall register with the Department and pay an annual
27 registration fee of $100 to print warehouse receipts.
28 (4) Negotiable warehouse receipts shall be issued
29 only for grain actually in storage with the warehouseman
30 from which it is issued or redeposited by that
31 warehouseman as provided in subsection (e) of Section
32 10-20.
33 (5) A warehouseman shall not insert in any
34 negotiable warehouse receipt issued by it any language
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1 that in any way limits or modifies its liability or
2 responsibility.
3 (e) Upon delivery of grain covered by a negotiable
4 warehouse receipt, the holder of the negotiable warehouse
5 receipt must surrender the warehouse receipt for
6 cancellation, and a warehouseman must cancel and issue a new
7 negotiable warehouse receipt for the balance of grain in
8 storage.
9 (f) When all grain, the storage of which is evidenced by
10 a warehouse receipt, is delivered from storage, the warehouse
11 receipt shall be plainly marked across its face with the word
12 "cancelled" and shall have written on it the date of
13 cancellation, the name of the person canceling the warehouse
14 receipt, and such other information as required by rule, and
15 is thereafter void.
16 (g) When a warehouseman delivers grain out of storage
17 but fails to collect and cancel the negotiable warehouse
18 receipt, the warehouseman shall be liable to any purchaser of
19 the negotiable warehouse receipt for value in good faith for
20 failure to deliver the grain to the purchaser, whether the
21 purchaser acquired the negotiable warehouse receipt before or
22 after the delivery of the grain by the warehouseman. If,
23 however, grain has been lawfully sold by a warehouseman to
24 satisfy its warehouseman's lien, the warehouseman shall not
25 be liable for failure to deliver the grain pursuant to the
26 demands of a holder of a negotiable warehouse receipt to the
27 extent of the amount of grain sold.
28 (h) Except as otherwise provided by this Code or other
29 applicable law, a warehouseman shall deliver the grain upon
30 demand made by the holder of a warehouse receipt pertaining
31 to that grain if the demand is accompanied by:
32 (1) satisfaction of the warehouseman's lien;
33 (2) in the case of a negotiable warehouse receipt,
34 a properly endorsed negotiable warehouse receipt; or
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1 (3) in the case of a non-negotiable warehouse
2 receipt, written evidence that the grain was delivered to
3 the warehouseman and that the depositor is entitled to
4 it.
5 (i) If no warehouse receipt is issued to a depositor, a
6 warehouseman shall deliver grain upon the demand of a
7 depositor if the demand is accompanied by satisfaction of the
8 warehouseman's lien and written evidence that the grain was
9 delivered to the warehouseman and the depositor is entitled
10 to it.
11 (j) If a warehouseman refuses or fails to deliver grain
12 in compliance with a demand by a holder of a warehouse
13 receipt or a depositor, the burden is on the warehouseman to
14 establish the existence of a lawful excuse for the refusal.
15 (k) If a warehouse receipt has been lost or destroyed, a
16 warehouseman may issue a substitute warehouse receipt, as
17 provided for in this Section, upon delivery to the
18 warehouseman of an affidavit under oath stating that the
19 applicant for the substitute warehouse receipt is entitled to
20 the original warehouse receipt and setting forth the
21 circumstances that resulted in the loss or destruction of the
22 original warehouse receipt. The warehouseman may request
23 from the depositor a bond in double the value of the grain
24 represented by the original warehouse receipt at the time of
25 issuance of the substitute warehouse receipt so as to protect
26 the warehouseman from any liability or expense that it, or
27 any person injured by the delivery, may incur by reason of
28 the original warehouse receipt remaining outstanding.
29 (l) A warehouse receipt that is to be used for
30 collateral purposes by a warehouseman must be first issued by
31 the warehouseman to itself.
32 (m) The Department shall approve temporary storage space
33 in an amount to be determined by the Department if all the
34 following conditions are met:
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1 (1) The warehouseman pays all fees and assessments
2 associated with the temporary storage space.
3 (2) The warehouseman demonstrates that there is a
4 need for additional storage on a temporary basis due to a
5 bumper crop or otherwise.
6 (3) The structure for the storage of grain meets
7 all of the following requirements:
8 (A) The grain storage area has a permanent
9 base made of concrete, asphalt, or a material having
10 similar structural qualities.
11 (B) Hot spot detectors, aeration fans, and
12 ducts are provided to assure that the quality of
13 grain in storage is maintained.
14 (C) The grain storage structure has rigid
15 sidewalls made of concrete, wood, metal, or a
16 material having similar structural qualities.
17 (D) The grain storage structure is equipped
18 with a waterproof covering of sufficient strength to
19 support a person's weight and with inlets to allow
20 airflow.
21 (E) Access to the grain is provided for the
22 purpose of sampling and making examinations.
23 (4) Temporary storage space shall be considered an
24 increase in the licensed storage capacity of the licensee
25 and shall be subject to Section 5-30.
26 (5) The authorization to use temporary storage
27 space for the storage of grain shall expire at the end of
28 6 months after the date of approval by the Department or
29 May 15th, whichever comes first.
30 (n) The Department may approve emergency storage space
31 at the request of the licensee according to rule.
32 (Source: P.A. 89-287, eff. 1-1-96.)
33 (240 ILCS 40/25-10)
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1 Sec. 25-10. Claimant compensation. Within 30 days after
2 the day on which a claim becomes a valid claim, a claimant
3 shall be compensated to the extent of its valid claim in
4 accordance with the following provisions:
5 (a) Valid claims filed by warehouse claimants shall be
6 paid 100% of the amount determined by the Department out of
7 the net proceeds of the liquidation of grain assets as set
8 forth in this subsection (a). To the extent the net proceeds
9 are insufficient, warehouse claimants shall be paid their pro
10 rata share of the net proceeds of the liquidation of grain
11 assets and, subject to subsection (j) of this Section, an
12 additional amount per claimant not to exceed the balance of
13 their respective claims out of the Fund.
14 (b) Subject to subsection (j) of this Section, if the
15 net proceeds as set forth in subsection (a) of this Section
16 are insufficient to pay in full all valid claims filed by
17 warehouse claimants as payment becomes due, the balance shall
18 be paid out of the Fund in accordance with subsection (b) of
19 Section 25-20.
20 (c) Valid claims filed by producers who:
21 (1) have delivered grain within 21 days before the
22 date of failure for which pricing of that grain has been
23 completed before date of failure; or
24 (2) gave written notice to the Department within 21
25 days of the date of delivery of grain, if the pricing of
26 that grain has been completed, that payment in full for
27 that grain has not been made;
28 shall be paid, subject to subsection (j) of this Section,
29 100% of the amount of the valid claim determined by the
30 Department. Valid claims that are included in subsection (c)
31 of this Section shall receive no payment under subsection (d)
32 of this Section, and any claimant having a valid claim under
33 this subsection (c) determined by the Department to be in
34 excess of the limits, if any, imposed under subsection (j) of
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1 this Section shall be paid only sums in excess of those
2 limits to the extent additional money is available under
3 subsection (d)(2) of Section 25-20.
4 (d) Valid claims that are not included in subsection (c)
5 of this Section that are filed by producers who completed
6 delivery and pricing of grain in reference to the valid
7 claim, whichever is later, within 160 days before the date of
8 failure shall be paid 85% of the amount of the valid claim
9 determined by the Department or $100,000, whichever is less,
10 per claimant. For claims filed by producers for grain sold on
11 a price later contract, however, the later of the date of
12 execution of the contract or the date of delivery of grain in
13 reference to the grain covered by the price later contract
14 must not be more than 270 days before the date of failure in
15 order for the claimant to receive any compensation.
16 (e) Valid claims filed by producers for grain sold on a
17 price later contract, for which the final price has not been
18 established, shall be paid 85% of the amount of the valid
19 claims determined by the Department or $100,000, whichever is
20 less, per claimant, if the later of the date of execution of
21 the contract or the date of delivery of grain in reference to
22 the grain covered by the price later contract occurred no
23 more than 270 days before the date of failure. The execution
24 of subsequent price later contracts by the producer and the
25 licensee for grain previously covered by a price later
26 contract shall not extend the coverage of a claim beyond the
27 original 270 days.
28 (f) The maximum payment to producers under subsections
29 (d) and (e) of this Section, combined, shall be $100,000 per
30 claimant.
31 (g) The following claims shall be barred and disallowed
32 in their entirety and shall not be entitled to any recovery
33 from the Fund or the Trust Account:
34 (1) Claims filed by producers who completed pricing
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1 of the grain in reference to their claim in excess of 160
2 days before the date of failure.
3 (2) Claims filed by producers for grain sold on a
4 price later contract if the later of the date of
5 execution of the contract or the date of delivery of
6 grain in reference to the grain covered by the price
7 later contract occurred more than 270 days before the
8 date of failure.
9 (h) To the extent moneys are available, additional pro
10 rata payments may be made to claimants under subsection (d)
11 of Section 25-20.
12 (i) For purposes of this Section, a claim filed in
13 connection with warehouse receipts that are possessed under a
14 collateral pledge of a producer, or that are subject to a
15 perfected security interest, or that were acquired by a
16 secured party or of lien holder under an obligation of a
17 producer, shall be deemed to be a claim filed by the producer
18 and not a claim filed by the secured party or the lien
19 holder, regardless of whether the producer is in default
20 under that collateral pledge, security agreement, or other
21 obligation.
22 (j) With respect to any failure occurring on or after
23 July 1, 1998, the maximum payment out of the Fund for
24 claimants under subsection (a), (b), or (c) of this Section
25 shall be $1,000,000 per claimant and the maximum payment out
26 of the Fund for claimants under subsections (c), (d), and (e)
27 of this Section, combined, shall be $1,000,000 per claimant.
28 (Source: P.A. 89-287, eff. 1-1-96.)
29 (240 ILCS 40/25-20)
30 Sec. 25-20. Priorities and repayments.
31 (a) All valid claims shall be paid from the Trust
32 Account, as provided in Section 25-10, first from the
33 proceeds realized from liquidation of and collection upon the
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1 grain assets relating to the failed licensee, as to warehouse
2 claimants, and the equity assets as to a secured party or
3 lien holder who has consented to the Department liquidating
4 and collecting upon the equity asset as set forth in
5 subsection (f) of Section 20-15, and the remaining equity
6 assets, collateral, and guarantees relating to the failed
7 licensee, as to grain dealer claimants.
8 (b) If the proceeds realized from liquidation of and
9 collection upon the grain assets, equity assets, collateral,
10 and guarantees relating to the failed licensee are
11 insufficient to pay all valid claims as provided in Section
12 25-10 and subsection (a) of this Section as payment on those
13 claims becomes due, the Director shall request from the Board
14 sufficient funds to be transferred from the Fund to the Trust
15 Account to pay the balance owed to claimants as determined
16 under Section 25-10. If a request is made by the Director
17 for a transfer of funds to the Trust Account from the Fund,
18 the Board shall act on that request within 25 days after the
19 date of that request. Once moneys are transferred from the
20 Fund to the Trust Account, the Director shall pay the balance
21 owed to claimants in accordance with Section 25-10.
22 (c) Net proceeds from liquidation of grain assets as set
23 forth in subsection (a) of Section 25-10 received by the
24 Department, to the extent not already paid to warehouse
25 claimants, shall be prorated among the fund and all warehouse
26 claimants who have not had their valid claims paid in full.
27 (1) The pro rata distribution to the Fund shall be
28 based upon the total amount of valid claims of all
29 warehouse claimants who have had their valid claims paid
30 in full. The pro rata distribution to each warehouse
31 claimant who has not had his or her valid claims paid in
32 full shall be based upon the total amount of that
33 claimant's original valid claims.
34 (2) If the net proceeds from the liquidation of
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1 grain assets as set forth in subsection (a) of Section
2 25-10 exceed all amounts needed to satisfy all valid
3 claims filed by warehouse claimants, the balance
4 remaining shall be paid into the Trust Account or as set
5 forth in subsection (h) (g) of Section 25-20.
6 (d) Subject to subsections (c) and (h) (g) of Section
7 25-20:
8 (1) The proceeds realized from liquidation of and
9 collection upon the grain assets, equity assets,
10 collateral, and guarantees relating to the failed
11 licensee or any other assets relating to the failed
12 licensee that are received by the Department, to the
13 extent not already paid to claimants, shall be first used
14 to repay the Fund for moneys transferred to the Trust
15 Account.
16 (2) After the Fund is repaid in full for the moneys
17 transferred from it to pay the valid claims in reference
18 to a failed licensee, any remaining proceeds realized
19 from liquidation of and collection upon the grain assets,
20 equity assets, collateral, and guarantees relating to the
21 failed licensee thereafter received by the Department
22 shall be prorated to the claimants holding valid claims
23 who have not received 100% of the amount of their valid
24 claims based upon the unpaid amount of their valid
25 claims.
26 (e) After all claimants have received 100% of the amount
27 of their valid claims, to the extent moneys are available
28 interest at the rate of 6% per annum shall be assessed and
29 paid to the Fund on all moneys transferred from the Fund to
30 the Trust Account.
31 (f) After the Fund is paid the interest as provided in
32 subsection (e) of this Section, then those claims barred and
33 disallowed under subsection (g) of Section 25-10 shall be
34 paid on a pro rata basis only to the extent that moneys are
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1 available.
2 (g) Once all claims become valid claims and have been
3 paid in full and all interest as provided in subsection (e)
4 of this Section is paid in full, and all claims are paid in
5 full under subsection (f), any remaining grain assets, equity
6 assets, collateral, and guarantees, and the proceeds realized
7 from liquidation of and collection upon the grain assets,
8 equity assets, collateral, and guarantees relating to the
9 failed licensee, shall be returned to the failed licensee or
10 its assignee, or as otherwise directed by a court of
11 competent jurisdiction.
12 (h) If amounts in the Fund are insufficient to pay all
13 valid claims, the General Assembly shall appropriate to the
14 Corporation amounts sufficient to satisfy the valid claims.
15 If for any reason the General Assembly fails to make an
16 appropriation to satisfy outstanding valid claims, this Code
17 constitutes an irrevocable and continuing appropriation of
18 all amounts necessary for that purpose and the irrevocable
19 and continuing authority for and direction to the State
20 Comptroller and to the State Treasurer to make the necessary
21 transfers and disbursements from the revenues and funds of
22 the State for that purpose. Subject to payments to warehouse
23 claimants as set forth in subsection (c) of Section 25-20,
24 the State shall be reimbursed as soon as funds become
25 available for any amounts paid under subsection (g) of this
26 Section upon replenishment of the Fund from assessments under
27 subsection (d) of Section 5-30 and collection upon grain
28 assets, equity assets, collateral, and guarantees relating to
29 the failed licensee.
30 (i) The Department shall have those rights of equitable
31 subrogation which may result from a claimant receiving from
32 the Fund payment in full of the obligations of the failed
33 licensee to the claimant.
34 (Source: P.A. 89-287, eff. 1-1-96.)
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1 (240 ILCS 40/30-5)
2 Sec. 30-5. Illinois Grain Insurance Corporation.
3 (a) The Corporation is a political subdivision, body
4 politic, and public corporation. The governing powers of the
5 Corporation are vested in the Board of Directors composed of
6 the Director, who shall personally serve as president; the
7 Attorney General or his or her designee, who shall serve as
8 secretary; the State Treasurer or his or her designee, who
9 shall serve as treasurer; the Director of the Department of
10 Insurance or his or her designee; and the chief fiscal
11 officer of the Department. Three members of the Board
12 constitute a quorum at any meeting of the Board, and the
13 affirmative vote of 3 members is necessary for any action
14 taken by the Board at a meeting, except that a lesser number
15 may adjourn a meeting from time to time. A vacancy in the
16 membership of the Board does not impair the right of a quorum
17 to exercise all the rights and perform all the duties of the
18 Board and Corporation.
19 (b) The Corporation has the following powers, together
20 with all powers incidental or necessary to the discharge of
21 those powers in corporate form:
22 (1) To have perpetual succession by its corporate
23 name as a corporate body.
24 (2) To adopt, alter, and repeal bylaws, not
25 inconsistent with the provisions of this Code, for the
26 regulation and conduct of its affairs and business.
27 (3) To adopt and make use of a corporate seal and
28 to alter the seal at pleasure.
29 (4) To avail itself of the use of information,
30 services, facilities, and employees of the State of
31 Illinois in carrying out the provisions of this Code.
32 (5) To receive funds, printer registration fees,
33 and penalties assessed by the Department under this Code
34 Section 5-30.
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1 (6) To administer the Fund by investing funds of
2 the Corporation that the Board may determine are not
3 presently needed for its corporate purposes.
4 (7) To receive funds from the Trust Account for
5 deposit into the Fund.
6 (8) Upon the request of the Director, to make
7 payment from the Fund to the Trust Account when payment
8 is necessary to compensate claimants in accordance with
9 the provisions of Section 25-20 or for payment of refunds
10 to licensees in accordance with the provisions of this
11 Code.
12 (9) To have those powers that are necessary or
13 appropriate for the exercise of the powers specifically
14 conferred upon the Corporation and all incidental powers
15 that are customary in corporations.
16 (Source: P.A. 89-287, eff. 1-1-96.)
17 Section 20. The Livestock Management Facilities Act is
18 amended by changing Section 20 and by adding Sections 11, 12,
19 13, 14, and 65 as follows:
20 (510 ILCS 77/11 new)
21 Sec. 11. Livestock management facilities; new
22 construction.
23 (a) The owner or operator of a new livestock management
24 facility serving 1,000 or greater animal units shall send, by
25 certified mail or in person, to the Department a notice of
26 intent to construct a new livestock management facility. The
27 notice of intent to construct a new livestock management
28 facility shall contain the following:
29 (1) The names and addresses of the owners and the
30 operators of the facility.
31 (2) Location information of the proposed facility
32 identified on a plat book, Farm Service Administration
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1 aerial photo, or owner or operator drawing including:
2 (A) the location and distance to the nearest
3 populated area;
4 (B) the location and distance to the closest
5 occupied private residence other than a residence
6 occupied by the owner or operator;
7 (C) the location and distance to the nearest
8 stream; and
9 (D) the location and distance to the nearest
10 private or public potable well.
11 (3) A general description of the livestock
12 management facility including the livestock waste
13 handling facility, if applicable, the type of livestock,
14 and the design capacity of the livestock management
15 facility in animal units.
16 (4) The anticipated beginning and ending dates of
17 construction.
18 (5) When a livestock waste handling facility is
19 being constructed as part of the new livestock management
20 facility, the design specifications of the livestock
21 waste handling structure associated with the livestock
22 management facility.
23 (b) Beginning on the effective date of this amendatory
24 Act of 1998, within 7 days after receiving a form giving
25 notice of intent to construct a new livestock management
26 facility of 1,000 or greater animal units, the Department
27 shall send a copy of the notice form to the county board of
28 the county in which the facility is or will be located.
29 After receiving a copy of the notice from the Department,
30 the county board may, at its discretion and within 30 days of
31 receipt of the notice, request that the Department conduct an
32 informational meeting concerning the proposed construction.
33 The Department shall conduct the meeting within 15 days of
34 the county board's request. If the Department conducts a
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1 meeting, the Department shall publish notice of the meeting
2 in a newspaper of general circulation in the county or in the
3 State newspaper at least 10 days before the meeting. The
4 owner or operator who submitted the notice of intent to
5 construct to the Department shall appear at the meeting. At
6 the meeting, the Department shall give members of the public
7 an opportunity to ask questions and to present oral or
8 written comments concerning the proposed construction.
9 (c) The date a notice of intent to construct a new
10 livestock management facility or livestock waste handling
11 facility is filed shall be used as the date for determining
12 the initial setbacks under Section 35 of this Act.
13 (d) For the purposes of this Section and Section 35, the
14 following shall not be considered as construction of a new
15 livestock management facility or new livestock waste handling
16 facility: (i) any construction to replace an existing
17 livestock management facility, livestock waste handling
18 facility, or any portion of an existing livestock management
19 facility or livestock waste handling facility that was
20 destroyed by fire or by natural disaster as long as the
21 reconstruction is completed within 10 years of the fire or
22 disaster and the reconstruction is not a new facility as
23 defined in Section 10.45 of this Act, or (ii) any future
24 construction of a livestock management facility or livestock
25 waste handling facility at an existing livestock management
26 facility or livestock waste handling facility that is not a
27 new facility as defined in Section 10.45 of this Act.
28 (510 ILCS 77/12 new)
29 Sec. 12. Livestock waste handling facilities other than
30 earthen livestock waste lagoons.
31 (a) After the effective date of this amendatory Act of
32 1998, livestock waste handling facilities other than earthen
33 livestock waste lagoons used for the storage of livestock
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1 waste shall be constructed in accordance with this Section.
2 The livestock waste handling facility owner may rely on
3 guidance from the county Soil and Water Conservation
4 District, the United States Department of Agriculture Natural
5 Resources Conservation Service, or the University of Illinois
6 Cooperative Extension Service for soil type and water table
7 level information.
8 On soils where high water (vadose water) is a concern or
9 where the soil does not meet the recommended allowable soil
10 bearing strength and load factor as set in the Midwest Plan
11 Services Handbook (MWPS-36) and future updates, footings and
12 underlying structure support shall be incorporated into the
13 design standards of the storage structure in accordance with
14 the requirements of Section 4.1 of the American Society of
15 Agricultural Engineers (ASAE EP393.2) and future updates.
16 (1) Livestock waste handling facilities constructed
17 of concrete shall meet the strength and load factors set
18 forth in the Midwest Plan Service's Concrete Manure
19 Storage Handbook (MWPS-36) and future updates. In
20 addition, those structures shall meet the following
21 requirements:
22 (A) Waterstops shall be incorporated into the
23 design of the storage structure when consistent
24 with the requirements of paragraph (1) of this
25 subsection;
26 (B) Storage structures that handle waste in a
27 liquid form shall be designed to contain a volume
28 of not less than the amount of waste generated
29 during 150 days of facility operation at design
30 capacity; and
31 (C) Storage structures not covered or
32 otherwise protected from precipitation shall, in
33 addition to the waste storage volume requirements of
34 item (B) of paragraph (1) of this subsection,
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1 include a 2-foot freeboard.
2 (2) A livestock waste handling facility in a
3 prefabricated form shall meet the strength, load, and
4 compatibility factors for its intended use. Those
5 factors shall be verified by the manufacturer's
6 specifications.
7 (3) Livestock waste handling facilities holding
8 semi-solid livestock waste, including but not limited to
9 picket dam structures, shall be constructed according to
10 the requirements set forth in the Midwest Plan Service's
11 Livestock Waste Facilities Handbook (MWPS-18) and future
12 updates or similar standards used by the Natural
13 Resources Conservation Service of the United States
14 Department of Agriculture.
15 (4) Livestock waste handling facilities holding
16 solid livestock waste shall be constructed according to
17 the requirements set forth in the Midwest Plan Service's
18 Livestock Waste Facilities Handbook (MWPS-18) and future
19 updates or similar standards used by the Natural
20 Resources Conservation Service of the United States
21 Department of Agriculture. In addition, solid livestock
22 waste stacking structures shall be sized to store not
23 less than the amount of waste generated during 6 months
24 of facility operation at design capacity.
25 (5) Holding ponds, used for the temporary storage
26 of livestock feedlot run-off, shall be constructed
27 according to the requirements set forth in the Midwest
28 Plan Service's Livestock Waste Facilities Handbook
29 (MWPS-18) and future updates or similar standards used by
30 the Natural Resources Conservation Service of the United
31 States Department of Agriculture.
32 No other requirements may be imposed on the construction
33 or operation of a livestock management facility or waste
34 handling facility other than an earthen livestock waste
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1 lagoon except as provided in this Act. The owner or operator
2 of the livestock management facility or livestock waste
3 handling facility may elect to exceed the strength and load
4 requirements.
5 (b) The owner or operator of the livestock waste
6 handling facility shall send by certified mail, or deliver in
7 person, to the Department a notice of intent to construct a
8 livestock waste handling structure, other than an earthen
9 livestock waste lagoon. The notice of intent to construct a
10 livestock waste handling structure shall contain the
11 following:
12 (1) The names and addresses of the owners and
13 operators of the livestock waste handling facility.
14 (2) Location information on the proposed waste
15 handling facility identified on a plat book, Farm Service
16 Administration aerial photo, or owner or operator drawing
17 including:
18 (A) the location and distance to the nearest
19 populated area;
20 (B) the location and distance to the closest
21 occupied private residence other than a residence
22 occupied by the owner or operator;
23 (C) the location and distance to the nearest
24 stream; and
25 (D) the location and distance to the nearest
26 private or public potable well.
27 (3) A blueprint of the livestock waste handling
28 structure with design specifications of the structure
29 noted as prepared by or for the owner or operator.
30 (4) The anticipated beginning and ending dates of
31 construction.
32 (5) A general description of the livestock waste
33 handling structure (such as a pit located under animal
34 housing structure, slurry store, or solid waste holding
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1 structure) and the type and animal units of the livestock
2 it serves.
3 On receipt of the notice of intent to construct form, the
4 Department shall review the form to determine that all
5 required information has been provided. The Department
6 shall, within 15 business days, notify the person submitting
7 the notice that construction may begin or that clarification
8 information is needed. Except for new livestock management
9 facilities that are subject to the provision of Section 11 of
10 this Act, construction may begin no sooner than 15 business
11 days after submission of the notice of intent to construct
12 form or the clarification information.
13 In the case of a delayed construction date, the owner or
14 operator of the livestock waste handling facility may file,
15 for the purpose of giving notice of the intent to construct
16 and the establishment of setbacks or compliance with the
17 Agency's maximum feasible distance, 35 Ill. Admin. Code 501,
18 a notice of intent to construct a livestock waste handling
19 structure containing the information required under
20 paragraphs (1), (2), (4), and (5) of this subsection (b).
21 The information required in paragraph (3) of this subsection
22 (b) shall be filed with the Department no less than 15
23 business days before the commencement of construction.
24 (c) A livestock waste handling facility that serves a
25 new livestock management facility of 1,000 or more animal
26 units shall be subject to Section 11 of this Act.
27 (d) The owner or operator of the livestock management
28 facility or livestock waste handling facility shall send, by
29 certified mail or in person, to the Department a
30 certification of compliance, together with copies of
31 verification documents upon completion of construction. In
32 the case of structures constructed with the design standards
33 used by the Natural Resources Conservation Service of the
34 United States Department of Agriculture, copies of the design
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1 standards and a statement of verification signed by a
2 representative of the United States Department of Agriculture
3 shall accompany the owner's or operator's certification of
4 compliance. The certification shall state that the structure
5 meets or exceeds the requirements in subsection (a) of this
6 Section. A $50 filing fee shall accompany the statement.
7 The owner or operator may begin using the storage structure
8 no earlier than 10 business days after submitting the
9 certification to the Department.
10 (e) The Department shall inspect, to the extent it deems
11 necessary, the construction site prior to construction,
12 during construction, and within 10 business days following
13 receipt of the certification of compliance to determine
14 compliance with the construction standards and to determine
15 that the proposed construction location will be in compliance
16 with setback distances or, in the case of construction that
17 is not a new livestock management facility or waste handling
18 facility, with the maximum feasible location requirements of
19 the Agency's Agriculture Related Pollution regulations, 35
20 Ill. Admin. Code 501.
21 (f) The Department shall seek an injunction in circuit
22 court to prohibit the operation of the facility until
23 construction of the livestock waste handling facility is in
24 compliance with the provisions of this Section.
25 (g) Any person who fails to file a notice of intent to
26 construct form with the Department is guilty of a petty
27 offense and shall be fined $500.
28 (510 ILCS 77/13 new)
29 Sec. 13. Enforcement. The provisions of Sections 11 and
30 12 and the amendments to Section 20 made by this amendatory
31 Act of 1998 shall be enforced by the Department beginning on
32 the effective date of this amendatory Act of 1998.
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1 (510 ILCS 77/14 new)
2 Sec. 14. Verification to proceed with construction. The
3 Department shall forthwith provide verification to a
4 livestock management facility or a livestock waste handling
5 facility authorizing it to begin construction if the
6 livestock management facility or livestock waste handling
7 facility has met or exceeded all of the provisions set forth
8 in this Act. Construction shall not begin until the
9 Department has made that verification.
10 (510 ILCS 77/20)
11 (Text of Section before amendment by P.A. 90-565)
12 Sec. 20. Handling, storing and disposing of livestock
13 waste.
14 (a) The livestock management facility owner or operator
15 shall comply with the requirements for handling, storing, and
16 disposing of livestock wastes as set forth in the rules
17 adopted pursuant to the Illinois Environmental Protection Act
18 concerning agriculture related pollution.
19 (b) The livestock management facility owner or operator
20 at a facility of less than 1,000 animal units shall not be
21 required to prepare and maintain a waste management plan.
22 (c) The livestock management facility owner or operator
23 at a facility of 1,000 or greater animal units but less than
24 7,000 animal units shall prepare and maintain on file at the
25 livestock management facility a general waste management
26 plan. Notwithstanding this requirement, a livestock
27 management facility subject to this subsection may be
28 operated on an interim basis but not to exceed 6 months after
29 the effective date of the rules promulgated pursuant to this
30 Act to allow for the owner or operator of the facility to
31 develop a waste management plan. The waste management plan
32 shall be available for inspection during normal business
33 hours by Department personnel.
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1 (d) The livestock management facility owner or operator
2 at a facility of 7,000 or greater animal units shall prepare,
3 maintain, and submit to the Department the waste management
4 plan for approval. Approval of the waste management plan
5 shall be predicated on compliance with provisions of
6 subsection (f). The waste management plan shall be approved
7 by the Department before operation of the facility or in the
8 case of an existing facility, the waste management plan shall
9 be submitted within 60 working days after the effective date
10 of the rules promulgated pursuant to this Act.
11 The owner or operator of an existing livestock management
12 facility that through growth meets or exceeds 7,000 animal
13 units shall file its waste management plan with the
14 Department within 60 working days after reaching the stated
15 animal units.
16 The owner or operator of a livestock management facility
17 that is subject to this subsection (d) shall file within 60
18 working days with the Department a revised waste management
19 plan when there is a significant change as stated in
20 subsection (e) in items (1), (2), or (10) of subsection (f)
21 that will materially affect compliance with the waste
22 management plan.
23 (d-5) Waste management plan requirement for multiple
24 livestock management facilities under common ownership. The
25 owner or operator of multiple livestock management facilities
26 under common facility ownership where the cumulative animal
27 units of the facilities are equal to or greater than the
28 animal unit numbers of subsection (c) of this Section shall
29 prepare and keep on file at each facility a waste management
30 plan in accordance with the requirements of subsection (c).
31 The owner or operator of multiple livestock management
32 facilities that are under common facility ownership where the
33 cumulative animal units of the facilities are equal to or
34 greater than the animal unit numbers in subsection (d) of
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1 this Section shall prepare and file with the Department a
2 waste management plan in accordance with the provisions of
3 subsection (d). Cumulative animal units shall be determined
4 by combining the animal units of multiple livestock
5 management facilities under common facility ownership based
6 upon the design capacity of each facility.
7 For the purposes of this subsection (d-5), "under common
8 facility ownership" means the same person or persons own at
9 least 51% of the entity that owns the buildings housing the
10 livestock and that the facilities are located in the State of
11 Illinois.
12 (e) Revising a waste management plan and waste disposal
13 records. The owner or operator of a livestock management
14 facility shall update the waste management plan when there is
15 change in the values shown in the plan in item (1) of
16 subsection (f) of this Section. The waste management plan
17 shall also be revised when there is a change in the method of
18 disposal of animal waste or when the available nitrogen
19 value exceeds the variability range for nitrogen set forth
20 in subsection (f) of this Section. The waste management plan
21 and records of livestock waste disposal shall be kept on file
22 for 3 three years.
23 (f) The application of livestock waste to the land is an
24 acceptable, recommended, and established practice in
25 Illinois. However, when livestock waste is not applied in a
26 responsible manner, it may create pollutional problems. It
27 should be recognized that, in most cases, if the agronomic
28 nitrogen rate is met, the phosphorus applied will exceed the
29 crop requirements, but not all of the phosphorus may be
30 available for use by the crop. It will be considered
31 acceptable, therefore, to prepare and implement a waste
32 management plan based on the nitrogen rate. The waste
33 management plan shall include the following:
34 (1) An estimate of the volume of livestock waste to
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1 be disposed of annually obtained by multiplying the
2 design capacity of the facility times the appropriate
3 amount of waste generated by the animals. The values
4 showing the amount of waste generated in Table 2-1,
5 Midwest Plan Services, MWPS-18, Livestock Waste
6 Facilities Handbook may be used.
7 (2) The number of acres available for disposal of
8 the waste.
9 (3) An estimate of the nutrient value of the waste.
10 The owner or operator may prepare and maintain a plan
11 based on table values derived from Midwest Plan Services,
12 MWPS-18, Livestock Waste Facilities Handbook, the
13 Agency's Agriculture Related Pollution regulations, or
14 the results of analysis performed on samples of waste.
15 For the purposes of compliance with this subsection, the
16 nutrient values of livestock waste may vary as indicated
17 in the source table. In the case of laboratory
18 analytical results, the nutrient values may vary with the
19 accuracy of the analytical method.
20 (4) An indication that the livestock waste will be
21 applied at rates not to exceed the agronomic nitrogen
22 demand of the crops to be grown when averaged over a
23 5-year period.
24 (5) A provision that livestock waste applied within
25 1/4 mile of any residence not part of the facility shall
26 be injected or incorporated on the day of application.
27 However, livestock management facilities and livestock
28 waste handling facilities that have irrigation systems in
29 operation prior to the effective date of this Act or
30 existing facilities applying waste on frozen ground are
31 not subject to the provisions of this item (5).
32 (6) A provision that livestock waste may not be
33 applied within 200 feet of surface water unless the water
34 is upgrade or there is adequate diking, and waste will
SB1707 Engrossed -89- LRB9007910LDdv
1 not be applied within 150 feet of potable water supply
2 wells.
3 (7) A provision that livestock waste may not be
4 applied in a 10-year flood plain unless the injection or
5 incorporation method of application is used.
6 (8) A provision that livestock waste may not be
7 applied in waterways.
8 (9) A provision that if waste is spread on frozen
9 or snow-covered land, the application will be limited to
10 land areas on which:
11 (A) land slopes are 5% or less, or
12 (B) adequate erosion control practices exist.
13 (10) Methods for disposal of animal waste.
14 (g) Any person who is required to prepare and maintain a
15 waste management plan and who fails to do so shall be issued
16 a warning letter by the Department for the first violation
17 and shall be given 30 working days to prepare a waste
18 management plan. For failure to prepare and maintain a waste
19 management plan, the person shall be fined an administrative
20 penalty of up to $500 by the Department and shall be required
21 to enter into an agreement of compliance to prepare and
22 maintain a waste management plan within 30 working days. For
23 failure to prepare and maintain a waste management plan after
24 the second 30 day period or for failure to enter into a
25 compliance agreement, the Department may issue an operational
26 cease and desist order until compliance is attained.
27 (Source: P.A. 89-456, eff. 5-21-96.)
28 (Text of Section after amendment by P.A. 90-565)
29 Sec. 20. Handling, storing and disposing of livestock
30 waste.
31 (a) The livestock management facility owner or operator
32 shall comply with the requirements for handling, storing, and
33 disposing of livestock wastes as set forth in the rules
34 adopted pursuant to the Illinois Environmental Protection Act
SB1707 Engrossed -90- LRB9007910LDdv
1 concerning agriculture related pollution.
2 (b) The livestock management facility owner or operator
3 at a facility of less than 1,000 animal units shall not be
4 required to prepare and maintain a waste management plan.
5 (c) The livestock management facility owner or operator
6 at a facility of 1,000 or greater animal units but less than
7 7,000 animal units shall prepare and maintain on file at the
8 livestock management facility a general waste management
9 plan. Notwithstanding this requirement, a livestock
10 management facility subject to this subsection may be
11 operated on an interim basis but not to exceed 6 months after
12 the effective date of the rules promulgated pursuant to this
13 Act to allow for the owner or operator of the facility to
14 develop a waste management plan. The waste management plan
15 shall be available for inspection during normal business
16 hours by Department personnel.
17 (d) The livestock management facility owner or operator
18 at a facility of 7,000 or greater animal units shall prepare,
19 maintain, and submit to the Department the waste management
20 plan for approval. Approval of the waste management plan
21 shall be predicated on compliance with provisions of
22 subsection (f). The waste management plan shall be approved
23 by the Department before operation of the facility or in the
24 case of an existing facility, the waste management plan shall
25 be submitted within 60 working days after the effective date
26 of the rules promulgated pursuant to this Act.
27 The owner or operator of an existing livestock management
28 facility that through growth meets or exceeds 7,000 animal
29 units shall file its waste management plan with the
30 Department within 60 working days after reaching the stated
31 animal units.
32 The owner or operator of a livestock management facility
33 that is subject to this subsection (d) shall file within 60
34 working days with the Department a revised waste management
SB1707 Engrossed -91- LRB9007910LDdv
1 plan when there is a significant change stated in subsection
2 (e) of this Section in items (1), (2), or (10) of subsection
3 (f) that will materially affect compliance with the waste
4 management plan.
5 (d-5) Waste management plan requirement for multiple
6 livestock management facilities under common ownership. The
7 owner or operator of multiple livestock management facilities
8 that are under common facility ownership where the cumulative
9 animal units of the facilities are equal to or greater than
10 the animal unit numbers of subsection (c) of this Section
11 shall prepare and keep on file at each facility a waste
12 management plan in accordance with the requirements of
13 subsection (c). The owner or operator of multiple livestock
14 management facilities that are under common facility
15 ownership where the cumulative animal units of the
16 facilities are equal to or greater than the animal unit
17 numbers in subsection (d) of this Section shall prepare and
18 file with the Department a waste management plan in
19 accordance with the provisions of subsection (d). Cumulative
20 animal units shall be determined by combining the animal
21 units of multiple livestock management facilities under
22 common facility ownership based upon the design capacity of
23 each facility.
24 For the purposes of this subsection (d-5), "under common
25 facility ownership" means that the same person or persons own
26 at least 51% of the entity that owns the buildings housing
27 the livestock and that the facilities are located in the
28 State of Illinois.
29 (e) Revising a waste management plan and waste disposal
30 records. The owner or operator of a livestock management
31 facility shall update the waste management plan when there is
32 a change in the values shown in the plan in item (1) of
33 subsection (f) of this Section. The waste management plan
34 shall also be revised when there is a change in the method of
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1 disposal of animal waste or when the available nitrogen
2 value exceeds the variability range for nitrogen set forth
3 in subsection (f) of this Section. The waste management plan
4 and records of livestock waste disposal shall be kept on file
5 for 3 three years.
6 (f) The application of livestock waste to the land is an
7 acceptable, recommended, and established practice in
8 Illinois. However, when livestock waste is not applied in a
9 responsible manner, it may create pollutional problems. It
10 should be recognized that, in most cases, if the agronomic
11 nitrogen rate is met, the phosphorus applied will exceed the
12 crop requirements, but not all of the phosphorus may be
13 available for use by the crop. It will be considered
14 acceptable, therefore, to prepare and implement a waste
15 management plan based on the nitrogen rate. The waste
16 management plan shall include the following:
17 (1) An estimate of the volume of livestock waste to
18 be disposed of annually obtained by multiplying the
19 design capacity times the appropriate amount of waste
20 generated by the animals. The values showing the amount
21 of waste generated in Table 2-1, Midwest Plan Services,
22 MWPS-18, Livestock Waste Facilities Handbook may be
23 used.
24 (2) The number of acres available for disposal of
25 the waste.
26 (3) An estimate of the nutrient value of the waste.
27 The owner or operator may prepare and maintain a plan
28 based on table values derived from Midwest Plan Services,
29 MWPS-18, Livestock Waste Facilities Handbook, the
30 Agency's Agriculture Related Pollution regulations, or
31 the results of analysis performed on samples of waste.
32 For the purposes of compliance with this subsection, the
33 nutrient values of livestock waste may vary as indicated
34 in the source table. In the case of laboratory
SB1707 Engrossed -93- LRB9007910LDdv
1 analytical results, the nutrient values may vary with the
2 accuracy of the analytical method.
3 (4) An indication that the livestock waste will be
4 applied at rates not to exceed the agronomic nitrogen
5 demand of the crops to be grown when averaged over a
6 5-year period.
7 (5) A provision that livestock waste applied within
8 1/4 mile of any residence not part of the facility shall
9 be injected or incorporated on the day of application.
10 However, livestock management facilities and livestock
11 waste handling facilities that have irrigation systems in
12 operation prior to the effective date of this Act or
13 existing facilities applying waste on frozen ground are
14 not subject to the provisions of this item (5).
15 (6) A provision that livestock waste may not be
16 applied within 200 feet of surface water unless the water
17 is upgrade or there is adequate diking, and waste will
18 not be applied within 150 feet of potable water supply
19 wells.
20 (7) A provision that livestock waste may not be
21 applied in a 10-year flood plain unless the injection or
22 incorporation method of application is used.
23 (8) A provision that livestock waste may not be
24 applied in waterways.
25 (9) A provision that if waste is spread on frozen
26 or snow-covered land, the application will be limited to
27 land areas on which:
28 (A) land slopes are 5% or less, or
29 (B) adequate erosion control practices exist.
30 (10) Methods for disposal of animal waste.
31 (g) Any person who is required to prepare and maintain a
32 waste management plan and who fails to do so shall be issued
33 a warning letter by the Department for the first violation
34 and shall be given 30 working days to prepare a waste
SB1707 Engrossed -94- LRB9007910LDdv
1 management plan. For failure to prepare and maintain a waste
2 management plan, the person shall be fined an administrative
3 penalty of up to $1,000 by the Department and shall be
4 required to enter into an agreement of compliance to prepare
5 and maintain a waste management plan within 30 working days.
6 For failure to prepare and maintain a waste management plan
7 after the second 30 day period or for failure to enter into a
8 compliance agreement, the Department may issue an operational
9 cease and desist order until compliance is attained.
10 (Source: P.A. 89-456, eff. 5-21-96; 90-565, eff. 6-1-98.)
11 (510 ILCS 77/65 new)
12 Sec. 65. Joint and several liability. Notwithstanding
13 any other law to the contrary, and notwithstanding any
14 contractual provision to the contrary, all persons or
15 entities who contract with an owner or operator of a
16 livestock management facility or livestock waste handling
17 facility for the purpose of producing livestock shall be
18 jointly and severally liable for illegal discharges of
19 livestock waste and for pollution resulting from the illegal
20 discharges of livestock waste from that facility.
21 Section 95. No acceleration or delay. Where this Act
22 makes changes in a statute that is represented in this Act by
23 text that is not yet or no longer in effect (for example, a
24 Section represented by multiple versions), the use of that
25 text does not accelerate or delay the taking effect of (i)
26 the changes made by this Act or (ii) provisions derived from
27 any other Public Act.
28 Section 99. Effective date. This Act takes effect upon
29 becoming law.
SB1707 Engrossed -95- LRB9007910LDdv
1 INDEX
2 Statutes amended in order of appearance
3 225 ILCS 650/2 from Ch. 56 1/2, par. 302
4 225 ILCS 650/3 from Ch. 56 1/2, par. 303
5 225 ILCS 650/5 from Ch. 56 1/2, par. 305
6 225 ILCS 650/5.1 new
7 225 ILCS 650/5.2 new
8 225 ILCS 650/8 from Ch. 56 1/2, par. 308
9 225 ILCS 650/9 from Ch. 56 1/2, par. 309
10 225 ILCS 650/10 from Ch. 56 1/2, par. 310
11 225 ILCS 650/11 from Ch. 56 1/2, par. 311
12 225 ILCS 650/13 from Ch. 56 1/2, par. 313
13 225 ILCS 650/14 from Ch. 56 1/2, par. 314
14 225 ILCS 650/15 from Ch. 56 1/2, par. 315
15 225 ILCS 650/16.1 from Ch. 56 1/2, par. 316.1
16 225 ILCS 650/19 from Ch. 56 1/2, par. 319
17 225 ILCS 650/19.01 new
18 225 ILCS 650/19.2 from Ch. 56 1/2, par. 319.2
19 225 ILCS 650/2.1 rep.
20 225 ILCS 650/2.2 rep.
21 225 ILCS 650/2.3 rep.
22 225 ILCS 650/2.4 rep.
23 225 ILCS 650/2.5 rep.
24 225 ILCS 650/2.6 rep.
25 225 ILCS 650/2.7 rep.
26 225 ILCS 650/2.8 rep.
27 225 ILCS 650/2.9 rep.
28 225 ILCS 650/2.9a rep.
29 225 ILCS 650/2.10 rep.
30 225 ILCS 650/2.11 rep.
31 225 ILCS 650/2.12 rep.
32 225 ILCS 650/2.13 rep.
33 225 ILCS 650/2.14 rep.
34 225 ILCS 650/2.15 rep.
SB1707 Engrossed -96- LRB9007910LDdv
1 225 ILCS 650/2.16 rep.
2 225 ILCS 650/2.17 rep.
3 225 ILCS 650/2.18 rep.
4 225 ILCS 650/2.19 rep.
5 225 ILCS 650/2.20 rep.
6 225 ILCS 650/2.21 rep.
7 225 ILCS 650/2.22 rep.
8 225 ILCS 650/2.23 rep.
9 225 ILCS 650/2.24 rep.
10 225 ILCS 650/2.25 rep.
11 225 ILCS 650/2.26 rep.
12 225 ILCS 650/2.28 rep.
13 225 ILCS 650/2.29 rep.
14 225 ILCS 650/2.30 rep.
15 225 ILCS 650/2.31 rep.
16 225 ILCS 650/2.32 rep.
17 225 ILCS 650/2.33 rep.
18 225 ILCS 650/2.34 rep.
19 225 ILCS 650/2.35 rep.
20 225 ILCS 650/2.36 rep.
21 225 ILCS 650/2.37 rep.
22 225 ILCS 650/2.38 rep.
23 225 ILCS 650/2.39 rep.
24 225 ILCS 650/2.40 rep.
25 225 ILCS 650/2.41 rep.
26 225 ILCS 650/2.42 rep.
27 225 ILCS 650/2.43 rep.
28 225 ILCS 650/2.44 rep.
29 225 ILCS 650/3.1 rep.
30 225 ILCS 650/4 rep.
31 225 ILCS 650/7 rep.
32 225 ILCS 650/19.1 rep.