Public Act 90-0377 of the 90th General Assembly

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Public Act 90-0377

HB1680 Enrolled                                LRB9004399NTsb

    AN ACT concerning wheat marketing programs.

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

    Section  1.  Short  title.   This Act may be cited as the
Wheat Development Act.

    Section  5.   Legislative  purpose.   The  following   is
declared to be the legislative policy of this Act:
    (1)  to  foster  development of new markets for wheat and
wheat products;
    (2)  to provide research needed to improve the efficiency
of the wheat production, marketing and utilization of wheat;
    (3)  to enhance more efficient and economical  production
of wheat;
    (4)  to  enable  the  wheat industry to adapt to changing
market demands; and
    (5)  to foster  communications  and  cooperation  in  all
phases    of    the   wheat   industry-producers,   business,
institutions, and agencies in order to  provide  an  adequate
and equitable level of economic returns.

    Section  10.   Definitions.  For the purpose of this Act,
unless the context clearly requires otherwise:
    "Bushel" means 60 pounds of wheat by weight.
    "Department" means the Department of Agriculture.
    "Director" means the Director of Agriculture.
    "Eligible voter" means one  who  is  defined  both  as  a
person and a producer in this program.
    "First  purchaser"  means  a  person  who  resells  wheat
purchased  from  a  producer  or  offers for sale any product
produced from wheat for any purpose.
    "Person"   means   a   natural    person,    partnership,
corporation,  society,  association, representative, or other
fiduciary.
    "Producer" means a person who is actively engaged in  the
production   of  wheat  and  who  receives  income  from  the
production  of  wheat,  unless  otherwise  defined  in  wheat
marketing program.
    "Wheat" means and includes all  kinds  and  varieties  of
wheat  grown  in this State and marketed and sold as wheat by
the producer.
    "Wheat development"  means  to  engage  in  research  and
educational programs directed toward improving production and
utilization  of  wheat,  providing  methods and means for the
maintenance of present markets, and developing new and larger
domestic and foreign markets.
    "Wheat development board"  means  the  board  established
under this Act to administer a wheat development program.
    "Wheat  development  program" means a program established
under  this  Act  which   prescribes   procedures   for   the
development of markets for wheat and wheat products.

    Section  15.  Wheat development programs; requirements. A
wheat development program proposed or adopted under this  Act
shall include where applicable the following:
    (1)  a definition of terms;
    (2)  the purpose of the program;
    (3)  the   maximum   assessment   rates   and   equitable
procedures  for  adjustment  of  the maximum assessment rates
provided for by the program;
    (4)  equitable   procedures   for   collection   of   the
assessment provided for by the program;
    (5)  the election procedure  and  qualifications  of  the
wheat  development board members, representation on the wheat
development board, terms of office, compensation, if any, and
other necessary provisions pertaining to the board;
    (6)  the operating procedures of the program; and
    (7)  the qualifications for exempting wheat or  producers
where exemptions are applicable.

    Section  20.   Optional  programs;  contracts;  political
activities.  A  wheat development program proposed or adopted
under this Act may include any of the following:
    (1)  Wheat development and research programs.
    (2)  Wheat  promotion,  education  and  public  relations
programs.
    (3)  Wheat information services.
    (4)  The  right to contract with qualified organizations,
agencies or individuals for any of the activities  listed  in
items (1), (2), and (3) of this Section.
    (5)  A   provision   that  assessments  authorized  in  a
development program shall not be used for political  activity
or  for preferential treatment of any person to the detriment
of other persons in the development program.
    (6)  Other provisions not inconsistent with this  Act  or
other Illinois or federal laws and regulations.

    Section   25.  Temporary  program  committee;  proposals;
procedures. After the effective date of this Act if there are
sponsors willing and able to meet the requirements of Section
35, the Director shall appoint a temporary wheat  development
program  committee  consisting  of  7  members  who are wheat
producers to develop a wheat  development  program  proposal.
The  proposal shall be considered at a public hearing.  After
the close of the public hearing, the Director  and  temporary
wheat  development  program  committee  shall  send copies of
their findings to all parties  of  record  appearing  at  the
hearing.   If the proposal is approved by the temporary wheat
development program committee, a referendum shall be held  on
the proposal in accordance with Section 30 of this Act.
    The  Director, upon recommendation of the temporary wheat
development program committee, shall establish procedures for
the  qualifications  of  producers  for   wheat   development
programs,  the  participation  of  producers  in hearings and
referenda, and other procedures necessary in the  development
and   adoption   of   a  wheat  development  program.   These
procedures shall not be subject  to  the  provisions  of  the
Illinois  Administrative Procedure Act; however, the Director
shall take any necessary steps to inform affected persons  of
the  procedures,  including  publication of the procedures in
the Illinois Register.

    Section 30.  Referenda; petitions. Within 90  days  after
final  approval  of any proposed wheat development program by
the  temporary  wheat  development  program  committee,   the
Director  shall  determine by referendum whether the affected
producers assent to the proposed wheat  development  program.
The  proposed  wheat  development  program is approved when a
majority of those voting in the referendum vote in  favor  of
the  proposed  wheat development program.  Following approval
of the program, the Department shall file  the  program  with
the  Secretary  of  State  as provided in Section 5-65 of the
Illinois Administrative Procedure Act.
    If a proposed wheat development program is  not  approved
by   referendum,   no   additional   referendum  on  a  wheat
development program may be held for 2 years from the date  of
the close of the referendum period.  An additional referendum
shall  be  called by the Director upon request by petition of
500 producers of wheat from across the State.  Before holding
an  additional  referendum,  the  Director  shall  appoint  a
temporary wheat development program committee consisting of 7
members  who  are  wheat  producers.   The  temporary   wheat
development program committee shall follow the procedures set
forth in Section 25.
    Section   35.   Wheat  Commodity  Trust  Fund;  expenses;
reimbursements.  Before  considering   any   proposed   wheat
development  program  or  amendment, the Director may require
the sponsors to deposit an amount not  to  exceed  $5,000  to
defray  the  expenses  of  preparing,  holding  hearings, and
conducting the referendum on the wheat development program or
amendment.  Any funds  received  by  the  Director  shall  be
deposited  with  the  State Treasurer as ex-officio custodian
and held separate and apart from any other public  moneys  of
this  State in a trust fund designated as the Wheat Commodity
Trust Fund.  Money in the Fund may be disbursed only  upon  a
voucher or order issued by the Director and paid by a warrant
drawn by the State Comptroller and countersigned by the State
Treasurer.   The  Director shall order disbursements from the
Wheat Commodity Trust Fund only for payment of  the  expenses
authorized  by  this  Act.  Any funds collected beyond actual
expenses shall be refunded to the sponsors. The treasurer  of
the  wheat  development board shall reimburse the sponsors in
the amount of  the  deposit,  less  any  refunds,  from  fees
received under the program if a program is established.

    Section 40.  Voting; polling places; qualifications. In a
referendum  under this Act, voting shall be by ballot cast by
eligible voters in a manner, as determined by  the  Director,
that  will  make  it  easy  to  vote throughout the State.  A
producer who is qualified under the wheat development program
is entitled to one vote.  The referendum  area  includes  the
entire State of Illinois.
    Reasonable  publicity  and notification of the referendum
date  and  voting  locations  shall  be  provided  in   trade
publications,  the  public  press,  and  the  official  state
newspaper, at least 2 weeks prior to the referendum date.

    Section  45.  Duration  of  program; termination. A wheat
development program established under this Act  shall  remain
in  effect  for  5  years.   Thereafter,  the  program  shall
automatically   be  extended  from  year  to  year  unless  a
referendum for continued  approval  is  required  by  written
petition  of  no  less than 5% of the affected producers from
across the State.  The referendum to determine the  continued
approval   of   a  wheat  development  program  shall  be  in
accordance with Section  40  of  this  Act.  Continuation  or
termination   shall   be   determined   by  the  same  voting
requirements as for adoption of the wheat development program
set forth in Section 30.

    Section 50.  Wheat Development board; officers; expenses.
A wheat development program established under this Act  shall
provide for a wheat development  board consisting of at least
one  member from each district which will be charged with the
administration of the program.
    The board shall consist of one member elected  from  each
of  the  districts  as  established  in the wheat development
program.
    The wheat development board shall elect from its  members
a chairman, secretary, treasurer, and such other positions as
may  be  provided  for in the wheat development program.  The
term of office for members of the  wheat  development   board
shall  be for 3 years, except that the term of the members of
the board first taking office shall be for 1, 2, or  3  years
as  determined  by  the initial board.  The wheat development
board shall establish the number of members for each term  of
office  of  the  initial  wheat  development  board and shall
provide  the  procedure  for  the  election  of  members   in
subsequent years.
    All  voting  members  of the wheat development  board are
entitled  to  actual  and  necessary  travel  and  incidental
expenses while attending  meetings  of  the  board  or  while
engaged  in  the  performance of official responsibilities as
determined by  the  board  and  provided  for  in  the  wheat
development program.

    Section  55.  Elections;  candidates;  vacancies. For the
initial board any wheat producer may be elected  only  if  he
first  has  his  name placed on the ballot by filing with the
Director a petition containing a number of  signatures  equal
to  the lesser of 50 or 5% of those producers in his district
qualified to vote on the referendum.  All candidates shall be
natural persons  who  are  producers  and  residents  in  the
district for which they are nominated.  Notice of the initial
election  of  members  of  the  board shall be given in trade
publications, the public press, and statewide  newspapers  at
least  2 weeks prior to the election.  Vacancies on the wheat
development  board during the term of office shall be  filled
by  the  wheat  development   board  with a producer from the
district for the balance of the unexpired term. In subsequent
years, an election shall be held to fill any expiring term on
the board.  Elections shall be in the  same  fashion  as  for
initial  board  members.   The election procedure shall be as
provided in this Section unless otherwise provided for in the
wheat development program.  Candidates receiving the greatest
number of votes at any election shall be elected.

    Section 60.  Duties. The duties and  responsibilities  of
the  wheat  development  board  shall  be  prescribed  in the
authority for each  wheat  development  program  and  to  the
extent applicable shall include the following:
    (1)  to develop and direct the wheat development program;
    (2)  to  prepare  and  approve  a  budget consistent with
estimated receipts and the scope  of  the  wheat  development
program;
    (3)  to  formulate  and  execute  assessment  procedures,
rates, and methods of collection;
    (4)  to   procure   and  evaluate  data  and  information
necessary for the proper administration and operation of  the
wheat development program;
    (5)  to  employ  personnel and contract for services that
are  necessary  for  the  proper  operation  of   the   wheat
development program;
    (6)  to  authorize  the  expenditure  of  funds  and  the
contracting  of  expenditures to conduct proper activities of
the program;
    (7)  to bond the treasurer and other persons necessary to
insure adequate protection of funds; and
    (8)  to perform other duties that are  necessary  to  the
proper operation of the program.

    Section  65.  Director; duties. For any wheat development
program approved by referendum under this  Act  the  Director
shall:
    (1)  take  steps  to  insure  that  adequate  and  proper
records  are  kept  and  that  an  annual  audit  summary  is
available to all program participants;
    (2)  take   steps  to  insure  that  adequate  bonds  are
maintained;
    (3)  coordinate  administrative  activities  between  the
wheat development  board and the Department; and
    (4)  confer and cooperate with  the  legally  constituted
authorities of other states and the United States.

    Section  70.  Assessments.  A  properly  qualified  wheat
development  program  shall  provide  for assessments against
producers of the affected commodity to defray  the  costs  of
the activities provided for in the wheat development program.
Assessments  authorized  in a wheat development program shall
be based on the quantity of commodity marketed and  shall  be
equitably assessed against all affected producers.
    The  total  assessment  levied  on  the  commodity of any
affected producer shall be 1.5  cents  per  bushel  of  wheat
produced  and sold by that producer.  After the first 5 years
a program is in operation, the wheat  development  board  may
request  the  Director  to  hold a referendum to increase the
assessment rate.
    A referendum to increase the  assessment  rate  shall  be
considered  approved  if a majority of those producers voting
in the referendum vote in favor of the increase.   The  wheat
development   board  shall  increase  the  rate as set in the
referendum.
    The wheat development   board  shall  require  the  first
purchaser  of  wheat to withhold and remit the assessments to
the wheat development  board.  A  first  purchaser  remitting
the  assessments  for  any  producer  shall deduct the proper
amount of assessment from any amount  that  he  owes  to  the
producer.   The wheat development  board shall have the power
to cause any duly authorized agent or representative to enter
upon the premises of any purchaser of wheat  and  examine  or
cause  to  be  examined  only books, papers, and records that
deal in any way with respect to the payment of the assessment
or enforcement of this Act.

    Section 75. Refunds. A producer who has  sold  wheat  and
has  an  assessment  deducted  from  the  sale  price may, by
application in writing to the board, secure a refund  in  the
amount  deducted.   The  refund  shall be payable only if the
application has been made to the board within 60  days  after
the  deduction.   Interest  shall  be allowed and paid at the
rate of 6% per annum upon the total amount of the  assessment
imposed  by  this  Act,  except  that  if  any  assessment is
refunded within 90 days after an application for  refund  has
been  made  within  the  required  60 days after deduction or
within 90 days after the first purchaser of wheat remits  the
assessments  withheld  and  deducted to the wheat development
board, whichever is later, no interest shall  be  allowed  on
such  assessment.   An  application  for refund by a producer
shall provide proof of assessment deducted.

    Section  80.   Collection  of   assessments;   penalties;
actions.   Persons  who  collect  wheat  development  program
assessment funds pursuant to Section 70  of  this  Act  shall
remit those funds to the wheat development  board which shall
deposit  the  funds in an account to be used as authorized by
the wheat development program.
    A  due  and  payable  assessment   required   under   the
provisions  of a wheat development program created under this
Act constitutes a personal debt of the person so assessed  or
who otherwise owes the assessment.  The assessment is due and
payable  to  the wheat development  board not more frequently
than quarterly or when stipulated in  the  wheat  development
program  and  called  for by the wheat development board.  In
the event any person fails to remit the full  amount  of  the
assessment  or  other  sum within 30 days after the due date,
the person owing the assessment shall be given an opportunity
to present his case as provided for in  Section  95  of  this
Act.   When  established  that the assessment is correct, the
wheat marketing board may add to the unpaid assessment or sum
a penalty amount not exceeding 10% of the amount due plus all
the cost of enforcing the collection  of  the  assessment  or
amount  due.   If  a  person  fails to remit any properly due
assessment or sum, the wheat development  board may  bring  a
civil action for collection against the person in the circuit
court  of  any county, together with the additional specified
10% penalty assessment, cost of enforcing the  collection  of
the  assessment,  and court costs.  The action shall be tried
and judgment rendered as in any other  cause  of  action  for
debts  due  and payable.  All assessments are due and payable
to the wheat development  board.

    Section 85.  Reports; audit. The wheat development  board
shall  publish  annually an activity and financial report for
the wheat development program. The report shall be  available
to  all  of  the  affected producers of the wheat development
program.   All  expenditures  under  each  wheat  development
program shall be audited at least annually  by  a  registered
public  accountant.   Within  30  days after completion of an
audit, the results shall be made available to the Director.

    Section 90.  Termination of program;  unobligated  funds.
Upon   termination   of  a  wheat  development  program,  all
remaining unobligated funds shall be refunded to the Illinois
Department of Agriculture to be used  for  wheat  development
programs.

    Section 95.  Enforcement; actions; injunctions. No person
shall knowingly fail or refuse to comply with any requirement
of  this  Act  where  obligated  to comply by a duly approved
wheat development program.  The wheat development  board  may
institute any action necessary to enforce compliance with any
provision  of  this  Act  or  any  wheat  development program
adopted pursuant to this  Act.   In  addition  to  any  other
remedy  provided  by  law,  the  wheat development  board may
petition for injunctive  relief  without  being  required  to
allege or prove the absence of any adequate remedy at law.
    Before  the  wheat  development   board may institute any
proceedings under this Act, the alleged violator shall  first
be  given  an  opportunity  to present his views to the wheat
development  board  as  to  why  proceedings  should  not  be
instituted.   Such  hearings shall be subject to the Illinois
Administrative Procedure Act.
    Section  100.   Amendments;   hearings;   referendum.   A
proposed  amendment  to an existing wheat development program
may be requested by petition to the Director  by  5%  of  the
affected  producers  from across the State or by a two-thirds
majority vote  of  the  wheat  development   board.   If  any
amendment   to  an  existing  wheat  development  program  is
proposed,  the  Director  shall  hold  a  public  hearing  to
consider the  amendment.   After  the  close  of  the  public
hearing,  the Director and the wheat development  board shall
send copies of  their  findings  to  all  parties  of  record
appearing  at  the  hearing.  A referendum may be held on the
amendment in accordance with Section 40 subject to  the  same
voting  requirements  for  adoption  of the wheat development
program as set forth in Section 30.   When  an  amendment  is
approved   by  referendum,  the  Department  shall  file  the
amendment with the Secretary of State as provided in  Section
5-65 of the Illinois Administrative Procedure Act.
    The   Director,   upon   recommendation   of   the  wheat
development  board, shall establish procedures  necessary  in
the  development and adoption of the proposed amendment to an
existing wheat development program.  The procedures shall  be
included  in  the rules of the Department required by Section
5-15 of the Illinois Administrative Procedure Act.

    Section 105.  Suspension of program. The operation  of  a
wheat   development  program  or  any  part  thereof  may  be
temporarily suspended for any reasonable cause by  the  wheat
development  board,  for any period of time not to exceed one
growing and marketing season.

    Section 110.  Administrative Procedure Act;  application.
Sections  25  and  30  of  this  Act  shall not be subject to
Sections 5-35,  5-40,  5-100,  5-105,  5-110,  5-115,  5-120,
5-125,  and  5-130  of  the Illinois Administrative Procedure
Act.

    Section 199.  Effective date.  This Act takes effect upon
becoming law.

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