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Public Act 92-0346
SB994 Enrolled LRB9208140TAtm
AN ACT concerning agriculture.
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
Illinois AgriFIRST Program Act of 2001.
Section 5. Definitions. In this Act:
"Agribusiness" means any sole proprietorship, limited
partnership, co-partnership, joint venture, corporation, or
cooperative that operates or will operate a facility located
within the State of Illinois that is related to the
processing of agricultural commodities (including, but not
limited to, the products of aquaculture, hydroponics, and
silviculture) or the manufacturing, production, or
construction of agricultural buildings, structures,
equipment, implements, and supplies, or any other facilities
or processes used in agricultural production. "Agribusiness"
includes but is not limited to the following:
(1) grain handling and processing, including grain
storage, drying, treatment, conditioning, milling, and
packaging;
(2) seed and feed grain development and processing;
(3) fruit and vegetable processing, including
preparation, canning, and packaging;
(4) processing of livestock and livestock products,
dairy products, poultry and poultry products, fish or
apiarian products, including slaughter, shearing,
collecting, preparation, canning, and packaging;
(5) fertilizer and agricultural chemical
manufacturing, processing, application and supplying;
(6) farm machinery, equipment, and implement
manufacturing and supplying;
(7) manufacturing and supplying of agricultural
commodity processing machinery and equipment, including
machinery and equipment used in slaughter, treatment,
handling, collecting, preparation, canning, or packaging
of agricultural commodities;
(8) farm building and farm structure manufacturing,
construction, and supplying;
(9) construction, manufacturing, implementation,
supplying, or servicing of irrigation, drainage, and soil
and water conservation devices or equipment;
(10) fuel processing and development facilities
that produce fuel from agricultural commodities or
by-products;
(11) facilities and equipment for processing and
packaging agricultural commodities specifically for
export;
(12) facilities and equipment for forestry product
processing and supplying, including sawmilling
operations, wood chip operations, timber harvesting
operations, and manufacturing of prefabricated buildings,
paper, furniture, or other goods from forestry products;
and
(13) facilities and equipment for research and
development of products, processes, and equipment for the
production, processing, preparation, or packaging of
agricultural commodities and by-products.
"Agricultural facility" means land, any building or other
improvement on or to land, and any personal properties deemed
necessary or suitable for use, whether or not now in
existence, in farming, ranching, the production of
agricultural commodities (including, but not limited to, the
products of aquaculture, hydroponics, and silviculture) or
the treating, processing, or storing of agricultural
commodities.
"Agricultural land" means land suitable for agriculture
production.
"Asset" includes, but is not limited to, the following:
cash crops or feed on hand; livestock held for sale; breeding
stock; marketable bonds and securities; securities not
readily marketable; accounts receivable; notes receivable;
cash invested in growing crops; net cash value of life
insurance; machinery and equipment; cars and trucks; farm and
other real estate including life estates and personal
residence; value of beneficial interest in trusts; government
payments or grants; and any other assets.
"Department" means the Department of Agriculture.
"Director" means the Director of Agriculture.
"Fund" means the Illinois AgriFIRST Program Fund.
"Grantee" means the person or entity to whom a grant is
made to from the Fund.
"Lender" means any federal or State chartered bank,
federal land bank, production credit association, bank for
cooperatives, federal or state chartered savings and loan
association or building and loan association, small business
investment company, or any other institution qualified within
this State to originate and service loans, including, but not
limited to, insurance companies, credit unions, and mortgage
loan companies. "Lender" includes a wholly owned subsidiary
of a manufacturer, seller or distributor of goods or services
that makes loans to businesses or individuals, commonly known
as a "captive finance company".
"Liability" includes, but is not limited to, the
following: accounts payable; notes or other indebtedness owed
to any source; taxes; rent; amounts owed on real estate
contracts or real estate mortgages; judgments; accrued
interest payable; and any other liability.
"Person" means, unless limited to a natural person by the
context in which it is used, a person, corporation,
association, trust, partnership, limited partnership, joint
venture, or cooperative.
"State" means the State of Illinois.
"Value-added" means the processing, packaging, or
otherwise enhancing the value of farm and agricultural
products or by-products produced in Illinois.
Section 10. Legislative findings.
(a) The General Assembly finds that in this State the
following conditions exist:
(1) There exists an inadequate supply of funds at
interest rates sufficiently low to enable persons engaged
in agriculture in this State to pursue agricultural or
agribusiness operations at present levels.
(2) The inability to pursue agricultural operations
lessens the supply of agricultural commodities available
to fulfill the needs of the citizens of this State.
(3) The inability to continue operations decreases
available employment in the agricultural sector of the
State and results in unemployment and its attendant
problems.
(4) These conditions prevent the acquisition of an
adequate capital stock of farm equipment and machinery,
much of which is manufactured in this State, therefore
impairing the productivity of agricultural land and
causing unemployment or lack of appropriate increase in
employment in that manufacturing.
(5) These conditions are conducive to consolidation
of acreage of agricultural land with fewer individuals
living and farming on the traditional family farm.
(6) These conditions result in a loss in
population, unemployment, and movement of persons from
rural to urban areas accompanied by added costs to
communities for creation of new public facilities and
services.
(7) There have been recurrent shortages of funds
from private market sources at reasonable rates of
interest.
(8) The ordinary operations of private enterprise
have not in the past corrected these conditions.
(9) There is a need for value-added products and
processing in this State.
(10) A stable supply of adequate funds for
agricultural financing is required to encourage family
farmers and agribusiness in an orderly and sustained
manner and to reduce the problems described in this
Section.
(b) The General Assembly determines and declares that
there exist conditions in the State that require the
Department to issue grants on behalf of the State for the
acquisition and development of agricultural facilities and
value-added products and processing.
Section 15. Illinois AgriFIRST Program Requirements.
(a) The Department shall review grant requests for the
Illinois AgriFIRST Grant Program that are submitted to the
Department. The Department, in reviewing the applications,
must consider, but is not limited to considering the
following criteria:
(1) The project has a reasonable assurance of
enhancing the value of agricultural products or will
expand agribusiness in Illinois.
(2) Preliminary market and feasibility research has
been conducted by the applicant or others and there is a
reasonable assurance of a potential market.
(3) The applicant has demonstrated the ability to
manage the business or commercialize the idea.
(4) There is favorable community support for the
project.
(5) There are favorable recommendations from local
economic development groups, university-based technical
specialists, or other qualified service providers.
(6) The applicant demonstrates a personal
commitment and a commercialization development plan.
(7) There is an adequate and realistic budget
projection.
(8) The application meets the eligibility
requirements and the project costs are eligible under
this Act.
(9) The applicant has established a need for the
grant.
(10) The economic impact of the project on the
State's agriculture and agribusiness sector.
(b) The Department may impose additional or lesser
requirements for the grant. Preference for grants shall be
given to, but is not limited to, the following:
(1) Proposals for industrial and nonfood production
processes using Illinois agricultural products.
(2) Proposals for food, feed, and fiber products
that use Illinois agricultural products and add to the
value of Illinois agricultural products.
(3) Research proposals that have not been
duplicated by other research efforts.
(4) Proposals that demonstrate that the applicant
has invested his or her own funds, time, and or other
valued consideration in the project.
(5) Proposals that are reasonably expected to
result in a viable commercial application.
(6) Proposals that have a positive economic impact
on the State's agriculture and agribusiness sector.
Section 20. Report. The Director must file with the
Governor, the State Treasurer, the Secretary of the Senate,
and the Clerk of the House of Representatives, by March 1 of
each year, a written report covering the activities of the
Department for the previous calendar year. The report is a
public record and must be available for inspection at the
offices of the Department during normal business hours. The
report must include a complete list of (i) all applications
for grants under the Illinois AgriFIRST Grant Program during
the calendar year; (ii) all persons that have received any
form of financial assistance from the Department during the
calendar year; and (iii) the nature and amount of all
financial assistance.
Section 25. Powers of the Department. The Department
has the following powers, together with all powers incidental
to or necessary for the discharge of those powers:
(1) To grant its moneys to one or more persons to
be used by those persons to pay the costs of technical
assistance and feasibility studies and acquiring,
constructing, reconstructing, or improving agricultural
facilities for the purpose of adding value to Illinois
agricultural commodities. Grants must be on any terms and
conditions that the Department determines.
(2) To grant its moneys to any agribusiness which
operates or will operate a facility located in Illinois
for the purposes of adding value to Illinois agricultural
commodities. Grants must be on any terms and conditions
as the Department requires.
(3) To contract with lenders or others for the
origination of or the servicing of the grants made by the
Department.
(4) To receive and accept, from any source, aid or
contributions of money, property, labor, or other items
of value for furtherance of any of its purposes, subject
to any conditions not inconsistent with this Act or the
laws of this State pertaining to the contributions,
including, but not limited to, gifts, guarantees, or
grants from any department, agency, or instrumentality of
the United States of America.
(5) To collect any fees and charges in connection
with its grants, advances, servicing, and other
activities that it determines.
(6) To appoint, employ, contract with, and provide
for the compensation of any employees and agents,
including, but not limited to, engineers, attorneys,
management consultants, fiscal advisers, and
agricultural, silvicultural, and aquacultural experts,
that business of the Department requires.
(7) To make, enter into, and execute any contracts,
agreements, and other instruments with any person,
including but not limited to, any federal, State, or
local governmental agency and to take any other actions
that may be necessary or convenient to accomplish any
purpose for which this authority was granted to the
Department or to exercise any power expressly granted
under this Act.
(8) To establish funds for financial surety and
escrow accounts.
(9) To adopt any necessary rules that are
consistent with this Act.
Section 30. Liability. The Director, any Department
employee, or any authorized person executing grants is not
personally liable on the grants and is not subject to any
personal liability or accountability by reason of the
issuance of the grants.
Section 35. Illinois AgriFIRST Program.
(a) The Department must develop and administer an
Illinois AgriFIRST Program to enhance the value of Illinois
agriculture products or by-products through grants to current
and potential processors. Qualifying persons and
agribusinesses must be located in Illinois and must process,
package, or otherwise enhance the value of farm products or
by-products produced in Illinois.
The recipient of a grant under this Section must provide
a minimum percentage, as determined by the Department, of the
total cost of the processing project, with the balance of the
project's total cost available from other sources. Other
sources include, but are not limited to, commercial and
private lenders, leasing companies, and grants. The
recipient's match may be in cash, cash-equivalent
investments, or bonds, irrevocable letters of credit, or any
combination thereof. A grant under this Section may provide
(i) up to 75% of the cost for technical assistance to develop
a project to enhance the value of agricultural products or to
expand agribusiness in Illinois but not to exceed $25,000,
(ii) up to 50% of the cost of undertaking feasibility
studies, competitive assessments, and consulting or
productivity services that the Department determines may
result in the enhancement of value-added agricultural
products, and (iii) on and after July 1, 2003, up to 10% of
the project's total capital construction cost not to exceed
$5,000,000, including, but not limited to, (A) purchasing
land, (B) purchasing, constructing, or refurbishing
buildings, (C) purchasing or refurbishing machinery or
equipment, (D) installation, (E) repairs, (F) labor, and (G)
working capital. Notwithstanding any other provision of this
Section, the grant moneys may not be used for the purpose of
compliance with the provisions of the Livestock Management
Facilities Act.
Grant applications must be made on forms provided by and
in accordance with procedures established by the Department.
At a minimum, an applicant must be an Illinois resident, as
defined by Department rule, and must provide the names,
addresses, and occupations of all project owners, the project
address, relevant credit and financial information
(including, but not limited to, assets and liabilities), and
any other information deemed necessary by the Department for
review of the grant application.
(b) All requests for the waiver of any requirements in
this Section must be made in writing to the Department. A
grant award is subject to modification or alteration under,
but is not limited to, the following conditions:
(1) The grant award is subject to any modifications
that may be required by changes in State law or
regulations. The Department shall notify the recipient
in writing of any amendment to the regulations and the
effective date of those amendments.
(2) If either the Department or the recipient
requests to modify the terms of the grant award other
than as set forth in paragraph (1), written notice of the
proposed modification shall be given to the other party.
No modification shall take effect unless agreed to in
writing by both the Department and the recipient.
(c) The Illinois AgriFIRST Program Fund is created as a
special appropriated fund within the State treasury.
Appropriations and moneys from any public or private source
may be deposited into the Fund. The Fund shall be used for
the purposes of the Illinois AgriFIRST Program Act of 2001.
Repayments of grants made under this Section shall be
deposited into the Fund.
Section 40. Project reporting. The grantee of a funded
project shall submit to the Department periodic reports, as
specified in the grant agreement, outlining progress,
timeline, and budget compliance. Deviations from the
agreement may result in the withholding of further funding or
in a grant default. A final written report, describing the
work performed, results obtained, and economic impact is
required within 30 days after a project is completed. The
grantee shall also provide a financial report and return any
unused funds to the Department consistent with the Illinois
Grant Funds Recovery Act. Grantees may be required to submit
to the Department the following information: employment
reports, federal tax returns or financial statements, and
other information as requested by the Department where
economic or business conditions may be necessary to determine
conformance with grant conditions. The Department may
require the financial statements be compiled, reviewed, or
audited by an independent accountant at the expense of the
grantee at any time for 3 years following the completion of
the grant.
Section 45. Certification. The Department may develop
and implement organic, identity preserved, and value-added
certification processes and programs that guarantee a buyer
that the certified Illinois products have traits and
qualities that warrant a premium price or an increase in
added value. The Department may adopt rules setting
certification and licensing standards for persons to certify
products under this Section.
Section 50. Market access. The Department may (i)
identify international and domestic consumer preferences,
(ii) identify the new markets those preferences indicate,
particularly for value-added products, (iii) identify
preserved products, (iv) underwrite demonstrations on foreign
soils, and (v) provide market analyses and trend projections
to farmers and other interested persons.
Section 55. Default or termination of grant agreement.
If the recipient of a grant violates any of the terms of the
grant agreement, the Department shall send a written notice
to the recipient that he or she is in default and be given
the opportunity to correct the violations.
(a) If the violation is not corrected within 10 days
after receipt of the notification, the Director may take, but
is not limited to, one or more of the following actions:
(1) Declare due and payable the amount of the grant
and cease additional grant payments not yet made to the
grantee.
(2) Take any other action considered appropriate to
protect the interest of the project.
(b) The Department may determine that a recipient has
failed to faithfully perform the terms and conditions of the
scope of work of the project when:
(1) The Department has notified the recipient in
writing of the existence of circumstances such as
repeated failure to submit required reports,
misapplication of grant funds, failure to match
Department funds, evidence of fraud and abuse, repeated
failure to meet performance timelines or standards, or
failure to resolve negotiated points of the agreement.
(2) The recipient fails to develop and implement a
corrective action plan within 30 calendar days of the
Department's notice.
(c) A grant may be terminated under, but termination is
not limited to, any of the following circumstances:
(1) In the absence of State funding for a specific
year, all grants that year will be terminated in full.
In the event of a partial loss of State funding, the
Department may make proportionate cuts to all recipients.
(2) If the Department determines that the recipient
has failed to comply with the terms and conditions of the
grant agreement, the Department may terminate the grant
in whole, or in part, at any time before the date of
completion.
(3) The Department may terminate the grant in
whole, or in part, when the Department determines that
the continuation of the project would not produce
beneficial results commensurate with the further
expenditures of funds.
(4) The recipient may refuse or elect not to
complete the grant agreement and terminate the grant. The
recipient shall notify the Department within 10 days
after the date upon which performance ceases. The
Department may declare due and payable the amount of the
grant and may cease additional grant payments not yet
made to the grantee.
(d) Any money collected from the default or termination
of a grant shall be placed into the Fund and expended for the
purposes of this Act.
Section 60. State agriculture planning agency. The
Department is the State agriculture planning agency. The
Department may accept and use planning grants or other
financial assistance from the federal government (i) for
statewide comprehensive planning work, including research and
coordination activity directly related to agriculture needs;
and (ii) for State and interstate comprehensive planning and
research and coordination activity related to that planning.
All such grants shall be subject to the terms and conditions
prescribed by the federal government.
Section 65. Construction. This Act is necessary for the
welfare of this State and must be liberally construed to
effect its purposes.
Section 805. The State Finance Act is amended by adding
Section 5.545 as follows:
(30 ILCS 105/5.545 new)
Sec. 5.545. The Illinois AgriFIRST Program Fund.
(20 ILCS 205/40.43 rep.)
Section 810. The Department of Agriculture Law of the
Civil Administrative Code of Illinois is amended by repealing
Section 40.43 as added by Public Act 91-560.
Section 999. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly May 31, 2001.
Approved August 14, 2001.
Effective August 14, 2001.
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