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92nd General Assembly

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Public Act 92-0805

HB1006 Enrolled                                LRB9203208LDpr

    AN ACT in relation to timber.

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

    Section 5.  The Timber Buyers Licensing Act is amended by
changing Sections 4, 7, 11, and 13 as follows:

    (225 ILCS 735/4) (from Ch. 111, par. 704)
    Sec.  4.  Bond.  Every  person licensed as a timber buyer
shall have on file with the Department, on a form  prescribed
and  furnished  by  the Department, a performance surety bond
payable  to  the  State  of  Illinois  by  and  through   the
Department and conditioned on the faithful performance of and
compliance with all requirements of the license and this Act.
The  bond  shall  be a surety bond signed by the person to be
licensed as principal and by a good and sufficient  corporate
surety  authorized  to  engage  in  the business of executing
surety bonds within the State of Illinois as surety  thereon.
In  lieu of a corporate surety bond an applicant for a timber
buyers license may, with  the  approval  of  the  Department,
deposit  with the Department as security a file a bond signed
by the applicant as principal and accompanied by  a  bank  or
savings  and  loan  association  certificate  of  deposit  or
irrevocable  letter  of  credit  of  any  bank  organized  or
transacting  business in the United States in a form approved
by  the  Department,  showing  to  the  satisfaction  of  the
Department that funds in an amount equal to or  greater  than
the  amount  of the required bond are on deposit in a bank or
savings and loan association  to  be  held  by  the  bank  or
savings  and  loan  association for the period covered by the
license. Such deposits shall be made, held, and  disposed  of
as  provided  in  this  Act and by the Department by rule.  A
bond or certificate  of  deposit  The  funds  shall  be  made
payable   upon   demand  to  the  Director,  subject  to  the
provisions of this Act, and any rules adopted under this Act,
and shall be for the use and benefit of  the  people  of  the
State  of Illinois, and for the use and benefit of any timber
grower from whom the applicant purchased timber  and  who  is
not  paid  by the applicant or for the use and benefit of any
timber grower whose timber has been cut by the  applicant  or
licensee  or  his  or  her  agents, and who has not been paid
therefor; and for the use and benefit of any person aggrieved
by the actions of the timber buyer.  the Department  may,  in
its  discretion,  continue the existing bond of any applicant
who has previously  been  licensed  and  posted  a  good  and
sufficient bond.
    Except  as otherwise provided, in this Section, such bond
shall be in the principal amount of $500 for an applicant who
paid timber growers $5,000 or  less  for  timber  during  the
immediate  preceding  year,  and  an additional $100 for each
additional $1,000 or fraction thereof paid to timber  growers
for timber purchased during the preceding year, but shall not
be  more  than  $10,000.  In  the  case  of  an applicant not
previously engaged in business as a timber buyer, the  amount
of such bond shall be based on the estimated dollar amount to
be  paid  by  such  timber buyer to timber growers for timber
purchased during the next succeeding year, as  set  forth  in
the  application;  such  bond  shall,  in no event, be in the
principal amount of less than $500.  In the case of a  timber
buyer whose bond has previously been forfeited in Illinois or
in   any   other  state,  the  Department  shall  double  the
applicable minimum bond amounts under this Section.
    A bond filed in accordance with this Act  Such  bond,  or
surety  thereon, shall not be cancelled or altered during the
period for which the timber buyer  remains  licensed  by  the
Department license to the applicant was issued except upon at
least  60  days  notice  in writing to the Department; in the
event  that  the  applicant  has  deposited  certificates  of
deposit in lieu of a  corporate  surety  the  Department  may
retain  possession  of  such  certificates  of  deposit for a
period of 60 days following the expiration or  revocation  of
his or her license.
    At  any  such  time  as  a  licensee  fails  to  have the
necessary  surety  bonds,   certificates   of   deposit,   or
irrevocable  letters  of  credit  or both on deposit with the
Department   as   required   herein,   the   Department   may
immediately,  and  without  notice,  suspend  the  privileges
revoke the license of such licensee. In  the  event  of  such
suspension  revocation,  the  Department shall give immediate
notice  of  the  same  to  the  licensee  and  shall  further
reinstate such license  upon  the  posting  of  the  required
surety  bond,  or  certificates  of  deposit,  or irrevocable
letters of credit.
    Bonds shall be in such form and contain  such  terms  and
conditions  as  may  be  approved  from  time  to time by the
Director, be conditioned to  secure  an  honest  cutting  and
accounting  for  timber  purchased  by  the  licensee, secure
payment to the  timber  growers  and  to  insure  the  timber
growers  against  all  fraudulent acts of the licensee in the
purchase and cutting of the timber of this State.
    In the event the timber buyer fails to pay when owing due
any amount due a timber grower for timber purchased, or fails
to pay judicially determined damages  for  timber  wrongfully
cut  by  a  timber  buyer or his agent, whether such wrongful
cutting has occurred on or adjacent to the land which was the
subject of timber purchase from a timber grower,  or  commits
any  violation  of  this  Act,  then an action on the bond or
deposit for forfeiture may be commenced.  Such action is  not
exclusive  and  is in addition to any other judicial remedies
available.
    In the event that the timber grower or  owner  of  timber
cut considers himself or herself aggrieved by a timber buyer,
he  or  she  shall  notify  the Department in writing of such
grievance and thereafter the Department shall within 10  days
give  written  notice  to  the  timber  buyer  of the alleged
violation of this Act or of any  violation  or  noncompliance
with  the regulations hereunder of which the timber grower or
owner of timber complains. The written notice to  the  timber
buyer shall be from the Department by registered or certified
mail  to  the  licensee  and  his  or her sureties stating in
general terms the nature of the violation and that an  action
seeking  forfeiture  of the bond may be commenced at any time
after the 10 days from the date of said notice if at the  end
of  that period the violation still remains. In the event the
Department shall fail to give notice to the timber  buyer  as
provided herein, the timber grower or owner of timber cut may
commence  his  or  her  own  action  for  forfeiture  of  the
licensee's bond.
    The   timber  buyer,  after  receiving  notice  from  the
Department as provided herein, may within 10  days  from  the
date  of  such  notice,  request  in writing to appear and be
heard regarding the alleged violation.
    Upon such request from the timber buyer,  the  Department
shall  schedule  a  hearing,  designating  the time and place
thereof. At such hearing the timber  buyer  may  present  for
consideration  of  the  Department  any evidence, statements,
documents  or  other  information  relevant  to  the  alleged
violation. The hearing shall be presided over by the Director
or by any hearing  officer  he  or  she  may  designate.  The
hearing  officer  shall  take  evidence offered by the timber
buyer or the  Department  and  shall,  if  requested  by  the
Department,  submit his or her conclusions and findings which
shall be advisory to the Director. Any hearings provided  for
in  this  Section  shall be commenced within 30 days from the
request therefor.
    Should the timber buyer fail to make timely request for a
hearing after receipt of the notice from  the  Department  as
provided  herein,  or  after  a  hearing  is  concluded,  the
Department  may  either  withdraw  the notice of violation or
request the Attorney General to institute proceedings to have
the bond of the timber buyer forfeited. The Attorney General,
upon  such  request  from  the  Department,  shall  institute
proceedings to have the bond of the  timber  buyer  forfeited
for  violation  of  any  of the provisions of this Act or for
noncompliance with any Department regulation.
    In the event that the licensee's bond is  forfeited,  the
proceeds   thereof   shall  first  be  applied  to  any  sums
determined to be owed to the timber grower or owner of timber
cut and then to the Department to defray expenses incurred by
the  Department  in  converting  the  security  into   money.
Thereafter,  the  Department  shall  pay  such  excess to the
timber buyer who furnished such security.
    In the event the Department realizes less than the amount
of liability from  the  security,  after  deducting  expenses
incurred  by  the  Department in converting the security into
money, it shall be grounds for the revocation of  the  timber
buyer's license.
(Source: P.A. 83-1362.)

    (225 ILCS 735/7) (from Ch. 111, par. 707)
    Sec.   7.  License;   issuance,  validity,  and  renewal;
certificate.  If  the  Department  is  satisfied   that   the
applicant  has fulfilled the requirements and if the bond and
sureties  or  bank  certificate  of  deposit  filed  by   the
applicant  is  approved,  the  Department  may  shall issue a
license to the applicant. The licenses issued shall be  valid
for  a  calendar  year and may be renewed annually. A copy of
the license certificate issued by  the  Department  shall  be
posted in the principal office of the licensee in this State.
The timber buyer identification card issued by the Department
shall  be  carried  upon  the person of the timber buyer when
conducting activities covered under this  Act  for  immediate
presentation  for  inspection  to the officers and authorized
employees of the Department, any sheriff, deputy sheriff,  or
any  other  peace  officer  making  demand  for it. No person
charged  with  violating  this  Section,  however,  shall  be
convicted  if  he  or  she  produces  in  court  satisfactory
evidence that a timber buyer  identification  card  that  was
valid  at  the  time  of  the  offense had been issued to the
timber buyer.
    Upon request for a license and payment of  the  fee,  the
Department  shall  issue to the licensee a certificate that a
license has been granted and a bond filed as required by this
Act.
(Source: P.A. 76-1307.)

    (225 ILCS 735/11) (from Ch. 111, par. 711)
    Sec. 11.  Penalties.
    (a)  Except as otherwise provided  in  this  Section  any
person  in violation of any of the provisions of this Act, or
administrative rules thereunder, shall be guilty of a Class A
misdemeanor.
    (a-5) Any person convicted of violating Section 3 of this
Act shall be guilty of a Class A  misdemeanor  and  fined  at
least $500 for a first offense and guilty of a Class 4 felony
and fined at least $1,000 for a second or subsequent offense.
    (b)  Any person convicted of violating subsections (a) or
(b) of Section 5 of this Act is guilty of a Class 4 felony if
the  aggregate  value of the timber purchased, cut, caused to
be cut or appropriated is over $300 but not more than $2,500.
    (b-5)  Any person convicted of violating  subsection  (a)
or (b) of Section 5 of this Act is guilty of a Class 3 felony
if  the  aggregate value of the timber purchased, cut, caused
to be cut, or appropriated is over $2,500 but not  more  than
$10,000.
    (b-10)  Any  person convicted of violating subsection (a)
or (b) of Section 5 of this Act is guilty of a Class 2 felony
if the aggregate value of the timber purchased,  cut,  caused
to be cut, or appropriated is over  $10,000.
    (b-15)  The aggregate value of the timber purchased, cut,
caused  to  be  cut,  or  appropriated shall be determined as
provided by administrative rule.
    (c)  A person convicted of violating  subsection  (f)  of
Section  5 of this Act is guilty of a Class A misdemeanor.  A
person convicted of  a  second  or  subsequent  violation  is
guilty of a Class 4 felony.
    (d)  All  amounts collected as fines imposed as penalties
for violation of this Act shall be deposited in the  Illinois
Forestry  Development  Fund for the purposes of the "Illinois
Forestry Development Act".
    (e)  In case of a failure to pay any harvest fee required
under Section 9a of this Act  on  the  date  as  required  by
regulation  of  the  Department,  there  shall  be added as a
penalty an amount equal to 7.5% of the harvest  fee  due  the
Department  for  each  month or fraction thereof during which
such failure continues, not to exceed 37.5% in the aggregate.
This penalty shall  be  in  addition  to  any  other  penalty
determined under this Act.
    (f)  In case of failure to file the appropriate report of
the  purchase harvest fee form stipulated under Section 9a of
this Act on the date prescribed therefore, a penalty  in  the
amount  of  $25  for each individual report shall be added to
the amount due the Department.   This  penalty  shall  be  in
addition to any other penalty determined under this Act.
(Source: P.A. 86-208.)

    (225 ILCS 735/13) (from Ch. 111, par. 713)
    Sec. 13. License revocation.
    (a)  The  Department may revoke the license of any person
who violates the provisions of this Act, and  may  refuse  to
issue  any  permit or license to such person for a period not
to exceed 5 years following such revocation.
    License revocation procedures  shall  be  established  by
administrative rule.
    (b)  Whenever  the  holder of a license issued under this
Act is found guilty of any misrepresentation in obtaining his
or her license or of a violation of any of the provisions  of
this   Act  or  rules  adopted  pursuant  to  this  Act,  the
Department may:
         (1)  revoke his or her license;
         (2)  refuse to issue a license to that person; and
         (3)  suspend  the  person  from  engaging   in   the
    activity   requiring  the  license  for  up  to  5  years
    following the revocation.
    (c)  Whenever the holder of a license issued  under  this
Act is found guilty of any misrepresentation in obtaining his
or  her license or of a violation of any of the provisions of
this Act or rules adopted pursuant to this Act,  and  his  or
her license has been previously revoked or his or her ability
to  engage  in  the  activity  requiring the license has been
previously suspended, the Department may:
         (1)  revoke his or her license;
         (2)  refuse to issue any license to that person; and
         (3)  suspend  the  person  from  engaging   in   the
    activity  requiring  the license for at least 5 years but
    not more  than  10  years  following  the  revocation  or
    suspension.
    (d)  Whenever  the  holder of a license issued under this
Act is found guilty of  any  misrepresentation  in  obtaining
that  license  or  of a violation of any of the provisions of
this Act or rules adopted under this  Act,  and  his  or  her
license  has been previously revoked or his or her ability to
engage  in  the  activity  requiring  the  license  has  been
suspended on 2 or more occasions, the Department may:
         (1)  revoke his or her license;
         (2)  refuse to issue any license to that person; and
         (3)  suspend  the  person  from  engaging   in   the
    activity  requiring the license for at least 10 years but
    not more  than  75  years  following  the  revocation  or
    suspension.  Department  revocation  procedures  shall be
    established by administrative rule.
    If the holder  of  a  license  is  found  negligent  with
respect  to  any duty required under this Act, the Department
may suspend or revoke his or her privilege to engage  in  the
activity  for  which  the  license  is  required,  his or her
license, or both.
    (e)  Whenever a person who has not been issued a  license
under  this  Act  is  found  guilty  of  a  violation  of the
provisions of this Act or rules adopted under this  Act,  the
Department may:
         (1)  refuse to issue any license to that person; and
         (2)  suspend   that  person  from  engaging  in  the
    activity  requiring  the  license  for  up  to  5   years
    following the revocation.
    (f)  Whenever  a person who has not been issued a license
under this Act is found guilty of a violation of this Act  or
rules  adopted under this Act and his or her license has been
previously revoked or his or her ability  to  engage  in  the
activity requiring the license has been previously suspended,
the Department may:
         (1)  refuse to issue any license to that person; and
         (2)  suspend   that  person  from  engaging  in  the
    activity requiring the license for at least 5  years  but
    not  more  than  10  years  following  the  revocation or
    suspension.
    (g)  Whenever a person who has not been issued a  license
under  this Act is found guilty of a violation of this Act or
rules adopted under this Act and his or her license has  been
previously  revoked  or  his  or her ability to engage in the
activity requiring the license has been  suspended  on  2  or
more occasions, the Department may:
         (1)  refuse to issue any license to that person; and
         (2)  suspend   that  person  from  engaging  in  the
    activity requiring the license for at least 10 years  but
    not  more  than  75  years  following  the  revocation or
    suspension.
    (h)  Licenses authorized under this Act shall be prepared
by the Department and be in such form as  prescribed  by  the
Department.   The  information required on each license shall
be completed thereon by the issuing  agent  at  the  time  of
issuance  and  each  license shall be signed by the licensee.
All such  licenses  shall  be  supplied  by  the  Department,
subject  to  such  rules as the Department may prescribe. Any
license that is not properly prepared, obtained,  and  signed
as required by this Act shall be void.
    (i)  Any  person  whose  license to engage in an activity
regulated by this Act has been revoked or  whose  ability  to
engage  in  the  activity  requiring  the  license  has  been
suspended  may  not,  during  the  period  of  suspension  or
revocation:
         (1)  hold any license authorized by this Act;
         (2)  perform  directly  or indirectly any privileges
    authorized by any license issued in accordance with  this
    Act; or
         (3)  buy, sell, barter, trade, or take possession of
    any  timber  as  defined  in  this Act, regardless of any
    contractual  agreements  entered  into   prior   to   the
    revocation or suspension.
    (j)  No  person  may be issued a license or engage in any
activity regulated  by  this  Act  for  which  a  license  is
required  during  the  time  that  the  person's privilege to
engage in the same or  similar  activities  is  suspended  or
revoked  by  another  state,  by  a  federal  agency, or by a
province of Canada.
    Any person who knowingly or intentionally violates any of
the  provisions  of  this  Act,   or   administrative   rules
thereunder,  when  his  or  her  license  or  permit has been
revoked or denied or his or her  ability  to  engage  in  the
activity  requiring the license has been suspended under this
Section, is guilty of a Class 4 felony.
(Source: P.A. 85-287.)

    Section 10. The Forest  Products  Transportation  Act  is
amended  by  changing  Sections  2.06,  6,  and 10 and adding
Section 14 as follows:

    (225 ILCS 740/2.06) (from Ch. 96 1/2, par. 6908)
    Sec. 2.06. "Proof of ownership" means a printed  document
provided  by  the Department that serves as a written bill of
sale and bill of lading.  The information  required  in  this
document   shall   be  established  by  administrative  rule.
includes a written bill of sale, a written bill of lading  or
a   written   or  printed  document  containing  the  minimum
information required by the Department by rule.
(Source: P.A. 86-208.)

    (225 ILCS 740/6) (from Ch. 96 1/2, par. 6913)
    Sec. 6.  Any person hauling or  transporting  2  or  more
trees  and forest products, or either of them, on any highway
in this State shall be required to show proof of ownership as
defined in Section 2.06 of this Act, except  that  interstate
transporters  originating outside of this State and traveling
to destinations within or outside  of  this  State  may  show
documents  in  accordance  with  federal Motor Carrier Safety
Administration rules in lieu of such proof of ownership.
    If that person is unable to show proof of ownership,  the
timber  and forest products so hauled or transported, and the
vehicle or conveyance used as the means of transportation may
be held by the Department for disposition  subject  to  court
order.
(Source: P.A. 86-208.)

    (225 ILCS 740/10) (from Ch. 96 1/2, par. 6917)
    Sec.   10.   The  Department  of  Natural  Resources  may
promulgate such rules and regulations as may be necessary  or
desirable  to  effectuate  the  purposes  of  this  Act.  The
Department may  make  available  at  a  reasonable  cost  the
decals,  logos  and  tags  authorized  to be used by licensed
timber growers under Section 8.
(Source: P.A. 89-445, eff. 2-7-96.)

    (225 ILCS 740/14 new)
    Sec. 14.  Any timber, forestry, or wood cutting device or
equipment,  including  vehicles  and  conveyances   used   or
operated in violation of this Act or rules adopted under this
Act or attempted to be used in violation of this Act or rules
adopted  under this Act shall be deemed a public nuisance and
subject  to  seizure  and  confiscation  by  any   authorized
employee of the Department.  Upon the seizure of such an item
the Department shall take and hold the item until disposed of
as provided in this Section.
    Upon  the  seizure  of  any  property  pursuant  to  this
Section, the authorized employee of the Department making the
seizure  shall forthwith cause a complaint to be filed before
the circuit court and a summons to be  issued  requiring  the
person  who illegally used or operated or attempted to use or
operate the property and the owner and person  in  possession
of  the  property  to  appear in court and show cause why the
seized property should not be forfeited to the  State.   Upon
the  return  of  the  summons  duly served or other notice as
provided  in  this  Section,  the  court  shall  proceed   to
determine  the  question  of the illegality of the use of the
seized property and upon judgment being entered to the effect
that the property was illegally used, an order may be entered
providing for the forfeiture of the seized  property  to  the
Department,  which shall thereupon become the property of the
Department.  However, the owner of the property  may  have  a
jury  determine  the illegality of its use and shall have the
right of an appeal as in other cases.  Such a confiscation or
forfeiture shall not preclude or mitigate against prosecution
and assessment of penalties otherwise provided in this Act.
    Upon  seizure  of  any   property   under   circumstances
supporting   a   reasonable  belief  that  the  property  was
abandoned, lost, stolen, or otherwise illegally possessed  or
used  contrary to the provisions of this Act, except property
seized during a search or  arrest  and  ultimately  returned,
destroyed, or otherwise disposed of pursuant to a court order
in  accordance  with this Act, the authorized employee of the
Department shall  make  reasonable  inquiry  and  efforts  to
identify  and  notify  the  owner or other person entitled to
possession thereof and shall return the property  after  that
person  provides  reasonable and satisfactory proof of his or
her ownership or  right  to  possession  and  reimburses  the
Department  for  all reasonable expenses of such custody.  If
the identity  or  location  of  the  owner  or  other  person
entitled   to   possession  of  the  property  has  not  been
ascertained within 6  months  after  the  Department  obtains
possession,  the  Department shall effectuate the sale of the
property for cash to the highest bidder at a public  auction.
The  owner  or  other  person  entitled  to possession of the
property may claim and recover possession of the property  at
any  time  before  its  sale at public auction upon providing
reasonable and satisfactory proof of ownership  or  right  of
possession  and  after  reimbursing  the  Department  for all
reasonable expenses of custody thereof.
    Any property  forfeited  to  the  State  by  court  order
pursuant  to  this  Section  may  be  disposed  of  by public
auction, except that any property that is the subject of such
a court order shall not be disposed of pending appeal of  the
order.   The  proceeds  of  the  sale  at  auction  shall  be
deposited in the Illinois Forestry Development Fund.
    The Department shall pay all costs of notices required by
this Section.

    (225 ILCS 740/4 rep.)
    (225 ILCS 740/7 rep.)
    (225 ILCS 740/8 rep.)
    Section  15.  The  Forest  Products Transportation Act is
amended by repealing Sections 4, 7, and 8.

    Section 99.  Effective date.  This Act takes effect  upon
becoming law.
    Passed in the General Assembly June 02, 2002.
    Approved August 21, 2002.
    Effective August 21, 2002.

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