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91_SB0785 LRB9105181DHmg 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; -2- LRB9105181DHmg 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 -3- LRB9105181DHmg 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 -4- LRB9105181DHmg 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. -5- LRB9105181DHmg 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 -6- LRB9105181DHmg 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; -7- LRB9105181DHmg 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 -8- LRB9105181DHmg 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 -9- LRB9105181DHmg 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 the22 context otherwise requires, the terms specified in Sections23 2.1 through 2.44 have the meanings ascribed to them in those24 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 2.5or act as a broker as defined in Section 2 30 2.19without 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 -10- LRB9105181DHmg 1 30 or any part thereof. These fees are not returnable. 2 Meatbroker, Poultry broker or Meat and 3 Poultry broker ......................................$50 4 Type I Establishment - Processor, Slaughterer, or 5 Processor and Slaughterer of Meat, Poultry or Meat and 6 Poultry ..............................................$50 7 Type II Establishment - Processor, Slaughterer, or 8 Processor and Slaughterer of Meat, Poultry or Meat and 9 Poultry ..............................................$50 10 Application for licenses shall be made to the Department in 11 writing on forms prescribed by the Department. 12 (c) The license issued shall be in such form as the 13 Department prescribes, shall be under the seal of the 14 Department and shall contain the name of the licensee, the 15 location for which the license is issued, the type of 16 operation, the period of the license, and such other 17 information as the Department requires. The original license 18 or a certified copy of it shall be conspicuously displayed by 19 the licensee in the establishment. 20 (d) Failure to meet all of the conditions to retain a 21 license may result in a denial of a renewal of a license. 22 The licensee may request an administrative hearing to dispute 23 the denial of renewal, after which the Director shall enter 24 an order either renewing or refusing to renew the license. 25 (e) A penalty of $50 shall be assessed if renewal 26 license applications are not received by July 1 of each year. 27 A penalty of $25 shall be assessed if any such license is28 not renewed by July 1 of each year.29 (Source: P.A. 90-655, eff. 7-30-98.) 30 (225 ILCS 650/5) (from Ch. 56 1/2, par. 305) 31 Sec. 5. Exemptions - Producers, Retailers, and Custom32 Slaughterers,Poultry Raisers , and Custom Processors. 33 Within the meaning of this Act-11- LRB9105181DHmg 1 The following types of establishments are exempt from the 2 specific provisions of this Act: 3 (A) A "producer" means any person engaged in producing 4 agricultural products, for personal or family use, on whose 5 farm the number of animals or poultry is in keeping with the 6 size of the farm or with the volume or character of the 7 agricultural products produced thereon, but does not mean any 8 person engaged in producing agricultural products who: 9 1. actively engages in buying or trading animals or 10 poultry or both; or 11 2. actively engages directly or indirectly in conducting 12 a business which includes the slaughter of animals or poultry 13 or both, for human food purposes; or 14 3. actively engages, directly or indirectly, in canning, 15 curing, pickling, freezing, salting meat or poultry, or in 16 preparing meat or poultry products for sale; or 17 4. slaughters or permits any person to slaughter on his 18 or their farm animals or poultry not owned by the producer 19 for more than 30 days. 20 The provisions of this Meat and Poultry Inspection Act21 requiring inspection to be made by the Director of22 Agriculture do not apply to animals or poultry slaughtered by23 any producer on his or her farm, nor to animals or poultry24 slaughtered on the farm of the owners for the personal or25 family use of such owner, nor to26 (A-5) Retail dealers or retail butchers with respect to 27 meat or poultry products sold directly to consumers in retail 28 stores; provided, that the only processing operation 29 performed by such retail dealers or retail butchers is the 30 cutting up of meat or poultry products which have been 31 inspected under the provisions of this Act and is incidental 32 to the operation of the retail food store. Meat or poultry33 products derived from animals or poultry slaughtered by any34 producer on the farm which are canned, cured, pickled,-12- LRB9105181DHmg 1 frozen, salted or otherwise prepared at any place other than2 by the producer on the farm upon which the animals or poultry3 were slaughtered are not exempt under the producer's4 exemption herein provided.5 Any person who sells or offers for sale or transports6 meat or poultry products which are unsound, unhealthful,7 unwholesome, adulterated, or otherwise unfit for human food,8 or which have not been inspected and passed by Department,9 Federal or recognized municipal inspection, knowing that such10 meat or poultry products are intended for human consumption,11 is guilty of a Class A misdemeanor and shall be punished as12 provided by Section 19.13 (B) The following types of establishments are exempt14 from specific provisions of this Act:15 1.Poultry raisers with respect to poultry raised on 16 their own farms or premises (a) if such raisers slaughter, 17 eviscerate or further process not more than 1000 poultry 18 during the calendar year for which this exemption is being 19 granted determined; (b) such poultry raisers do not engage in 20 buying or selling poultry products other than those produced 21 from poultry raised on their own farms or premises; (c) such 22 poultry or poultry products are slaughtered, otherwise 23 prepared, sold or delivered to the consumer on or from the 24 premises for which the exemption is given; (d) such slaughter 25 or preparation shall be performed in sanitary facilities, in 26 a sanitary manner, and subject to periodic inspection by 27 Department personnel; (e) persons desiring such exemptions 28 shall submit in writing a request to the Department. The 29 exemption shall be effective upon written notice from the 30 Department and shall remain in effect for a period of 2 31 years, unless revoked. Adequate records must be maintained 32 to assure that not more than the number of exempted poultry 33 are slaughtered or processed in one calendar year. Such 34 records shall be kept for one year following the termination -13- LRB9105181DHmg 1 of each exemption. Any advertisement regarding the exempt 2 poultry or poultry products shall reflect the fact of 3 exemption so as not to mislead the consumer to presume 4 official inspection has been made under "The Meat and Poultry 5 Inspection Act ". 6 2. Type II Establishments licensed under this Act for7 custom slaughtering and custom processing as defined in8 Sections 2.39 and 2.40 of this Act, who do not sell either9 meat products or poultry products shall:10 a. Be permitted to receive, for processing, meat11 products and poultry products from animals and poultry12 slaughtered by the owner, or for the owner, for his own13 personal use, or for use by his household.14 b. Be permitted to receive live animals and poultry15 presented by the owner to be slaughtered and processed for16 the owner's own personal use, or for use by his household.17 c. Be permitted to receive, for processing, inspected18 meat products and inspected poultry products for the owner's19 own personal use or for use by his household.20 d. Stamp the words "NOT FOR SALE" in letters at least21 3/8 inches in height on all carcasses of animals and poultry22 slaughtered in such establishment and on all meat products23 and poultry products processed in such establishment.24 e. Conspicuously display a license issued by the25 Department and bearing the words "NO SALES PERMITTED".26 f. Keep a record of the name and address of the owner of27 each carcass or portion thereof received in such licensed28 establishment, the date received, and the dressed weight.29 Such records shall be maintained for at least one year and30 shall be available, during reasonable hours, for inspection31 by Department personnel.32 g. File an annual statement with the Department to the33 effect that neither meat products nor poultry products are34 offered for sale.-14- LRB9105181DHmg 1 h. No custom slaughterer or custom processor shall2 engage in the business of buying or selling any poultry or3 meat products capable of use as human food, or slaughter of4 any animals or poultry intended for sale.5 3. A Type I Establishment licensed under the authority of6 this Act who sells, or offers for sale, meat, meat product,7 poultry and poultry product shall except as otherwise8 provided:9 a. Be permitted to receive meat, meat product, poultry10 and poultry product for cutting, processing, preparing,11 packing, wrapping, chilling, freezing, sharp freezing or12 storing, provided it bears an official mark of State of13 Illinois or of Federal Inspection.14 b. Be permitted to receive live animals and poultry for15 slaughter provided all animals and poultry are properly16 presented for prescribed inspection by a Department employee.17 c. May accept meat, meat product, poultry and poultry18 product for sharp freezing or storage provided that prior to19 entry, the meat, meat product, poultry and poultry product20 has been wrapped or packaged and marked "NOT FOR SALE" as21 prescribed in subparagraph d of paragraph 4 of subsection (B)22 of this Section.23 d. An operator licensed under this Act to slaughter and24 process poultry shall be permitted to receive for slaughter25 and cutting up poultry delivered to him by the owner thereof26 exclusively for use in the household of such owner, by him27 and members of his household, his nonpaying guests, and28 employees. Such poultry shall be exempt from inspection29 provided the operator:30 (i) Keeps such poultry, poultry carcasses and parts31 thereof separate from all other meat, meat products, poultry32 and poultry products at all times while on the premises.33 (ii) Thoroughly cleans and disinfects all facilities and34 equipment with which such poultry or parts come in contact-15- LRB9105181DHmg 1 upon completion of slaughter and cutting up.2 (iii) Stamps the words "NOT FOR SALE" as prescribed in3 subparagraph d of paragraph 4 of subsection (B) of this4 Section on each immediate package of such poultry or poultry5 parts.6 (iv) Records the following information with regard to7 poultry slaughtered or cut up in his licensed establishment:8 (a) Name and address;9 (b) Date received;10 (c) Number and dressed weight of carcass.11 (v) Such records shall be maintained for not less than12 one year and shall be available for inspection by Department13 personnel during reasonable business hours.14 4. Any establishment licensed under the authority of15 this Act that receives wild game carcasses shall comply with16 the following requirements:17 a. Wild game carcasses shall be dressed prior to18 entering the processing or refrigerated areas of the licensed19 establishment.20 b. Wild game carcasses stored in the refrigerated area21 of the licensed establishment shall be kept separate and22 apart from inspected products.23 c. A written request shall be made to the Department for24 listing of the days and time of day wild game carcasses may25 be processed.26 d. All equipment used which comes in contact with wild27 game shall be thoroughly cleaned and sanitized prior to use28 on animal or poultry carcasses.29 5. Establishments in which operations in relation to30 meat or poultry products consist entirely of storage of such31 products in individual lockers at or below a temperature of 032 degrees F.33 (Source: P.A. 85-246.) -16- LRB9105181DHmg 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 -17- LRB9105181DHmg 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 -18- LRB9105181DHmg 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 operatorshall 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 employedin 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 establishment31 and engaged in direct physical contact with meat or poultry32 products during its preparation, processing or storage, shall33 be clean in person, wear clean washable outer garments and a-19- LRB9105181DHmg 1 suitable cap or other head covering used exclusively in such2 work. Only persons specifically designated by the operator of3 an establishment shall be permitted to touch meat or poultry4 products with their hands, and the persons so designated5 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 Department9 shall, wherever slaughter operations are conducted at an 10 establishment, cause antemortem inspection to be made by 11 inspectors antemortem inspectionwhere and to the extent it 12 determines necessary regarding ofall 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 reinspectionshall be identified as 20 "Illinois Suspect" in a manner determined by the Director. 21 FollowingSuch reinspection shall be asconducted 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 andfinding 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 A33 misdemeanor and shall be punished as provided by Section 19. -20- LRB9105181DHmg 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 49 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 approved22 municipal inspection department to which has been added the23 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 Condemned" 30 , or with the condemned brand of an approved municipal31 inspection department. All poultry carcasses or parts thereof 32 which are found on postmortem inspection to be unsound, 33 unhealthful, unwholesome, adulterated or otherwise unfit for -21- LRB9105181DHmg 1 human food shall be condemned by depositing each carcass or 2 part thereof in a suitable, clearly marked "Condemned" 3 container. All condemned carcasses and parts of animals or 4 poultry under the supervision of an inspector shall be 5 rendered unfit for human consumption in a manner approved by 6 the Director. All unborn or stillborn animals shall be 7 condemned and no hide, skin or any other part thereof shall 8 be removed within a room where edible meat or poultry 9 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 may13 require operations at Type I licensed establishments to be 14 conducted under inspection and during approved reasonable15 hours of operation. The owner or operator of each licensed16 establishment shall keep the Director informed in advance of17 intended hours of operation. When one inspector is assigned18 to make inspections where few animals or poultry are19 slaughtered or where small quantities of meat or poultry20 products are prepared, the Director may designate the hours21 of the day and the days of the week during which such22 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 employeeof the Department on any Saturday, Sunday, 26 or holiday, or for more than an approved establishedwork 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, to32 reimburse the Department for the cost of the inspection33 services so furnished. Holidays will be those established by-22- LRB9105181DHmg 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 receptacle25 or covering inany 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 or29 coveringunder 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 -23- LRB9105181DHmg 1 cans, tins, pots, canvas, or other receptacle or coveringin 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 coveringunder 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 -24- LRB9105181DHmg 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 -25- LRB9105181DHmg 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 -26- LRB9105181DHmg 1 any term similar to a government grade. 2 (D) (Blank) Fail to disclose in uniform 103 point type, when a yield grade is advertised, a4 definition of the yield grade in the following5 terms:6 Yield Grade 1 - Extra Lean7 Yield Grade 2 - Lean8 Yield Grade 3 - Average Waste9 Yield Grade 4 - Wasty10 Yield Grade 5 - Exceptionally Wasty11 (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 a31 complete and accurate signed statement at the time32 of delivery, showing the net weight of meat33 delivered to the buyer. If weighed with immediate34 wrappings, this fact shall be stated. Both the-27- LRB9105181DHmg 1 actual net weight of the product prior to cutting2 and trimming, and the delivered weight shall be3 disclosed to the buyer in writing at the time of4 delivery. This section shall apply separately to5 each carcass or part of carcass sold on any6 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 -28- LRB9105181DHmg 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. -29- LRB9105181DHmg 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 the4 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 whichis 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 inspectorin 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-30- LRB9105181DHmg 1 on the date designated by the United States Department of2 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, chief19 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 discharged31 from office. 32 C. Any person violating any provision of this Act or any 33 rule or regulation established hereunder, except any-31- LRB9105181DHmg 1 provisions of or rule or regulation established under Section2 9 or Section 10,is guilty of a Class A misdemeanor. Any3 person violating any provision of Section 9 or Section 10 of4 this Act, or any rule or regulation applicable thereto, is5 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 Act14 for which no other criminal penalty, is provided by this Act15 is guilty of a Class A misdemeanor.16 E. The Director is also authorized to refuse issuance of17 a license, to suspend, or revoke a license for violations by18 any establishment of the provisions of this Act or the rules19 and regulations adopted hereunder when any one or more of the20 following items are applicable:21 (1) Material misstatement in the application for22 original license or in the application for any renewal23 license under this Act;24 (2) Willful disregard or willful violation of this Act25 or of any regulations or rules adopted pursuant thereto;26 (3) Willfully aiding or abetting another in the27 violation of this Act or of any regulation or rule adopted28 pursuant thereto;29 (4) Allowing one's license under this Act to be used by30 an unlicensed person;31 (5) Conviction of any crime an essential element of32 which is misstatement, fraud or dishonesty or conviction of33 any felony relative to the provisions of this Act, if the34 Department determines, after investigation, that such person-32- LRB9105181DHmg 1 has not been sufficiently rehabilitated to warrant the public2 trust;3 (6) Conviction of a violation of any law of Illinois4 except minor violations such as traffic violations and5 violations not related to the disposition of this Act or any6 rule or regulation of the Department relating thereto;7 (7) Making willful misrepresentations or false promises8 of a character likely to influence, persuade or induce in9 connection with the business of a licensee under this Act;10 (8) Pursuing a continued course of willful11 misrepresentation of or making false promises through12 advertising, salesman, agents or otherwise in connection with13 the business of a licensee under this Act; or14 (9) Failure to possess the necessary qualifications or15 to meet the requirements of this Act for the issuance or16 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 setting19 forth facts which if proven would constitute grounds for20 refusal, suspension or revocation under this Act, investigate21 the actions of any applicant or any person or persons holding22 or claiming to hold a license. At least 10 days prior to the23 date set for hearing the Department shall, before refusing to24 issue or renew, and before suspension or revocation of a25 license, notify in writing the applicant for or holder of a26 license, hereinafter called the respondent, that on the date27 designated a hearing will be held to determine whether the28 respondent is privileged to hold such license and shall29 afford the respondent an opportunity to be heard in person or30 by counsel. Such written notice may be served personally on31 the respondent, or by registered or certified mail sent to32 the respondent's business address as shown in his latest33 notification to the Department. At the hearing, both the34 respondent and the complainant shall be afforded ample-33- LRB9105181DHmg 1 opportunity to present in person or by counsel such2 statements, testimony, evidence and argument as may be3 pertinent to the charges or to any defense thereto. The4 Department may continue such hearing from time to time.5 The Director or any employee of the Department of6 Agriculture designated by him for such purpose may hold7 hearings, administer oaths, sign and issue subpoenas, examine8 witnesses, receive evidence and require by subpoena the9 attendance and testimony of witnesses and the production of10 such accounts, records and memoranda as may be material for11 the determination of any complaint under this Act. In case12 of the refusal of any person to comply with any subpoena or13 on the refusal of a witness to testify to any matter14 regarding which he lawfully may be interrogated hereunder,15 the judge of any circuit court of the county in which such16 investigation or hearing is being conducted may, on17 application of the Director or the employee of the Department18 designated by the Director to conduct such investigation or19 hearing, compel obedience by proceedings for contempt as in20 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 -34- LRB9105181DHmg 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 -35- LRB9105181DHmg 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 States31 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.) -36- LRB9105181DHmg 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.) -37- LRB9105181DHmg 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, 2.3, 2.4, 2.5, 2.6, 16 2.7, 2.8, 2.9, 2.9a, 2.10, 2.11, 2.12, 2.13, 2.14, 2.15, 17 2.16, 2.17, 2.18, 2.19, 2.20, 2.21, 2.22, 2.23, 2.24, 2.25, 18 2.26, 2.28, 2.29, 2.30, 2.31, 2.32, 2.33, 2.34, 2.35, 2.36, 19 2.37, 2.38, 2.39, 2.40, 2.41, 2.42, 2.43, 2.44, 3.1, 4, 7, 20 and 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: -38- LRB9105181DHmg 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. -39- LRB9105181DHmg 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 -40- LRB9105181DHmg 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. -41- LRB9105181DHmg 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 -42- LRB9105181DHmg 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 -43- LRB9105181DHmg 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: -44- LRB9105181DHmg 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 -45- LRB9105181DHmg 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 -46- LRB9105181DHmg 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 -47- LRB9105181DHmg 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 -48- LRB9105181DHmg 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 -49- LRB9105181DHmg 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 -50- LRB9105181DHmg 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 atIllinois 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 -51- LRB9105181DHmg 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 -52- LRB9105181DHmg 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 -53- LRB9105181DHmg 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 ofIllinois 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 -54- LRB9105181DHmg 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 -55- LRB9105181DHmg 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 -56- LRB9105181DHmg 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 -57- LRB9105181DHmg 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 -58- LRB9105181DHmg 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 -59- LRB9105181DHmg 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 -60- LRB9105181DHmg 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 -61- LRB9105181DHmg 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 -62- LRB9105181DHmg 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 under16 this Code, ithas 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) -63- LRB9105181DHmg 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 -64- LRB9105181DHmg 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 Balancesin 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 -65- LRB9105181DHmg 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 -66- LRB9105181DHmg 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 when15 issued from the same warehouse shall beconsecutively 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 approvedby 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 -67- LRB9105181DHmg 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 -68- LRB9105181DHmg 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: -69- LRB9105181DHmg 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) -70- LRB9105181DHmg 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 -71- LRB9105181DHmg 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 -72- LRB9105181DHmg 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 oflien 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 -73- LRB9105181DHmg 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 -74- LRB9105181DHmg 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 Section7 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 -75- LRB9105181DHmg 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.) -76- LRB9105181DHmg 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. -77- LRB9105181DHmg 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 Sections 10.30, 10.40, 15, 16, 17, 20, 19 25, 30, and 35 and by adding Sections 10.65, 36, and 95 as 20 follows: 21 (510 ILCS 77/10.30) 22 Sec. 10.30. Livestock management facility. "Livestock 23 management facility" means any animal feeding operation, 24 livestock shelter, or on-farm milking and accompanying 25 milk-handling area. Two or more livestock management 26 facilities under common ownership, if wherethe facilities 27 are not separated by one mile or if they use a common system 28 for the storage or disposal of waste, a minimum distance of29 1/4 mile, and that share a common livestock waste handling30 facilityshall be considered a single livestock management 31 facility. A livestock management facility at educational 32 institutions, livestock pasture operations, where animals are -78- LRB9105181DHmg 1 housed on a temporary basis such as county and state fairs, 2 livestock shows, race tracks, and horse breeding and foaling 3 farms, and market holding facilities are not subject to this 4 Act. 5 (Source: P.A. 89-456, eff. 5-21-96.) 6 (510 ILCS 77/10.40) 7 Sec. 10.40. Livestock waste handling facility. 8 "Livestock waste handling facility" means individually or 9 collectively those immovable constructions or devices, except 10 sewers, used for collecting, pumping, treating, or disposing 11 of livestock waste or for the recovery of by-products from 12 the livestock waste. Two or more livestock waste handling 13 facilities under common ownership and where the facilities 14 are not separated by one mile a minimum distance of 1/4 mile15 shall be considered a single livestock waste handling 16 facility. 17 (Source: P.A. 89-456, eff. 5-21-96.) 18 (510 ILCS 77/10.65 new) 19 Sec. 10.65. Waters of this State. "Waters of this State" 20 means "waters" as defined in the Environmental Protection 21 Act, except that the term does not include any water or 22 accumulation of water attributable exclusively to or 23 resulting solely from the construction of a secondary berm in 24 connection with the construction of a livestock waste 25 handling facility. 26 (510 ILCS 77/15) 27 Sec. 15. Livestock waste handling facility lagoon. 28 (a) Standards for livestock waste lagoon construction. 29 Any earthen livestock waste lagoon subject to registration 30 shall be constructed or modified in accordance with "Design 31 of Anaerobic Lagoons for Animal Waste Management" promulgated -79- LRB9105181DHmg 1 by the American Society of Agricultural Engineers or the 2 national guidelines as published by the United States 3 Department of Agriculture Natural Resource Conservation 4 Service in Illinois and titled Waste Treatment Lagoon. The 5 owner or operator of the earthen livestock lagoon may, with 6 approval from the Department, modify or exceed these 7 standards in order to meet site specific objectives. 8 Notwithstanding any other requirement of this subsection, 9 every earthen livestock waste lagoon shall include the 10 construction of a secondary berm, filter strip, grass 11 waterway, or terrace, or any combination of those, outside 12 the perimeter of the primary berm if an engineer licensed 13 under the Professional Engineering Practice Act of 1989 and 14 retained by the registrant determines, with the concurrence 15 of the Department, that construction of such a secondary berm 16 or other feature or features is necessary in order to ensure 17 against a release of livestock waste from the lagoon (i) that 18 encroaches or is reasonably expected to encroach upon land 19 other than the land occupied by the livestock waste handling 20 facility of which the lagoon is a part or (ii) that enters 21 or is reasonably expected to enter the waters of this State. 22 The Department shall determine compliance with these 23 requirements. The Department may require changes in design 24 or additional requirements to protect groundwater, such as 25 extra liner depth or synthetic liners, when it appears 26 groundwater could be impacted. 27 (a-1) Standards for livestock waste handling facilities 28 other than earthen livestock waste lagoons. After the 29 effective date of this amendatory Act of the 91st General 30 Assembly, livestock waste handling facilities other than 31 earthen livestock waste lagoons used for the storage of 32 livestock waste shall be constructed in accordance with this 33 Section. 34 The Advisory Committee shall review, evaluate, and make -80- LRB9105181DHmg 1 recommendations to the Department to establish permanent 2 construction standards for livestock waste handling 3 facilities other then earthen livestock waste lagoons. 4 Within 4 months after the effective date of this amendatory 5 Act of the 91st General Assembly, the Department shall 6 propose permanent construction standards for livestock waste 7 handling facilities other than earthen lagoons to the 8 Pollution Control Board. 9 Within 8 months after the Department proposes permanent 10 construction standards, the Pollution Control Board shall 11 hold hearings on and shall adopt permanent construction 12 standards. 13 (a-2) Interim standards for livestock waste handling 14 facilities other than earthen livestock waste lagoons. After 15 the effective date of this amendatory Act of the 91st General 16 Assembly and prior to the adoption of final construction 17 standards by the Pollution Control Board, the livestock waste 18 handling facility owner may rely on guidance from the county 19 Soil and Water Conservation District, the United States 20 Department of Agriculture Natural Resources Conservation 21 Service, or the University of Illinois Cooperative Extension 22 Service for soil type and water table level information. 23 On soils where high water (vadose water) is a concern or 24 where the soil does not meet the recommended allowable soil 25 bearing strength and load factor as set in the Midwest Plan 26 Services Handbook (MWPS-36) and future updates, footings and 27 underlying structure support shall be incorporated into the 28 design standards of the storage structure in accordance with 29 the requirements of Section 4.1 of the American Society of 30 Agricultural Engineers (ASAE EP393.2) and future updates. 31 (1) Livestock waste handling facilities constructed 32 of concrete shall meet the strength and load factors set 33 forth in the Midwest Plan Service's Concrete Manure 34 Storage Handbook (MWPS-36) and future updates. In -81- LRB9105181DHmg 1 addition, those structures shall meet the following 2 requirements: 3 (A) Waterstops shall be incorporated into the 4 design of the storage structure when consistent 5 with the requirements of paragraph (1) of this 6 subsection; 7 (B) Storage structures that handle waste in a 8 liquid form shall be designed to contain a volume 9 of not less than the amount of waste generated 10 during 150 days of facility operation at design 11 capacity; and 12 (C) Storage structures not covered or 13 otherwise protected from precipitation shall, in 14 addition to the waste storage volume requirements of 15 item (B) of paragraph (1) of this subsection, 16 include a 2-foot freeboard. 17 (2) A livestock waste handling facility in a 18 prefabricated form shall meet the strength, load, and 19 compatibility factors for its intended use. Those 20 factors shall be verified by the manufacturer's 21 specifications. 22 (3) Livestock waste handling facilities holding 23 semi-solid livestock waste, including but not limited to 24 picket dam structures, shall be constructed according to 25 the requirements set forth in the Midwest Plan Service's 26 Livestock Waste Facilities Handbook (MWPS-18) and future 27 updates or similar standards used by the Natural 28 Resources Conservation Service of the United States 29 Department of Agriculture. 30 (4) Livestock waste handling facilities holding 31 solid livestock waste shall be constructed according to 32 the requirements set forth in the Midwest Plan Service's 33 Livestock Waste Facilities Handbook (MWPS-18) and future 34 updates or similar standards used by the Natural -82- LRB9105181DHmg 1 Resources Conservation Service of the United States 2 Department of Agriculture. In addition, solid livestock 3 waste stacking structures shall be sized to store not 4 less than the amount of waste generated during 6 months 5 of facility operation at design capacity. 6 (5) Holding ponds, used for the temporary storage 7 of livestock feedlot run-off, shall be constructed 8 according to the requirements set forth in the Midwest 9 Plan Service's Livestock Waste Facilities Handbook 10 (MWPS-18) and future updates or similar standards used by 11 the Natural Resources Conservation Service of the United 12 States Department of Agriculture. 13 (b) Registration and certification. Any earthen14 livestock wastelagoon or other livestock waste handling 15 facility with a capacity to serve more than 500 animal units 16 that is newly constructed, ormodified, or expanded (does not 17 include repairs) after the effective date of rules adopted 18 for the implementation of this Act shall be registered by the 19 owner or operator with the Department on a form provided by 20 the Department. Owners or operators of lagoons or other 21 livestock waste handling facilities constructed prior to May 22 20, 1997 the effective date of rules adopted for the23 implementation of this Actmay register them with the 24 Department at no charge. 25 In order to give the Department notice of the owner's or 26 operator's intent to construct or modify a an earthen27 livestock waste handling facility lagoon, the owner or 28 operator shall register the facility such lagoonwith the 29 Department before beginning construction during the30 preconstruction phase. The Department shall provide a 31 copyof the registration form to the Agency. Construction 32 shall not begin until 30 days after submittal of a 33 registration form by certified mail to the Department. When 34 an informational meeting is requested by the county, -83- LRB9105181DHmg 1 construction shall not begin until after the informational 2 meeting has been held. 3 Livestock waste handling facility lagoonregistration 4 forms shall be made available to producers at offices of the 5 Department of Agriculture, Cooperative Extension Service, and 6 Soil and Water Conservation Districts. 7 Registration information shall include the following: 8 (1) Name(s) and address(es) of the owner and 9 operator who are responsible for the livestock waste 10 handling facility lagoon. 11 (2) General location of the facility lagoon. 12 (3) Design construction plans and specifications. 13 (4) Specific location information: 14 (A) Distance to a private or public potable 15 well; 16 (B) Distance to closest occupied private 17 residence (other than any occupied by owner or 18 operator); 19 (C) Distance to nearest stream; and 20 (D) Distance to nearest populated area. 21 (5) Anticipated beginning and ending dates of 22 construction. 23 (6) Type of livestock and number of animal units. 24 The Department of Agriculture, upon receipt of a 25 livestock waste lagoonregistration form, shall review the 26 form to determine that all required information has been 27 provided. The person filing the registration shall be 28 notified within 15 working days that the registration is 29 complete or that clarification of information is needed. No 30 later than 10 working days after receipt of the clarification 31 information, the Department shall notify the owner or 32 operator that the registration is complete. 33 The Department shall inspect a an earthenlivestock waste 34 handling facility lagoonduring preconstruction, -84- LRB9105181DHmg 1 construction, and post-construction. The Department shall 2 require modifications when necessary to bring construction in 3 compliance with the standards as set forth in subsections 4 subsection(a), (a-1), or (a-2) of Section 15. The person 5 making the inspection shall discuss with the owner, operator, 6 or certified livestock manager an evaluation of the livestock 7 waste handling facility lagoonconstruction and shall (i) 8 provide on-site written recommendations to the owner, 9 operator, or certified livestock manager of what 10 modifications are necessary or (ii) inform the owner, 11 operator, or certified livestock manager that the facility 12 lagoonmeets the standards set forth in subsections 13 subsection(a), (a-1), or (a-2) of Section 15. Within 10 14 days On the dayof the inspection, the person making the 15 inspection shall give the owner, operator, or certified 16 livestock manager a written report of his or her findings 17 based on the inspection, together with an explanation of any 18 remedial measures necessary to enable the facility lagoonto 19 meet the standards set forth in subsections subsection(a), 20 (a-1), or (a-2). 21 The person making any inspection shall comply with 22 reasonable animal health protection procedures as requested 23 by the owner, operator, or certified livestock manager. 24 Upon completion of the construction or modification, but 25 prior to placing the facility lagoonin service, the owner or 26 operator of the livestock waste handling facility lagoon27 shall certify on a form provided by the Department that the 28 facility lagoonhas been constructed or modified in 29 accordance with the standards set forth in subsections 30 subsection(a), (a-1), or (a-2) of Section 15 and that the 31 information provided on the registration form is correct. 32 (1) The certification notice to the Department 33 shall include a certification statement and signature. 34 (2) The certification shall state: "I hereby -85- LRB9105181DHmg 1 certify that the information provided on this form is 2 correct and that the livestock waste handling facility 3 lagoonhas been constructed in accordance with the 4 standards as required by the Livestock Management 5 Facilities Act." 6 The owner or operator of the facility lagoonmay proceed 7 to place the facility lagoonin service no earlier than 10 8 working days after submitting to the Department a 9 certification of compliance statement. 10 (b-5) Public informational meeting. Within 7 days after 11 receiving a registration form giving notice of an intent to 12 construct or modify a an earthenlivestock waste handling 13 facility with a capacity to serve more than 500 animal units 14 lagoonafter the effective date of this amendatory Act of 15 the 91st General Assembly 1997, the Department shall send a 16 copy of the registration form to the county board of the 17 county in which the facility lagoonis or is to be located. 18 After receiving a copy of a livestock waste handling facility 19 lagoonregistration form from the Department under this 20 subsection, within 30 days the county board may at its 21 discretion request that the Department conduct a public 22 informational meeting within 15 days of the request 23 concerning the proposed construction or modification of the 24 facility lagoon. If the Department conducts such a meeting, 25 then at least 10 days before the meeting, the Department 26 shall cause notice of the meeting to be published in a 27 newspaper of general circulation in the county or the State 28 newspaper. The owner or operator who submitted the 29 registration form to the Department shall appear at the 30 meeting. At the meeting, the Department shall afford members 31 of the public an opportunity to ask questions and present 32 oral or written testimony concerning the proposed 33 construction or modification of the facility lagoon. 34 (c) Complaint procedure. Any person having a complaint -86- LRB9105181DHmg 1 concerning a an earthenlivestock waste handling facility or 2 a livestock management facility lagoonmay file a complaint 3 with the Agency. If the Agency finds that groundwater has 4 been negatively impacted because of structural problems with 5 the facility earthen lagoon, the Agency shall notify the 6 Department that modification of the facility of the lagoonis 7 necessary. The livestock owner or operator or the Department 8 may request guidance from the United States Department of 9 Agriculture Natural Resource Conservation Service or the 10 University of Illinois Cooperative Extension Service. 11 The person making any inspection shall comply with animal 12 health protection procedures as requested by the owner or 13 operator. 14 Any earthenlivestock waste handling facility lagoonin 15 service prior to May 20, 1997 the effective date of the rules16 for implementation of this Act is not subject to registration17 butis onlysubject to the complaint procedure. However,Any 18 suchlivestock waste handling facility lagoonfound impacting 19 groundwater shall be required to be repaired, modified, or 20 have procedures instituted so groundwater is not negatively 21 impacted. 22 If an investigation reveals groundwater has been 23 negatively impacted, the Department and Agency shall 24 cooperate with the owner or operator of the affected 25 livestock waste handling facility lagoonto provide a 26 reasonable solution to protect the groundwater. 27 Nothing in this Section shall limit the Agency's 28 authority under the Environmental Protection Act to 29 investigate and respond to violations of the Environmental 30 Protection Act or rules adopted under that Act. 31 (d) Livestock waste handling facility lagoon32 registration fee. The livestock waste handling facility 33 lagoonregistration fee is $250 $50. The fees shall be 34 earmarked for inspection and oversight expenses of the -87- LRB9105181DHmg 1 Department and Agency. 2 (d-5) Reporting release of waste. An owner or operator 3 of a livestock management facility or livestock waste 4 handling facility lagoonshall report to the Agency any 5 release of livestock waste from the facility a lagoonwithin 6 24 hours after the discovery of the release. The procedure 7 for reporting releases shall be adopted by the Agency by 8 rule. 9 For a first violation of this subsection (d-5) by the 10 owner or operator of a livestock management facility or 11 livestock waste handling facility, the Department shall send 12 the owner or operator a written notice of the violation by 13 certified mail, return receipt requested. 14 If after an administrative hearing the Department finds 15 that the owner or operator of a livestock management facility 16 or livestock waste handling facility has committed a second 17 violation of this subsection (d-5), the Department shall 18 impose on the owner or operator a civil administrative 19 penalty in an amount not exceeding $1,000. The Attorney 20 General may bring an action in the circuit court to enforce 21 the collection of a penalty imposed under this subsection 22 (d-5). 23 If after an administrative hearing the Department finds 24 that the owner or operator of a livestock management facility 25 or livestock waste handling facility has committed a third 26 violation of this subsection (d-5), the Department shall 27 enter an administrative order directing that the owner or 28 operator cease operation of the facility until the violation 29 is corrected. 30 If a livestock management facility or livestock waste 31 handling facility has not committed a violation of this 32 subsection (d-5) within the 5 years immediately preceding a 33 violation, the violation shall be construed and treated as a 34 first violation. -88- LRB9105181DHmg 1 (e) Closure of livestock waste handling facilities 2 lagoons. When any earthenlivestock waste handling facility 3 lagoonis removed from service, it shall be completely 4 emptied. Appropriate closure procedures shall be followed as 5 determined by rule. Any Theremaining hole or pit must be 6 filled. The closure requirements shall be completed within 7 two years from the date of cessation of operation unless the 8 facility lagoonis maintained or serviced. The Department 9 may grant a waiver to the before-stated closure requirements 10 that will permit the livestock waste handling facility lagoon11 to be used for an alternative purpose. 12 Upon a change in ownership of a registered earthen13 livestock waste handling facility lagoon, the owner shall 14 notify the Department of the change within 30 working days of 15 the closing of the transaction. 16 (f) Administrative authority. All actions of the 17 Department of Agriculture are subject to the Illinois 18 Administrative Procedure Act. 19 Any new earthenlivestock waste handling facility lagoon20 subject to registration shall not begin operation until the 21 owner or operator of the lagoonhas met the requirements of 22 this Act. 23 The owner or operator of any earthenlivestock waste 24 handling facility lagoonsubject to registration that has not 25 been registered or constructed in accordance with standards 26 set forth in subsections subsection(a), (a-1), or (a-2) of 27 Section 15 shall, upon being identified as such by the 28 Department, be given written notice by the Department to 29 register and certify the livestock waste handling facility 30 lagoonwithin 10 working days of receipt of the notice. The 31 Department may inspect such livestock waste handling facility 32 lagoonand require compliance in accordance with subsections 33 (a), (a-1), (a-2), and (b) of this Section. If the owner or 34 operator of the livestock waste handling facility lagoonthat -89- LRB9105181DHmg 1 is subject to registration fails to comply with the notice, 2 the Department may issue a cease and desist order until such 3 time as compliance is obtained with the requirements of this 4 Act. Failure to construct the livestock waste handling 5 facility lagoonin accordance with the construction plan and 6 Department recommendations is a business offense punishable 7 by a fine of not more than $5,000. 8 (Source: P.A. 89-456, eff. 5-21-96; 90-565, eff. 6-1-98.) 9 (510 ILCS 77/16) 10 Sec. 16. Inspection of earthenlivestock waste handling 11 facilities lagoonsby Department. At least once each year 12 on a random basis, the Department shall inspect every earthen13 livestock waste handling facility lagoonthat services 500 14 1,000or more animal units and is required to be registered 15 under this Act. The owner or operator of the livestock 16 waste handling facility lagoonor a certified livestock 17 manager must be present during the inspection. If the 18 owner, operator, or certified livestock manager is not 19 present at the scheduled date, time, and place of the 20 inspection, the inspection shall proceed in his or her 21 absence. The person making the inspection shall conduct a22 visual inspection to determine only whether any of the23 following are present: burrow holes, trees or woody24 vegetation, proper freeboard, erosion, settling of the berm,25 bermtop maintenance, leaks, and seepage.The person making 26 the inspection shall discuss with the owner, operator, or 27 certified livestock manager an evaluation of the livestock 28 waste handling facility's lagoon'scurrent condition and 29 shall (i) provide on-site written recommendations to the 30 owner, operator, or certified livestock manager of what 31 corrective actions are necessary or (ii) inform the owner, 32 operator, or certified livestock manager that the facility 33 lagoonmeets the standards set forth in this subsection. -90- LRB9105181DHmg 1 The person making any inspection shall comply with 2 reasonable animal health protection procedures as requested 3 by the owner, operator, or certified livestock manager. 4 The Department shall send official written notice of any 5 deficiencies to the owner or operator of the facility lagoon6 by certified mail, return receipt requested. The owner or 7 operator and the Department shall enter into an agreement of 8 compliance setting forth the specific action and timetable to 9 correct the deficiencies. The person making the 10 reinspection shall notify the Department of the results of 11 the reinspection, and the Department shall take the 12 appropriate action under this Section. If the Department's 13 inspector finds a release or evidence of a release, the 14 Department shall immediately report such information to the 15 Agency. 16 For a first violation of this Section by the owner or 17 operator of a livestock management facility or livestock 18 waste handling facility, the Department shall send the owner 19 or operator a written notice of the violation by certified 20 mail, return receipt requested. 21 If after an administrative hearing the Department finds 22 that the owner or operator of a livestock management facility 23 or livestock waste handling facility has committed a second 24 violation of this Section, the Department shall impose on the 25 owner or operator a civil administrative penalty in an amount 26 not exceeding $1,000. The Attorney General may bring an 27 action in the circuit court to enforce the collection of a 28 penalty imposed under this Section. 29 If after an administrative hearing the Department finds 30 that the owner or operator of a livestock management facility 31 or livestock waste handling facility has committed a third 32 violation of this Section, the Department shall enter an 33 administrative order directing that the owner or operator 34 cease operation of the facility until the violation is -91- LRB9105181DHmg 1 corrected. 2 If a livestock management facility or livestock waste 3 handling facility has not committed a violation of this 4 Section within the 5 years immediately preceding a violation, 5 the violation shall be construed and treated as a first 6 violation. 7 (Source: P.A. 90-565, eff. 6-1-98.) 8 (510 ILCS 77/17) 9 Sec. 17. Financial responsibility. Owners of livestock 10 waste handling facilities new or modified lagoonsregistered 11 under the provisions of this Act shall establish and maintain 12 evidence of financial responsibility to provide for the 13 closure of the facilities lagoonsand the proper disposal of 14 their contents within the time provisions outlined in this 15 Act. Financial responsibility may be evidenced by any 16 combination of the following: 17 (1) Commercial or private insurance; 18 (2) Guarantee; 19 (3) Surety bond; 20 (4) Letter of credit; 21 (5) Certificate of Deposit or designated savings 22 account; 23 (6) Participation in a livestock waste handling facility 24 lagoonclosure fund managed by the Illinois Farm Development 25 Authority. 26 The level of surety required shall be determined by rule 27 and be based upon the volumetric capacity of the facility 28 lagoon. Surety instruments required under this Section 29 shall be required after the effective date of rules adopted 30 for the implementation of this Act. 31 (Source: P.A. 89-456, eff. 5-21-96; 90-565, eff. 6-1-98.) 32 (510 ILCS 77/20) -92- LRB9105181DHmg 1 Sec. 20. Handling, storing and disposing of livestock 2 waste. 3 (a) The livestock management facility owner or operator 4 shall comply with the requirements for handling, storing, and 5 disposing of livestock wastes as set forth in the rules 6 adopted pursuant to the Illinois Environmental Protection Act 7 concerning agriculture related pollution. 8 (b) The livestock management facility owner or operator 9 at a facility of less than 500 1,000animal units shall not 10 be required to prepare and maintain a waste management plan. 11 (c) The livestock management facility owner or operator 12 at a facility of 500 1,000or greater animal units but less 13 than 5,000 7,000animal units shall prepare and maintain on 14 file at the livestock management facility a general waste 15 management plan. Notwithstanding this requirement, a 16 livestock management facility subject to this subsection may 17 be operated on an interim basis but not to exceed 6 months 18 after the effective date of the rules promulgated pursuant to 19 this Act to allow for the owner or operator of the facility 20 to develop a waste management plan. The waste management 21 plan shall be available for inspection during normal business 22 hours by Department personnel. 23 (d) The livestock management facility owner or operator 24 at a facility of 5,000 7,000or greater animal units shall 25 prepare, maintain, and submit to the Department the waste 26 management plan for approval. Approval of the waste 27 management plan shall be predicated on compliance with 28 provisions of subsection (f). The waste management plan shall 29 be approved by the Department before operation of the 30 facility or in the case of an existing facility, the waste 31 management plan shall be submitted within 60 working days 32 after the effective date of the rules promulgated pursuant to 33 this Act. 34 The owner or operator of an existing livestock management -93- LRB9105181DHmg 1 facility that through growth meets or exceeds 5,000 7,0002 animal units shall file its waste management plan with the 3 Department within 60 working days after reaching the stated 4 animal units. 5 The owner or operator of a livestock management facility 6 that is subject to this subsection (d) shall file within 60 7 working days with the Department a revised waste management 8 plan when there is a significant change in items (1), (2), or 9 (10) of subsection (f) that will materially affect compliance 10 with the waste management plan. 11 (e) The waste management plan and records of livestock 12 waste disposal shall be kept on file for 5 threeyears. 13 (f) The application of livestock waste to the land is an 14 acceptable, recommended, and established practice in 15 Illinois. However, when livestock waste is not applied in a 16 responsible manner, it may create pollution pollutional17 problems. It should be recognized that, in most cases, if18 the agronomic nitrogen rate is met, the phosphorus applied19 will exceed the crop requirements, but not all of the20 phosphorus may be available for use by the crop.It will be 21 considered acceptable, therefore, to prepare and implement a 22 waste management plan based on the phosphorus, nitrogen, or 23 potassium rate, whichever is more limiting. The waste 24 management plan shall include the following: 25 (1) An estimate of the volume of waste to be 26 disposed of annually. 27 (2) The number of acres available for disposal of 28 the waste. 29 (3) An estimate of the nutrient value of the waste. 30 (4) An indication that the livestock waste will be 31 applied at rates not to exceed the agronomic phosphorus, 32 nitrogen, and potassium nitrogendemand of the crops to 33 be grown when averaged over a 5-year period. 34 (5) A provision that livestock waste applied within -94- LRB9105181DHmg 1 1/4 mile of any residence not part of the facility shall 2 be injected or incorporated on the day of application. 3 However, livestock management facilities and livestock 4 waste handling facilities that have irrigation systems in 5 operation prior to the effective date of this Act or 6 existing facilities applying waste on frozen ground are 7 not subject to the provisions of this item (5). 8 (6) A provision that livestock waste may not be 9 applied within 200 feet of surface water unless the water 10 is upgrade or there is adequate diking, and waste will 11 not be applied within 200 150feet of potable water 12 supply wells. 13 (7) A provision that livestock waste may not be 14 applied in a 10-year flood plain unless the injection or 15 incorporation method of application is used. 16 (8) A provision that livestock waste may not be 17 applied in waterways. 18 (9) A provision that if waste is spread on frozen 19 or snow-covered land, the application will be limited to 20 land areas on which: 21 (A) land slopes are 5% or less, or 22 (B) adequate erosion control practices exist. 23 (10) Methods for disposal of animal waste. 24 (g) Any person who is required to prepare and maintain a 25 waste management plan and who fails to do so shall be issued 26 a warning letter by the Department for the first violation 27 and shall be given 30 working days to prepare a waste 28 management plan. For failure to prepare and maintain a waste 29 management plan, the person shall be fined an administrative 30 penalty of up to $1,000 by the Department and shall be 31 required to enter into an agreement of compliance to prepare 32 and maintain a waste management plan within 30 working days. 33 For failure to prepare and maintain a waste management plan 34 after the second 30 day period or for failure to enter into a -95- LRB9105181DHmg 1 compliance agreement, the Department may issue an operational 2 cease and desist order until compliance is attained. 3 (Source: P.A. 89-456, eff. 5-21-96; 90-565, eff. 6-1-98.) 4 (510 ILCS 77/25) 5 Sec. 25. Odor control. 6 (a) Operators of livestock waste handling facilities 7 shall practice odor control methods during the course of 8 manure removal and field application. Odor control methods 9 shall be those methods identified in the rules adopted 10 pursuant to the Illinois Environmental Protection Act 11 concerning agriculture related pollution. 12 (b) Every single-stage livestock waste handling facility 13 lagoonconstructed after the effective date of this 14 amendatory Act of the 91st General Assembly 1997shall comply 15 with the following operational guidelines: 16 (1) In operation, the facility lagoonmust be 17 maintained at not less than the minimum design volume. 18 (2) If applicable, the livestock waste supply to the 19 facility lagoonmust be below the minimum design volume 20 level. 21 (3) The livestock waste storage capacity of a the22 lagoon must be greater than 270 days. The livestock 23 waste storage capacity for a facility other than a lagoon 24 must be at least 180 days. 25 (c) Above-ground livestock waste holding structures must 26 be operated using odor control management guidelines based on 27 scientific peer review accepted by the Department and 28 determined to be economically feasible to the specific 29 operation. 30 (d) For a first violation of this Section by the owner 31 or operator of a livestock management facility or livestock 32 waste handling facility, the Department shall send the owner 33 or operator a written notice of the violation by certified -96- LRB9105181DHmg 1 mail, return receipt requested. 2 If after an administrative hearing the Department finds 3 that the owner or operator of a livestock management facility 4 or livestock waste handling facility has committed a second 5 violation of this Section, the Department shall impose on the 6 owner or operator a civil administrative penalty in an amount 7 not exceeding $1,000. The Attorney General may bring an 8 action in the circuit court to enforce the collection of a 9 penalty imposed under this Section. 10 If after an administrative hearing the Department finds 11 that the owner or operator of a livestock management facility 12 or livestock waste handling facility has committed a third 13 violation of this Section, the Department shall enter an 14 administrative order directing that the owner or operator 15 cease operation of the facility until the violation is 16 corrected. 17 If a livestock management facility or livestock waste 18 handling facility has not committed a violation of this 19 Section within the 5 years immediately preceding a violation, 20 the violation shall be construed and treated as a first 21 violation. 22 (Source: P.A. 89-456, eff. 5-21-96; 90-565, eff. 6-1-98.) 23 (510 ILCS 77/30) 24 Sec. 30. Certified Livestock Manager. The Department 25 shall establish a Certified Livestock Manager program in 26 conjunction with the livestock industry that will enhance 27 management skills in critical areas, such as environmental 28 awareness, safety concerns, odor control techniques and 29 technology, neighbor awareness, current best management 30 practices, and the developing and implementing of manure 31 management plans. 32 (a) Applicability. A livestock waste handling facility 33 serving 300 or greater animal units shall be operated only -97- LRB9105181DHmg 1 under the supervision of a certified livestock manager. Not 2 withstanding the before-stated provision, a livestock waste 3 handling facility may be operated on an interim basis, but 4 not to exceed 6 months, to allow for the owner or operator of 5 the facility to become certified. 6 (b) A certification program shall include the following: 7 (1) A general working knowledge of best management 8 practices. 9 (2) A general working knowledge of livestock waste 10 handling practices and procedures. 11 (3) A general working knowledge of livestock 12 management operations and related safety issues. 13 (4) An awareness and understanding of the 14 responsibility of the owner or operator for all employees 15 who may be involved with waste handling. 16 (c) Any certification issued shall be valid for 3 years 17 and thereafter be subject to renewal. A renewal shall be 18 valid for a 3 year period and the procedures set forth in 19 this Section shall be followed. The Department may require 20 anyone who is certified to be recertified in less than 3 21 years for just cause including but not limited to repeated 22 complaints where investigations reveal the need to improve 23 management practices. 24 (d) Methods for obtaining certified livestock manager 25 status. 26 (1) The owner or operator of a livestock waste 27 handling facility serving 300 or greater animal units but 28 less than 1,000 animal units shall become a certified 29 livestock manager by: 30 (A) attending a training session conducted by 31 the Department of Agriculture, Cooperative Extension 32 Service, or any agriculture association, which has 33 been approved by or is in cooperation with the 34 Department; or -98- LRB9105181DHmg 1 (B) in lieu of attendance at a training 2 session, successfully completing a written 3 competency examination. 4 (2) The owner or operator of a livestock waste 5 handling facility serving 1,000 or greater animal units 6 shall become a certified livestock manager by attending a 7 training session conducted by the Department of 8 Agriculture, Cooperative Extension Service, or any 9 agriculture association, which has been approved by or is 10 in cooperation with the Department and successfully 11 completing a written competency examination. 12 (e) The certified livestock manager certificate shall be 13 issued by the Department and shall indicate that the person 14 named on the certificate is certified as a livestock 15 management facility manager, the dates of certification, and 16 when renewal is due. 17 (f) The Department shall charge $50 $10for the issuance 18 or renewal of a certified livestock manager certificate. The 19 Department may, by rule, establish fees to cover the costs of 20 materials and training for training sessions given by the 21 Department. 22 (g) The owner or operator of a livestock waste handling 23 facility operating in violation of the provisions of 24 subsection (a) of this Section shall be issued a warning 25 letter for the first violation and shall be required to have 26 a certified manager for the livestock waste handling facility 27 within 30 working days. For failure to comply with the 28 warning letter within the 30 day period, the person shall be 29 fined an administrative penalty of up to $1,000 by the 30 Department and shall be required to enter into an agreement 31 to have a certified manager for the livestock waste handling 32 facility within 30 working days. For continued failure to 33 comply, the Department may issue an operational cease and 34 desist order until compliance is attained. -99- LRB9105181DHmg 1 (Source: P.A. 89-456, eff. 5-21-96; 90-565, eff. 6-1-98.) 2 (510 ILCS 77/35) 3 Sec. 35. Setbacks for livestock management and livestock 4 handling facilities. 5 (a) Grandfather provision; facilities in existence prior 6 to July 15, 1991. Livestock management facilities and 7 livestock waste handling facilities in existence prior to 8 July 15, 1991 shall comply with setbacks in existence prior 9 to July 15, 1991, as set forth in the Illinois Environmental 10 Protection Act and rules promulgated under that Act. 11 (b) Grandfather provision; facilities in existence on 12 effective date and after July 15, 1991. Livestock management 13 facilities and livestock waste handling facilities in 14 existence on the effective date of this Act but after July 15 15, 1991 shall comply with setbacks in existence prior to the 16 effective date of this Act, as set forth in the Illinois 17 Environmental Protection Act and rules promulgated under that 18 Act. 19 (c) New livestock management or livestock waste handling 20 facilities. Any new facility shall comply with the following 21 setbacks: 22 (1) For purposes of determining setback distances, 23 minimum distances shall be measured from the nearest 24 corner of the residence or place of common assembly to 25 the nearest corner of the livestock earthenwaste 26 handling facility lagoonor livestock management 27 facility, whichever is closer. 28 (2) A livestock management facility or livestock 29 waste handling facility serving less than 50 animal 30 units shall be exempt from setback distances as set forth 31 in this Act but shall be subject to rules promulgated 32 under the Illinois Environmental Protection Act. 33 (3) For a livestock management facility or waste -100- LRB9105181DHmg 1 handling facility serving 50 or greater but less than 2 1,000 animal units, the minimum setback shall be 1/4 mile 3 from the nearest occupied non-farm residence and 1/2 mile 4 from the nearest populated area. 5 (4) For a livestock management facility or 6 livestock waste handling facility serving 1,000 or 7 greater but less than 7,000 animal units, the setback is 8 as follows: 9 (A) For a populated area, the minimum setback 10 shall be increased 440 feet over the minimum setback 11 of 1/2 mile for each additional 1,000 animal units 12 over 1,000 animal units. 13 (B) For any occupied residence, the minimum 14 setback shall be increased 220 feet over the minimum 15 setback of 1/4 mile for each additional 1,000 animal 16 units over 1,000 animal units. 17 (5) For a livestock management facility or 18 livestock waste handling facility serving 7,000 or 19 greater animal units, the setback is as follows: 20 (A) For a populated area, the minimum setback 21 shall be 1 mile. 22 (B) For any occupied residence, the minimum 23 setback shall be 1/2 mile. 24 (d) Requirements governing the location of a new 25 livestock management facility and new livestock 26 waste-handling facility and conditions for exemptions or 27 compliance with the maximum feasible location as provided in 28 rules adopted pursuant to the Illinois Environmental 29 Protection Act concerning agriculture regulated pollution 30 shall apply to those facilities identified in subsections (b) 31 and (c) of this Section. With regard to the maximum feasible 32 location requirements, any reference to a setback distance in 33 the rules under the Illinois Environmental Protection Act 34 shall mean the appropriate distance as set forth in this -101- LRB9105181DHmg 1 Section. 2 (e) Setback category shall be determined by the design 3 capacity in animal units of the livestock management 4 facility. 5 (f) Setbacks may be decreased when innovative designs as 6 approved by the Department are incorporated into the 7 facility. 8 (g) A setback may be decreased when waivers are obtained 9 from owners of residences that are occupied and located in 10 the setback area. 11 (Source: P.A. 89-456, eff. 5-21-96.) 12 (510 ILCS 77/36 new) 13 Sec. 36. Construction in flood plain and other areas; 14 prohibition. After the effective date of this amendatory Act 15 of the 91st General Assembly, no livestock management 16 facility or livestock waste handling facility of 500 or 17 greater animal units shall be constructed in (i) the 100-year 18 flood plain, (ii) any area with karst topography, or (iii) 19 any area where aquifer material is found 5 feet or less below 20 the bottom of the livestock management facility or the 21 livestock waste handling facility. 22 (510 ILCS 77/95 new) 23 Sec. 95. Violations of Environmental Protection Act. 24 Livestock management facilities and livestock waste handling 25 facilities shall be subject to penalties and liability for 26 any violations of the Environmental Protection Act including, 27 but not limited to, violations of subsection (a) of Section 9 28 and subsections (a) and (b) of Section 12 of that Act. 29 Section 99. Effective date. This Act takes effect upon 30 becoming law. -102- LRB9105181DHmg 1 INDEX 2 Statutes amended in order of appearance 3 SEE INDEX 4 225 ILCS 650/2 from Ch. 56 1/2, par. 302 5 225 ILCS 650/3 from Ch. 56 1/2, par. 303 6 225 ILCS 650/5 from Ch. 56 1/2, par. 305 7 225 ILCS 650/5.1 new 8 225 ILCS 650/5.2 new 9 225 ILCS 650/8 from Ch. 56 1/2, par. 308 10 225 ILCS 650/9 from Ch. 56 1/2, par. 309 11 225 ILCS 650/10 from Ch. 56 1/2, par. 310 12 225 ILCS 650/11 from Ch. 56 1/2, par. 311 13 225 ILCS 650/13 from Ch. 56 1/2, par. 313 14 225 ILCS 650/14 from Ch. 56 1/2, par. 314 15 225 ILCS 650/15 from Ch. 56 1/2, par. 315 16 225 ILCS 650/16.1 from Ch. 56 1/2, par. 316.1 17 225 ILCS 650/19 from Ch. 56 1/2, par. 319 18 225 ILCS 650/19.01 new 19 225 ILCS 650/19.2 from Ch. 56 1/2, par. 319.2 20 225 ILCS 650/2.1 rep. 21 225 ILCS 650/2.2 rep. 22 225 ILCS 650/2.3 rep. 23 225 ILCS 650/2.4 rep. 24 225 ILCS 650/2.5 rep. 25 225 ILCS 650/2.6 rep. 26 225 ILCS 650/2.7 rep. 27 225 ILCS 650/2.8 rep. 28 225 ILCS 650/2.9 rep. 29 225 ILCS 650/2.9a rep. 30 225 ILCS 650/2.10 rep. 31 225 ILCS 650/2.11 rep. 32 225 ILCS 650/2.12 rep. 33 225 ILCS 650/2.13 rep. 34 225 ILCS 650/2.14 rep. -103- LRB9105181DHmg 1 225 ILCS 650/2.15 rep. 2 225 ILCS 650/2.16 rep. 3 225 ILCS 650/2.17 rep. 4 225 ILCS 650/2.18 rep. 5 225 ILCS 650/2.19 rep. 6 225 ILCS 650/2.20 rep. 7 225 ILCS 650/2.21 rep. 8 225 ILCS 650/2.22 rep. 9 225 ILCS 650/2.23 rep. 10 225 ILCS 650/2.24 rep. 11 225 ILCS 650/2.25 rep. 12 225 ILCS 650/2.26 rep. 13 225 ILCS 650/2.28 rep. 14 225 ILCS 650/2.29 rep. 15 225 ILCS 650/2.30 rep. 16 225 ILCS 650/2.31 rep. 17 225 ILCS 650/2.32 rep. 18 225 ILCS 650/2.33 rep. 19 225 ILCS 650/2.34 rep. 20 225 ILCS 650/2.35 rep. 21 225 ILCS 650/2.36 rep. 22 225 ILCS 650/2.37 rep. 23 225 ILCS 650/2.38 rep. 24 225 ILCS 650/2.39 rep. 25 225 ILCS 650/2.40 rep. 26 225 ILCS 650/2.41 rep. 27 225 ILCS 650/2.42 rep. 28 225 ILCS 650/2.43 rep. 29 225 ILCS 650/2.44 rep. 30 225 ILCS 650/3.1 rep. 31 225 ILCS 650/4 rep. 32 225 ILCS 650/7 rep. 33 225 ILCS 650/19.1 rep. 34 240 ILCS 40/1-10 -104- LRB9105181DHmg 1 240 ILCS 40/1-15 2 240 ILCS 40/5-30 3 240 ILCS 40/10-10 4 240 ILCS 40/10-15 5 240 ILCS 40/10-25 6 240 ILCS 40/25-10 7 240 ILCS 40/25-20 8 240 ILCS 40/30-5 9 510 ILCS 77/10.30 10 510 ILCS 77/10.40 11 510 ILCS 77/10.65 new 12 510 ILCS 77/15 13 510 ILCS 77/16 14 510 ILCS 77/17 15 510 ILCS 77/20 16 510 ILCS 77/25 17 510 ILCS 77/30 18 510 ILCS 77/35 19 510 ILCS 77/36 new 20 510 ILCS 77/95 new
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