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92_SB0994enr SB994 Enrolled LRB9208140TAtm 1 AN ACT concerning agriculture. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 1. Short title. This Act may be cited as the 5 Illinois AgriFIRST Program Act of 2001. 6 Section 5. Definitions. In this Act: 7 "Agribusiness" means any sole proprietorship, limited 8 partnership, co-partnership, joint venture, corporation, or 9 cooperative that operates or will operate a facility located 10 within the State of Illinois that is related to the 11 processing of agricultural commodities (including, but not 12 limited to, the products of aquaculture, hydroponics, and 13 silviculture) or the manufacturing, production, or 14 construction of agricultural buildings, structures, 15 equipment, implements, and supplies, or any other facilities 16 or processes used in agricultural production. "Agribusiness" 17 includes but is not limited to the following: 18 (1) grain handling and processing, including grain 19 storage, drying, treatment, conditioning, milling, and 20 packaging; 21 (2) seed and feed grain development and processing; 22 (3) fruit and vegetable processing, including 23 preparation, canning, and packaging; 24 (4) processing of livestock and livestock products, 25 dairy products, poultry and poultry products, fish or 26 apiarian products, including slaughter, shearing, 27 collecting, preparation, canning, and packaging; 28 (5) fertilizer and agricultural chemical 29 manufacturing, processing, application and supplying; 30 (6) farm machinery, equipment, and implement 31 manufacturing and supplying; SB994 Enrolled -2- LRB9208140TAtm 1 (7) manufacturing and supplying of agricultural 2 commodity processing machinery and equipment, including 3 machinery and equipment used in slaughter, treatment, 4 handling, collecting, preparation, canning, or packaging 5 of agricultural commodities; 6 (8) farm building and farm structure manufacturing, 7 construction, and supplying; 8 (9) construction, manufacturing, implementation, 9 supplying, or servicing of irrigation, drainage, and soil 10 and water conservation devices or equipment; 11 (10) fuel processing and development facilities 12 that produce fuel from agricultural commodities or 13 by-products; 14 (11) facilities and equipment for processing and 15 packaging agricultural commodities specifically for 16 export; 17 (12) facilities and equipment for forestry product 18 processing and supplying, including sawmilling 19 operations, wood chip operations, timber harvesting 20 operations, and manufacturing of prefabricated buildings, 21 paper, furniture, or other goods from forestry products; 22 and 23 (13) facilities and equipment for research and 24 development of products, processes, and equipment for the 25 production, processing, preparation, or packaging of 26 agricultural commodities and by-products. 27 "Agricultural facility" means land, any building or other 28 improvement on or to land, and any personal properties deemed 29 necessary or suitable for use, whether or not now in 30 existence, in farming, ranching, the production of 31 agricultural commodities (including, but not limited to, the 32 products of aquaculture, hydroponics, and silviculture) or 33 the treating, processing, or storing of agricultural 34 commodities. SB994 Enrolled -3- LRB9208140TAtm 1 "Agricultural land" means land suitable for agriculture 2 production. 3 "Asset" includes, but is not limited to, the following: 4 cash crops or feed on hand; livestock held for sale; breeding 5 stock; marketable bonds and securities; securities not 6 readily marketable; accounts receivable; notes receivable; 7 cash invested in growing crops; net cash value of life 8 insurance; machinery and equipment; cars and trucks; farm and 9 other real estate including life estates and personal 10 residence; value of beneficial interest in trusts; government 11 payments or grants; and any other assets. 12 "Department" means the Department of Agriculture. 13 "Director" means the Director of Agriculture. 14 "Fund" means the Illinois AgriFIRST Program Fund. 15 "Grantee" means the person or entity to whom a grant is 16 made to from the Fund. 17 "Lender" means any federal or State chartered bank, 18 federal land bank, production credit association, bank for 19 cooperatives, federal or state chartered savings and loan 20 association or building and loan association, small business 21 investment company, or any other institution qualified within 22 this State to originate and service loans, including, but not 23 limited to, insurance companies, credit unions, and mortgage 24 loan companies. "Lender" includes a wholly owned subsidiary 25 of a manufacturer, seller or distributor of goods or services 26 that makes loans to businesses or individuals, commonly known 27 as a "captive finance company". 28 "Liability" includes, but is not limited to, the 29 following: accounts payable; notes or other indebtedness owed 30 to any source; taxes; rent; amounts owed on real estate 31 contracts or real estate mortgages; judgments; accrued 32 interest payable; and any other liability. 33 "Person" means, unless limited to a natural person by the 34 context in which it is used, a person, corporation, SB994 Enrolled -4- LRB9208140TAtm 1 association, trust, partnership, limited partnership, joint 2 venture, or cooperative. 3 "State" means the State of Illinois. 4 "Value-added" means the processing, packaging, or 5 otherwise enhancing the value of farm and agricultural 6 products or by-products produced in Illinois. 7 Section 10. Legislative findings. 8 (a) The General Assembly finds that in this State the 9 following conditions exist: 10 (1) There exists an inadequate supply of funds at 11 interest rates sufficiently low to enable persons engaged 12 in agriculture in this State to pursue agricultural or 13 agribusiness operations at present levels. 14 (2) The inability to pursue agricultural operations 15 lessens the supply of agricultural commodities available 16 to fulfill the needs of the citizens of this State. 17 (3) The inability to continue operations decreases 18 available employment in the agricultural sector of the 19 State and results in unemployment and its attendant 20 problems. 21 (4) These conditions prevent the acquisition of an 22 adequate capital stock of farm equipment and machinery, 23 much of which is manufactured in this State, therefore 24 impairing the productivity of agricultural land and 25 causing unemployment or lack of appropriate increase in 26 employment in that manufacturing. 27 (5) These conditions are conducive to consolidation 28 of acreage of agricultural land with fewer individuals 29 living and farming on the traditional family farm. 30 (6) These conditions result in a loss in 31 population, unemployment, and movement of persons from 32 rural to urban areas accompanied by added costs to 33 communities for creation of new public facilities and SB994 Enrolled -5- LRB9208140TAtm 1 services. 2 (7) There have been recurrent shortages of funds 3 from private market sources at reasonable rates of 4 interest. 5 (8) The ordinary operations of private enterprise 6 have not in the past corrected these conditions. 7 (9) There is a need for value-added products and 8 processing in this State. 9 (10) A stable supply of adequate funds for 10 agricultural financing is required to encourage family 11 farmers and agribusiness in an orderly and sustained 12 manner and to reduce the problems described in this 13 Section. 14 (b) The General Assembly determines and declares that 15 there exist conditions in the State that require the 16 Department to issue grants on behalf of the State for the 17 acquisition and development of agricultural facilities and 18 value-added products and processing. 19 Section 15. Illinois AgriFIRST Program Requirements. 20 (a) The Department shall review grant requests for the 21 Illinois AgriFIRST Grant Program that are submitted to the 22 Department. The Department, in reviewing the applications, 23 must consider, but is not limited to considering the 24 following criteria: 25 (1) The project has a reasonable assurance of 26 enhancing the value of agricultural products or will 27 expand agribusiness in Illinois. 28 (2) Preliminary market and feasibility research has 29 been conducted by the applicant or others and there is a 30 reasonable assurance of a potential market. 31 (3) The applicant has demonstrated the ability to 32 manage the business or commercialize the idea. 33 (4) There is favorable community support for the SB994 Enrolled -6- LRB9208140TAtm 1 project. 2 (5) There are favorable recommendations from local 3 economic development groups, university-based technical 4 specialists, or other qualified service providers. 5 (6) The applicant demonstrates a personal 6 commitment and a commercialization development plan. 7 (7) There is an adequate and realistic budget 8 projection. 9 (8) The application meets the eligibility 10 requirements and the project costs are eligible under 11 this Act. 12 (9) The applicant has established a need for the 13 grant. 14 (10) The economic impact of the project on the 15 State's agriculture and agribusiness sector. 16 (b) The Department may impose additional or lesser 17 requirements for the grant. Preference for grants shall be 18 given to, but is not limited to, the following: 19 (1) Proposals for industrial and nonfood production 20 processes using Illinois agricultural products. 21 (2) Proposals for food, feed, and fiber products 22 that use Illinois agricultural products and add to the 23 value of Illinois agricultural products. 24 (3) Research proposals that have not been 25 duplicated by other research efforts. 26 (4) Proposals that demonstrate that the applicant 27 has invested his or her own funds, time, and or other 28 valued consideration in the project. 29 (5) Proposals that are reasonably expected to 30 result in a viable commercial application. 31 (6) Proposals that have a positive economic impact 32 on the State's agriculture and agribusiness sector. 33 Section 20. Report. The Director must file with the SB994 Enrolled -7- LRB9208140TAtm 1 Governor, the State Treasurer, the Secretary of the Senate, 2 and the Clerk of the House of Representatives, by March 1 of 3 each year, a written report covering the activities of the 4 Department for the previous calendar year. The report is a 5 public record and must be available for inspection at the 6 offices of the Department during normal business hours. The 7 report must include a complete list of (i) all applications 8 for grants under the Illinois AgriFIRST Grant Program during 9 the calendar year; (ii) all persons that have received any 10 form of financial assistance from the Department during the 11 calendar year; and (iii) the nature and amount of all 12 financial assistance. 13 Section 25. Powers of the Department. The Department 14 has the following powers, together with all powers incidental 15 to or necessary for the discharge of those powers: 16 (1) To grant its moneys to one or more persons to 17 be used by those persons to pay the costs of technical 18 assistance and feasibility studies and acquiring, 19 constructing, reconstructing, or improving agricultural 20 facilities for the purpose of adding value to Illinois 21 agricultural commodities. Grants must be on any terms and 22 conditions that the Department determines. 23 (2) To grant its moneys to any agribusiness which 24 operates or will operate a facility located in Illinois 25 for the purposes of adding value to Illinois agricultural 26 commodities. Grants must be on any terms and conditions 27 as the Department requires. 28 (3) To contract with lenders or others for the 29 origination of or the servicing of the grants made by the 30 Department. 31 (4) To receive and accept, from any source, aid or 32 contributions of money, property, labor, or other items 33 of value for furtherance of any of its purposes, subject SB994 Enrolled -8- LRB9208140TAtm 1 to any conditions not inconsistent with this Act or the 2 laws of this State pertaining to the contributions, 3 including, but not limited to, gifts, guarantees, or 4 grants from any department, agency, or instrumentality of 5 the United States of America. 6 (5) To collect any fees and charges in connection 7 with its grants, advances, servicing, and other 8 activities that it determines. 9 (6) To appoint, employ, contract with, and provide 10 for the compensation of any employees and agents, 11 including, but not limited to, engineers, attorneys, 12 management consultants, fiscal advisers, and 13 agricultural, silvicultural, and aquacultural experts, 14 that business of the Department requires. 15 (7) To make, enter into, and execute any contracts, 16 agreements, and other instruments with any person, 17 including but not limited to, any federal, State, or 18 local governmental agency and to take any other actions 19 that may be necessary or convenient to accomplish any 20 purpose for which this authority was granted to the 21 Department or to exercise any power expressly granted 22 under this Act. 23 (8) To establish funds for financial surety and 24 escrow accounts. 25 (9) To adopt any necessary rules that are 26 consistent with this Act. 27 Section 30. Liability. The Director, any Department 28 employee, or any authorized person executing grants is not 29 personally liable on the grants and is not subject to any 30 personal liability or accountability by reason of the 31 issuance of the grants. 32 Section 35. Illinois AgriFIRST Program. SB994 Enrolled -9- LRB9208140TAtm 1 (a) The Department must develop and administer an 2 Illinois AgriFIRST Program to enhance the value of Illinois 3 agriculture products or by-products through grants to current 4 and potential processors. Qualifying persons and 5 agribusinesses must be located in Illinois and must process, 6 package, or otherwise enhance the value of farm products or 7 by-products produced in Illinois. 8 The recipient of a grant under this Section must provide 9 a minimum percentage, as determined by the Department, of the 10 total cost of the processing project, with the balance of the 11 project's total cost available from other sources. Other 12 sources include, but are not limited to, commercial and 13 private lenders, leasing companies, and grants. The 14 recipient's match may be in cash, cash-equivalent 15 investments, or bonds, irrevocable letters of credit, or any 16 combination thereof. A grant under this Section may provide 17 (i) up to 75% of the cost for technical assistance to develop 18 a project to enhance the value of agricultural products or to 19 expand agribusiness in Illinois but not to exceed $25,000, 20 (ii) up to 50% of the cost of undertaking feasibility 21 studies, competitive assessments, and consulting or 22 productivity services that the Department determines may 23 result in the enhancement of value-added agricultural 24 products, and (iii) on and after July 1, 2003, up to 10% of 25 the project's total capital construction cost not to exceed 26 $5,000,000, including, but not limited to, (A) purchasing 27 land, (B) purchasing, constructing, or refurbishing 28 buildings, (C) purchasing or refurbishing machinery or 29 equipment, (D) installation, (E) repairs, (F) labor, and (G) 30 working capital. Notwithstanding any other provision of this 31 Section, the grant moneys may not be used for the purpose of 32 compliance with the provisions of the Livestock Management 33 Facilities Act. 34 Grant applications must be made on forms provided by and SB994 Enrolled -10- LRB9208140TAtm 1 in accordance with procedures established by the Department. 2 At a minimum, an applicant must be an Illinois resident, as 3 defined by Department rule, and must provide the names, 4 addresses, and occupations of all project owners, the project 5 address, relevant credit and financial information 6 (including, but not limited to, assets and liabilities), and 7 any other information deemed necessary by the Department for 8 review of the grant application. 9 (b) All requests for the waiver of any requirements in 10 this Section must be made in writing to the Department. A 11 grant award is subject to modification or alteration under, 12 but is not limited to, the following conditions: 13 (1) The grant award is subject to any modifications 14 that may be required by changes in State law or 15 regulations. The Department shall notify the recipient 16 in writing of any amendment to the regulations and the 17 effective date of those amendments. 18 (2) If either the Department or the recipient 19 requests to modify the terms of the grant award other 20 than as set forth in paragraph (1), written notice of the 21 proposed modification shall be given to the other party. 22 No modification shall take effect unless agreed to in 23 writing by both the Department and the recipient. 24 (c) The Illinois AgriFIRST Program Fund is created as a 25 special appropriated fund within the State treasury. 26 Appropriations and moneys from any public or private source 27 may be deposited into the Fund. The Fund shall be used for 28 the purposes of the Illinois AgriFIRST Program Act of 2001. 29 Repayments of grants made under this Section shall be 30 deposited into the Fund. 31 Section 40. Project reporting. The grantee of a funded 32 project shall submit to the Department periodic reports, as 33 specified in the grant agreement, outlining progress, SB994 Enrolled -11- LRB9208140TAtm 1 timeline, and budget compliance. Deviations from the 2 agreement may result in the withholding of further funding or 3 in a grant default. A final written report, describing the 4 work performed, results obtained, and economic impact is 5 required within 30 days after a project is completed. The 6 grantee shall also provide a financial report and return any 7 unused funds to the Department consistent with the Illinois 8 Grant Funds Recovery Act. Grantees may be required to submit 9 to the Department the following information: employment 10 reports, federal tax returns or financial statements, and 11 other information as requested by the Department where 12 economic or business conditions may be necessary to determine 13 conformance with grant conditions. The Department may 14 require the financial statements be compiled, reviewed, or 15 audited by an independent accountant at the expense of the 16 grantee at any time for 3 years following the completion of 17 the grant. 18 Section 45. Certification. The Department may develop 19 and implement organic, identity preserved, and value-added 20 certification processes and programs that guarantee a buyer 21 that the certified Illinois products have traits and 22 qualities that warrant a premium price or an increase in 23 added value. The Department may adopt rules setting 24 certification and licensing standards for persons to certify 25 products under this Section. 26 Section 50. Market access. The Department may (i) 27 identify international and domestic consumer preferences, 28 (ii) identify the new markets those preferences indicate, 29 particularly for value-added products, (iii) identify 30 preserved products, (iv) underwrite demonstrations on foreign 31 soils, and (v) provide market analyses and trend projections 32 to farmers and other interested persons. SB994 Enrolled -12- LRB9208140TAtm 1 Section 55. Default or termination of grant agreement. 2 If the recipient of a grant violates any of the terms of the 3 grant agreement, the Department shall send a written notice 4 to the recipient that he or she is in default and be given 5 the opportunity to correct the violations. 6 (a) If the violation is not corrected within 10 days 7 after receipt of the notification, the Director may take, but 8 is not limited to, one or more of the following actions: 9 (1) Declare due and payable the amount of the grant 10 and cease additional grant payments not yet made to the 11 grantee. 12 (2) Take any other action considered appropriate to 13 protect the interest of the project. 14 (b) The Department may determine that a recipient has 15 failed to faithfully perform the terms and conditions of the 16 scope of work of the project when: 17 (1) The Department has notified the recipient in 18 writing of the existence of circumstances such as 19 repeated failure to submit required reports, 20 misapplication of grant funds, failure to match 21 Department funds, evidence of fraud and abuse, repeated 22 failure to meet performance timelines or standards, or 23 failure to resolve negotiated points of the agreement. 24 (2) The recipient fails to develop and implement a 25 corrective action plan within 30 calendar days of the 26 Department's notice. 27 (c) A grant may be terminated under, but termination is 28 not limited to, any of the following circumstances: 29 (1) In the absence of State funding for a specific 30 year, all grants that year will be terminated in full. 31 In the event of a partial loss of State funding, the 32 Department may make proportionate cuts to all recipients. 33 (2) If the Department determines that the recipient 34 has failed to comply with the terms and conditions of the SB994 Enrolled -13- LRB9208140TAtm 1 grant agreement, the Department may terminate the grant 2 in whole, or in part, at any time before the date of 3 completion. 4 (3) The Department may terminate the grant in 5 whole, or in part, when the Department determines that 6 the continuation of the project would not produce 7 beneficial results commensurate with the further 8 expenditures of funds. 9 (4) The recipient may refuse or elect not to 10 complete the grant agreement and terminate the grant. The 11 recipient shall notify the Department within 10 days 12 after the date upon which performance ceases. The 13 Department may declare due and payable the amount of the 14 grant and may cease additional grant payments not yet 15 made to the grantee. 16 (d) Any money collected from the default or termination 17 of a grant shall be placed into the Fund and expended for the 18 purposes of this Act. 19 Section 60. State agriculture planning agency. The 20 Department is the State agriculture planning agency. The 21 Department may accept and use planning grants or other 22 financial assistance from the federal government (i) for 23 statewide comprehensive planning work, including research and 24 coordination activity directly related to agriculture needs; 25 and (ii) for State and interstate comprehensive planning and 26 research and coordination activity related to that planning. 27 All such grants shall be subject to the terms and conditions 28 prescribed by the federal government. 29 Section 65. Construction. This Act is necessary for the 30 welfare of this State and must be liberally construed to 31 effect its purposes. SB994 Enrolled -14- LRB9208140TAtm 1 Section 805. The State Finance Act is amended by adding 2 Section 5.545 as follows: 3 (30 ILCS 105/5.545 new) 4 Sec. 5.545. The Illinois AgriFIRST Program Fund. 5 (20 ILCS 205/40.43 rep.) 6 Section 810. The Department of Agriculture Law of the 7 Civil Administrative Code of Illinois is amended by repealing 8 Section 40.43 as added by Public Act 91-560. 9 Section 999. Effective date. This Act takes effect upon 10 becoming law.