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1		AN ACT concerning business.
2		Be it enacted by the People of the State of Illinois,
3		represented in the General Assembly:
4		Section 5. The Livestock Auction Market Law is amended by
5		changing Section 6.2 as follows:
6		(225 ILCS 640/6.2) (from Ch. 121 1/2, par. 213b)
7		Sec. 6.2. The Department may refuse to issue or may suspend
8		the license of any person upon the complaint in writing from
9		the Checkoff Division of the Illinois Beef Association Board of
10		Governors Illinois Beef Council indicating that the person has
11		failed to properly remit or deduct funds as required by Section
12		9 of the Beef Market Development Act.
13		(Source: P.A. 87-172.)
14		Section 10. The Illinois Livestock Dealer Licensing Act is
15		amended by changing Sections 9 and 9.2 as follows:
16		(225 ILCS 645/9) (from Ch. 111, par. 409)
17		Sec. 9. The Department may refuse to issue or renew or may
18		suspend or revoke a license on any of the following grounds:
19		a. Material misstatement in the application for original
20		license or in the application for any renewal license under
21		this Act;

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1		b. Wilful disregard or violation of this Act, or of any
2		other Act relative to the purchase and sale of livestock,
3		feeder swine or horses, or of any regulation or rule issued
4		pursuant thereto;
5		c. Wilfully aiding or abetting another in the violation of
6		this Act or of any regulation or rule issued pursuant thereto;
7		d. Allowing one's license under this Act to be used by an
8		unlicensed person;
9		e. Conviction of any felony, if the Department determines,
10		after investigation, that such person has not been sufficiently
11		rehabilitated to warrant the public trust;
12		f. Conviction of any crime an essential element of which is
13		misstatement, fraud or dishonesty;
14		g. Conviction of a violation of any law in Illinois or any
15		Departmental rule or regulation relating to livestock;
16		h. Making substantial misrepresentations or false promises
17		of a character likely to influence, persuade or induce in
18		connection with the livestock industry;
19		i. Pursuing a continued course of misrepresentation of or
20		making false promises through advertising, salesmen, agents or
21		otherwise in connection with the livestock industry;
22		j. Failure to possess the necessary qualifications or to
23		meet the requirements of this Act for the issuance or holding a
24		license;
25		k. Failure to pay for livestock after purchase;
26		l. Issuance of checks for payment of livestock when funds

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1		are insufficient;
2		m. Determination by a Department audit that the licensee or
3		applicant is insolvent;
4		n. Operating without adequate bond coverage or its
5		equivalent required for licensees.
6		o. Failing to remit the assessment required in Section 9 of
7		the Beef Market Development Act upon written complaint of the
8		Checkoff Division of the Illinois Beef Association Board of
9		Governors Illinois Beef Council.
10		The Department may refuse to issue or may suspend the
11		license of any person who fails to file a return, or to pay the
12		tax, penalty or interest shown in a filed return, or to pay any
13		final assessment of tax, penalty or interest, as required by
14		any tax Act administered by the Illinois Department of Revenue,
15		until such time as the requirements of any such tax Act are
16		satisfied.
17		(Source: P.A. 87-172.)
18		(225 ILCS 645/9.2) (from Ch. 111, par. 409.2)
19		Sec. 9.2. The Department may refuse to issue or may suspend
20		the license of any person upon the complaint in writing from
21		the Checkoff Division of the Illinois Beef Association Board of
22		Governors Illinois Beef Council indicating that the person has
23		failed to properly remit or deduct funds as required by Section
24		9 of the Beef Market Development Act.
25		(Source: P.A. 87-172)

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1		Section 15. The Beef Market Development Act is amended by
2		changing Sections 2, 3, 4, 6, 7, 8, 9, 10, 11, 13, and 14 as
3		follows:
4		(505 ILCS 25/2) (from Ch. 5, par. 1402)
5		Sec. 2. Definitions. In this Act, unless the context
6		otherwise requires:
7		(a) "Beef" and "Beef products" means the meat intended for
8		human consumption from any bovine animal, regardless of age,
9		including veal.
10		(b) "Cattle" means such animals as may be so designated by
11		federal law, including such marketing, promotion and research
12		orders as may from time to time be in effect. Unless such
13		federal law provides to the contrary, "cattle" means all bovine
14		animals, regardless of age, including calves, except that
15		cattle provided for dairy purposes shall be excluded during
16		their useful life as dairy animals. A cow and nursing calf sold
17		together shall be considered one unit.
18		(c) "Checkoff Division" means the Checkoff Division of the
19		Illinois Beef Association Board of Governors. "Council" means
20		the operating committee established under this Act to
21		administer and govern the program.
22		(d) "Person" means any natural person, partnership,
23		corporation, company, association, society, trust or other
24		business unit or organization.

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1		(e) "Market Agent", "Market Agency", "Collection Agent" or
2		"Collection Agency" means any person who sells, offers for
3		sale, markets, distributes, trades or processes cattle which
4		has been purchased or acquired from a producer, or which is
5		marketed on behalf of a producer, and further includes
6		meatpacking firms and their agents which purchase or consign to
7		purchase cattle.
8		(f) "Director" means a member of the Checkoff Division
9		Illinois Beef Council.
10		(g) "Board" means the elected members of the Checkoff
11		Division Illinois Beef Council.
12		(h) "Producer" means a person that has owned or sold cattle
13		in the previous calendar year or presently owns cattle.
14		(Source: P.A. 84-1273; 84-1276.)
15		(505 ILCS 25/3) (from Ch. 5, par. 1403)
16		Sec. 3. Name and purposes.
17		(a) The name of the program created and organized by this
18		Act shall be the Illinois Beef Association Checkoff Division
19		Illinois Beef Council.
20		(b) The purposes and objectives of the program shall
21		include:
22		(1) To promote the sale and use of beef and beef
23		products and to support national beef promotion, research,
24		education, and other consumer marketing activities at a
25		funding level to be determined by the Checkoff Division

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1		Council and to otherwise support consumer market
2		development and promotion efforts on a national or
3		international scale;
4		(2) To develop new uses and markets for beef and beef
5		products;
6		(3) To develop and improve methods of distributing beef
7		and beef products to the consumer;
8		(4) To develop methods of improving the quality of beef
9		and beef products for the consumer benefit;
10		(5) To inform and educate the public of the nutritive
11		and economic values of beef and beef products;
12		(6) To function in a liaison capacity within the beef
13		and other food industries of the State and elsewhere in
14		matters that would increase efficiencies which ultimately
15		benefit both consumer and industry.
16		(Source: P.A. 88-571, eff. 8-11-94.)
17		(505 ILCS 25/4) (from Ch. 5, par. 1404)
18		Sec. 4. Governing board. With a favorable vote of beef
19		producers in the State of Illinois to support an
20		assessment/deduction rate, as determined by referendum, of up
21		to 50¢ per head of cattle sold in Illinois to finance the
22		intent and purpose of this Act, there shall be created a
23		Checkoff Division an Illinois Beef Council governed by a board
24		of directors of 14 members. Two directors shall be elected by
25		beef producers from each of seven compact and contiguous

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1		districts, apportioned as nearly as practicable according to
2		the cattle-on-farms census report taken from the latest
3		available United States Department of Agriculture records.
4		No county in Illinois shall be apportioned in more than one
5		district. The seven districts shall be re-apportioned by the
6		Checkoff Division Council every 9 years, according to the
7		latest available United States Department of Agriculture
8		cattle-on-farms census records. An elected director shall not
9		become ineligible to serve his or her elected term through any
10		re-apportionment.
11		Term of office. The 14 directors shall be elected to serve
12		a three year term and may be reelected to serve an additional
13		consecutive term. An elected director shall be a resident of
14		Illinois, and shall be a beef producer who has been a beef
15		producer for at least the 5 years prior to his or her election.
16		A qualified beef producer may be elected to serve on the board
17		only if he or she has submitted, by registered mail to the
18		Checkoff Division Illinois Beef Council office, a nominating
19		petition containing signatures of more than 50 beef producers
20		from the district he or she may seek to represent. Only the 2
21		candidates receiving the greatest number of votes cast from
22		that district shall be elected.
23		On the first elected board of directors, one term of office
24		from each district shall be limited to two years; the two year
25		term to be determined by lottery at the first meeting of the
26		Checkoff Division Illinois Beef Council. No member may serve

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1		more than two consecutive terms.
2		All Checkoff Division Beef Council board positions shall be
3		unsalaried. However, the board members may be reimbursed for
4		travel and other expenses incurred in carrying out the intent
5		and purposes of this Act.
6		It shall be the responsibility of the Checkoff Division
7		Council to conduct the election of new board members within 30
8		days before the end of any elected board member's term of
9		office. Newly elected board members shall assume their office
10		at the first meeting of the Checkoff Division Council after
11		their election to office, which shall be convened within 30
12		days after the election. Notice of such meeting shall be sent
13		to the members of the Checkoff Division Illinois Beef Council
14		by certified mail at least 10 days prior thereto, stating the
15		time, date and place of the meeting.
16		Notice of elections of members of the board shall be given
17		at least once in trade publications, the public press, and
18		statewide newspapers at least 30 days prior to such election.
19		The Checkoff Division Council may declare the office of a
20		board member vacant and appoint a beef producer from that
21		district to serve the unexpired term of any member unable or
22		unwilling to complete his or her term of office.
23		(Source: P.A. 88-571, eff. 8-11-94.)
24		(505 ILCS 25/6) (from Ch. 5, par. 1406)
25		Sec. 6. Powers and duties of the Checkoff Division Council.

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1		(a) The Checkoff Division Council shall:
2		(1) Receive and disburse funds, as prescribed elsewhere in
3		this Act, to be used in administering and implementing the
4		provisions and intent of this Act;
5		(2) Annually elect a Chairman from among its members who
6		may succeed himself for not more than one term;
7		(3) Annually elect a Secretary-Treasurer from among its
8		members;
9		(4) Meet regularly, not less often than one time each
10		calendar quarter or at such other times as called by the
11		Chairman, or when requested by four or more members of the
12		Checkoff Division Council, all meetings to be held under the
13		Open Meetings Act of the State of Illinois;
14		(5) Maintain a permanent record of its business
15		proceedings;
16		(6) Maintain a permanent and detailed record of its
17		financial dealings;
18		(7) Prepare periodic reports and an annual report of its
19		activities for the fiscal year, for review of the beef industry
20		of the State, and the annual report is to be filed with the
21		Illinois Director of Agriculture;
22		(8) Prepare periodic reports and an annual accounting for
23		the fiscal year of all receipts and expenditures for review of
24		the beef industry of the State, and shall retain a certified
25		public accountant for this purpose;
26		(9) Appoint a licensed banking institution as the

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1		depository for program funds and disbursements;
2		(10) Maintain frequent communication with officers and
3		industry representatives of the National Livestock and Meat
4		Board.
5		(11) Maintain an office at a specific location in Illinois.
6		(b) The Checkoff Division Council may:
7		(1) Conduct or contract for scientific research with any
8		accredited university, college or similar institution; and,
9		enter into other contracts or agreements which will aid in
10		carrying out the purposes of the program, including contracts
11		for the purchase or acquisition of facilities or equipment
12		necessary to carry out the purposes of the program;
13		(2) Disseminate reliable information benefiting the
14		consumer and the beef industry on such subjects as, but not
15		limited to, purchase, identification, care, storage, handling,
16		cookery, preparation, serving and nutritive value of beef and
17		beef products;
18		(3) Provide information to such various government bodies
19		as request it, on subjects of concern to the beef industry; and
20		further, act jointly or in cooperation with the State or
21		Federal government, and agencies thereof, in the development or
22		administration of programs deemed by the Checkoff Division
23		Council as consistent with the objectives of the programs;
24		(4) Sue and be sued as a Checkoff Division Council without
25		individual liability of the members for acts of the Checkoff
26		Division Council when acting within the scope of the powers of

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1		this Act, and in the manner prescribed by the laws of the
2		State;
3		(5) Borrow money from licensed lending institutions in
4		amounts which are not cumulatively greater than 50% of
5		anticipated annual income;
6		(6) Maintain a financial reserve for emergency use, the
7		total of which shall not exceed 50% of anticipated annual
8		income;
9		(7) Appoint advisory groups composed of representatives
10		from organizations, institutions, governments or business
11		related to or interested in the welfare of the beef industry
12		and the consuming public;
13		(8) Employ subordinate officers and employees of the
14		Checkoff Division Council and prescribe their duties and fix
15		their compensation and terms of employment;
16		(9) Cooperate with any local, State, regional or nationwide
17		organization or agency engaged in work or activities consistent
18		with the objectives of the program.
19		(10) Cause any duly authorized agent or representative to
20		enter upon the premises of any market agency, market agent,
21		collection agent, or collection agency and examine or cause to
22		be examined by such agent only books, papers, and records which
23		deal in any way with respect to the payment of the
24		assessment/deduction or enforcement of this Act.
25		(Source: P.A. 84-343; 84-584.)

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1		(505 ILCS 25/7) (from Ch. 5, par. 1407)
2		Sec. 7. Acceptance of grants and gifts. (a) The Checkoff
3		Division Council may accept grants, donations, contributions
4		or gifts from any source, provided the use of such resources is
5		not restricted in any manner which is deemed inconsistent with
6		the objectives of the program.
7		(Source: P.A. 83-84.)
8		(505 ILCS 25/8) (from Ch. 5, par. 1408)
9		Sec. 8. Payments to organizations. (a) As described
10		heretofore, the Checkoff Division Council may pay funds to
11		other organizations for work or services performed which are
12		consistent with the objectives of the program.
13		(b) Prior to making payments described in this Section, the
14		Checkoff Division Council shall secure agreements in writing
15		that such organization receiving payment shall:
16		(1) Furnish not less often than annual, or on request of
17		the Checkoff Division Council, written or printed reports of
18		program activities and reports of financial data which are
19		relative to the Checkoff Division's Council's funding of such
20		activities;
21		(2) Agree to have appropriate representatives attend
22		business meetings of the Checkoff Division Council as
23		reasonably requested by the Chairman of the Checkoff Division
24		Council.
25		(c) The Checkoff Division Council may require adequate

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1		proof of security bonding on funds paid to any individual,
2		business or other organizations.
3		(Source: P.A. 84-343; 84-584.)
4		(505 ILCS 25/9) (from Ch. 5, par. 1409)
5		Sec. 9. Collection of monies at time of marketing.
6		(a) Every marketing agency licensed to do business in the
7		State of Illinois shall deduct from the gross receipts of the
8		seller, at the time of sale, an assessment established by
9		referendum up to 50¢ per head, as recommended by the Checkoff
10		Division Council, on all cattle marketed in the State in
11		addition to any assessment for a National Promotion Research
12		Program, created by federal law, which may be in effect.
13		(b) The collecting agent shall assemble all such monies and
14		forward them to the Checkoff Division Council on a regular
15		basis, not less often than monthly, and the Checkoff Division
16		Council shall provide appropriate business forms for the
17		convenience of the collecting agent in executing this duty.
18		Failure of the collecting agent to deduct or forward funds
19		under this Section is grounds for the Checkoff Division Council
20		to request the Department of Agriculture to suspend or refuse
21		to issue the collecting agent's licenses issued under the
22		Livestock Auction Market Law or Livestock Dealer Licensing Act.
23		(c) The Checkoff Division Council shall maintain within its
24		financial record a separate accounting of all monies received
25		under the provisions of this Section.

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1		(d) Any due and payable assessment/deduction required
2		under this Act constitutes a personal debt of the person so
3		assessed or who otherwise owes the assessment/deduction. In the
4		event of failure of a person to remit any properly due
5		assessment/deduction or sum, the Checkoff Division Council may
6		bring a civil action against that person in the circuit court
7		of any county for the collection thereof, and may add an
8		additional 10% penalty assessment, cost of enforcing the
9		collection of the assessment, and court costs. The action shall
10		be tried and judgment rendered as in any other cause of action
11		for debts due and payable. All assessments, penalty
12		assessments, and enforcement costs are due and payable to the
13		Checkoff Division Council.
14		(e) All monies deducted under the provisions of this
15		Section shall be considered as bonafide business expenses for
16		the seller as provided for under the tax laws of this State.
17		(f) The Checkoff Division Council may adopt reciprocal
18		agreements with other Beef Councils or like organizations, on
19		moneys collected at Illinois collecting agencies on cattle from
20		other states and on Illinois cattle sold at other state
21		markets.
22		(Source: P.A. 87-172; 88-571, eff. 8-11-94.)
23		(505 ILCS 25/10) (from Ch. 5, par. 1410)
24		Sec. 10. Refunds. (a) Any seller of cattle who has had
25		monies deducted from his gross sales receipts under the

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1		provisions of this Act, shall be entitled to a prompt and full
2		refund. Any seller of cattle who has had monies deducted from
3		his gross sale receipts under the provisions of the Federal
4		Beef Promotion and Research Order, as amended from time to
5		time, shall be entitled to receive a refund which may be made
6		in a manner consistent with the coordination of this Act and
7		the National Beef Promotion Research Program for such time as
8		such Program may be in effect.
9		(b) The Checkoff Division Council shall make available to
10		all collecting agents business forms permitting requests for
11		refund, such forms to be submitted by the objecting cattle
12		producer or owner within 30 days of the sale transaction.
13		(c) Refund claims by the cattle producer or owner shall
14		include his signature, date of sale, place of sale, number of
15		cattle and amount of assessment deducted, and shall have
16		attached thereto proof of the assessment deducted.
17		(d) If the Checkoff Division Council has reasonable doubt
18		that a refund claim is valid, it may withhold payment and take
19		such action as may be deemed necessary to determine its
20		validity.
21		(e) All requests for refunds shall be initiated by the
22		producer only.
23		(Source: P.A. 84-1273; 84-1276.)
24		(505 ILCS 25/11) (from Ch. 5, par. 1411)
25		Sec. 11. Surety bond. (a) Any person authorized by the

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1		Checkoff Division Council to receive or disburse funds, as
2		provided by the Act, shall post with the Checkoff Division
3		Council a surety bond in the amount deemed appropriate by the
4		Checkoff Division Council.
5		(b) Premiums covering bonding for employees, officers or
6		members of the Checkoff Division Council shall be paid by the
7		Checkoff Division Council.
8		(c) No person shall knowingly fail or refuse to comply with
9		any requirement of this Act. The Checkoff Division Council may
10		institute any action which is necessary to enforce compliance
11		with any provision of this Act and rule or regulation
12		thereunder. Each day's violation constitutes a separate
13		offense. In addition to any other remedy provided by law, the
14		Checkoff Division Council may petition for injunctive relief
15		without being required to allege or prove the absence of any
16		adequate remedy at law.
17		(Source: P.A. 84-343; 84-584.)
18		(505 ILCS 25/13) (from Ch. 5, par. 1413)
19		Sec. 13. With the delivery by certified mail to the
20		Checkoff Division Illinois Beef Council office of petitions
21		from each of the 7 districts containing signatures of at least
22		100 beef producers from each district, stating "Shall the Beef
23		Market Development Act continue", the Checkoff Division
24		Illinois Beef Council shall, within 90 days, conduct a
25		referendum to determine if a majority of the beef producers

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1		voting in such referendum support the continuation of the Beef
2		Market Development Act. Referendums under this Section shall be
3		held not more than one time each 5 years.
4		(Source: P.A. 91-357, eff. 7-29-99.)
5		(505 ILCS 25/14) (from Ch. 5, par. 1414)
6		Sec. 14. Bylaws. The Checkoff Division Illinois Beef
7		Council shall within 90 days of this Act becoming law, adopt
8		bylaws to carry out the intent and purposes of this Act. These
9		bylaws can be amended with a 30 day notice to board members at
10		any regular or special meeting called for this purpose.
11		(Source: P.A. 83-84.)
12		Section 99. Effective date. This Act takes effect upon
13		becoming law.