Public Act 93-0135

HB1121 Enrolled                      LRB093 06818 JAM 06963 b

    AN ACT authorizing a horse feed checkoff.

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

    Section  1.  Short  title.  This  Act may be cited as the
Illinois Equine Research and Promotion Act.

    Section 5.  Definitions. As used in this Act:
         "Board" means the Illinois Equine Industry  Research
    and  Promotion  Board  appointed  in accordance with this
    Act.
         "Commercial equine feed"  means  manufactured  feed,
    supplement, or premix intended or labeled for equine use.
         "Director" means the Director of Agriculture.
         "Manufactured  feed"  means grains, seeds, or forage
    that  are  ground,  mixed,  supplemented,  or   otherwise
    altered for the purpose of consumption.
         "Qualified    industry   organization"   means   the
    Horsemen's Council of Illinois or successor  organization
    that  represents  the  entire  spectrum  of  the Illinois
    equine industry.

    Section  10.  Referendum.  Within  90  days   after   the
effective  date  of  this  Act,  the  University  of Illinois
Extension shall determine by referendum whether the  affected
equine owners in Illinois assent to the levy, collection, and
use of an equine feed assessment in accordance with this Act.
The University of Illinois Extension shall be compensated for
all  costs  associated  with  conducting  the referendum. The
results shall be certified by an  independent  auditing  firm
located  in  Illinois and submitted to the Director within 30
days  after  certification.  All  qualified  Illinois  equine
owners shall be entitled to one vote.
    Voting shall be at locations throughout the  State  on  a
day  and  during a time period as specified by the University
of Illinois Extension. Provisions shall be made for  absentee
voting.  Publicity  and  notification of the referendum date,
absentee voting procedures, and  voting  locations  shall  be
provided  in  the  appropriate  trade publications and in the
public press at least 3  weeks  prior  to  the  date  of  the
referendum.
    Upon  approval  by  the  majority  of  qualified Illinois
equine owners and certification by  an  independent  auditing
firm  located in Illinois, the Board shall be established and
authorized to levy an assessment on horse feed in  accordance
with this Act.

    Section  15.  Qualified Illinois equine owner. A resident
of Illinois shall be considered a qualified  Illinois  equine
owner  if  he or she executes an affidavit verifying Illinois
residency and one of the following requirements:
         (1)  Current registration for the equine.
         (2)  Receipt of a valid coggins test within the last
    12 months.
         (3)  Receipt for the current lease of an equine.
         (4)  A lease purchase agreement, contract, or  other
    legal   document   showing  current  ownership  or  lease
    interest in an equine.
         (5)  Feed, supplies, care, or service  receipts  for
    an equine within the past 12 months.

    Section   20.  Illinois   Equine  Industry  Research  and
Promotion Board.
    (a)  Upon certification of the assent by the majority  of
qualified  Illinois  equine  owners voting on the referendum,
the qualified  industry  organization  shall  select  the  12
members   of   the  Illinois  Equine  Industry  Research  and
Promotion Board.
    In selecting members, the qualified industry organization
shall  give  due  regard  to  selecting  a  Board   that   is
representative  of  the  diverse  geographical regions of the
State and the equine industry, to include representation of:
         (1)  The harness racing industry.
         (2)  The thoroughbred racing industry.
         (3)  The Illinois pleasure, show, and working  horse
    industries.
    The  qualified  industry  organization  shall  select one
member  of  the  Board  from  the  Illinois  feed  and  grain
industry.  Each  selected  member  of  the  Board  with   the
exception  of  the  member  representing  the  feed and grain
industry shall be a qualified Illinois equine owner, a person
fully employed in the Illinois equine industry, or  a  person
servicing the Illinois equine industry.
    (b)  Except  for  initial appointees, Board members shall
serve terms of 3 years. Members may not  serve  more  than  2
consecutive  terms.  Members  filling unexpired terms may not
serve more than  a  total  of  7  consecutive  years.  Former
members of the Board may return to the Board if they have not
been  a member for 2 years. Initial appointments to the Board
shall be for terms of  one,  2,  and  3  years  staggered  to
provide for the selection of 4 members each year.
    (c)  The   Board   shall   select   from  its  members  a
chairperson and other officers as necessary.  The  Board  may
establish committees and subcommittees of the Board and shall
adopt  rules  and  bylaws  for  the  conduct  of business and
implementation  of  this  Act.  The  Board  shall   establish
procedures  for  the  solicitation of equine industry comment
and recommendation on any  significant  plans,  programs,  or
projects  to  be funded by the Board. The Board may establish
advisory committees of persons other than Board members.
    (d)  Issues related to research, education, and  industry
enhancements  and  promotion  shall  be given priority by the
Board in developing programs and projects.
    (e)  At the beginning of  each  fiscal  year,  the  Board
shall prepare a budget for the next fiscal year including the
costs  of  all  projects,  contracts, and programs. The Board
shall submit the  budget  to  the  Director  for  review  and
comment.  The Director may recommend appropriate programs and
activities.
    (f)  The Board shall keep  minutes,  books,  and  records
that  clearly  reflect all acts and transactions of the Board
and shall make public that  information.  The  books  of  the
Board  shall  be  audited by a certified public accountant at
least once during each fiscal year and other times the  Board
may  designate.  The  expense  of  the  audit  shall  be  the
responsibility  of  the  Board.  Copies of the audit shall be
provided to the Director and all members of the Board and  to
other members of the equine industry upon request.

    Section 25.  Assessments.
    (a)  The  Board shall set the assessment at $2 per ton or
5 cents per 50-pound  bag  of  commercial  equine  feed.  The
assessed   amount   shall   apply  to  all  manufacturers  of
commercial equine feed when the feed is sold or imported  for
sale in Illinois. The assessment when made shall be listed as
a separate line on the bill labeled "Illinois Equine Research
and  Promotion  Assessment". Assessments collected are due to
the Board the 25th day of each quarter and shall include  the
total  collected  for  the  previous  calendar  quarter.  The
remitting  manufacturer  may  retain  2%  of  the  amount  of
assessment  as  a  collection  fee. If payment is not made in
full to the Board by the due date  as  specified  under  this
subsection,  an  interest  penalty of 5% of any unpaid amount
shall be added for each month or fraction of  a  month  after
the  due date, until final payment is made. No collection fee
may be retained on amounts not remitted in full by  the  25th
day of each quarter.
    (b)  The  Board  may  establish  an  alternative means of
collecting the assessment if another means  is  found  to  be
more  effective  and  efficient.  The  Board shall assess any
charges  incurred  in  conjunction  with  action  to   secure
compliance with this Act by any person who fails to remit any
amount due the Board under this Act.
    (c)  Pending disbursement pursuant to a program, plan, or
project,  the  Board  shall  invest  funds  collected through
assessments, and any other funds received by the Board,  only
(i)  in  obligations  of  the  United  States  or  any agency
thereof,  (ii)  in  general  obligations  of  any  state   or
political  subdivision thereof, (iii) in any interest-bearing
account or certificate of deposit of a bank that is a  member
of  the  Federal Reserve System, or (iv) in obligations fully
guaranteed as to the principal and  interest  by  the  United
States.

    Section  30.  Refunds.  The final purchaser of commercial
equine  feed,  who  has  a  dated  receipt   displaying   the
assessment  added  as  a  line item to the sale price, may by
application in writing to the Board secure a  refund  in  the
amount   added.   The   refund  shall  be  payable  when  the
application has been made to the Board within 60  days  after
the  assessment.  Interest  shall  be allowed and paid at the
rate of 5% per annum upon the total amount of such assessment
imposed by this Act,  except  when  any  such  assessment  is
refunded  within  90 days after an application for refund has
been made within the required 60 days after assessment.  Each
application  for a refund by a purchaser of commercial equine
feed shall have attached thereto proof of assessment charged.
A purchaser who obtains a refund  is  not  eligible  for  any
benefits provided under this Act.
    Section 35.  Compliance. The circuit courts of this State
have jurisdiction specifically to enforce this Act.

    Section  99.  Effective date.  This Act takes effect upon
becoming law.

Effective Date: 07/10/03