Public Act 90-0377
HB1680 Enrolled LRB9004399NTsb
AN ACT concerning wheat marketing programs.
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
Wheat Development Act.
Section 5. Legislative purpose. The following is
declared to be the legislative policy of this Act:
(1) to foster development of new markets for wheat and
(2) to provide research needed to improve the efficiency
of the wheat production, marketing and utilization of wheat;
(3) to enhance more efficient and economical production
(4) to enable the wheat industry to adapt to changing
market demands; and
(5) to foster communications and cooperation in all
phases of the wheat industry-producers, business,
institutions, and agencies in order to provide an adequate
and equitable level of economic returns.
Section 10. Definitions. For the purpose of this Act,
unless the context clearly requires otherwise:
"Bushel" means 60 pounds of wheat by weight.
"Department" means the Department of Agriculture.
"Director" means the Director of Agriculture.
"Eligible voter" means one who is defined both as a
person and a producer in this program.
"First purchaser" means a person who resells wheat
purchased from a producer or offers for sale any product
produced from wheat for any purpose.
"Person" means a natural person, partnership,
corporation, society, association, representative, or other
"Producer" means a person who is actively engaged in the
production of wheat and who receives income from the
production of wheat, unless otherwise defined in wheat
"Wheat" means and includes all kinds and varieties of
wheat grown in this State and marketed and sold as wheat by
"Wheat development" means to engage in research and
educational programs directed toward improving production and
utilization of wheat, providing methods and means for the
maintenance of present markets, and developing new and larger
domestic and foreign markets.
"Wheat development board" means the board established
under this Act to administer a wheat development program.
"Wheat development program" means a program established
under this Act which prescribes procedures for the
development of markets for wheat and wheat products.
Section 15. Wheat development programs; requirements. A
wheat development program proposed or adopted under this Act
shall include where applicable the following:
(1) a definition of terms;
(2) the purpose of the program;
(3) the maximum assessment rates and equitable
procedures for adjustment of the maximum assessment rates
provided for by the program;
(4) equitable procedures for collection of the
assessment provided for by the program;
(5) the election procedure and qualifications of the
wheat development board members, representation on the wheat
development board, terms of office, compensation, if any, and
other necessary provisions pertaining to the board;
(6) the operating procedures of the program; and
(7) the qualifications for exempting wheat or producers
where exemptions are applicable.
Section 20. Optional programs; contracts; political
activities. A wheat development program proposed or adopted
under this Act may include any of the following:
(1) Wheat development and research programs.
(2) Wheat promotion, education and public relations
(3) Wheat information services.
(4) The right to contract with qualified organizations,
agencies or individuals for any of the activities listed in
items (1), (2), and (3) of this Section.
(5) A provision that assessments authorized in a
development program shall not be used for political activity
or for preferential treatment of any person to the detriment
of other persons in the development program.
(6) Other provisions not inconsistent with this Act or
other Illinois or federal laws and regulations.
Section 25. Temporary program committee; proposals;
procedures. After the effective date of this Act if there are
sponsors willing and able to meet the requirements of Section
35, the Director shall appoint a temporary wheat development
program committee consisting of 7 members who are wheat
producers to develop a wheat development program proposal.
The proposal shall be considered at a public hearing. After
the close of the public hearing, the Director and temporary
wheat development program committee shall send copies of
their findings to all parties of record appearing at the
hearing. If the proposal is approved by the temporary wheat
development program committee, a referendum shall be held on
the proposal in accordance with Section 30 of this Act.
The Director, upon recommendation of the temporary wheat
development program committee, shall establish procedures for
the qualifications of producers for wheat development
programs, the participation of producers in hearings and
referenda, and other procedures necessary in the development
and adoption of a wheat development program. These
procedures shall not be subject to the provisions of the
Illinois Administrative Procedure Act; however, the Director
shall take any necessary steps to inform affected persons of
the procedures, including publication of the procedures in
the Illinois Register.
Section 30. Referenda; petitions. Within 90 days after
final approval of any proposed wheat development program by
the temporary wheat development program committee, the
Director shall determine by referendum whether the affected
producers assent to the proposed wheat development program.
The proposed wheat development program is approved when a
majority of those voting in the referendum vote in favor of
the proposed wheat development program. Following approval
of the program, the Department shall file the program with
the Secretary of State as provided in Section 5-65 of the
Illinois Administrative Procedure Act.
If a proposed wheat development program is not approved
by referendum, no additional referendum on a wheat
development program may be held for 2 years from the date of
the close of the referendum period. An additional referendum
shall be called by the Director upon request by petition of
500 producers of wheat from across the State. Before holding
an additional referendum, the Director shall appoint a
temporary wheat development program committee consisting of 7
members who are wheat producers. The temporary wheat
development program committee shall follow the procedures set
forth in Section 25.
Section 35. Wheat Commodity Trust Fund; expenses;
reimbursements. Before considering any proposed wheat
development program or amendment, the Director may require
the sponsors to deposit an amount not to exceed $5,000 to
defray the expenses of preparing, holding hearings, and
conducting the referendum on the wheat development program or
amendment. Any funds received by the Director shall be
deposited with the State Treasurer as ex-officio custodian
and held separate and apart from any other public moneys of
this State in a trust fund designated as the Wheat Commodity
Trust Fund. Money in the Fund may be disbursed only upon a
voucher or order issued by the Director and paid by a warrant
drawn by the State Comptroller and countersigned by the State
Treasurer. The Director shall order disbursements from the
Wheat Commodity Trust Fund only for payment of the expenses
authorized by this Act. Any funds collected beyond actual
expenses shall be refunded to the sponsors. The treasurer of
the wheat development board shall reimburse the sponsors in
the amount of the deposit, less any refunds, from fees
received under the program if a program is established.
Section 40. Voting; polling places; qualifications. In a
referendum under this Act, voting shall be by ballot cast by
eligible voters in a manner, as determined by the Director,
that will make it easy to vote throughout the State. A
producer who is qualified under the wheat development program
is entitled to one vote. The referendum area includes the
entire State of Illinois.
Reasonable publicity and notification of the referendum
date and voting locations shall be provided in trade
publications, the public press, and the official state
newspaper, at least 2 weeks prior to the referendum date.
Section 45. Duration of program; termination. A wheat
development program established under this Act shall remain
in effect for 5 years. Thereafter, the program shall
automatically be extended from year to year unless a
referendum for continued approval is required by written
petition of no less than 5% of the affected producers from
across the State. The referendum to determine the continued
approval of a wheat development program shall be in
accordance with Section 40 of this Act. Continuation or
termination shall be determined by the same voting
requirements as for adoption of the wheat development program
set forth in Section 30.
Section 50. Wheat Development board; officers; expenses.
A wheat development program established under this Act shall
provide for a wheat development board consisting of at least
one member from each district which will be charged with the
administration of the program.
The board shall consist of one member elected from each
of the districts as established in the wheat development
The wheat development board shall elect from its members
a chairman, secretary, treasurer, and such other positions as
may be provided for in the wheat development program. The
term of office for members of the wheat development board
shall be for 3 years, except that the term of the members of
the board first taking office shall be for 1, 2, or 3 years
as determined by the initial board. The wheat development
board shall establish the number of members for each term of
office of the initial wheat development board and shall
provide the procedure for the election of members in
All voting members of the wheat development board are
entitled to actual and necessary travel and incidental
expenses while attending meetings of the board or while
engaged in the performance of official responsibilities as
determined by the board and provided for in the wheat
Section 55. Elections; candidates; vacancies. For the
initial board any wheat producer may be elected only if he
first has his name placed on the ballot by filing with the
Director a petition containing a number of signatures equal
to the lesser of 50 or 5% of those producers in his district
qualified to vote on the referendum. All candidates shall be
natural persons who are producers and residents in the
district for which they are nominated. Notice of the initial
election of members of the board shall be given in trade
publications, the public press, and statewide newspapers at
least 2 weeks prior to the election. Vacancies on the wheat
development board during the term of office shall be filled
by the wheat development board with a producer from the
district for the balance of the unexpired term. In subsequent
years, an election shall be held to fill any expiring term on
the board. Elections shall be in the same fashion as for
initial board members. The election procedure shall be as
provided in this Section unless otherwise provided for in the
wheat development program. Candidates receiving the greatest
number of votes at any election shall be elected.
Section 60. Duties. The duties and responsibilities of
the wheat development board shall be prescribed in the
authority for each wheat development program and to the
extent applicable shall include the following:
(1) to develop and direct the wheat development program;
(2) to prepare and approve a budget consistent with
estimated receipts and the scope of the wheat development
(3) to formulate and execute assessment procedures,
rates, and methods of collection;
(4) to procure and evaluate data and information
necessary for the proper administration and operation of the
wheat development program;
(5) to employ personnel and contract for services that
are necessary for the proper operation of the wheat
(6) to authorize the expenditure of funds and the
contracting of expenditures to conduct proper activities of
(7) to bond the treasurer and other persons necessary to
insure adequate protection of funds; and
(8) to perform other duties that are necessary to the
proper operation of the program.
Section 65. Director; duties. For any wheat development
program approved by referendum under this Act the Director
(1) take steps to insure that adequate and proper
records are kept and that an annual audit summary is
available to all program participants;
(2) take steps to insure that adequate bonds are
(3) coordinate administrative activities between the
wheat development board and the Department; and
(4) confer and cooperate with the legally constituted
authorities of other states and the United States.
Section 70. Assessments. A properly qualified wheat
development program shall provide for assessments against
producers of the affected commodity to defray the costs of
the activities provided for in the wheat development program.
Assessments authorized in a wheat development program shall
be based on the quantity of commodity marketed and shall be
equitably assessed against all affected producers.
The total assessment levied on the commodity of any
affected producer shall be 1.5 cents per bushel of wheat
produced and sold by that producer. After the first 5 years
a program is in operation, the wheat development board may
request the Director to hold a referendum to increase the
A referendum to increase the assessment rate shall be
considered approved if a majority of those producers voting
in the referendum vote in favor of the increase. The wheat
development board shall increase the rate as set in the
The wheat development board shall require the first
purchaser of wheat to withhold and remit the assessments to
the wheat development board. A first purchaser remitting
the assessments for any producer shall deduct the proper
amount of assessment from any amount that he owes to the
producer. The wheat development board shall have the power
to cause any duly authorized agent or representative to enter
upon the premises of any purchaser of wheat and examine or
cause to be examined only books, papers, and records that
deal in any way with respect to the payment of the assessment
or enforcement of this Act.
Section 75. Refunds. A producer who has sold wheat and
has an assessment deducted from the sale price may, by
application in writing to the board, secure a refund in the
amount deducted. The refund shall be payable only if the
application has been made to the board within 60 days after
the deduction. Interest shall be allowed and paid at the
rate of 6% per annum upon the total amount of the assessment
imposed by this Act, except that if any assessment is
refunded within 90 days after an application for refund has
been made within the required 60 days after deduction or
within 90 days after the first purchaser of wheat remits the
assessments withheld and deducted to the wheat development
board, whichever is later, no interest shall be allowed on
such assessment. An application for refund by a producer
shall provide proof of assessment deducted.
Section 80. Collection of assessments; penalties;
actions. Persons who collect wheat development program
assessment funds pursuant to Section 70 of this Act shall
remit those funds to the wheat development board which shall
deposit the funds in an account to be used as authorized by
the wheat development program.
A due and payable assessment required under the
provisions of a wheat development program created under this
Act constitutes a personal debt of the person so assessed or
who otherwise owes the assessment. The assessment is due and
payable to the wheat development board not more frequently
than quarterly or when stipulated in the wheat development
program and called for by the wheat development board. In
the event any person fails to remit the full amount of the
assessment or other sum within 30 days after the due date,
the person owing the assessment shall be given an opportunity
to present his case as provided for in Section 95 of this
Act. When established that the assessment is correct, the
wheat marketing board may add to the unpaid assessment or sum
a penalty amount not exceeding 10% of the amount due plus all
the cost of enforcing the collection of the assessment or
amount due. If a person fails to remit any properly due
assessment or sum, the wheat development board may bring a
civil action for collection against the person in the circuit
court of any county, together with the additional specified
10% penalty assessment, cost of enforcing the collection of
the assessment, and court costs. The action shall be tried
and judgment rendered as in any other cause of action for
debts due and payable. All assessments are due and payable
to the wheat development board.
Section 85. Reports; audit. The wheat development board
shall publish annually an activity and financial report for
the wheat development program. The report shall be available
to all of the affected producers of the wheat development
program. All expenditures under each wheat development
program shall be audited at least annually by a registered
public accountant. Within 30 days after completion of an
audit, the results shall be made available to the Director.
Section 90. Termination of program; unobligated funds.
Upon termination of a wheat development program, all
remaining unobligated funds shall be refunded to the Illinois
Department of Agriculture to be used for wheat development
Section 95. Enforcement; actions; injunctions. No person
shall knowingly fail or refuse to comply with any requirement
of this Act where obligated to comply by a duly approved
wheat development program. The wheat development board may
institute any action necessary to enforce compliance with any
provision of this Act or any wheat development program
adopted pursuant to this Act. In addition to any other
remedy provided by law, the wheat development board may
petition for injunctive relief without being required to
allege or prove the absence of any adequate remedy at law.
Before the wheat development board may institute any
proceedings under this Act, the alleged violator shall first
be given an opportunity to present his views to the wheat
development board as to why proceedings should not be
instituted. Such hearings shall be subject to the Illinois
Administrative Procedure Act.
Section 100. Amendments; hearings; referendum. A
proposed amendment to an existing wheat development program
may be requested by petition to the Director by 5% of the
affected producers from across the State or by a two-thirds
majority vote of the wheat development board. If any
amendment to an existing wheat development program is
proposed, the Director shall hold a public hearing to
consider the amendment. After the close of the public
hearing, the Director and the wheat development board shall
send copies of their findings to all parties of record
appearing at the hearing. A referendum may be held on the
amendment in accordance with Section 40 subject to the same
voting requirements for adoption of the wheat development
program as set forth in Section 30. When an amendment is
approved by referendum, the Department shall file the
amendment with the Secretary of State as provided in Section
5-65 of the Illinois Administrative Procedure Act.
The Director, upon recommendation of the wheat
development board, shall establish procedures necessary in
the development and adoption of the proposed amendment to an
existing wheat development program. The procedures shall be
included in the rules of the Department required by Section
5-15 of the Illinois Administrative Procedure Act.
Section 105. Suspension of program. The operation of a
wheat development program or any part thereof may be
temporarily suspended for any reasonable cause by the wheat
development board, for any period of time not to exceed one
growing and marketing season.
Section 110. Administrative Procedure Act; application.
Sections 25 and 30 of this Act shall not be subject to
Sections 5-35, 5-40, 5-100, 5-105, 5-110, 5-115, 5-120,
5-125, and 5-130 of the Illinois Administrative Procedure
Section 199. Effective date. This Act takes effect upon