Bill Text: IL SB0768 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Grain Code. Makes a technical change in a Section concerning participants in the Illinois Grain Insurance Fund.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [SB0768 Detail]

Download: Illinois-2011-SB0768-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 SB0768 Introduced 2/8/2011, by Sen. John J. Cullerton SYNOPSIS AS INTRODUCED:
240 ILCS 40/30-10
Amends the Grain Code. Makes a technical change in a Section concerning participants in the Illinois Grain Insurance Fund.
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A BILL FOR
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AN ACT concerning warehouses.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Grain Code is amended by changing Section
30-10 as follows:
(240 ILCS 40/30-10)
Sec. 30-10. Participants in the Fund.
(a) A licensee under this Code is subject to this Article
and and shall collect and pay assessments into the Fund as
provided in Section 5-30.
(b) Except as provided in subsection (c) of this Section, a
person engaged in the business of a grain dealer or
warehouseman but not licensed under this Code shall not
participate in or benefit from the Fund and its claimants shall
not receive proceeds from the Fund.
(c) Participation of federal warehousemen.
(1) A federal warehouseman may participate in the Fund.
If a federal warehouseman chooses to participate in the
Fund, it shall to the extent permitted by federal law:
(A) pay assessments into the Fund;
(B) be deemed a licensee and a warehouseman under
this Code;
(C) be subject to this Code; and

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(D) execute a cooperative agreement between itself
and the Department.
(2) The cooperative agreement shall, at a minimum,
provide each of the following to the extent permitted by
federal law:
(A) Authorization for the Department to obtain
information about the federal warehouseman including,
but not limited to, bushel capacity of storage space,
financial stability, and examinations performed by
employees of the United States Department of
Agriculture.
(B) That the federal warehouseman submits itself
to the jurisdiction of the Department and that it
agrees to be subject to and bound by this Code and
deemed a licensee under this Code.
(C) That in the event of a failure of the federal
warehouseman, the Department shall have authority to
seize, liquidate, and collect upon all grain assets,
collateral, and guarantees relating to the federal
warehouseman as in the case of any other licensee.
(D) Such other requirements as established by
rule.
(3) A federal warehouseman that participates in the
Fund shall at a minimum meet the licensing requirements of
this Code and shall comply with all requirements of a
licensee and a warehouseman under this Code to the extent

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permitted by federal law.
(d) A federal warehouseman that participates in the Fund or
a warehouseman that desires to or has become a federal
warehouseman cannot withdraw from participation in the Fund for
the benefit of existing depositors until the occurrence of all
of the following:
(1) Payment in full by the federal warehouseman or
withdrawing warehouseman of all assessments under
subsection (a) of Section 5-30.
(2) Payment in full by the federal warehouseman or
withdrawing warehouseman of all assessments instituted
under subsection (d) of Section 5-30 on or after an
assessment determination date that occurs before the
federal warehouseman or withdrawing warehouseman notifies
the Department that it desires to withdraw from
participation in the Fund and before the issuance by the
Department of a certificate of withdrawal from the Fund.
(3) The expiration of 30 days following the later of:
(A) the date the federal warehouseman or
withdrawing warehouseman has ceased providing its
depositors with coverage under the Fund;
(B) the date the federal warehouseman or
withdrawing warehouseman has posted at each of its
locations a notice stating when it will cease providing
its depositors with coverage under the Fund;
(C) notification of all potential claimants by the

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federal warehouseman or withdrawing warehouseman of
the date on which it will cease providing its
depositors with coverage under the Fund; and
(D) Completion of an audit and examination
satisfactory to the Department as provided for in this
Code and by rule, which is to be the Department's final
examination.
(4) Obtaining releases of liability from all existing
depositors or posting collateral with the Department for
270 days after withdrawing from the Fund in an amount equal
to the liability to existing depositors who have not
executed releases before the completion of the
Department's final examination.
(5) Compliance with all notification requirements as
provided for in this Code and by rule.
(6) Issuance by the Department of a certificate of
withdrawal from the Fund when the federal warehouseman or
withdrawing warehouseman has met all requirements for
withdrawal from participation in the Fund.
(e) Before a federal warehouseman or a warehouseman that
desires to or has become a federal warehouseman may withdraw
from participation in the Fund, it must pay for an audit and
examination and must provide to the Department all names and
addresses of potential claimants for the purposes of
notification of withdrawal of participation in the Fund.
(Source: P.A. 93-225, eff. 7-21-03.)