SB3512 103RD GENERAL ASSEMBLY

LRB103 38632 RTM 68769 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3512

Introduced 2/9/2024, by Sen. Chapin Rose

SYNOPSIS AS INTRODUCED:

225 ILCS 735/9a	from Ch. 111, par. 709a
225 ILCS 735/11	from Ch. 111, par. 711
525 ILCS 15/5	from Ch. 96 1/2, par. 9105
525 ILCS 15/7	from Ch. 96 1/2, par. 9107

Amends the Timber Buyers Licensing Act. Removes language that requires a person buying timber from a timber grower to deduct from the payment to the timber grower an amount which equals 4% of the purchase price or 4% of the minimum fair market value and forward such amount to the Department of Natural Resources. Removes language that requires a timber grower who utilizes timber produced on land the timber grower owns or operates for sawing into lumber, processing, or resale to pay to the Department an amount equal to 4% of the minimum fair market value of the timber utilized during a period. Makes conforming changes.

A BILL FOR

AN ACT concerning regulation.

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

Section 1. Legislative intent. The General Assembly finds the 4% timber buyer harvest fee is not being fully utilized for its original intended purpose of assisting timber growers in replacing timber being harvested, thus the General Assembly finds the assessment and collection of the 4% timber buyer harvest fee should be eliminated.

Section 5. The Timber Buyers Licensing Act is amended by changing Sections 9a and 11 as follows:

(225 ILCS 735/9a) (from Ch. 111, par. 709a)

Sec. 9a. Reporting a harvest fee.

(a) When a timber buyer buys timber in this State, the timber buyer and timber grower shall determine the amount to be paid for such timber, or the value of items to be bartered for such timber, and the timber buyer shall deduct from the payment to the timber grower an amount which equals 4% of the purchase price or 4% of the minimum fair market value, as determined pursuant to administrative rule, when purchase price cannot otherwise be determined and shall forward such amount to the Department of Natural Resources.

(b) When a timber buyer buys timber in this State, the timber buyer shall file a report to the Department on a report form provided by the Department. The information provided on the report form shall include the amount paid for the timber to each timber grower and the 4% that is due to the Department for each sale, and any other information that is required by the Department pursuant to administrative rule. A timber buyer shall provide the timber grower a written or electronic payment receipt for each transaction of timber bought from the timber grower and keep a duplicate or copy of the payment receipt in the timber buyer's records. All timber buyers shall provide a written receipt upon request of the Department.

(c) (Blank). Every timber grower who utilizes timber produced on land the timber grower owns or operates for sawing into lumber, for processing, or for resale, shall pay to the Department, when the periodic report is submitted, an amount equal to 4% of the minimum fair market value of the timber utilized during the period. The value of such timber shall be determined pursuant to rule of the Department.

(d) Every timber grower who utilizes timber produced on land the timber grower owns or operates for sawing into lumber for processing or for resale, shall report periodically, as required by this Act or administrative rule of the Department, the quantity, value, and species of timber produced and utilized by the owner or operator during the reporting period.

(e) Subsection Subsections (c) and (d) shall not apply to a person who uses the person's own timber for sawing or processing for personal use and not for resale.

(f) (Blank). The fees required by this Section shall be deposited in the Illinois Forestry Development Fund, a special fund in the State treasury, for the purposes of the Illinois Forestry Development Act.

(Source: P.A. 103-218, eff. 1-1-24.)

(225 ILCS 735/11) (from Ch. 111, par. 711)

Sec. 11. Penalties and fines. All fines and penalties associated with violations of this Act or administrative rules thereunder, except as otherwise provided in this Act, are payable 50% to the Department's Conservation Police Operations Assistance Fund and 50% to the Department's Illinois Forestry Development Fund.

(a) Except as otherwise provided in this Act any person in violation of any of the provisions of this Act, or administrative rules thereunder, shall be guilty of a Class A misdemeanor.

(a-5) Any person convicted of violating Section 3 of this Act shall be guilty of a Class A misdemeanor and fined at least $500 for a first offense and guilty of a Class 4 felony and fined at least $1,000 for a second or subsequent offense.

(a-10) Any person convicted of violating subsection (a) of Section 5 is guilty of a Class A misdemeanor if the aggregate value of the timber cut, caused to be cut, or appropriated is equal to or less than $500.

(a-15) (Blank). Any person convicted of violating subsection (a) or (c) of Section 9a is guilty of a Class A misdemeanor if the aggregate value of the amount due to the Department is equal to or less than $500.

(b) Any person convicted of violating subsection (a) of Section 5 of this Act is guilty of a Class 4 felony if the aggregate value of the timber cut, caused to be cut or appropriated is over $500 but not more than $2,500.

(b-2) (Blank). Any person convicted of violating subsection (a) or (c) of Section 9a is guilty of a Class 4 felony if the aggregate value of the amount due to the Department is over $500 but not more than $2,500.

(b-5) Any person convicted of violating subsection (a) of Section 5 of this Act is guilty of a Class 3 felony if the aggregate value of the timber cut, caused to be cut, or appropriated is over $2,500 but not more than $10,000.

(b-7) (Blank). Any person convicted of violating subsection (a) or (c) of Section 9a is guilty of a Class 3 felony if the aggregate value of the amount due to the Department is over $2,500 but not more than $10,000.

(b-10) Any person convicted of violating subsection (a) of Section 5 of this Act is guilty of a Class 2 felony if the aggregate value of the timber cut, caused to be cut, or appropriated is over $10,000.

(b-12) (Blank). Any person convicted of violating subsection (a) or (c) of Section 9a is guilty of a Class 2 felony if the aggregate value of the amount due to the Department is over $10,000.

(b-15) The aggregate value of the timber cut, caused to be cut, or appropriated shall be determined as provided by administrative rule.

(c) A person convicted of violating subsection (b) of Section 5 of this Act is guilty of a Class A misdemeanor. A person convicted of a second or subsequent violation is guilty of a Class 4 felony.

(c-5) A person convicted of violating subsection (c) of Section 5 is guilty of a Class A misdemeanor.

(c-10) A person convicted of violating subsection (d) of Section 5 is guilty of a Class A misdemeanor and shall be assessed a fine of not less than $1,000. A person convicted of a second or subsequent violation is guilty of a Class 4 felony and shall be assessed a fine of not less than $2,000.

(c-15) A person convicted of violating subsection (f) of Section 5 is guilty of a Class B misdemeanor.

(c-20) A person convicted of violating subsection (g) of Section 5 is guilty of a Class C misdemeanor.

(d) All penalties issued pursuant to subsections (e) and (f) shall be deposited in the Illinois Forestry Development Fund for the purposes of the Illinois Forestry Development Act.

(e) (Blank). Failure to pay any purchase harvest fee required under Section 9a of this Act on the date as required by regulation of the Department, there shall be added as a penalty an amount equal to 7.5% of the harvest fee due the Department for each month or fraction thereof during which such failure continues, not to exceed 37.5% in the aggregate. This penalty shall be in addition to any other penalty determined under this Act or by the circuit court.

(f) A person convicted of violating subsection (b) or (d) of Section 9a shall be guilty of a Class C misdemeanor and shall be assessed a penalty in the amount of $25, which shall be added to the amount due the Department for each individual report. A second or subsequent offense within a 3-year period after the date of the first offense is a Class A misdemeanor.

(g) All fines required in this Section shall be in addition to any other penalty authorized under this Act, the Unified Code of Corrections, or imposed by the circuit court.

(h) Any person who knowingly or intentionally violates any of the provisions of this Act, or administrative rules thereunder, when the person's license has been revoked or denied or the person's ability to engage in the activity requiring the license has been suspended under Section 13 is guilty of:

(1) a Class 4 felony if the underlying offense that was committed during a period of revocation or suspension is a misdemeanor; or

(2) one classification higher if the underlying offense that was committed during a period of revocation or suspension is a felony.

(Source: P.A. 103-218, eff. 1-1-24.)

Section 10. The Illinois Forestry Development Act is amended by changing Sections 5 and 7 as follows:

(525 ILCS 15/5) (from Ch. 96 1/2, par. 9105)

Sec. 5. A forest development cost share program is created and shall be administered by the Department of Natural Resources.

A timber grower who desires to participate in the cost share program shall devise a forest management plan. To be eligible to submit a proposed forest management plan, a timber grower must own or operate at least 10 contiguous acres of land in this State on which timber is produced, except that, no acre on which a permanent building is located shall be included in calculations of acreage for the purpose of determining eligibility. Timber growers with Department approved forest management plans covering less than 10 acres in effect on or before the effective date of this amendatory Act of the 96th General Assembly shall continue to be eligible under the Illinois Forestry Development Act provisions. The proposed forest management plan shall include a description of the land to be managed under the plan, a description of the types of timber to be grown, a projected harvest schedule, a description of forest management practices to be applied to the land, an estimation of the cost of such practices, plans for afforestation, plans for regenerative harvest and reforestation, and a description of soil and water conservation goals and wildlife habitat enhancement which will be served by implementation of the forest management plan.

Upon receipt from a timber grower of a draft forest management plan, the Department shall review the plan and, if necessary, assist the timber grower to revise the plan. The Department shall officially approve acceptable plans. Forest management plans shall be revised as necessary and all revisions must be approved by the Department. A plan shall be evaluated every 2 years for reapproval.

The eligible land shall be maintained in a forest condition for a period of 10 years or until commercial harvest, whichever last occurs, as required by the plan.

The Department shall enter into agreements with timber growers with approved forest management plans under which the Department shall agree to pay a share of the total cost of acceptable forest management plans and practices implemented under the plan. The cost share amount is up to 80% of the total cost of the forest management practices for such practices approved to be funded from monies appropriated for this purpose for subsequent fiscal years. Cost share funds shall be paid from monies appropriated to the Department by the General Assembly for that purpose from the Illinois Forestry Development Fund or any other fund in the State Treasury.

The Department, upon recommendations made to it by the Council, may provide for the categorization of forest management practices and determine an appropriate cost share percentage for each such category. Forest management practices submitted by timber growers on whose timber sales fees of 4% of the sale amount were paid as provided in Section 9a of the "Timber Buyers Licensing Act before the effective date of this amendatory Act of the 103rd General Assembly ", approved September 1, 1969, may be accorded a priority for approval within the assigned category. Such timber growers may receive a cost share amount which is increased above the amount for which they would otherwise qualify by an amount equal to the fees paid by the timber grower on sales occurring in the 2 fiscal years immediately preceding the fiscal year in which the forest management practices are approved and funded; provided, however, that the total cost share amount shall not exceed the total cost of the approved forest management practices.

Upon transfer of his or her right and interest in the land or a change in land use, the timber grower shall forfeit all rights to future payments and other benefits resulting from an approved plan and shall refund to the Department all payments received therefrom during the previous 10 years unless the transferee of any such land agrees with the Department to assume all obligations under the plan.

(Source: P.A. 96-217, eff. 8-10-09; 96-545, eff. 8-17-09.)

(525 ILCS 15/7) (from Ch. 96 1/2, par. 9107)

Sec. 7. The Illinois Forestry Development Fund, a special fund in the State Treasury, is hereby created. The Department of Natural Resources shall pay into the Fund all fees and fines collected from timber buyers and landowners and operators pursuant to the "Timber Buyers Licensing Act", and the "Forest Products Transportation Act", all gifts, contributions, bequests, grants, donations, transfers, appropriations and all other revenues and receipts resulting from forestry programs, forest product sales, and operations of facilities not otherwise directed by State law and shall, except for the additional moneys deposited under Section 805-550 of the Department of Natural Resources (Conservation) Law of the Civil Administrative Code of Illinois, pay such moneys appropriated from the Fund to timber growers for implementation of acceptable forest management practices as provided in Section 5 of this Act. Moneys may be appropriated from the Fund for the expenses of the Illinois Forestry Development Council. Ordinary operating expenses of the Forest Resources Division of the Department, for the administration and implementation of this Act, the development and implementation of a wood industry marketing, development and promotions program and other programs beneficial to advancing forests and forestry in this State, as deemed appropriate by the General Assembly, may be appropriated from this fund to the extent such appropriations preserve the receipts to the Fund derived from Section 9a of the "Timber Buyers Licensing Act before the effective date of this amendatory Act of the 103rd General Assembly " .

(Source: P.A. 96-217, eff. 8-10-09; 96-545, eff. 8-17-09; 96-1160, eff. 1-1-11.)