225 ILCS 735/ Timber Buyers Licensing Act.

(225 ILCS 735/1) (from Ch. 111, par. 701)

Sec. 1. This Act may be known and cited as the "Timber Buyers Licensing Act".

(Source: P.A. 76-1307.)

(225 ILCS 735/2) (from Ch. 111, par. 702)

Sec. 2. Definitions. When used in this Act, unless the context otherwise requires, the term:

"Agent" means any person acting on behalf of a timber buyer, employed by a timber buyer, or under an agreement, whether oral or written, with a timber buyer who buys timber, attempts to buy timber, procures contracts for the purchase or cutting of timber, or attempts to procure contracts for the purchase or cutting of timber.

"Buying timber" means to buy, barter, cut on shares, or offer to buy, barter, cut on shares, or take possession of timber with the consent of the timber grower.

"Department" means the Department of Natural Resources.

"Director" means the Director of Natural Resources.

"Good standing" means any person who is not:

(1) currently serving a sentence of probation, or conditional discharge, for a violation of this Act or administrative rules adopted under this Act;

(2) owes any amount of money pursuant to a civil judgment regarding the sale, cutting, or transportation of timber;

(3) owes the Department any required fee, payment, or money required under this Act; or

(4) is currently serving a suspension or revocation of any privilege that is granted under this Act.

"Liability insurance" means not less than $500,000 in insurance covering a timber buyer's business and agents that shall insure against the liability of the insured for the death, injury, or disability of an employee or other person and insurance against the liability of the insured for damage to or destruction of another person's property.

"Payment receipt" means copy or duplicate of an original receipt of payment for timber to a timber grower or duplicate of electronic or direct payment verification of funds received by timber grower.

"Person" means any person, partnership, firm, association, business trust, limited liability company, or corporation.

"Proof of ownership" means a printed document provided by the Department that serves as a written bill of lading.

"Resident" means a person who in good faith makes application for any license or permit and verifies by statement that the person has maintained the person's permanent abode or headquarters in this State for a period of at least 30 consecutive days immediately preceding the person's application and who does not maintain a permanent abode or headquarters or claim residency in another state for the purposes of obtaining any of the same or similar licenses or permits covered by this Act. A person's permanent abode or headquarters is the person's fixed and permanent dwelling place or main location where the person conducts business, as distinguished from a temporary or transient place of residence or location.

"Timber" means trees, standing or felled, and parts thereof which can be used for sawing or processing into lumber for building or structural purposes or for the manufacture of any article. "Timber" does not include firewood, Christmas trees, fruit or ornamental trees, or wood products not used or to be used for building, structural, manufacturing, or processing purposes.

"Timber buyer" means any person licensed or unlicensed, who is engaged in the business of buying timber from the timber growers thereof for sawing into lumber, for processing or for resale, but does not include any person who occasionally purchases timber for sawing or processing for the person's own use and not for resale.

"Timber grower" means the owner, tenant, or operator of land in this State who has an interest in, or is entitled to receive any part of the proceeds from the sale of timber grown in this State and includes persons exercising authority to sell timber.

"Transporter" means any person acting on behalf of a timber buyer, employed by a timber buyer, or under an agreement, whether oral or written, with a timber buyer who takes or carries timber from one place to another by means of a motor vehicle.

(Source: P.A. 103-218, eff. 1-1-24; 103-605, eff. 7-1-24.)

(225 ILCS 735/3) (from Ch. 111, par. 703)

Sec. 3. License required. Every person before engaging in the business of a timber buyer shall obtain a license for such purpose from the Department. Application for such license shall be filed with the Department and shall set forth the name of the applicant, its principal officers if the applicant is a corporation or the partners if the applicant is a partnership, the location of any principal office or place of business of the applicant, the counties in this State in which the applicant proposes to engage in the business of timber buyer, a list of all agents of the timber buyer, and such additional information as the Department by rule may require. All timber buyers and their agents must be 18 years of age or older.

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

(225 ILCS 735/4) (from Ch. 111, par. 704)

Sec. 4. Liability insurance. Every person licensed as a timber buyer shall file with the Department a certificate of liability insurance. No such liability insurance policy shall be effective under this Section unless issued by an insurance company or surety company authorized to do business in this State.

Except as otherwise provided in this Section, such liability insurance shall be in the principal amount of not less than $500,000.

A liability insurance policy filed in accordance with this Act shall not be canceled or altered during the period for which the timber buyer remains licensed by the Department without written notification to the Department. At all times, a licensee must have a liability insurance policy that is in conformity with this Act while licensed by the Department.

At any such time as a licensee fails to have the necessary liability insurance, as required herein, the Department may immediately, and without notice, suspend the privileges of such licensee. In the event of such suspension, the Department shall give immediate notice of the same to the licensee and shall further reinstate such license upon filing with the Department a certificate of liability insurance that conforms to the requirements of this Act.

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

(225 ILCS 735/5) (from Ch. 111, par. 705)

Sec. 5. Prohibitions. It shall be unlawful and a violation of this Act:

(a) For any person to knowingly:

(1) cut, cause to be cut, take, or caused to be taken, any timber without the consent of the timber grower; or

(2) enter into an agreement or contract with a timber grower for the cutting of timber and:

(A) misrepresenting a material fact relating to the terms of the contract or agreement, creating or confirming another's impression which is false and the buyer does not believe to be true, or promising performance which the person buying the timber does not intend to perform or knows will not be performed; or

(B) using or employing any deception, false pretense, or false promise in order to induce, encourage, or solicit such person to enter into any contract or agreement;

(b) For a timber buyer to conduct business under this Act without maintaining a liability insurance policy as required under this Act;

(c) For any person to knowingly make any false statement or knowingly provide false information in connection with the application, liability insurance certification, or other information or reports required to be provided to the Department pursuant to this Act or administrative rule;

(d) For any person to act or engage in the business of a timber buyer or act or engage in the business of timber buying as an agent of a timber buyer while not in good standing with the Department or, if required by this Act, while licensed by the Department;

(e) (blank);

(f) For a person to fail to file any report or provide any documentation as required in this Act or administrative rule; and

(g) For any person to resist or obstruct any officer, employee, agent of the Department, or any member of a law enforcement agency in the discharge of the person's, employee's, agent's, or member's duties under the provisions of this Act.

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

(225 ILCS 735/7) (from Ch. 111, par. 707)

Sec. 7. License; issuance, validity, and renewal; certificate. All persons buying timber under this Act must possess a valid timber buyer's license. Licenses authorized under this Act shall be prepared by the Department and be in such form as prescribed by the Department. The information required on each license shall be completed thereon by the Department at the time of issuance, and each license shall be signed by the licensee. All such licenses shall be supplied by the Department, subject to such rules as the Department may prescribe. Any license that is not properly prepared, obtained, and signed as required by this Act shall be void. If the Department is satisfied that the applicant has fulfilled the requirements of this Act, the applicant and all listed agents in the application are in good standing, and if the liability insurance filed by the applicant is approved, the Department shall issue a license to the applicant. The licenses issued shall be valid for a calendar year and may be renewed annually. A copy of the license certificate issued by the Department shall be posted in the principal office of the licensee in this State. A license from the Department shall include a list of all agents that are required to be reported to the Department in a timber buyer application for license. A timber buyer shall update the Department, in writing, within 14 days, of a change in employment for any agent of the timber buyer that is required to be disclosed to the Department. The Department shall then reissue a certificate of license with the updated list of agents as well as any new timber buyer identification cards. The timber buyer identification card issued by the Department shall be carried upon the person of the timber buyer and any agent of the timber buyer when conducting activities covered under this Act for immediate presentation for inspection to the officers and authorized employees of the Department, any sheriff, deputy sheriff, or any other peace officer making demand for it. No person charged with violating this Section, however, shall be convicted if the person produces in court satisfactory evidence that a timber buyer identification card that was valid at the time of the offense had been issued to the timber buyer or agent. All timber buyer identification cards shall be issued by the Department. Any timber identification card that is issued to a timber buyer or timber buyer employee shall be returned to the Department or, if a digital license or digital identification card, shall be canceled by the Department within 5 days of the Department obtaining information of the termination of employment, suspension, or revocation of license, the agent or timber buyer is no longer in good standing, or expiration of a license if the license is not renewed.

Upon request for a license and payment of the fee, the Department shall issue to the licensee a certificate that a license has been granted and as required by this Act as well as timber buyer identification cards for all listed agents on the timber buyer application that are in good standing.

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

(225 ILCS 735/8) (from Ch. 111, par. 708)

Sec. 8. Application fee. The application for a resident license to operate as a timber buyer, or a renewal thereof, shall be accompanied by a non-refundable filing fee of $125. The application for a non-resident license to operate as a timber buyer, or a renewal thereof, shall be accompanied by a non-refundable filing fee of $300.

The fees required by this Section shall be deposited in the Illinois Forestry Development Fund for the purposes of the Illinois Forestry Development Act.

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

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

Sec. 9. Records and inspection. The Department or any law enforcement agency may inspect any premises used by any timber buyer in the conduct of the buyer's business during normal business hours, and such inspection may include, but is not limited to, the inventory, timber, books, accounts, records, proof of ownership, or other documentation required under this Act or administrative rule of every such timber buyer that operates or does business in the State. Any person licensed as a timber buyer as defined in this Act, or any person who has purchased, bartered, or attempted to purchase or barter timber, or any person having possession or who has had possession of timber as defined in this Act shall be prima facie evidence that the person is a timber buyer, excluding transporters. A timber buyer shall retain the books, accounts, records, proof of ownership, or other documentation required under this Act or administrative rule used in the conduct of the buyer's business for a period of 3 years after any purchase, cutting, or transportation of timber made by the timber buyer or the buyer's employee. All timber buyers shall provide to a transporter and a transporter shall have immediately available proof of ownership, on forms provided by the Department, for all timber that is currently being transported by the transporter.

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

(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) 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) 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) 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 735/10) (from Ch. 111, par. 710)

Sec. 10. Rulemaking. The Department may make such administrative rules and regulations as may be necessary to carry out the provisions of this Act in accordance with the Illinois Administrative Procedure 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) 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) 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) 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) 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) 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.)

(225 ILCS 735/12) (from Ch. 111, par. 712)

Sec. 12. Default. No certificate of license or timber buyer identification card shall be issued to any person who is in default to the people of the State for moneys due under this Act.

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

(225 ILCS 735/13) (from Ch. 111, par. 713)

Sec. 13. License revocation.

(a) The Department may revoke the license of any person who violates the provisions of this Act and may refuse to issue any permit or license to any person who is in violation of this Act for a period of time as established by administrative rule.

(a-5) License revocation, suspension, or refusal by the Department to issue or reissue any permit or license, and the procedures for such action by the Department or appeals to such action that was taken by the Department shall be established by administrative rule and in accordance with the Illinois Administrative Procedure Act.

(b) (Blank).

(c) (Blank).

(d) (Blank).

(e) (Blank).

(f) (Blank).

(g) (Blank).

(h) (Blank).

(i) Any person whose license to engage in an activity regulated by this Act has been revoked or whose ability to engage in the activity requiring the license has been suspended may not, during the period of suspension or revocation:

(1) hold any license authorized by this Act;

(2) perform directly or indirectly any privileges authorized by any license issued in accordance with this Act; or

(3) buy, sell, barter, trade, or take possession of any timber as defined in this Act, regardless of any contractual agreements entered into prior to the revocation or suspension.

(j) No person may be issued a license or engage in any activity regulated by this Act for which a license is required during the time that the person's privilege to engage in the same or similar activities is suspended or revoked by another state, by a federal agency, or by a province of Canada.

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

(225 ILCS 735/14) (from Ch. 111, par. 714)

Sec. 14. The Department may, by application to any circuit court or to a judge thereof, obtain an injunction restraining any person who engages in the business of timber buyer in this State without a certificate of license (either because his certificate of license has been revoked or because of a failure to obtain a certificate of license in the first instance) from engaging in such business until such person complies with this Act and qualifies for and obtains a certificate of license. Upon refusal or neglect to obey the order of the court or judge, said court or judge may compel obedience thereof by proceedings for contempt.

(Source: P.A. 76-1307.)

(225 ILCS 735/16) (from Ch. 111, par. 716)

Sec. 16. Forfeiture and seizure. Any timber, forestry, or wood cutting device or equipment, including vehicles and conveyances used or operated in violation of this Act, including administrative rules, or attempted to be used in violation of this Act or administrative rules shall be deemed a public nuisance and subject to the seizure and confiscation by any authorized employee of the Department; upon the seizure of such item the Department shall take and hold the same until disposed of as hereinafter provided.

Upon the seizure of any property as herein provided, the authorized employee of the Department making such seizure shall forthwith cause a complaint to be filed before the Circuit Court and a summons to be issued requiring the person who illegally used or operated or attempted to use or operate such property and the owner and person in possession of such property to appear in court and show cause why the property seized should not be forfeited to the State. Upon the return of the summons duly served or other notice as herein provided, the court shall proceed to determine the question of the illegality of the use of the seized property and upon judgment being entered to the effect that such property was illegally used, an order may be entered providing for the forfeiture of such seized property to the Department and shall thereupon become the property of the Department; but the owner of such property may have a jury determine the illegality of its use, and shall have the right of an appeal, as in other cases. Such confiscation or forfeiture shall not preclude or mitigate against prosecution and assessment of penalties otherwise provided in this Act.

Upon seizure of any property under circumstances supporting a reasonable belief that such property was abandoned, lost, or stolen or otherwise illegally possessed or used contrary to the provisions of this Act, except property seized during a search or arrest, and ultimately returned, destroyed, or otherwise disposed of pursuant to order of a court in accordance with this Act, the authorized employee of the Department shall make reasonable inquiry and efforts to identify and notify the owner or other person entitled to possession thereof, and shall return the property after such person provides reasonable and satisfactory proof of his ownership or right to possession and reimburses the Department for all reasonable expenses of such custody. If the identity or location of the owner or other person entitled to possession of the property has not been ascertained within 6 months after the Department obtains such possession, the Department shall effectuate the sale of the property for cash to the highest bidder at a public auction. The owner or other person entitled to possession of such property may claim and recover possession of the property at any time before its sale at public auction, upon providing reasonable and satisfactory proof of ownership or right of possession and reimbursing the Department for all reasonable expenses of custody thereof.

Any property forfeited to the State by court order pursuant to this Section may be disposed of by public auction, except that any property which is the subject of such a court order shall not be disposed of pending appeal of the order. The proceeds of the sales at auction shall be deposited in the Illinois Forestry Development Fund.

The Department shall pay all costs of notices required by this Section. Property seized or forfeited under this Section is subject to reporting under Section 5 of the Seizure and Forfeiture Reporting Act.

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