Illinois Compiled Statutes
Chapter 225 - PROFESSIONS, OCCUPATIONS, AND BUSINESS OPERATIONS
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.

When used in this Act, unless the context otherwise requires, the
term:
"Person" means any person, partnership, firm, association, business
trust or corporation.
"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 his own use
and not for resale.
"Buying timber" means to buy, barter, cut on shares, or offer to buy,
barter, cut on shares, or take possession of timber, with or without the
consent of the timber grower.
"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.
"Department" means the Department of Natural Resources.
"Director" means the Director of Natural Resources.
"Employee" means any person in service or under contract for hire,
expressed or implied, oral or written, who is engaged in any phase of the
enterprise or business at any time during the license year.

(Source: P.A. 89-445, eff. 2-7-96.)
 
(225 ILCS 735/3) (from Ch. 111, par. 703)
Sec. 3.


Every person before engaging in the business of 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 and such additional information as the Department by
regulation may require.
The application shall set forth the aggregate dollar amount paid to
timber growers for timber purchased in this State during the applicant's
last completed fiscal or calendar year. In the event the applicant has been
engaged as a timber buyer for less than one year, his application shall set
forth the dollar amount paid to timber growers for the number of completed
months during which the applicant has been so engaged. If the applicant has
not been previously engaged in buying timber in this State, the application
shall set forth the estimated aggregate dollar amount to be paid by the
applicant to timber growers for timber to be purchased from them during the
next succeeding 12 month period.

(Source: P.A. 77-2796.)
 
(225 ILCS 735/4) (from Ch. 111, par. 704)
Sec. 4.
Bond.
Every
person licensed as a timber buyer shall file with the
Department, on a form prescribed and furnished by the Department, a
performance bond payable to the State of Illinois by and
through the
Department
and conditioned on the faithful performance of and
compliance with all requirements of the license and this Act. The bond shall
be a
surety bond signed by the person to be licensed as principal
and by a good and sufficient corporate surety authorized to engage in the
business of executing surety bonds within the State of Illinois as surety
thereon. In lieu of a surety bond an applicant for a
timber buyers license may, with the approval of
the Department,
deposit with the
Department as security a
certificate of deposit
or irrevocable letter of credit of any bank organized or transacting business
in the United States in an amount equal to or greater than the
amount of the required bond. Such deposits
shall be made, held, and disposed of as provided in this Act and by the
Department by rule. A bond or certificate of deposit shall
be
made
payable upon demand to the Director, subject to the provisions of this Act,
and any rules adopted under this Act, and shall be for the use and benefit
of the people of the State of Illinois, for the
use and benefit of any timber grower from whom the applicant purchased
timber and who is not paid by the applicant or for the use and benefit of
any timber grower whose timber has been cut by the applicant or licensee or
his or her agents and who has not been paid therefor; and for the use
and
benefit of any person aggrieved by the actions of the timber buyer.
Except as otherwise provided, in this Section, such bond shall be in the
principal amount of $500 for an
applicant who
paid timber growers $5,000 or less for timber during the
immediate
preceding year, and an additional $100 for each additional
$1,000 or
fraction thereof paid to timber growers for timber purchased during the
preceding year, but shall not be more than $10,000.
In the case
of an
applicant not previously engaged in business as a timber buyer, the amount
of such bond shall be based on the estimated dollar amount to be paid by
such timber buyer to timber growers for timber purchased during the next
succeeding year, as set forth in the application; such bond shall, in no
event, be in the principal amount of less than
$500. In the case of a timber buyer whose bond has previously been
forfeited in Illinois or in any other state, the
Department shall
double the applicable minimum bond amounts under this Section.
A bond filed in accordance with this Act
shall not be cancelled or altered during
the period for which the
timber buyer
remains licensed by the Department
except upon at
least 60 days notice in writing to the Department; in the event that
the
applicant has deposited certificates of deposit in lieu of a corporate
surety the Department may retain possession of such certificates of deposit
for a period of 60 days following the expiration or
revocation of his
or her license.
At any such time as a licensee fails to have the necessary surety bonds,
certificates of deposit, or irrevocable letters of credit on
deposit with the Department 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 the posting of the required surety bond,
certificates of deposit, or irrevocable letters of credit.
Bonds shall be in such form and contain such terms and conditions as may
be approved from time to time by the Director, be conditioned to secure an
honest cutting and accounting for timber purchased by the licensee, secure
payment to the timber growers and to insure the timber growers against all
fraudulent acts of the licensee in the purchase and cutting of the timber
of this State.
In the event the timber buyer fails to pay when owing any amount
due a
timber grower for timber purchased, or fails to pay judicially
determined
damages for timber wrongfully cut by a timber buyer or his agent, whether
such wrongful cutting has occurred on or adjacent to the land which was the
subject of timber purchase from a timber grower,
or commits
any
violation
of this Act, then an action on the bond
or deposit for forfeiture may be commenced. Such action is not exclusive
and is in addition to any other judicial remedies
available.
In the event that the timber grower or owner of timber cut considers
himself or herself aggrieved by a timber buyer, he or she shall notify the
Department in
writing of such grievance and thereafter the Department shall within 10
days give written notice to the timber buyer of the alleged violation of
this Act or of any violation or noncompliance with the regulations
hereunder of which the timber grower or owner of timber complains. The
written notice to the timber buyer shall be from the Department by
registered or certified mail to the licensee and his or her sureties stating in
general terms the nature of the violation and that an action seeking
forfeiture of the bond may be commenced at any time after the 10 days from
the date of said notice if at the end of that period the violation still
remains. In the event the Department shall fail to give notice to the
timber buyer as provided herein, the timber grower or owner of timber cut
may commence his or her own action for forfeiture of the licensee's bond.
The timber buyer, after receiving notice from the Department as provided
herein, may within 10 days from the date of such notice, request in writing
to appear and be heard regarding the alleged violation.
Upon such request from the timber buyer, the Department shall schedule a
hearing, designating the time and place thereof. At such hearing the timber
buyer may present for consideration of the Department any evidence,
statements, documents or other information relevant to the alleged
violation. The hearing shall be presided over by the Director or by any
hearing officer he or she may designate. The hearing officer shall take evidence
offered by the timber buyer or the Department and shall, if requested by
the Department, submit his or her conclusions and findings which shall be advisory
to the Director. Any hearings provided for in this Section shall be
commenced within 30 days from the request therefor.
Should the timber buyer fail to make timely request for a hearing after
receipt of the notice from the Department as provided herein, or after a
hearing is concluded, the Department may either withdraw the notice of
violation or request the Attorney General to institute proceedings to have
the bond of the timber buyer forfeited. The Attorney General, upon such
request from the Department, shall institute proceedings to have the bond
of the timber buyer forfeited for violation of any of the provisions of
this Act or for noncompliance with any Department regulation.
In the event that the licensee's bond is forfeited, the proceeds thereof
shall first be applied to any sums determined to be owed to the timber
grower or owner of timber cut
and then to the Department to
defray
expenses
incurred by the Department in converting the security into money.
Thereafter, the Department shall pay such excess to the timber buyer who
furnished such security.
In the event the Department realizes less than the amount of liability
from the security, after deducting expenses incurred by the Department in
converting the security into money, it shall be grounds for the revocation
of the timber buyer's license.

(Source: P.A. 92-805, eff. 8-21-02.)
 
(225 ILCS 735/5) (from Ch. 111, par. 705)
Sec. 5.
It shall be unlawful and a violation of this Act:
(a) For any timber buyer to knowingly and willfully fail to pay,
as agreed, for any timber purchased,
(b) For any timber buyer to knowingly and willfully cut or cause to
be cut or appropriate any timber without the consent of the timber grower,
(c) For a timber buyer to willfully make any false statement in
connection with the application, bond or other information required to be
given to the Department or a timber grower,
(d) To fail to honestly account to the timber grower or the Department
for timber purchased or cut if the buyer is under a duty to do so,
(e) For a timber buyer to commit any fraudulent act in connection with
the purchase or cutting of timber,
(f) For a timber buyer or land owner or operator to fail to file the
report or pay the fees required in Section 9a of this Act, and
(g) For any person to resist or obstruct any officer, employee or agent
of the Department in the discharge of his duties under the provisions hereof.

(Source: P.A. 86-208.)
 
(225 ILCS 735/7) (from Ch. 111, par. 707)
Sec. 7.
License; issuance, validity, and renewal; certificate.
If the
Department is satisfied that the applicant has fulfilled the
requirements and if the bond and sureties or bank certificate of deposit
filed by the applicant is approved, the Department may 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. The timber buyer
identification card issued by the Department shall be carried upon the person
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 he or she 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.
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 a
bond filed as required by this Act.

(Source: P.A. 92-805, eff. 8-21-02.)
 
(225 ILCS 735/8) (from Ch. 111, par. 708)
Sec. 8.

The application for a license to operate as a timber buyer, or a
renewal thereof, shall be accompanied by a filing fee of $25. The fee to be
paid for a certificate that a license has been issued and security filed is $5.
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. 85-287.)
 
(225 ILCS 735/9) (from Ch. 111, par. 709)
Sec. 9.

The Department may inspect the premises used by any timber buyer
in the conduct of his or her business at any reasonable time and the books,
accounts, records and papers of every such timber buyer shall at all times
during business hours be subject to inspection by the Department. 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 prima facie
be considered a timber buyer. A timber buyer shall retain the books,
accounts, records and papers used in the conduct of his or her business for a
period of 3 years after any purchase of timber made by the timber buyer.

(Source: P.A. 85-287.)
 
(225 ILCS 735/9a) (from Ch. 111, par. 709a)
Sec. 9a.

When a timber buyer purchases timber in this State, the buyer
shall determine the amount to be paid for such timber, or the value of items
to be bartered for such timber, and shall deduct from the payment to the
timber grower an amount which equals 4% of the purchase price and shall
forward such amount to the Department of Natural Resources, along with a report
of the purchase on forms provided
by the Department.
Every timber grower who utilizes timber produced on land he owns or operates
for sawing into lumber, for processing, or for resale, except a person who
occasionally uses his own timber for sawing or processing for his own use
and not for resale, shall report periodically, as required by regulation
of the Department, the quantity of timber produced and utilized by the owner
or operator during the reporting period. Such timber grower shall pay to
the Department, when the periodic report is submitted, an amount equal to
4% of the gross value of the timber utilized during the period. The value
of such timber shall be determined pursuant to rule of
the Department. Such rules shall include a voluntary arbitration program for
use in situations in which a dispute arises as to the gross value of the
timber.
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. 89-445, eff. 2-7-96.)
 
(225 ILCS 735/10) (from Ch. 111, par. 710)
Sec. 10.


The Department may make such rules and regulations as may be necessary
to carry out the provisions of this Act.

(Source: P.A. 76-1307.)
 
(225 ILCS 735/11) (from Ch. 111, par. 711)
Sec. 11.
Penalties.
(a) Except as otherwise provided in this Section 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.
(b) Any person convicted of violating subsections (a) or (b) of
Section 5 of this Act is guilty of a Class 4 felony if the aggregate value
of the timber purchased, cut, caused to be cut or appropriated is over $300
but not more than $2,500.
(b-5) Any person convicted of violating subsection (a) or (b) of Section 5
of
this Act is guilty of a
Class 3 felony if the aggregate value of the timber purchased, cut, caused to
be cut, or appropriated is
over $2,500 but not more than $10,000.
(b-10) Any person convicted of violating subsection (a) or (b) of Section 5
of
this Act is guilty of a
Class 2 felony if the aggregate value of the timber purchased, cut, caused to
be cut, or appropriated is
over $10,000.
(b-15) The aggregate value of the timber purchased, cut, caused to be cut,
or appropriated shall be determined as provided by administrative rule.
(c) A person convicted of violating subsection (f) 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.
(d) All amounts collected as fines imposed as penalties for
violation of
this Act shall be deposited in the Illinois Forestry Development Fund
for the purposes of the "Illinois Forestry Development Act".
(e) In case of a failure to pay any 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.
(f) In case of failure to file the appropriate report of the purchase
harvest fee form stipulated under Section 9a of this Act on the date
prescribed therefore, a penalty in the amount of $25 for each individual
report shall be added to the amount due the Department. This penalty shall
be in addition to any other penalty determined under this Act.

(Source: P.A. 92-805, eff. 8-21-02.)
 
(225 ILCS 735/12) (from Ch. 111, par. 712)
Sec. 12.


No certificate of license shall be issued to any person who is in
default to the people of the State of Illinois for moneys due under this
Act.

(Source: P.A. 76-1307.)
 
(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 such person for a period not to exceed 5
years following such revocation.
License revocation procedures shall be established by administrative rule.
(b) Whenever the holder of a license issued under this Act is found guilty
of
any
misrepresentation in obtaining his or her license or of a violation of any of
the provisions of
this Act or rules adopted pursuant to this Act, the Department may:
(c) Whenever the holder of a license issued under this Act is found guilty
of any
misrepresentation
in obtaining his or her license or of a violation of any of the provisions of
this Act or rules adopted pursuant to
this Act, and his or her license has been previously revoked or his or her
ability to engage in the activity
requiring the license has been previously suspended, the Department may:
(d) Whenever the holder of a license issued under this Act is found guilty
of any
misrepresentation
in obtaining that license or of a violation of any of the provisions of this
Act or rules adopted under this
Act, and his or her license has been previously revoked or his or her ability
to engage in the activity
requiring the license has been suspended on 2 or more occasions, the Department
may:
If the holder of a license is found negligent with respect to any duty
required under this Act, the Department may suspend or revoke his or her
privilege to engage in the activity for which the license is required, his or
her license, or both.
(e) Whenever a person who has not been issued a license under this Act is
found
guilty of a
violation of the provisions of this Act or rules adopted under this Act, the
Department may:
(f) Whenever a person who has not been issued a license under this Act is
found
guilty of a violation
of this Act or rules adopted under this Act and his or her license has been
previously revoked or his or
her ability to engage in the activity requiring the license has been previously
suspended, the Department
may:
(g) Whenever a person who has not been issued a license under this Act is
found
guilty of a violation
of this Act or rules adopted under this Act and his or her license has been
previously revoked or his or
her ability to engage in the activity requiring the license has been suspended
on 2 or more occasions, the
Department may:
(h) 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 issuing agent 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.
(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:
(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.
Any person who knowingly or intentionally violates any of the
provisions of this Act, or administrative rules thereunder, when his
or her license has been revoked or denied or his or her
ability to engage in the activity requiring the license has been suspended
under this Section, is guilty
of a Class 4 felony.

(Source: P.A. 92-805, eff. 8-21-02.)
 
(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.

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.

(Source: P.A. 86-208.)

Structure Illinois Compiled Statutes