2023 Illinois Compiled Statutes › Chapter 225 - PROFESSIONS, OCCUPATIONS, AND BUSINESS OPERATIONS › 225 ILCS 640/ - Livestock Auction Market Law.

(225 ILCS 640/1) (from Ch. 121 1/2, par. 208)
Sec. 1. 
		Definitions. 
		When used in this Act:
"Person" means any person, firm, partnership, or corporation.
"Department" means the Department of Agriculture of the State of Illinois.
"Director" means the Director of the Illinois Department of Agriculture,
or his duly appointed representative.
"Livestock" means cattle, swine, sheep, equidae, and goats.
"Livestock auction market" means any sale or exchange of livestock
held by any person at an established place of business or premises where
the livestock is assembled for sale or exchange and is sold or exchanged
at auction at regular or irregular intervals, but more frequently than 3
times during the preceding 12 months.
"Consignor" means any person consigning, shipping, or delivering
livestock to a livestock auction market for sale, resale, or exchange.
"Operator of a livestock auction market" means any person holding,
conducting, or carrying on a livestock auction market.
"Marketing center" means an approved livestock facility (stockyard or
livestock market under State and federal veterinary supervision) where
livestock is assembled and that has been approved by the United States
Department of Agriculture.
"Consignment" means a document issued by the owner or shipper of
livestock, designating the name of the owner and/or shipper; place of
origin; stockyards, State or Federal approved slaughtering
establishment, or marketing center of destination; date of shipment;
and number and description of livestock,
certified to by the owner or shipper, kept in possession of the carrier
and delivered to a stockyards, State or Federal approved slaughtering
establishment, or marketing center of destination upon acceptance. This
consignment shall be held by the stockyards, State or Federal approved
slaughtering establishment, or marketing center for a period of not less
than 6 months for inspection by the legally authorized officials of the
United States Department of Agriculture and the Illinois Department of
Agriculture and other officials having police powers.
(Source: P.A. 91-457, eff. 1-1-00.)
(225 ILCS 640/1.1) (from Ch. 121 1/2, par. 208.1)
Sec. 1.1. 
		
		This Act shall be known and may be cited as the Livestock Auction Market Law.
(Source: Laws 1967, p. 728.)
(225 ILCS 640/2) (from Ch. 121 1/2, par. 209)
Sec. 2. 
		
		
		No person shall hold, operate, conduct, or carry on a livestock auction
market in this State without first securing a license therefor from the
Department. The application for such license shall be on forms prescribed
and furnished by the Department and shall set forth:
(a) The name of the operator of the livestock auction     market;
(b) The location of the establishment or premises     where the livestock auction market is to be conducted;
(c) The type or kinds of livestock to be handled,     sold, or exchanged;
(d) A description of the facilities to be used in     conducting such livestock auction market;
(e) The name of the accredited veterinarian who will     supervise such market; and
(f) Such other information as the Department     reasonably may require.
Such application shall be accompanied by a bond and the required fee as
hereinafter provided.
(Source: P.A. 78-752.)
(225 ILCS 640/3) (from Ch. 121 1/2, par. 210)
Sec. 3. 
		
		Each applicant for a license to operate and conduct a livestock
auction market shall file a bond with the Department. The amount of the
required bond shall be an average of the total dollar value of livestock
sold at auction throughout the year.  The total dollar value of livestock
sold during the year shall be divided by the number of sales held during
the year.  The amount of bond must be the next multiple of $5,000 above the
average of the total dollar value of livestock sold.  When the computed
amount of bond exceeds $50,000, the amount of bond shall be $50,000, plus
10 percent of the excess over $50,000, raised to the next $5,000 multiple.
In no case shall the amount of bond be less than $10,000.  Such bond shall
be conditioned for the prompt
remittance to consignors of the proceeds from any sale or
exchange of livestock. Such bond shall be in a form and with sureties
satisfactory to the Department, shall provide that it may not be
cancelled without 30 days notice in writing to the Department, and shall
name the Director as trustee. Such bond
shall be for the use and benefit of any consignor suffering loss or
damage by breach of the condition thereof and any such consignor may
bring action for recovery thereon.
In lieu of filing such bond, the operator of a livestock auction
market may deliver to the Department the receipt of a duly authorized
bank, savings and loan association or trust company in this State showing
the deposit with the bank, savings and loan association or
trust company of cash or of securities endorsed in blank by the owner
thereof and of a market value equal at least to the required principal
amount of such bond, the cash or securities to be deposited in escrow
under agreement conditioned as in the case of the bond. An action for
recovery against any such deposit may be brought in the same manner as
in the case of an action for recovery on a bond filed hereunder. Any
such receipt shall further be accompanied by evidence that there are no
unsatisfied judgments against the operator of such livestock auction
market of record in the county where the operator resides.
When a licensee under this Act has a bond on file with the United
States Department of Agriculture, Packers and Stockyards Administration,
or any successor agency, and such bond is in an amount and conditioned upon
such terms as meet the conditions of this Act, a duplicate original of such
bond shall be furnished to the Department, and such bond shall replace the
State bond as if it were the State bond. The Director shall be named as
trustee in such bond, and such bond may not be cancelled without 30 days
notice in writing to the Department.
Any operator of a livestock auction market required to maintain a surety
bond under this Act may elect to maintain, in whole or partial substitution
for such surety bond, one or more irrevocable letters of credit on which
a trustee is authorized to draw funds subject to a trust agreement.  The
amount of letters of credit, surety bond, trust fund agreement, or
combination thereof, must be the total amount of the surety bond otherwise
required under this Act.  Letters of credit and trust agreements shall
be on forms prescribed by the Department.  Any letter of credit must be
issued for a period of not less than one year.  The Director shall be trustee on
any such trust agreements.  An action for recovery against this trust
agreement may be brought in the same manner as in the case of an action for
recovery on a bond filed hereunder.  This letter of credit and trust
agreement may be terminated by any party to the agreement by providing the
Illinois Department of Agriculture with written notice of such termination
at least 30 days prior to the effective date of termination.  In any case
when an operator of a livestock auction market has elected to maintain one
or more irrevocable letters of credit and related trust agreements, in
order to fulfill the bonding requirements of the Packers and Stockyards
Administration, United States Department of Agriculture, or any successor
agency, such letters of credit and trust agreements shall satisfy the
provisions of this Act, and such letters of credit and trust agreements
shall replace the State letters of credit and trust agreement as if they
were the State letters of credit and trust agreements.
Whenever the Director has reason to believe that any bond, or bond
substitute, filed or maintained under this Act is inadequate to secure the
performance of the obligations of the operator of the livestock auction
market covered by such bond, he shall notify the operator of the livestock
auction market to adjust such bond to meet the requirements of this
Section or, if such bond is inadequate to meet such requirements as may be
determined by the Director to be reasonable based upon such seasonal or
irregular operation.
(Source: P.A. 86-231; 87-160.)
(225 ILCS 640/4) (from Ch. 121 1/2, par. 211)
Sec. 4. 
		
		The fee for a license to operate a livestock auction market
shall be $200 for the term of one calendar year or for such part thereof
as remains at the time of the issuance thereof. Upon
receipt of an application for a license
hereunder accompanied by the required bond and license fee, the
Department shall examine the same and if it finds such application to be
in proper form and that the applicant has otherwise complied with this
Act, the Department shall grant the license as applied for, subject to
the provisions of this Act.
(Source: P.A. 81-748.)
(225 ILCS 640/4.5) (from Ch. 121 1/2, par. 211.5)
Sec. 4.5. 
		
		Every licensed auction market shall establish and maintain a
separate bank account designated as "Custodial Account for Shippers'
Proceeds", or of some similar identifying designation, to disclose that the
depository is acting as a fiduciary and that the funds in the account are trust funds.
(Source: P.A. 86-231.)
(225 ILCS 640/5) (from Ch. 121 1/2, par. 212)
Sec. 5. 
		
		Licenses shall be in such form as the Department may prescribe, shall
be under the seal of the Department and shall set forth:
(a) The name and address of the operator of the livestock auction
market;
(b) The location of the establishment or premises licensed;
(c) The kinds of livestock to be sold, exchanged, or handled;
(d) The period of the license; and
(e) Such other information as the Department may determine.
A separate license shall be required for each establishment or
premises where a livestock auction market is operated or conducted. The
original, or a certified copy of the license hereunder, shall be
conspicuously displayed by the licensee in the sale ring or some other
like prominent place in the establishment or premises licensed.
Licenses shall expire on December 31 of each year and shall be renewed
during the month of December of each year upon like application and
procedure as in the case of the original license.
(Source: P.A. 81-748.)
(225 ILCS 640/6) (from Ch. 121 1/2, par. 213)
Sec. 6. 
		
		Grounds for refusal to issue or renew license and for license
suspension and revocation.  The Department may refuse to issue
or to
renew a license or may suspend
or revoke a license on any one or more of the following grounds:
(a) Violating any provision of this
Act or any
rule, order, or regulation issued hereunder;
(b) Knowingly receiving on
consignment or selling or
exchanging stolen or mortgaged livestock without authority
from the owner or
mortgagee;
(c) Being guilty of fraud or deception in
any
material particular in securing the license;
(d) Failing to keep records as required
hereunder;
(e) Failing to practice measures of
sanitation as
required hereunder or violating the rules and regulations,
if any, for
the yarding, housing, holding, and feeding of livestock;
(f) In the case of livestock weighed on the
licensee's scales and sold by weight, knowingly quoting
incorrect
weights or failing to have his  scales regularly inspected
and tested;
(g) Failing to pay for livestock after
sale;
(h) Issuing checks for payment of
livestock when
funds are insufficient; or
(i) Being insolvent as determined by a department audit.
(Source: P.A. 89-154, eff. 1-1-96.)
(225 ILCS 640/6.1) (from Ch. 121 1/2, par. 213a)
Sec. 6.1. 
		Suspension. 
		The Director may suspend a license under
Section 6 and
require the licensee to cease doing business.  The Director shall issue a
written order of suspension  setting forth the reasons
for the suspension and for requiring the licensee to cease operation as a
livestock auction market until a hearing has been held.  Such written order
shall be served personally on the licensee, or by certified mail sent to
the licensee's business address as shown in the latest notification to the
Department.
(Source: P.A. 89-154, eff. 1-1-96.)
(225 ILCS 640/6.2) (from Ch. 121 1/2, par. 213b)
Sec. 6.2. 
The Department may refuse to issue or may suspend the
license of any person upon the complaint in writing from the Checkoff Division of the Illinois Beef Association Board of Governors indicating that the person has failed to properly remit or deduct
funds as required by Section 9 of the Beef Market Development Act.
(Source: P.A. 99-389, eff. 8-18-15.)
(225 ILCS 640/7) (from Ch. 121 1/2, par. 214)
Sec. 7. 
		
		Each operator of a livestock auction market shall keep the following
records for each lot of livestock consigned to or sold through such
livestock auction market:
(a) The name and address of the consignor;
(b) A description of the livestock, which includes the kind, approximate
age, the sex, and any marks, brands or other distinguishing or identifying
marks;
(c) The method by which the livestock was delivered to the livestock
auction market and, in the case of livestock delivered by motor vehicle,
the name of the operator, the model, manufacturer, and the State license
number of such motor vehicle;
(d) The name and address of the purchaser of such livestock;
(e) The price for which the livestock was sold or exchanged and the
commission or other fees charged by the livestock auction market;
(e-5) For equidae only, the date of the test for equine infectious
anemia;
(f) There shall be forwarded to the Department within 72 hours after
date of each consignment sold for slaughter a certification of slaughter,
or certification of shipment, on forms prescribed by the Department, or a
purchaser's invoice. The purchaser's invoice shall contain information relative
to resale of slaughter consignments as prescribed by
the Department as well as the name and address of purchaser, number,
description, and weight of animals and destination of each consignment;
and
(g) Any health certificates accompanying shipments.
Such records shall be kept by the operator of a livestock auction market
at the establishment or premises where the sale is held and conducted or
such other convenient place as may be approved by the Department. Such
records shall be open for inspection by authorized Department personnel
of this State at
all reasonable times and shall be retained and preserved for a period of at
least 2 years.
(Source: P.A. 91-457, eff. 1-1-00.)
(225 ILCS 640/7a) (from Ch. 121 1/2, par. 214a)
Sec. 7a. 
		
		The weight of all livestock sold at auction according to weight by
a livestock auction market or marketing center shall be determined by
weighing at the time such livestock is sold or ownership is transferred.
(Source: Laws 1967, p. 728.)
(225 ILCS 640/8) (from Ch. 121 1/2, par. 215)
Sec. 8. 
Each livestock auction market shall, except on days when all
livestock
is consigned direct for immediate slaughter and except for sales restricted
to equidae, be under the direct
supervision of an accredited veterinarian approved by the Department and
each licensed livestock auction market designated as a marketing center
shall, except on days when all livestock is consigned direct for immediate
slaughter and except for sales restricted to equidae, be under the direct
supervision of an accredited veterinarian
approved by the Department. Except as otherwise provided in this Act and
by regulations, no
livestock known to be infected with or known to have been exposed to any
contagious, infectious, or communicable animal disease or infestation shall
be consigned to or sold through any livestock auction market. The
veterinarian shall examine or inspect all livestock that is offered for
sale and shall prohibit the sale of any animals which in his opinion are
diseased or which are likely to be carriers of disease, and shall
quarantine such animals when necessary. The veterinarian shall also issue
or cause to be issued all necessary quarantines for livestock sold through
such markets. The name and address of the purchaser of any livestock sold
under or subject to quarantine, together with the description and number of
head of the livestock shall be reported to and filed with the Department
within 48 hours from date of sale. The veterinarian shall supervise the
cleaning and disinfecting of the yards and pens following each sale or at
such other times as may be necessary. Except as otherwise provided in this
Act, no female cattle or bulls more than 6 months of age shall be sold
through a livestock auction market, except for slaughter, unless such
cattle (a) are in compliance with the provisions of "An Act in relation to
the eradication of bovine brucellosis among domestic cattle", approved July
12, 1939, as amended or (b) are female cattle of the beef breeds over 6 and
under 18 months of age released on permit subject to the livestock
quarantine regulations of the Department for feeding or grazing purposes
only consigned direct from the farm to the livestock auction market or
shipped direct to the livestock auction market from other states, livestock auction markets, or marketing centers within the State in accordance with Illinois statutory
requirements to be sold through the livestock auction market without test
for brucellosis or tuberculosis.
Bulls over 18 months of age, springer heifers and cows, or heifers
and cows with calves, are
classed as breeding cattle and as such shall comply with the requirements
governing breeding cattle.
Calves under 3 months of age of all breeds, not with their dams, may
enter the State of Illinois without test for tuberculosis if
they are consigned to a licensed livestock auction market to be sold for
immediate slaughter.
Under the provisions of this Act, the Department of Agriculture is
authorized to make rules and regulations permitting or requiring the sale through
livestock auction markets, for immediate slaughter only, of any cattle
which upon being tested for brucellosis
react to an official test for brucellosis.
Livestock auction markets handling livestock during inclement weather
shall be equipped with facilities for housing the livestock during such
inclement weather. If livestock is held on the premises for more than 10
hours, facilities for feeding and watering the livestock shall be provided.
The yards, pens, and premises where livestock is held or handled shall be
regularly cleaned and disinfected for the purpose of preventing infectious,
contagious, and communicable animal diseases.
In case any livestock auction market shall sell livestock by weight, the
scales upon which such livestock is weighed shall be regularly inspected
and tested.
(Source: P.A. 97-25, eff. 6-28-11.)
(225 ILCS 640/8a) (from Ch. 121 1/2, par. 215a)
Sec. 8a. 
		
		All marketing centers designated by
the Department and the United States Department of Agriculture shall be
operated according to Department rules and regulations
concerning market centers and all other livestock
auction market rules and regulations not inconsistent with the rules and
regulations governing marketing centers.
(Source: P.A. 91-457, eff. 1-1-00.)
(225 ILCS 640/8b) (from Ch. 121 1/2, par. 215b)
Sec. 8b. 
		
		All scales used by a livestock auction market or marketing center
to weigh livestock shall be so located as to be easily accessible for
testing and inspection by the Department.
(Source: Laws 1967, p. 728.)
(225 ILCS 640/8c) (from Ch. 121 1/2, par. 215c)
Sec. 8c. 
		
		Each marketing center shall submit weekly reports to the
Department of all livestock received from interstate shipments. This report
shall give the name and address of the consignor, description and number of
head of livestock, and the destination of the animals received.
(Source: Laws 1963, p. 2046.)
(225 ILCS 640/8d) (from Ch. 121 1/2, par. 215d)
Sec. 8d. 
		Other Acts. 
		All persons licensed under this Act must also
comply with all the provisions
of the "Illinois Bovine Brucellosis Eradication
Act" and
the rules adopted pursuant to that law, the "Illinois Bovidae and Cervidae
Tuberculosis
Eradication Act" and the rules adopted pursuant to that
law, the "Illinois
Diseased Animals Act" and the rules adopted pursuant to
that law, "An Act
providing for the licensing of feeder swine dealers, regulating such business,
and providing penalties for violations hereof" and the rules adopted pursuant
to that law, the "Illinois Livestock Dealer Licensing Act" and the rules
adopted pursuant to that law, the "Slaughter Livestock Buyers
Act" and the
rules adopted pursuant to that law, the "Illinois Swine
Brucellosis Eradication
Act" and the rules adopted pursuant to that law,
the "Illinois Swine
Disease Control and Eradication Act" and the rules adopted
pursuant to that
law, the Illinois Equine Infectious Anemia Control Act and the rules
adopted under that Act, and the "Illinois Pseudorabies Control Act" and
the rules adopted
pursuant to that law.
(Source: P.A. 89-154, eff. 1-1-96; 90-192, eff. 7-24-97.)
(225 ILCS 640/9) (from Ch. 121 1/2, par. 216)
Sec. 9. 
		
		
		The operator of a livestock auction market shall post in a conspicuous
place a schedule of the fees or commission rates charged for livestock sold
or handled through such market and a schedule of the fees or charges, if
any, for the inspection of livestock consigned to or sold through such
market.
(Source: P.A. 78-752.)
(225 ILCS 640/10a) (from Ch. 121 1/2, par. 217a)
Sec. 10a. 
		
		Nothing in this Act shall be construed as preventing the movement
of livestock into stockyards registered under the Packers and Stockyards
Act, a State-Federal approved slaughtering establishment or a marketing
center. The United
States Department of Agriculture or the Illinois Department of Agriculture
has the authority, however, to prohibit the entry, movement,
or sale of diseased animals.
(Source: P.A. 91-457, eff. 1-1-00.)
(225 ILCS 640/11) (from Ch. 121 1/2, par. 218)
Sec. 11. 
		
		The Department may make reasonable rules and regulations for
carrying out the provisions of this Act.
For the purpose of carrying out the provisions of this Act and making
inspections hereunder, the Department, or any duly authorized
representative thereof, has the right to enter the establishment or
premises where any livestock auction market is held and to inspect the
records thereof at all reasonable times.
(Source: P.A. 81-748.)
(225 ILCS 640/11.5) (from Ch. 121 1/2, par. 218.5)
Sec. 11.5. 
		Administrative hearings and penalties. 
		Any person violating or
aiding in or abetting the violation of any
provisions of this Act, or any provision of any rule of the
Department issued under this Act, may be ordered, following an
administrative hearing, to pay the following administrative penalties:
(1) $300 for a first violation;
(2) $600 for a second violation within 3 years of the     first violation; and
(3) $1,000 for a third and subsequent violation     within 3 years of the first violation.
(Source: P.A. 89-154, eff. 1-1-96.)
(225 ILCS 640/12) (from Ch. 121 1/2, par. 219)
Sec. 12. 
		(Repealed).
(Source: P.A. 78-752. Repealed by P.A. 89-154, eff. 7-19-95.)
(225 ILCS 640/15)
Sec. 15. 
		Investigation and hearing. 
		The Department may, upon its own
motion, and shall, upon the
complaint in writing of any person setting forth facts which if proved
would constitute grounds under Section 6,
investigate the actions of any applicant,
registrant, or person claiming to be registered under this Act.  At least 10
days before the date set for hearing, the Department shall, before refusing to
issue or renew and before suspension or revocation of a registration,
notify in writing the applicant for or holder of a registration,
 called in this Section the respondent, that on the date designated a hearing
will be
held to determine whether the respondent is privileged to be registered.
 The written notice shall be served personally on the respondent or by
registered or certified mail sent to the respondent's business address as shown
in his or her latest notification to the Department.
The Department, over the signature of the Director, is authorized to
subpoena and bring before the Department any person or persons in this
State and to take testimony either orally or by deposition or by exhibit,
with the same fees and mileage and in the same manner as prescribed by law
in judicial proceedings in civil cases in circuit courts
of this State.  The Director may issue subpoenas duces tecum to command the
production of any or all records relating to the person.
(Source: P.A. 89-154, eff. 1-1-96.)
(225 ILCS 640/20)
Sec. 20. 
		Hearing rules. 
		The Illinois Administrative Procedure Act and the
Illinois
Department of Agriculture rules
adopted under that Act apply to hearings under this Act.
(Source: P.A. 89-154, eff. 1-1-96.)
(225 ILCS 640/25)
Sec. 25. 
		Judicial review. 
		All final administrative decisions of the
Department are subject
to judicial review under Article III of the Code of Civil Procedure and its
rules.  The term "administrative decision" is defined as in Section 3-101 of
the
Code of Civil Procedure.  Proceedings for judicial review shall be commenced in
the circuit court of any county permitted by Section 3-104 of the Code of Civil
Procedure.
(Source: P.A. 89-154, eff. 1-1-96.)