SB3438 Summary

• Amends the Illinois Livestock Dealer Licensing Act to require surety bond forms and amounts be prescribed by the Packers and Stockyards Administration of the United States Department of Agriculture, rather than by state calculation.

• Removes previous state-specific bond amount requirements that were based on a dealer's average livestock purchases over 3 business days, with minimum bonds of $6,000 and maximum of $50,000 plus 15% of excess.

• Allows livestock dealers with sufficient federal bonds posted with the U.S. Department of Agriculture Packers and Stockyards division to use those bonds to satisfy state bonding requirements by submitting a duplicate original.

• Maintains existing provisions permitting dealers to substitute irrevocable letters of credit with trust agreements, cash deposits, or securities in escrow as alternatives to surety bonds.

• Preserves continuous bond requirements with 30-day cancellation notice provisions and allows the Director to require bond adjustments for dealers with seasonal or irregular business operations.