Full Text of SB2652 93rd General Assembly
SB2652 93RD GENERAL ASSEMBLY
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93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004 SB2652
Introduced 2/4/2004, by John J. Cullerton SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/17-116 |
from Ch. 108 1/2, par. 17-116 |
40 ILCS 5/17-119 |
from Ch. 108 1/2, par. 17-119 |
40 ILCS 5/17-121.1 new |
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40 ILCS 5/17-129 |
from Ch. 108 1/2, par. 17-129 |
30 ILCS 805/8.28 new |
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Amends the Chicago Teacher Article of the Illinois Pension Code. Provides that the service retirement pension for a teacher who retires on or after the effective date of this amendatory Act shall be 2.4% (now 2.2%) of average salary for each year of creditable service. Establishes
a
minimum retirement pension of $1,500 per month for teachers with at least
20 years of service credit in the Fund. Allows a designated domestic partner to qualify as a surviving spouse for
purposes of survivor and death benefits. Provides for a minimum annual contribution from the Chicago Board of Education to the Chicago Teachers' Pension Fund. Amends the State Mandates Act to
require implementation without reimbursement. Effective immediately.
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FISCAL NOTE ACT MAY APPLY |
PENSION IMPACT NOTE ACT MAY APPLY |
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
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A BILL FOR
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SB2652 |
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LRB093 15397 LRD 41000 b |
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| AN ACT concerning to public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Sections 17-116, 17-119, and 17-129 and adding Section 17-121.1 | 6 |
| as follows:
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| (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
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| Sec. 17-116. Service retirement pension.
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| (a) Each teacher having 20 years of service upon attainment | 10 |
| of age 55,
or who thereafter attains age 55 shall be entitled | 11 |
| to a service retirement
pension upon or after attainment of age | 12 |
| 55; and each teacher in service on or
after July 1, 1971, with | 13 |
| 5 or more but less than 20 years of service shall be
entitled | 14 |
| to receive a service retirement pension upon or after | 15 |
| attainment of
age 62.
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| (b) The service retirement pension
for a teacher who | 17 |
| retires on or after June 25, 1971, at age
60 or over, shall be | 18 |
| calculated as follows:
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| (1) For creditable service earned before July 1, 1998 | 20 |
| that has not been
augmented under Section 17-119.1: 1.67% | 21 |
| for each of the first 10 years
of service; 1.90% for each | 22 |
| of the next 10 years of service; 2.10% for
each year of | 23 |
| service in excess of 20 but not exceeding 30; and 2.30% for
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| each year of service in excess of 30, based upon average | 25 |
| salary as
herein defined.
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| (2) For creditable service earned on or after July 1, | 27 |
| 1998 by a member
who has at least 30 years of creditable | 28 |
| service on July 1, 1998 and who does
not elect to augment | 29 |
| service under Section 17-119.1: 2.3% of average salary
for | 30 |
| each year of creditable service earned on or after July 1, | 31 |
| 1998.
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| (3) For all other creditable service: for persons who |
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| retire before the effective date of this amendatory Act of | 2 |
| the 93rd General Assembly, 2.2% of average salary
for each | 3 |
| year of creditable service and, for persons who retire on | 4 |
| or after the effective date of this amendatory Act of the | 5 |
| 93rd General Assembly, 2.4% of average salary for each year | 6 |
| of creditable service .
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| (c) When computing such service retirement pensions, the
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| following conditions shall apply:
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| 1. Average salary shall consist of the average annual | 10 |
| rate of salary
for the 4 consecutive years of validated | 11 |
| service within the last 10 years
of service when such | 12 |
| average annual rate was highest. In the determination
of | 13 |
| average salary for retirement allowance purposes, for | 14 |
| members who
commenced employment after August 31, 1979, | 15 |
| that part of the salary for any
year shall be excluded | 16 |
| which exceeds the annual full-time salary rate for
the | 17 |
| preceding year by more than 20%. In the case of a member | 18 |
| who commenced
employment before August 31, 1979 and who | 19 |
| receives salary during any year
after September 1, 1983 | 20 |
| which exceeds the annual full time salary rate for
the | 21 |
| preceding year by more than 20%,
an Employer and other | 22 |
| employers of
eligible contributors as defined in Section | 23 |
| 17-106
shall pay to the Fund an amount equal to the present | 24 |
| value of the
additional service retirement pension | 25 |
| resulting from such excess salary.
The present value of the | 26 |
| additional service retirement pension shall be
computed by | 27 |
| the Board on the basis of actuarial tables adopted by the
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| Board. If a member elects to receive a pension from this | 29 |
| Fund
provided by
Section 20-121, his salary under the State | 30 |
| Universities Retirement System
and the Teachers' | 31 |
| Retirement System of the State of Illinois shall be
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| considered in determining such average salary. Amounts | 33 |
| paid after the
effective date of this amendatory Act of | 34 |
| 1991 for unused vacation time
earned after that effective | 35 |
| date shall not under any circumstances be
included in the | 36 |
| calculation of average salary or the annual rate of salary
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| for the purposes of this Article.
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| 2. Proportionate credit shall be given for validated | 3 |
| service of less
than one year.
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| 3. For retirement at age 60 or over the pension shall | 5 |
| be payable at
the full rate.
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| 4. For separation from service below age 60 to a | 7 |
| minimum age of 55,
the pension shall be discounted at the | 8 |
| rate of 1/2 of one per cent for
each month that the age of | 9 |
| the contributor is less than 60, but a
teacher may elect to | 10 |
| defer the effective date of pension in order to
eliminate | 11 |
| or reduce this discount. This discount shall not be | 12 |
| applicable
to any participant who has at least 34 years of | 13 |
| service or a
retirement pension of at least 74.6% of | 14 |
| average salary on the date the
retirement annuity begins.
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| 5. No additional pension shall be granted for service | 16 |
| exceeding 45
years. Beginning June 26, 1971 no pension | 17 |
| shall exceed the greater of
$1,500 per month or 75% of | 18 |
| average salary as herein defined.
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| 6. Service retirement pensions shall begin on the | 20 |
| effective date of
resignation, retirement, the day | 21 |
| following the close of the payroll
period for which service | 22 |
| credit was validated, or the time the person
resigning or | 23 |
| retiring attains age 55, or on a date elected by the
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| teacher, whichever shall be latest.
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| 7. A member who is eligible to receive a retirement | 26 |
| pension of at least
74.6% of average salary and will attain | 27 |
| age 55 on or before December 31
during the year which | 28 |
| commences on July 1 shall be deemed to attain age 55 on
the | 29 |
| preceding June 1.
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| 8. A member retiring after the effective date of this | 31 |
| amendatory Act
of 1998 shall receive a pension equal to 75% | 32 |
| of average salary if the
member is qualified to receive a | 33 |
| retirement pension equal to at least 74.6%
of average | 34 |
| salary under this Article or as proportional annuities | 35 |
| under
Article 20 of this Code.
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| (d) Notwithstanding the other provisions of this Section, |
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| the minimum
retirement pension payable to a person with at | 2 |
| least 20 years of service credit
under this Article who begins | 3 |
| receiving a retirement pension (other than a
reversionary | 4 |
| pension) on or after January 1, 2005 shall be $1,500 per
month.
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| (Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)
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| (40 ILCS 5/17-119) (from Ch. 108 1/2, par. 17-119)
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| Sec. 17-119. Automatic annual increase in pension. | 8 |
| (a) Each teacher
retiring on or after September 1, 1959, is | 9 |
| entitled to the annual
increase in pension, defined herein, | 10 |
| while he is receiving a
pension from the Fund.
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| 1. The term "base pension" means a service retirement or | 12 |
| disability
retirement pension in the amount fixed and payable | 13 |
| at the date of
retirement of a teacher.
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| 2. The annual increase in pension shall be at the rate of 1 | 15 |
| 1/2% of
base pension. This increase shall first occur in | 16 |
| January of the year
next following the first anniversary of | 17 |
| retirement. At such time the
Fund shall pay the pro rata part | 18 |
| of the increase for the period
from the
first anniversary date | 19 |
| to the date of the first increase in
pension. Beginning January | 20 |
| 1, 1972, the rate of annual increase in
pension shall be 2% of | 21 |
| the base pension. Beginning January 1, 1979, the
rate of annual | 22 |
| increase in pension shall be 3% of the base pension.
Beginning | 23 |
| January 1, 1990, all automatic annual increases payable under
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| this Section shall be calculated as a percentage of the total | 25 |
| pension
payable at the time of the increase, including all | 26 |
| increases previously
granted under this Article, | 27 |
| notwithstanding Section 17-157.
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| 3. An increase in pension shall be granted only if the | 29 |
| retired
teacher is age 60 or over. If the teacher attains age | 30 |
| 60 after
retirement, the increase in pension shall begin in | 31 |
| January of the
year following the 61st birthday. At such time | 32 |
| the Fund also shall
pay
the pro rata part of the increase from | 33 |
| the 61st birthday to the date of
first increase in pension.
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| (b) In addition to other increases which may be provided by | 35 |
| this Section, on
January 1, 1981 any teacher who was receiving |
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| a retirement pension on or
before January 1, 1971 shall have | 2 |
| his retirement pension then being paid
increased $1 per month | 3 |
| for each year of creditable service. On January
1, 1982, any | 4 |
| teacher whose retirement pension began on or before January 1,
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| 1977, shall have his retirement pension then being paid | 6 |
| increased $1 per
month for each year of creditable service.
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| (c) On January 1, 1987, any teacher whose retirement | 8 |
| pension began
on or before January 1, 1977, shall have the | 9 |
| monthly retirement pension
increased by an amount equal to 8˘ | 10 |
| per year of creditable service times the
number of years that | 11 |
| have elapsed since the retirement pension began.
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| (d) On January 1, 2005, every pensioner with at least 20 | 13 |
| years of service
credit under this Article who is receiving a | 14 |
| retirement pension (other than
a reversionary pension) of less | 15 |
| than $1,500 per month shall have the
retirement pension | 16 |
| increased to $1,500 on that date, notwithstanding
Section | 17 |
| 17-157. The increase under this subsection shall be included in | 18 |
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calculation of the increases granted on that date or | 19 |
| thereafter under
subsection (a) of this Section.
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| (Source: P.A. 90-566, eff. 1-2-98.)
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| (40 ILCS 5/17-121.1 new)
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| Sec. 17-121.1. Domestic partner eligibility.
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| (a) Beginning July 1, 2004, an unmarried teacher may | 24 |
| designate a domestic
partner by filing a written designation | 25 |
| with the Fund in the manner prescribed
by the Fund. The Fund | 26 |
| may require reasonable evidence that the person
designated | 27 |
| meets the qualifications set forth in subsection (c). Such a
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| designation is revocable at any time, but may not be made or | 29 |
| changed more than
once in any 24-month period. The marriage of | 30 |
| a teacher automatically revokes
any designation of a domestic | 31 |
| partner previously made by that teacher.
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| (b) The designated domestic partner of a teacher shall be | 33 |
| eligible to
receive survivor and death benefits under this | 34 |
| Article in the same manner
and subject to the same conditions | 35 |
| as a surviving spouse. For the purposes
of determining |
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| eligibility for those benefits, the date of designation of a
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| domestic partner shall be deemed the equivalent of the date of | 3 |
| marriage, and
the revocation or change of a designation shall | 4 |
| be deemed the equivalent of
termination of the marriage. | 5 |
| References in this Article and other applicable
Articles of | 6 |
| this Code to a surviving spouse shall be deemed to include a
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| surviving designated domestic partner.
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| (c) "Domestic partner" means an individual of the same | 9 |
| gender as an
unmarried teacher who (1) is involved with the | 10 |
| teacher in a long-term
relationship of indefinite duration; (2) | 11 |
| has resided together with the teacher
at the same address for | 12 |
| at least 12 months; (3) is not related to the teacher
by blood | 13 |
| to a degree of closeness that would prohibit legal marriage in | 14 |
| the
state in which they legally reside; (4) is not married to | 15 |
| any other person;
and (5) has an exclusive mutual commitment to | 16 |
| the teacher in which they agree
to be jointly responsible for | 17 |
| each other's common welfare and to share
financial obligations.
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| (40 ILCS 5/17-129) (from Ch. 108 1/2, par. 17-129)
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| Sec. 17-129. Employer contributions; deficiency in Fund.
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| (a) If in any fiscal year of the Board of Education ending | 21 |
| prior to 1997 the
total amounts paid to the Fund from the Board | 22 |
| of Education (other than under
this subsection, and other than | 23 |
| amounts used for making or "picking up"
contributions on behalf | 24 |
| of teachers) and from the State do not equal the total
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| contributions made by or on behalf of the teachers for such | 26 |
| year, or if the
total income of the Fund in any such fiscal | 27 |
| year of the Board of Education from
all sources is less than | 28 |
| the total such expenditures by the Fund for such year,
the | 29 |
| Board of Education shall, in the next succeeding year, in | 30 |
| addition to any
other payment to the Fund set apart and | 31 |
| appropriate from moneys from its tax
levy for educational | 32 |
| purposes, a sum sufficient to remove such deficiency or
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| deficiencies, and promptly pay such sum into the Fund in order | 34 |
| to restore any
of the reserves of the Fund that may have been | 35 |
| so temporarily applied. Any
amounts received by the Fund after |
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| December 4, 1997 from State appropriations, including under | 2 |
| Section
17-127, shall be a credit against and shall fully | 3 |
| satisfy any obligation that
may have arisen, or be claimed to | 4 |
| have arisen, under this subsection (a) as a
result of any | 5 |
| deficiency or deficiencies in the fiscal year of the Board of
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| Education ending in calendar year 1997.
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| (b) (i) For fiscal years 2011 through 2045, the minimum | 8 |
| contribution
to the Fund to be made by the Board of Education | 9 |
| in each fiscal year shall be
an amount determined by the Fund | 10 |
| to be sufficient to bring the total assets of
the Fund up to | 11 |
| 90% of the total actuarial liabilities of the Fund by the end | 12 |
| of
fiscal year 2045. In making these determinations, the | 13 |
| required Board of
Education contribution shall be calculated | 14 |
| each year as a level percentage of
the applicable employee | 15 |
| payrolls over the years remaining to and including
fiscal year | 16 |
| 2045 and shall
be determined under the projected unit credit | 17 |
| actuarial cost method.
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| (ii) For fiscal years 1999 through 2010, the Board of | 19 |
| Education's
contribution to the Fund, as a percentage of the | 20 |
| applicable employee payroll,
shall be increased in equal annual | 21 |
| increments so that by fiscal year 2011, the
Board of Education | 22 |
| is contributing at the rate required under this subsection.
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| (iii) Beginning in fiscal year 2046, the minimum Board of | 24 |
| Education
contribution for each fiscal year shall be the amount | 25 |
| needed to maintain the
total assets of the Fund at 90% of the | 26 |
| total actuarial liabilities of the Fund.
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| (iv) Notwithstanding any provision of law to the contrary, | 28 |
| for the Fund's 2005-2006 fiscal year and each
the provisions of | 29 |
| paragraphs (i), (ii), and (iii)
of this subsection (b), for any
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| fiscal year thereafter, the contribution to the Fund from
the | 31 |
| Board of Education shall be not less than the amount of member | 32 |
| contributions during the fiscal year 2 years prior to the | 33 |
| fiscal year for which the contribution is required
not be | 34 |
| required to be in excess of the amount
calculated as needed to | 35 |
| maintain the assets (or cause the assets to be) at the
90% | 36 |
| level by the end of the fiscal year .
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| (v) Any contribution by the State to or for the benefit of | 2 |
| the Fund,
including, without limitation, as referred to under | 3 |
| Section 17-127, shall be a
credit against any contribution | 4 |
| required to be made by the Board of Education
under this | 5 |
| subsection (b).
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| (c) The Board shall determine the amount of Board of | 7 |
| Education
contributions required for each fiscal year on the | 8 |
| basis of the actuarial
tables and other assumptions adopted by | 9 |
| the Board and the recommendations of
the actuary, in order to | 10 |
| meet the minimum contribution requirements of
subsections (a) | 11 |
| and (b). Annually, on or before February 28, the Board shall
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| certify to the Board of Education the amount of the required | 13 |
| Board of Education
contribution for the coming fiscal year. The | 14 |
| certification shall include a
copy of the actuarial | 15 |
| recommendations upon which it is based.
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| (Source: P.A. 89-15, eff. 5-30-95; 90-548, eff. 12-4-97; | 17 |
| 90-566, eff. 1-2-98;
90-655, eff. 7-30-98.)
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| Section 90. The State Mandates Act is amended by adding | 19 |
| Section 8.28 as
follows:
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| (30 ILCS 805/8.28 new)
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| Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8 | 22 |
| of this
Act, no reimbursement by the State is required for the | 23 |
| implementation of
any mandate created by this amendatory Act of | 24 |
| the 93rd General Assembly.
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| Section 99. Effective date. This Act takes effect upon | 26 |
| becoming law.
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