Full Text of SB3188 93rd General Assembly
SB3188ren 93RD GENERAL ASSEMBLY
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SB3188 Re-Enrolled |
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LRB093 19067 RCE 44802 b |
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| AN ACT in relation to executive agencies.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Department of Commerce and Economic | 5 |
| Opportunity Law of the Civil Administrative Code is amended by | 6 |
| changing Section 605-332 as follows:
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| (20 ILCS 605/605-332)
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| Sec. 605-332. Financial assistance to energy generation | 9 |
| facilities.
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| (a) As used in this Section:
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| "New electric generating facility" means a | 12 |
| newly-constructed electric
generation plant or a newly | 13 |
| constructed generation capacity expansion at an
existing | 14 |
| facility, including the transmission lines and associated | 15 |
| equipment
that transfers electricity from points of supply to | 16 |
| points of delivery, and for
which foundation construction | 17 |
| commenced not sooner than July 1, 2001, which is
designed to | 18 |
| provide baseload electric generation operating on a continuous
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| basis throughout the year ; and :
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| (1)
which has an aggregate rated generating capacity
of | 21 |
| at
least 400 megawatts for all new units at one site, uses | 22 |
| coal or gases derived
from coal as its primary fuel
source, | 23 |
| and supports the creation of at least 150 new Illinois coal | 24 |
| mining
jobs ; or
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| (2) is (i) funded through a federal Department of | 26 |
| Energy grant before July 1, 2005, and (ii) uses coal | 27 |
| gasification or integrated gasification-combined cycle
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| units that generate electricity or chemicals, or both, and | 29 |
| that supports the
creation of
Illinois
coal-mining jobs .
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| "Eligible business" means an entity that proposes to | 31 |
| construct a new electric
generating facility and that has | 32 |
| applied to the Department to receive financial
assistance |
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| pursuant to this Section.
With respect to use and occupation | 2 |
| taxes, wherever there is a reference to
taxes, that reference | 3 |
| means only those taxes paid on Illinois-mined coal used
in
a | 4 |
| new electric generating facility.
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| "Department" means the Illinois Department of Commerce and
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| Economic Opportunity
Community Affairs .
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| (b) The Department is authorized to
provide financial | 8 |
| assistance to eligible businesses for new electric generating
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| facilities from funds appropriated by the General Assembly as | 10 |
| further provided
in this Section.
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| An eligible business seeking qualification for financial | 12 |
| assistance for
a new electric generating facility, for purposes | 13 |
| of this Section only, shall
apply to the Department in the | 14 |
| manner specified by the Department. Any
projections provided by | 15 |
| an eligible business as part of the application shall
be | 16 |
| independently verified in a manner as set forth by the | 17 |
| Department. An
application shall include, but not
be limited | 18 |
| to:
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| (1) the projected or actual completion date of the new | 20 |
| electric
generating facility
for which financial | 21 |
| assistance is sought;
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| (2) copies of documentation deemed
acceptable by the | 23 |
| Department establishing either (i) the total State
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| occupation
and use taxes paid on Illinois-mined coal used | 25 |
| at the new electric
generating facility for a minimum of 4 | 26 |
| preceding calendar quarters or (ii)
the projected amount of | 27 |
| State occupation and use taxes paid on Illinois-mined
coal | 28 |
| used at the new electric generating facility in 4 calendar | 29 |
| year quarters
after completion of the new electric | 30 |
| generating facility.
Bond proceeds subject to this Section | 31 |
| shall not be allocated to an
eligible business until the | 32 |
| eligible business has demonstrated the revenue
stream | 33 |
| sufficient to service the debt on the bonds; and
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| (3) the actual or projected amount of capital | 35 |
| investment by the
eligible business
in the new electric | 36 |
| generating facility.
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| The Department shall determine the maximum amount of | 2 |
| financial
assistance for eligible businesses in accordance | 3 |
| with this paragraph. The
Department shall not provide financial | 4 |
| assistance from general obligation bond
funds to any eligible | 5 |
| business
unless it receives a written certification from the | 6 |
| Director of the
Bureau of
the Budget
(now Governor's Office of | 7 |
| Management and Budget)
that 80% of the State occupation and use | 8 |
| tax receipts for a minimum
of the
preceding 4 calendar quarters | 9 |
| for all eligible businesses or as included in
projections on | 10 |
| approved applications by eligible businesses equal or exceed
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| 110% of the maximum annual debt service required with respect | 12 |
| to general
obligation bonds issued for that purpose. The | 13 |
| Department may provide
financial assistance not to exceed the | 14 |
| amount of State general obligation
debt calculated as above, | 15 |
| the amount of actual or projected capital
investment in the | 16 |
| energy
generation facility, or $100,000,000, whichever is | 17 |
| less.
Financial assistance received pursuant to this Section | 18 |
| may be used
for capital facilities consisting of buildings, | 19 |
| structures, durable equipment,
and land at the new electric | 20 |
| generating facility. Subject to the provisions
of the agreement | 21 |
| covering the financial assistance, a portion of the financial
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| assistance may be required to be repaid to the State if certain | 23 |
| conditions for
the governmental purpose of the assistance were | 24 |
| not met.
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| An eligible business shall file a monthly report with the
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| Illinois Department of Revenue stating the amount of | 27 |
| Illinois-mined coal
purchased during
the previous month for use | 28 |
| in the new electric generating facility, the
purchase price of | 29 |
| that coal, the amount of State
occupation and use taxes paid on | 30 |
| that purchase to the seller of the
Illinois-mined coal, and
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| such other
information as that Department may reasonably | 32 |
| require. In sales of
Illinois-mined coal between related | 33 |
| parties, the purchase price of the coal
must have been | 34 |
| determined in an arms-length transaction. The report shall be
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| filed with the Illinois Department of Revenue on or before the | 36 |
| 20th day of
each month on a form provided by that Department. |
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| However, no report
need be filed by an eligible business in a | 2 |
| month when it made
no reportable purchases of coal in the | 3 |
| previous month.
The Illinois Department of Revenue shall | 4 |
| provide a summary of such reports to
the
Governor's Office of | 5 |
| Management and Budget
Bureau of the Budget .
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| Upon granting financial assistance to an eligible | 7 |
| business, the Department
shall certify the name of the eligible | 8 |
| business to the Illinois Department of
Revenue. Beginning with | 9 |
| the receipt of the first report of State occupation
and use | 10 |
| taxes paid by an
eligible business and continuing for a 25-year | 11 |
| period, the Illinois Department
of Revenue shall each month pay | 12 |
| into the Energy Infrastructure Fund 80% of the
net revenue | 13 |
| realized from the 6.25% general rate on the selling price of
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| Illinois-mined coal that was sold to an eligible business.
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| (Source: P.A. 92-12, eff. 7-1-01; 93-167, eff. 7-10-03; revised | 16 |
| 8-23-03.)
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| Section 10. The Illinois Enterprise Zone Act is amended by | 18 |
| changing
Section 5.5 as follows:
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| (20 ILCS 655/5.5)
(from Ch. 67 1/2, par. 609.1)
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| Sec. 5.5. High Impact Business.
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| (a) In order to respond to unique opportunities to assist | 22 |
| in the
encouragement, development, growth and expansion of the | 23 |
| private sector through
large scale investment and development | 24 |
| projects, the Department is authorized
to receive and approve | 25 |
| applications for the designation of "High Impact
Businesses" in | 26 |
| Illinois subject to the following conditions:
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| (1) such applications may be submitted at any time | 28 |
| during the year;
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| (2) such business is not located, at the time of | 30 |
| designation, in
an enterprise zone designated pursuant to | 31 |
| this Act;
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| (3) (A) the business intends to make a minimum | 33 |
| investment of
$12,000,000 which will be placed in | 34 |
| service in qualified property and
intends to create 500 |
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| full-time equivalent jobs at a designated location
in | 2 |
| Illinois or intends to make a minimum investment of | 3 |
| $30,000,000 which
will be placed in service in | 4 |
| qualified property and intends to retain 1,500
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| full-time jobs at a designated location in Illinois.
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| The business must certify in writing that the | 7 |
| investments would not be
placed in service in qualified | 8 |
| property and the job creation or job
retention would | 9 |
| not occur without the tax credits and exemptions set | 10 |
| forth
in subsection (b) of this Section. The terms | 11 |
| "placed in service" and
"qualified property" have the | 12 |
| same meanings as described in subsection (h)
of Section | 13 |
| 201 of the Illinois Income Tax Act; or
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| (B) the business intends to establish a new | 15 |
| electric generating
facility at a designated location | 16 |
| in Illinois. "New electric generating
facility" , for | 17 |
| purposes of this Section , means a newly-constructed
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| electric
generation plant
or a newly-constructed | 19 |
| generation capacity expansion at an existing electric
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| generation
plant, including the transmission lines and | 21 |
| associated
equipment that transfers electricity from | 22 |
| points of supply to points of
delivery, and for which | 23 |
| such new foundation construction commenced not sooner
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| than July 1,
2001. Such facility shall be designed to | 25 |
| provide baseload electric
generation and shall operate | 26 |
| on a continuous basis throughout the year;
and shall | 27 |
| have an aggregate rated generating capacity of at least | 28 |
| 1,000
megawatts for all new units at one site if it | 29 |
| uses natural gas as its primary
fuel and foundation | 30 |
| construction of the facility is commenced on
or before | 31 |
| December 31, 2004, or shall have an aggregate rated | 32 |
| generating
capacity of at least 400 megawatts for all | 33 |
| new units at one site if it uses
coal or gases derived | 34 |
| from coal
as its primary fuel and
shall support the | 35 |
| creation of at least 150 new Illinois coal mining jobs , | 36 |
| or,
is (i) funded through a federal Department of |
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| Energy grant before July 1, 2005, and (ii) uses coal | 2 |
| gasification or integrated gasification-combined cycle | 3 |
| units
that generate
electricity or chemicals, or both, | 4 |
| and shall support the creation of Illinois
coal-mining
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| jobs .
The
business must certify in writing that the | 6 |
| investments necessary to establish
a new electric | 7 |
| generating facility would not be placed in service and | 8 |
| the
job creation in the case of a coal-fueled plant
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| would not occur without the tax credits and exemptions | 10 |
| set forth in
subsection (b-5) of this Section. The term | 11 |
| "placed in service" has
the same meaning as described | 12 |
| in subsection
(h) of Section 201 of the Illinois Income | 13 |
| Tax Act; or
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| (C) the business intends to establish
production | 15 |
| operations at a new coal mine, re-establish production | 16 |
| operations at
a closed coal mine, or expand production | 17 |
| at an existing coal mine
at a designated location in | 18 |
| Illinois not sooner than July 1, 2001;
provided that | 19 |
| the
production operations result in the creation of 150 | 20 |
| new Illinois coal mining
jobs as described in | 21 |
| subdivision (a)(3)(B) of this Section, and further
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| provided that the coal extracted from such mine is | 23 |
| utilized as the predominant
source for a new electric | 24 |
| generating facility.
The business must certify in | 25 |
| writing that the
investments necessary to establish a | 26 |
| new, expanded, or reopened coal mine would
not
be | 27 |
| placed in service and the job creation would not
occur | 28 |
| without the tax credits and exemptions set forth in | 29 |
| subsection (b-5) of
this Section. The term "placed in | 30 |
| service" has
the same meaning as described in | 31 |
| subsection (h) of Section 201 of the
Illinois Income | 32 |
| Tax Act; or
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| (D) the business intends to construct new | 34 |
| transmission facilities or
upgrade existing | 35 |
| transmission facilities at designated locations in | 36 |
| Illinois,
for which construction commenced not sooner |
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| than July 1, 2001. For the
purposes of this Section, | 2 |
| "transmission facilities" means transmission lines
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| with a voltage rating of 115 kilovolts or above, | 4 |
| including associated
equipment, that transfer | 5 |
| electricity from points of supply to points of
delivery | 6 |
| and that transmit a majority of the electricity | 7 |
| generated by a new
electric generating facility | 8 |
| designated as a High Impact Business in accordance
with | 9 |
| this Section. The business must certify in writing that | 10 |
| the investments
necessary to construct new | 11 |
| transmission facilities or upgrade existing
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| transmission facilities would not be placed in service
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| without the tax credits and exemptions set forth in | 14 |
| subsection (b-5) of this
Section. The term "placed in | 15 |
| service" has the
same meaning as described in | 16 |
| subsection (h) of Section 201 of the Illinois
Income | 17 |
| Tax Act; and
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| (4) no later than 90 days after an application is | 19 |
| submitted, the
Department shall notify the applicant of the | 20 |
| Department's determination of
the qualification of the | 21 |
| proposed High Impact Business under this Section.
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| (b) Businesses designated as High Impact Businesses | 23 |
| pursuant to
subdivision (a)(3)(A) of this Section shall qualify | 24 |
| for the credits and
exemptions described in the
following Acts: | 25 |
| Section 9-222 and Section 9-222.1A of the Public Utilities
Act,
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| subsection (h)
of Section 201 of the Illinois Income Tax Act , ;
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| and , Section 1d of
the
Retailers' Occupation Tax Act ; , provided | 28 |
| that these credits and
exemptions
described in these Acts shall | 29 |
| not be authorized until the minimum
investments set forth in | 30 |
| subdivision (a)(3)(A) of this
Section have been placed in
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| service in qualified properties and, in the case of the | 32 |
| exemptions
described in the Public Utilities Act and Section 1d | 33 |
| of the Retailers'
Occupation Tax Act, the minimum full-time | 34 |
| equivalent jobs or full-time jobs set
forth in subdivision | 35 |
| (a)(3)(A) of this Section have been
created or retained.
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| Businesses designated as High Impact Businesses under
this |
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| Section shall also
qualify for the exemption described in | 2 |
| Section 5l of the Retailers' Occupation
Tax Act. The credit | 3 |
| provided in subsection (h) of Section 201 of the Illinois
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| Income Tax Act shall be applicable to investments in qualified | 5 |
| property as set
forth in subdivision (a)(3)(A) of this Section.
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| (b-5) Businesses designated as High Impact Businesses | 7 |
| pursuant to
subdivisions (a)(3)(B), (a)(3)(C), and (a)(3)(D) | 8 |
| of this Section shall qualify
for the credits and exemptions | 9 |
| described in the following Acts: Section 51 of
the Retailers' | 10 |
| Occupation Tax Act, Section 9-222 and Section 9-222.1A of the
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| Public Utilities Act, and subsection (h) of Section 201 of the | 12 |
| Illinois Income
Tax Act; however, the credits and exemptions | 13 |
| authorized under Section 9-222 and
Section 9-222.1A of the | 14 |
| Public Utilities Act, and subsection (h) of Section 201
of the | 15 |
| Illinois Income Tax Act shall not be authorized until the new | 16 |
| electric
generating facility, the new transmission facility, | 17 |
| or the new, expanded, or
reopened coal mine is operational,
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| except that a new electric generating facility whose primary | 19 |
| fuel source is
natural gas is eligible only for the exemption | 20 |
| under Section 5l of the
Retailers' Occupation Tax Act.
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| (c) High Impact Businesses located in federally designated | 22 |
| foreign trade
zones or sub-zones are also eligible for | 23 |
| additional credits, exemptions and
deductions as described in | 24 |
| the following Acts: Section 9-221 and Section
9-222.1 of the | 25 |
| Public
Utilities Act; and subsection (g) of Section 201, and | 26 |
| Section 203
of the Illinois Income Tax Act.
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| (d) Existing Illinois businesses which apply for | 28 |
| designation as a
High Impact Business must provide the | 29 |
| Department with the prospective plan
for which 1,500 full-time | 30 |
| jobs would be eliminated in the event that the
business is not | 31 |
| designated.
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| (e) New proposed facilities which apply for designation as | 33 |
| High Impact
Business must provide the Department with proof of | 34 |
| alternative non-Illinois
sites which would receive the | 35 |
| proposed investment and job creation in the
event that the | 36 |
| business is not designated as a High Impact Business.
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| (f) In the event that a business is designated a High | 2 |
| Impact Business
and it is later determined after reasonable | 3 |
| notice and an opportunity for a
hearing as provided under the | 4 |
| Illinois Administrative Procedure Act, that
the business would | 5 |
| have placed in service in qualified property the
investments | 6 |
| and created or retained the requisite number of jobs without
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| the benefits of the High Impact Business designation, the | 8 |
| Department shall
be required to immediately revoke the | 9 |
| designation and notify the Director
of the Department of | 10 |
| Revenue who shall begin proceedings to recover all
wrongfully | 11 |
| exempted State taxes with interest. The business shall also be
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| ineligible for all State funded Department programs for a | 13 |
| period of 10 years.
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| (g) The Department shall revoke a High Impact Business | 15 |
| designation if
the participating business fails to comply with | 16 |
| the terms and conditions of
the designation.
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| (h) Prior to designating a business, the Department shall | 18 |
| provide the
members of the General Assembly and Illinois | 19 |
| Economic and Fiscal Commission
with a report setting forth the | 20 |
| terms and conditions of the designation and
guarantees that | 21 |
| have been received by the Department in relation to the
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| proposed business being designated.
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| (Source: P.A. 91-914, eff. 7-7-00; 92-12, eff. 7-1-01; revised | 24 |
| 3-7-02.)
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| Section 99. Effective date. This Act takes effect upon | 26 |
| becoming law. |
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