Full Text of HB3813 97th General Assembly
HB3813 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB3813 Introduced 10/5/2011, by Rep. Tom Cross - David Harris - Sandra M. Pihos - Patricia R. Bellock, Michael G. Connelly, et al. SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/8-226 | from Ch. 108 1/2, par. 8-226 | 40 ILCS 5/11-215 | from Ch. 108 1/2, par. 11-215 | 40 ILCS 5/17-134 | from Ch. 108 1/2, par. 17-134 | 40 ILCS 5/17-134.1 | |
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Amends the Chicago Municipal, Chicago Laborers, and Chicago Teachers Articles of the Illinois Pension Code to provide that, for certain leaves of absence during which a participant is
employed by a labor organization, contributions shall be based upon the participant's regular salary (rather than the salary received from the organization). Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by changing | 5 | | Sections 8-226, 11-215, 17-134, and 17-134.1 as follows:
| 6 | | (40 ILCS 5/8-226) (from Ch. 108 1/2, par. 8-226)
| 7 | | Sec. 8-226. Computation of service.
In computing the term | 8 | | of service of an employee prior to the effective
date, the | 9 | | entire period beginning on the date he was first appointed and
| 10 | | ending on the day before the effective date, except any | 11 | | intervening period
during which he was separated by withdrawal | 12 | | from service, shall be counted
for all purposes of this | 13 | | Article, except that for any employee who was not
in service on | 14 | | the day before the effective date, service rendered prior to
| 15 | | such date shall not be considered for the purposes of Section | 16 | | 8-138.
| 17 | | For a person employed by an employer for whom this Article | 18 | | was in effect
prior to January 1, 1950, from whose salary | 19 | | deductions are first made under
this Article after December 31, | 20 | | 1949, any period of service rendered prior
to the effective | 21 | | date, unless he was in service on the day before the
effective | 22 | | date, shall not be counted as service.
| 23 | | The time a person was an employee of any territory annexed |
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| 1 | | to the city
prior to the effective date shall be counted as a | 2 | | period of service.
| 3 | | In computing the term of service of any employee subsequent | 4 | | to the day
before the effective date, the following periods | 5 | | shall be counted as
periods of service for age and service, | 6 | | widow's and child's annuity
purposes:
| 7 | | (a) The time during which he performed the duties of | 8 | | his position;
| 9 | | (b) Vacations, leaves of absence with whole or part | 10 | | pay, and leaves of
absence without pay not longer than 90 | 11 | | days;
| 12 | | (c) Leaves of absence without pay during which a | 13 | | participant is
employed full-time by a local labor | 14 | | organization that represents municipal employees,
provided | 15 | | that (1) the participant continues to make employee | 16 | | contributions
to the Fund as though he were an active | 17 | | employee, based on the regular
salary rate received by the | 18 | | participant
for his municipal employment immediately prior | 19 | | to such leave of absence
(and in the case of such | 20 | | employment prior to December 9, 1987, pays
to the Fund an | 21 | | amount equal
to the employee contributions for such | 22 | | employment plus regular interest
thereon as calculated by | 23 | | the board),
and based on his current salary with such labor | 24 | | organization after the
effective date of this amendatory | 25 | | Act of 1991 and until the effective date of this amendatory | 26 | | Act of the 97th General Assembly ,
and, after the effective |
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| 1 | | date of this amendatory Act of the 97th General Assembly, | 2 | | based on the regular salary rate received by the | 3 | | participant for
his municipal employment immediately prior | 4 | | to such leave of absence, (2) after January 1, 1989 the | 5 | | participant, or the labor organization on the
| 6 | | participant's behalf, makes contributions to the Fund as | 7 | | though it were the
employer, in the same amount and same | 8 | | manner as specified under this
Article, based on the | 9 | | regular salary rate received by the participant for
his | 10 | | municipal employment immediately prior to such leave of | 11 | | absence, and
based on his current salary with such labor | 12 | | organization after the effective
date of this amendatory | 13 | | Act of 1991 and until the effective date of this amendatory | 14 | | Act of the 97th General Assembly , and, after the effective | 15 | | date of this amendatory Act of the 97th General Assembly, | 16 | | based on the regular salary rate received by the | 17 | | participant for
his municipal employment immediately prior | 18 | | to such leave of absence, and (3) the participant does not | 19 | | receive
credit in any pension plan established by the local | 20 | | labor organization based on
his employment by the | 21 | | organization;
| 22 | | (d) Any period of disability for which he received (i) | 23 | | a disability
benefit under this Article, or (ii) a | 24 | | temporary total disability benefit
under the Workers' | 25 | | Compensation Act if the disability results from a
condition | 26 | | commonly termed heart attack or stroke or any other |
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| 1 | | condition
falling within the broad field of coronary | 2 | | involvement or heart disease,
or (iii) whole or part pay;
| 3 | | (e) Any period for which contributions and service | 4 | | credit have been
transferred to this Fund under subsection | 5 | | (d) of Section 9-121.1 or
subsection (d) of Section | 6 | | 12-127.1 of this Code.
| 7 | | For a person employed by an employer in which the 1921 Act | 8 | | was in effect
prior to January 1, 1950, from whose salary | 9 | | deductions are first made under
the 1921 Act or this Article | 10 | | after December 31, 1949, any period of service
rendered | 11 | | subsequent to the effective date and prior to the date he | 12 | | became
an employee and contributor, shall not be counted as a | 13 | | period of service
under this Article,
except such period for | 14 | | which he made payment as
provided in Section 8-230 of this | 15 | | Article, in which case such period shall
be counted as a period | 16 | | of service for all annuity purposes hereunder.
| 17 | | In computing the term of service of an employee subsequent | 18 | | to the day
before the effective date for ordinary disability | 19 | | benefit purposes, all
periods described in the preceding | 20 | | paragraph, except any such period for
which he receives | 21 | | ordinary disability benefit, shall be counted as periods
of | 22 | | service; provided, that for any person employed by an employer | 23 | | in which
this Article was in effect prior to January 1, 1950, | 24 | | from whose salary
deductions are first made under this Article | 25 | | after December 31, 1949, any
period of service rendered | 26 | | subsequent to the effective date and prior to
the date he |
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| 1 | | became an employee and contributor, shall not be counted as a
| 2 | | period of service for ordinary disability benefit purposes, | 3 | | unless the person
made payment for the period as provided in | 4 | | Section 8-230 of this Article, in
which case the period shall | 5 | | be counted as a period of service for ordinary
disability | 6 | | purposes for periods of disability on or after the effective | 7 | | date of
this amendatory Act of 1997.
| 8 | | Overtime or extra service shall not be included in | 9 | | computing any term of
service. Not more than 1 year of service | 10 | | shall be allowed for service
rendered during any calendar year.
| 11 | | (Source: P.A. 90-511, eff. 8-22-97.)
| 12 | | (40 ILCS 5/11-215) (from Ch. 108 1/2, par. 11-215)
| 13 | | Sec. 11-215. Computation of service.
| 14 | | (a) In computing the term of service of an employee prior | 15 | | to the effective
date, the entire period beginning on the date | 16 | | he was first appointed and ending
on the day before the | 17 | | effective date, except any intervening period during
which he | 18 | | was separated by withdrawal from service, shall be counted for | 19 | | all
purposes of this Article. Only the first year of each | 20 | | period of lay-off or
leave of absence without pay, continuing | 21 | | or extending for a period in excess
of one year, shall be | 22 | | counted as such service.
| 23 | | (b) For a person employed by an employer for whom this | 24 | | Article was in effect
prior to August 1, 1949, from whose | 25 | | salary deductions are first made under
this Article after July |
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| 1 | | 31, 1949, any period of service rendered prior to
the effective | 2 | | date, unless he was in service on the day before the
effective | 3 | | date, shall not be counted as service.
| 4 | | (c) In computing the term of service of an employee | 5 | | subsequent to the day
before the effective date, the following | 6 | | periods of time shall be counted
as periods of service for | 7 | | annuity purposes:
| 8 | | (1) the time during which he performed the duties of | 9 | | his position;
| 10 | | (2) leaves of absence with whole or part pay, and | 11 | | leaves of absence
without pay not longer than 90 days;
| 12 | | (3) leaves of absence without pay during which a | 13 | | participant is
employed full-time by a local labor | 14 | | organization that represents municipal
employees, provided | 15 | | that (A) the participant continues to make employee
| 16 | | contributions to the Fund as though he were an active | 17 | | employee, based
on the regular salary rate received by the
| 18 | | participant for his municipal employment immediately prior | 19 | | to such leave of
absence (and in the case of such | 20 | | employment prior to December 9, 1987,
pays to the Fund an | 21 | | amount equal to the employee contributions for such
| 22 | | employment plus regular interest thereon as calculated by | 23 | | the board), and
based on his current salary with such labor | 24 | | organization after the
effective date of this amendatory | 25 | | Act of 1991 and until the effective date of this amendatory | 26 | | Act of the 97th General Assembly , and, after the effective |
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| 1 | | date of this amendatory Act of the 97th General Assembly, | 2 | | based on the regular salary rate received by the | 3 | | participant for
his municipal employment immediately prior | 4 | | to such leave of absence, (B) after January 1, 1989
the | 5 | | participant, or the labor organization on the | 6 | | participant's behalf,
makes contributions to the Fund as | 7 | | though it were the employer, in the same
amount and same | 8 | | manner as specified under this Article, based on the
| 9 | | regular salary rate received by the participant for his | 10 | | municipal
employment immediately prior to such leave of | 11 | | absence, and
based on his current salary with such labor | 12 | | organization after the
effective date of this amendatory | 13 | | Act of 1991 and until the effective date of this amendatory | 14 | | Act of the 97th General Assembly , and, after the effective | 15 | | date of this amendatory Act of the 97th General Assembly, | 16 | | based on the regular salary rate received by the | 17 | | participant for
his municipal employment immediately prior | 18 | | to such leave of absence, and (C)
the participant does
not | 19 | | receive credit in any pension plan established by the local | 20 | | labor
organization based on his employment by the | 21 | | organization;
| 22 | | (4) any period of disability for which he received (i) | 23 | | a disability
benefit under this Article, or (ii) a | 24 | | temporary total disability benefit
under the Workers' | 25 | | Compensation Act if the disability results from a
condition | 26 | | commonly termed heart attack or stroke or any other |
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| 1 | | condition
falling within the broad field of coronary | 2 | | involvement or heart disease,
or (iii) whole or part pay.
| 3 | | (d) For a person employed by an employer, or the retirement | 4 | | board, in which
"The 1935 Act" was in effect prior to August 1, | 5 | | 1949, from whose salary
deductions are first made under "The | 6 | | 1935 Act" or this Article after July
31, 1949, any period of | 7 | | service rendered subsequent to the effective date
and prior to | 8 | | August 1, 1949, shall not be counted as a period of service
| 9 | | under this Article, except such period for which he made | 10 | | payment, as
provided in Section 11-221 of this Article, in | 11 | | which case such period
shall be counted as a period of service | 12 | | for all annuity purposes hereunder.
| 13 | | (e) In computing the term of service of an employee | 14 | | subsequent to the day
before the effective date for ordinary | 15 | | disability benefit purposes, the
following periods of time | 16 | | shall be counted as periods of service:
| 17 | | (1) any period during which he performed the duties of | 18 | | his position;
| 19 | | (2) leaves of absence with whole or part pay;
| 20 | | (3) any period of disability for which he received (i)
| 21 | | a duty disability benefit under this Article, or (ii) a | 22 | | temporary total
disability benefit under the Workers' | 23 | | Compensation Act if the disability
results from a condition | 24 | | commonly termed heart attack or stroke or any
other | 25 | | condition falling within the broad field of coronary | 26 | | involvement or
heart disease, or (iii) whole or part pay.
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| 1 | | However, any period of service rendered by an employee | 2 | | contributor prior to
the date he became a contributor to the | 3 | | fund shall not be counted as a
period of service for ordinary | 4 | | disability purposes, unless the person
made payment for the | 5 | | period as provided in Section 11-221 of this Article, in
which | 6 | | case the period shall be counted as a period of service for | 7 | | ordinary
disability purposes for periods of disability on or | 8 | | after the effective date of
this amendatory Act of 1997.
| 9 | | Overtime or extra service shall not be included in | 10 | | computing any term of
service. Not more than 1 year of service | 11 | | shall be allowed for service
rendered during any calendar year.
| 12 | | (Source: P.A. 90-511, eff. 8-22-97.)
| 13 | | (40 ILCS 5/17-134) (from Ch. 108 1/2, par. 17-134)
| 14 | | Sec. 17-134. Contributions for leaves of absence; military | 15 | | service;
computing service. In computing service for pension | 16 | | purposes the following
periods of service shall stand in lieu | 17 | | of a like number of years of teaching
service upon payment | 18 | | therefor in the manner hereinafter provided: (a) time
spent on | 19 | | a leave of absence granted by the
employer;
(b) service with | 20 | | teacher or labor organizations based upon special
leaves of | 21 | | absence therefor granted by an Employer; (c) a maximum of 5 | 22 | | years
spent in the military service of the United States, of | 23 | | which up to 2 years
may have been served outside the pension | 24 | | period; (d) unused sick days at
termination of service to a | 25 | | maximum of 244 days; (e) time lost due
to layoff and |
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| 1 | | curtailment of the school term from June 6 through June 21, | 2 | | 1976;
and (f) time spent after June 30, 1982 as a member of the | 3 | | Board of Education,
if required to resign from an | 4 | | administrative or teaching position in order to
qualify as a | 5 | | member of the Board of Education.
| 6 | | (1) For time spent on or after September 6, 1948 on | 7 | | sabbatical
leaves of absence or sick leaves, for which | 8 | | salaries are paid, an Employer
shall make payroll | 9 | | deductions at the applicable rates in effect
during such | 10 | | periods.
| 11 | | (2) For time spent on a leave of absence granted by the | 12 | | employer for which no salaries are paid,
teachers desiring | 13 | | credit therefor shall pay the required contributions at the
| 14 | | rates in effect during such periods as though they were in | 15 | | teaching service.
If an Employer pays salary for vacations | 16 | | which occur during a teacher's sick
leave or maternity or | 17 | | paternity leave without salary, vacation pay for which
the | 18 | | teacher would have qualified while in active service shall | 19 | | be considered
part of the teacher's total salary for | 20 | | pension purposes. No more than 36 months of leave credit | 21 | | may be
allowed any person during the entire term of | 22 | | service. Sabbatical leave credit
shall be limited to the | 23 | | time the person on leave without salary under an
Employer's | 24 | | rules is allowed to engage in an activity for which he | 25 | | receives
salary or compensation.
| 26 | | (3) For time spent prior to September 6, 1948, on |
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| 1 | | sabbatical
leaves of absence or sick leaves for which | 2 | | salaries were paid, teachers
desiring service credit | 3 | | therefor shall pay the required contributions at the
| 4 | | maximum applicable rates in effect during such periods.
| 5 | | (4) For service with teacher or labor organizations | 6 | | authorized by special
leaves of absence, for which no | 7 | | payroll deductions are made by an Employer,
teachers | 8 | | desiring service credit therefor shall contribute to the | 9 | | Fund upon
the basis of the actual salary received from such | 10 | | organizations at the
percentage rates in effect during such | 11 | | periods for certified positions with
such Employer. To the | 12 | | extent the actual salary exceeds the regular salary,
which | 13 | | shall be defined as the salary rate, as calculated by the | 14 | | Board, in
effect for the teacher's regular position in | 15 | | teaching service on September 1,
1983 or on the effective | 16 | | date of the leave with the organization, whichever is
| 17 | | later, the organization shall pay to the Fund the | 18 | | employer's normal cost as set
by the Board on the | 19 | | increment. After the effective date of this amendatory Act | 20 | | of the 97th General Assembly, contributions to the Fund | 21 | | under this subdivision (4) shall be based upon the | 22 | | teacher's regular salary as defined in this subdivision | 23 | | (4).
| 24 | | (5) For time spent in the military service, teachers | 25 | | entitled to and
desiring credit therefor shall contribute | 26 | | the amount required for each year
of service or fraction |
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| 1 | | thereof at the rates in force (a) at the date of
| 2 | | appointment, or (b) on return to teaching service as a | 3 | | regularly certified
teacher, as the case may be; provided | 4 | | such rates shall not be less than $450
per year of service. | 5 | | These conditions shall apply unless an Employer elects
to | 6 | | and does pay into the Fund the amount which would have been | 7 | | due from such
person had he been employed as a teacher | 8 | | during such time. In the case of
credit for military | 9 | | service not during the pension period, the teacher must
| 10 | | also pay to the Fund an amount determined by the Board to | 11 | | be equal to the
employer's normal cost of the benefits | 12 | | accrued from such service, plus interest
thereon at 5% per | 13 | | year, compounded annually, from the date of appointment to
| 14 | | the date of payment.
| 15 | | The changes to this Section made by Public Act 87-795 | 16 | | shall apply
not only to persons who on or after its | 17 | | effective
date are in service under the Fund, but also to | 18 | | persons whose status as a
teacher terminated prior to that | 19 | | date, whether or not the person is an
annuitant on that | 20 | | date. In the case of an annuitant who applies for credit
| 21 | | allowable under this Section for a period of military | 22 | | service that did not
immediately follow employment, and who | 23 | | has made the required contributions for
such credit, the | 24 | | annuity shall be recalculated to include the additional
| 25 | | service credit, with the increase taking effect on the date | 26 | | the Fund received
written notification of the annuitant's |
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| 1 | | intent to purchase the credit, if
payment of all the | 2 | | required contributions is made within 60 days of such
| 3 | | notice, or else on the first annuity payment date following | 4 | | the date of
payment of the required contributions. In | 5 | | calculating the automatic annual
increase for an annuity | 6 | | that has been recalculated under this Section, the
increase | 7 | | attributable to the additional service allowable under | 8 | | this
amendatory Act of 1991 shall be included in the | 9 | | calculation of automatic
annual increases accruing after | 10 | | the effective date of the recalculation.
| 11 | | The total credit for military service shall not exceed | 12 | | 5 years, except
that any teacher who on July 1, 1963, had | 13 | | validated credit for more than 5
years of military service | 14 | | shall be entitled to the total amount of such credit.
| 15 | | (6) A maximum of 244 unused sick days credited to his | 16 | | account
by an Employer on the date of termination of | 17 | | employment. Members, upon
verification of unused sick | 18 | | days, may add this service time to total creditable
| 19 | | service.
| 20 | | (7) In all cases where time spent on leave is | 21 | | creditable and
no payroll deductions therefor are made by | 22 | | an Employer, persons
desiring service credit shall make the | 23 | | required contributions directly to
the Fund.
| 24 | | (8) For time lost without pay due to layoff and | 25 | | curtailment of
the school term from June 6 through June 21, | 26 | | 1976, as provided in item (e) of
the first paragraph of |
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| 1 | | this Section, persons who were contributors on
the days | 2 | | immediately preceding such layoff shall receive credit | 3 | | upon
paying to the Fund a contribution based on the rates | 4 | | of compensation and
employee contributions in effect at the | 5 | | time of such layoff, together
with an additional amount | 6 | | equal to 12.2% of the compensation computed
for such period | 7 | | of layoff, plus interest on the entire amount at 5% per
| 8 | | annum from January 1, 1978 to the date of payment. If such | 9 | | contribution
is paid, salary for pension purposes for any | 10 | | year in which such a layoff
occurred shall include the | 11 | | compensation recognized for purposes of
computing that | 12 | | contribution.
| 13 | | (9) For time spent after June 30, 1982, as a | 14 | | nonsalaried member
of the Board of Education, if required | 15 | | to resign from an administrative or
teaching position in | 16 | | order to qualify as a member of the Board of
Education, an | 17 | | administrator or teacher desiring credit therefor shall | 18 | | pay
the required contributions at the rates and salaries in | 19 | | effect during such
periods as though the member were in | 20 | | service.
| 21 | | Effective September 1, 1974, the interest charged for | 22 | | validation of
service described in paragraphs (2) through (5) | 23 | | of this Section shall be
compounded annually at a rate of 5% | 24 | | commencing one
year after the termination of the leave or | 25 | | return to service.
| 26 | | (Source: P.A. 92-599, eff. 6-28-02 .)
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| 1 | | (40 ILCS 5/17-134.1)
| 2 | | Sec. 17-134.1. Labor organization employees.
| 3 | | (a) A former teacher who is employed by a teacher or labor | 4 | | organization and
is not eligible to participate under | 5 | | subdivision (4) of Section 17-134 because
he or she is not on a | 6 | | special leave of absence may elect to participate in the
Fund | 7 | | for the duration of that employment by so notifying the Fund in | 8 | | writing.
Participation shall be subject to the same conditions
| 9 | | as are applicable to persons participating under that | 10 | | subdivision (4), and
service credit shall be contingent upon | 11 | | the required contributions being
received by the Fund.
| 12 | | (b) A person who participates in the Fund under subsection | 13 | | (a) may establish
service credit for periods of such employment | 14 | | that took place before beginning
participation under this | 15 | | Section by submitting a written application to the
Fund. Credit | 16 | | shall be granted upon payment to the Fund
of an amount to be | 17 | | determined by the Fund, equal to (i) the employee
contributions | 18 | | that would have been paid if the person had participated under
| 19 | | subdivision (4) of Section 17-134 during the period for which | 20 | | service credit is
to be established, based on the actual salary | 21 | | received, plus (ii) the
employer's normal cost associated with | 22 | | that service credit, plus (iii) interest
on items (i) and (ii) | 23 | | at the rate of 6% per year, compounded annually, from the
date | 24 | | of the service established to the date of payment. Service | 25 | | credit under
this subsection shall not be granted until the |
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| 1 | | required contribution has been
paid in full; the contribution | 2 | | may be paid at any time before retirement. After the effective | 3 | | date of this amendatory Act of the 97th General Assembly, | 4 | | contributions to the Fund under item (i) of this subsection (b) | 5 | | shall be based upon the teacher's regular salary as defined in | 6 | | subdivision (4) of Section 17-134.
| 7 | | (c) A person who participates in the Fund under subsection | 8 | | (a) may
reestablish any service credits previously forfeited by | 9 | | acceptance of a refund
by paying to the Fund the amount of the | 10 | | refund plus interest thereon at the
rate of 5% per annum, | 11 | | compounded annually, from the date of the refund to the
date of | 12 | | payment.
| 13 | | (d) Rollover contributions from other retirement plans | 14 | | qualified under the
Internal Revenue Code of 1986 may be used | 15 | | to make the payments required under
subsections (b) and (c).
| 16 | | (e) No service credit may be established under this Section | 17 | | for any period
of employment for which the person receives | 18 | | service credit under any other
provision of this Code.
| 19 | | (Source: P.A. 90-448, eff. 8-16-97.)
| 20 | | Section 99. Effective date. This Act takes effect upon | 21 | | becoming law.
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