Full Text of HB5503 97th General Assembly
HB5503ham002 97TH GENERAL ASSEMBLY | Rep. Brandon W. Phelps Filed: 3/27/2012
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| 1 | | AMENDMENT TO HOUSE BILL 5503
| 2 | | AMENDMENT NO. ______. Amend House Bill 5503 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Short title. This Act may be cited as the | 5 | | Energy Efficiency Program for State Government Buildings Act. | 6 | | Section 5. Purpose. The General Assembly finds and declares | 7 | | it to be the public policy of the State to maximize the use of | 8 | | energy efficiency measures in the construction, renovation, | 9 | | and maintenance of buildings owned by the State. In furtherance | 10 | | of this policy, the Capital Development Board and the | 11 | | Department of Central Management Services shall administer an | 12 | | energy efficiency program, to be known as the Energy Efficiency | 13 | | Program for State Government Buildings. | 14 | | Section 10. Definitions. As used in this Act, unless the | 15 | | context requires otherwise: |
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| 1 | | "Aggregate simple payback period" means the simple payback | 2 | | period of a set of energy efficiency measures taken together | 3 | | for a building. | 4 | | "Building" means all contiguous land, together with | 5 | | structures, appurtenances, and improvements thereon that use | 6 | | energy. | 7 | | "Board" means the Capital Development Board. | 8 | | "Capital cost avoidance" means savings generated when | 9 | | expenditures of appropriated capital construction or | 10 | | appropriated capital outlay funds are avoided because the | 11 | | budgeted capital improvements or items of equipment are | 12 | | contained within the energy efficiency measures provided by a | 13 | | guaranteed energy savings performance contract. | 14 | | "Department" means the Department of Central Management | 15 | | Services. | 16 | | "Director" means the Director of Central Management | 17 | | Services. | 18 | | "Energy audit" means examination of a building's | 19 | | energy-using systems, energy consumption and costs, occupancy | 20 | | patterns, and operation and maintenance procedures. | 21 | | "Energy efficiency measure" means any improvement, repair, | 22 | | alteration, or betterment of any building or facility owned and | 23 | | operated by a State agency or any equipment, fixture, or | 24 | | furnishing to be added to or used in any such building or | 25 | | facility that is designed to reduce energy consumption or | 26 | | operating costs and may include, without limitation, one or |
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| 1 | | more of the following: | 2 | | (1) insulation of the building structure or systems | 3 | | within the building; | 4 | | (2) storm windows or doors, caulking or | 5 | | weather-stripping, multiglazed windows or doors, heat | 6 | | absorbing or heat reflective glazed and coated window or | 7 | | door systems, additional glazing, reductions in glass | 8 | | area, or other window and door system modifications that | 9 | | reduce energy consumption; | 10 | | (3) automated or computerized energy control systems; | 11 | | (4) heating, ventilating, or air conditioning system | 12 | | modifications or replacements; | 13 | | (5) replacement or modification of lighting fixtures | 14 | | to increase the energy efficiency of the lighting system | 15 | | without increasing the overall illumination of a facility, | 16 | | unless an increase in illumination is necessary to conform | 17 | | to the applicable State or local building code for the | 18 | | lighting system after the proposed modifications are made; | 19 | | (6) energy recovery systems; and | 20 | | (7) energy conservation measures that provide | 21 | | long-term operating cost reductions. | 22 | | "ENERGY STAR" means the voluntary program administered by | 23 | | the United States Environmental Protection Agency and the | 24 | | United States Department of Energy that is designed to protect | 25 | | the environment through the promotion of energy-efficient | 26 | | products and practices. |
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| 1 | | "Engineering analysis" means a detailed cost-benefit | 2 | | analysis of energy efficiency investments, including a review | 3 | | of potential cost savings through operation and maintenance | 4 | | changes. | 5 | | "Executive Director" means the Executive Director of the | 6 | | Capital Development Board. | 7 | | "Guaranteed energy savings performance contract" means an | 8 | | agreement for the provision of energy services or equipment, | 9 | | including energy efficiency measures, energy conservation | 10 | | measures and alternate energy technologies for State | 11 | | government buildings, in which a person agrees to design, | 12 | | construct, install, maintain, operate, or manage energy | 13 | | systems or equipment to improve energy efficiency of, or | 14 | | produce energy in connection with, a State government building. | 15 | | Payments for a guaranteed energy savings performance contract | 16 | | shall be made from measured and verified savings generated from | 17 | | implementation of the energy efficiency measures financed by | 18 | | the contract. The term of a guaranteed energy savings | 19 | | performance contract shall not exceed 5 years. If the measured | 20 | | and verified savings are not sufficient to pay the financial | 21 | | obligations under the contract, the contractor is liable for | 22 | | the contract payments. | 23 | | "High-performance building" means a State government | 24 | | building that is designed, constructed, and capable of being | 25 | | operated in a manner that: | 26 | | (1) increases environmental performance and economic |
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| 1 | | value over time; | 2 | | (2) safeguards the health of occupants; | 3 | | (3) enhances satisfaction and productivity of workers | 4 | | through energy-efficient systems; | 5 | | (4) incorporates environmentally friendly materials | 6 | | and products; and | 7 | | (5) reduces waste. | 8 | | "Life-cycle cost analysis" means a method for estimating | 9 | | the total cost of an energy-using component or building over | 10 | | its useful life, including cost factors such as purchase price | 11 | | or construction, renovation, or leasing costs, energy use, | 12 | | maintenance, interest, and inflation. | 13 | | "Low cost/no cost energy conservation measures" means | 14 | | those energy saving practices and energy efficiency measures, | 15 | | usually involving operation and maintenance practices, that | 16 | | can be accomplished by existing personnel within existing | 17 | | operating budgets. | 18 | | "Operating costs" means expenditures associated with | 19 | | operating and maintaining a properly functioning building and | 20 | | its systems including but not limited to the heating, | 21 | | ventilation, cooling, lighting, plumbing, water heating, | 22 | | electrical, and laundry systems and their controls. | 23 | | "Qualified provider" means a person or business whose | 24 | | employees are experienced and trained in the design, | 25 | | implementation, or installation of energy conservation | 26 | | measures. |
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| 1 | | "Request for proposals" means a competitive selection | 2 | | achieved by negotiated procurement. | 3 | | "Simple payback period" means the number of years it takes | 4 | | to pay back, from estimated savings, the initial cost of an | 5 | | energy efficiency measure with the simple payback period equal | 6 | | to the initial cost divided by the estimated annual savings. | 7 | | "Savings" means the reduction in expenditures, excluding | 8 | | any State government and university personnel expenditures, | 9 | | that are measured and verified, including but not limited to | 10 | | energy usage, operating costs, and capital cost avoidance that | 11 | | occur as a result of the implementation of energy efficiency | 12 | | measures. | 13 | | "State agency" means the Department of Central Management | 14 | | Services. | 15 | | Section 15. Authority of the Capital Development Board. | 16 | | The Capital Development board shall have the authority to act | 17 | | on behalf of any State agency in accordance with this Act. | 18 | | Section 20. Energy Efficiency Program for State Government | 19 | | Buildings. | 20 | | (a) The Energy Efficiency Program for State Government | 21 | | Buildings shall provide for implementation of low cost/no cost | 22 | | energy conservation measures, engineering analyses, energy | 23 | | efficiency measures, building improvements, and monitoring of | 24 | | results for State-owned buildings. |
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| 1 | | (b) Any engineering analysis conducted on a State-owned | 2 | | building shall assess the energy efficiency of the building and | 3 | | make recommendations for improving the efficient use of energy | 4 | | within the building. The analyses shall be performed by | 5 | | individuals licensed under the Illinois Architecture Practice | 6 | | Act of 1989, the Professional Engineering Practice Act of 1989 | 7 | | or the Structural Engineering Practice Act of 1989. | 8 | | (c) Measures to improve the energy efficiency of a | 9 | | State-owned building that have an aggregate simple payback | 10 | | period of 5 years or less shall be implemented subject to | 11 | | appropriation. No more than 5% of the cost of energy efficiency | 12 | | measures for a building may be used for monitoring the results. | 13 | | (d) If funds are appropriated for energy efficiency | 14 | | improvements, the Board shall prioritize projects among the | 15 | | various State-owned buildings to determine which projects | 16 | | shall be implemented to best use the available funding. | 17 | | (e) The savings in reduced expenditures that are specified | 18 | | as payment sources shall be documented in the guaranteed energy | 19 | | savings performance contract. Savings shall be determined by | 20 | | using one of the measurement and verification methodologies | 21 | | listed in the United States Department of Energy's | 22 | | "International Performance Measurement and Verification | 23 | | Protocol". If specific data limitations or documented unique | 24 | | characteristics of the project prevent use of the | 25 | | "International Performance Measurement and Verification | 26 | | Protocol", an alternative method that is compatible shall be |
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| 1 | | adopted upon documentation and approval of the Director. | 2 | | Section 25. Energy audit training program. The Department | 3 | | shall institute an energy audit training program to identify | 4 | | energy saving techniques for State-owned building maintenance | 5 | | staff. Additional programs shall be developed to educate State | 6 | | employees and other building occupants on energy awareness and | 7 | | practices to reduce energy use in State-owned buildings. Local | 8 | | government employees may be included in training and | 9 | | educational programs. | 10 | | Section 30. Life-cycle energy cost analyses. The Board | 11 | | shall require persons submitting bids or plans for State-owned | 12 | | buildings to be constructed or substantially renovated after | 13 | | July 15, 2013, to include within those bids or plans life-cycle | 14 | | energy cost analyses. The Board shall consider those life-cycle | 15 | | cost analyses when evaluating competing bids or plans. | 16 | | Section 35. Report on energy efficiency measures in State | 17 | | government. The Department shall report on or before October | 18 | | 15, 2013, and on or before every October 15 thereafter to the | 19 | | Legislative Research Unit and the Commission on Government | 20 | | Forecasting and Accountability on progress made to maximize the | 21 | | use of energy efficiency measures in State government. The | 22 | | Commission on Government Forecasting and Accountability shall | 23 | | transmit the report to the Speaker of the House of |
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| 1 | | Representatives, the Minority Leader of the House of | 2 | | Representatives, the President of the Senate, and the Minority | 3 | | Leader of the Senate. The report shall include but not be | 4 | | limited to: | 5 | | (1) a summary of initiatives undertaken by the Board | 6 | | during the reporting period to promote adoption of low | 7 | | cost/no cost energy efficiency measures, including | 8 | | employee training efforts; | 9 | | (2) a summary of energy efficiency measures installed | 10 | | and energy improvements made during the reporting period; | 11 | | (3) energy consumption and expenditure data for | 12 | | facilities owned by State government and any documented | 13 | | savings made as a result of energy efficiency measures and | 14 | | improvements; | 15 | | (4) a status report on the number of buildings newly | 16 | | constructed or renovated in accordance with the | 17 | | high-performance building standards required under this | 18 | | Act and the amount of savings realized based upon a | 19 | | life-cycle cost analysis; | 20 | | (5) any efforts made during the reporting period to | 21 | | promote acquisition of energy efficient products pursuant | 22 | | to this Act and the amount of savings expected to be | 23 | | realized in the first year of operation from the purchase | 24 | | of ENERGY STAR-qualified products pursuant to this Act; | 25 | | (6) any recommendations for future funding of energy | 26 | | improvements or other measures needed to assure energy |
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| 1 | | efficiency in State government; and | 2 | | (7) any improvements in energy efficiency planned or | 3 | | realized through the use of ENERGY STAR-qualified products | 4 | | and guaranteed energy savings performance contracts. | 5 | | Section 40. Energy Efficiency in State Government | 6 | | Buildings Fund. | 7 | | (a) A special fund in the State treasury is hereby created | 8 | | which shall be known as the Energy Efficiency in State | 9 | | Government Buildings Fund. The Fund shall be used to provide | 10 | | financial assistance to State government agencies for the | 11 | | purposes of this Act. Notwithstanding any other law to the | 12 | | contrary, the Energy Efficiency in State Government Buildings | 13 | | Fund is not subject to sweeps, administrative charge-backs, or | 14 | | any other fiscal or budgetary maneuver that would in any way | 15 | | transfer any amounts from the Energy Efficiency in State | 16 | | Government Buildings Fund into any other fund of the State. | 17 | | (b) The Fund may receive State appropriations, gifts, | 18 | | grants, and federal funds and shall include earnings from the | 19 | | investment of moneys in the Fund. | 20 | | (c) Administration of this Fund shall be the responsibility | 21 | | of the Board. The Board shall establish terms and conditions | 22 | | for the operation of the Fund including the application | 23 | | process. The Board shall establish and implement fiscal | 24 | | controls and accounting periods for projects that receive | 25 | | financial assistance from the Fund. |
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| 1 | | Section 45. Administrative rules. The Board may implement | 2 | | the provisions of this Act through the promulgation of | 3 | | administrative rules pursuant to the Illinois Administrative | 4 | | Procedure Act. | 5 | | Section 50. Prequalification; qualified providers. | 6 | | (a) The Capital Development Board shall establish | 7 | | procedures to prequalify firms or entities seeking to provide | 8 | | services under performance and guaranteed energy savings | 9 | | performance contracts and ensure such firms are qualified | 10 | | providers of such services. | 11 | | (b) The minimum training required for a qualified provider | 12 | | under this Section shall be the satisfactory completion of at | 13 | | least 40 hours of course instruction dealing with energy | 14 | | conservation measures. A qualified provider to whom the | 15 | | contract is awarded shall give a sufficient bond to the Board | 16 | | or area vocational center for its faithful performance. All | 17 | | design services shall be procured in accordance with the | 18 | | Architectural, Engineering, and Land Surveying Qualifications | 19 | | Based Selection Act. | 20 | | Section 55. Request for proposals. The request for | 21 | | proposals shall be administered by the Capital Development | 22 | | Board and notification of the procurement will be accordance | 23 | | with the Illinois Procurement Code, but in no case shall the |
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| 1 | | Board provide less than a 30-day notice of the request for | 2 | | proposals. Proposals submitted shall be sealed. The request for | 3 | | proposals shall include all of the following: | 4 | | (1) the name and address of the proposed project; | 5 | | (2) the name, address, title, and phone number of a | 6 | | contact person; | 7 | | (3) notice indicating that the Board is requesting | 8 | | qualified providers to propose energy conservation | 9 | | measures through a performance or guaranteed energy | 10 | | savings performance contract; | 11 | | (4) the date, time, and place where proposals must be | 12 | | received; | 13 | | (5) the evaluation criteria for assessing the | 14 | | proposals; and | 15 | | (6) any other stipulations and clarifications the | 16 | | Board may require. | 17 | | Section 60. Evaluation of proposals. Before entering into a | 18 | | performance or guaranteed energy savings performance contract, | 19 | | the Board shall submit a request for proposals. The Capital | 20 | | Development Board shall evaluate any sealed proposal from a | 21 | | qualified provider. The evaluation shall analyze the estimates | 22 | | of all costs of installations, modifications, or remodeling, | 23 | | including, without limitation, costs of a pre-installation | 24 | | energy audit or analysis, design, engineering, installation, | 25 | | maintenance, repairs, debt service, conversions to a different |
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| 1 | | energy or fuel source, or post-installation project | 2 | | monitoring, data collection, and reporting. The evaluation | 3 | | shall include a detailed analysis of whether either the energy | 4 | | consumed or the operating costs, or both, will be reduced. The | 5 | | evaluation of the proposal shall be done by a licensed | 6 | | professional engineer or architect who is retained by the | 7 | | Capital Development Board and selected in accordance with the | 8 | | Architectural, Engineering, and Land Surveying Qualifications | 9 | | Based Selection Act. A licensed architect or registered | 10 | | professional engineer evaluating a proposal under this Section | 11 | | must not have any financial or contractual relationship with a | 12 | | qualified provider or other source that would constitute a | 13 | | conflict of interest. | 14 | | Section 65. Award of contract. | 15 | | (a) Sealed proposals must be opened by the Capital | 16 | | Development Board at a public opening at which the contents of | 17 | | the proposals must be announced. Each person or entity | 18 | | submitting a sealed proposal must receive at least 14 days' | 19 | | notice of the time and place of the opening. The Capital | 20 | | Development Board shall select the qualified provider that best | 21 | | meets the needs of the State agency. After evaluating the | 22 | | proposals under Section 60, the Capital Development Board may | 23 | | enter into a guaranteed energy savings performance contract | 24 | | with a qualified provider if it finds that the amount it would | 25 | | spend on the energy conservation measures recommended in the |
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| 1 | | proposal would not exceed the amount to be saved in either | 2 | | energy or operational costs, or both, within a 5-year period | 3 | | from the date of installation, if the recommendations in the | 4 | | proposal are followed. Contracts let or awarded must be | 5 | | published in the Illinois Procurement Bulletin. | 6 | | (b) The request for proposals and any contracts awarded to | 7 | | a qualified provider shall require that any subsequent need for | 8 | | architectural, engineering, or land surveying services that | 9 | | arises after the submittal of the request for qualifications, | 10 | | the request for proposals, or contract award shall be procured | 11 | | by the provider using a qualifications based selection process | 12 | | consisting of publication of notice of availability of such | 13 | | services, a statement of desired qualifications, an evaluation | 14 | | based on such desired qualifications, and the development of a | 15 | | shortlist ranking the firms in order of qualifications, and | 16 | | then negotiations with such ranked firms for a fair and | 17 | | reasonable fee. Compliance with the Architectural, | 18 | | Engineering, and Land Surveying Qualifications Based Selection | 19 | | Act shall be deemed prima facie compliance with this | 20 | | subsection. Every performance or guaranteed energy savings | 21 | | performance contract shall incorporate the requirements of | 22 | | this subsection. | 23 | | (c) The request for proposals shall require that each and | 24 | | every contractor, subcontractor, and
architectural, | 25 | | engineering, and land surveying firm or entity shall be listed | 26 | | and the
quotation or price for such services shall also be |
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| 1 | | listed. If, prior to or after the
award of the contract, any of | 2 | | the listed firms shall have a reduction in their listed price, | 3 | | the performance
or guaranteed energy savings performance | 4 | | contract shall be modified and such savings shall be for the
| 5 | | benefit of the State agency with a corresponding reduction in | 6 | | the contract amount. The
information in the request for | 7 | | proposals shall be considered confidential and only for the
use | 8 | | of the State agency.
| 9 | | Section 70. Guarantee. A guaranteed energy savings | 10 | | performance contract shall include a written guarantee by the | 11 | | qualified provider that either the energy or operational cost | 12 | | savings, or both, will meet or exceed, within 5 years, the | 13 | | costs of the energy conservation measures. The qualified | 14 | | provider shall reimburse the State agency for any shortfall of | 15 | | guaranteed energy savings projected in the contract. A | 16 | | qualified provider shall provide a sufficient bond to the State | 17 | | agency for the installation and the faithful performance of all | 18 | | the measures included in the contract. The guaranteed energy | 19 | | savings performance contract may provide for payments over a | 20 | | period of time not to exceed 5 years from the date of final | 21 | | installation of the measures. | 22 | | Section 75. Disclosures. A State agency may not withhold | 23 | | the disclosure of information related to (i) the State agency's | 24 | | consumption of energy, (ii) the physical condition of the State |
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| 1 | | agency's facilities, and (iii) any limitations prescribed by | 2 | | the State agency. | 3 | | In accordance with Section 50-10.5 of the Illinois | 4 | | Procurement Code, no contractor that participated in the | 5 | | preparation of the specifications issued by the Board shall be | 6 | | permitted to respond to the solicitation or be awarded a | 7 | | performance or guaranteed energy savings performance contract. | 8 | | The solicitation must include a written disclosure that no | 9 | | energy services contractor participated in the preparation of | 10 | | the specifications. The written disclosure shall be published | 11 | | in the Capital Development Board's volume of the Illinois | 12 | | Procurement Bulletin with the request for proposal. | 13 | | Section 80. Operational and energy cost savings. The | 14 | | Department shall document the operational and energy cost | 15 | | savings specified in the guaranteed energy savings performance | 16 | | contract. If the annual energy savings are less than projected | 17 | | under the guaranteed energy savings performance contract the | 18 | | qualified provider shall pay the difference in accordance with | 19 | | Section 70. | 20 | | Section 85. Bonding. A qualified provider shall provide a | 21 | | sufficient bond to the Board for the installation and the | 22 | | faithful performance of all the measures included in the | 23 | | contract in accordance with the Public Construction Bond Act. | 24 | | Such bond shall be in effect for the entire term of the |
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| 1 | | contract. | 2 | | Section 90. Applicable laws. Other State laws and related | 3 | | administrative requirements apply to this Act, including, but | 4 | | not limited to, the following laws and related administrative | 5 | | requirements: the Illinois Human Rights Act, the Business | 6 | | Enterprise for Minorities, Females, and Persons with | 7 | | Disabilities Act, the Prevailing Wage Act, the Employment of | 8 | | Illinois Workers on Public Works Act, the Freedom of | 9 | | Information Act, the Open Meetings Act, the Illinois | 10 | | Architecture Practice Act of 1989, the Professional | 11 | | Engineering Practice Act of 1989, the Structural Engineering | 12 | | Practice Act of 1989, the Architectural, Engineering, and Land | 13 | | Surveying Qualifications Based Selection Act, the Contractor | 14 | | Unified License and Permit Bond Act, the Procurement of | 15 | | Domestic Products Act, the Public Purchases in Other States | 16 | | Act, the Governmental Joint Purchasing Act, the Design-Build | 17 | | Procurement Act, the State Prompt Payment Act, the Public | 18 | | Contract Fraud Act, the Public Construction Contract Act, the | 19 | | Airport and Correctional Facility Land Disclosure Act, the | 20 | | State Real Property Leasing Act, the Real Estate Leasing Act, | 21 | | the Project Labor Agreements Act, and the provisions of Article | 22 | | 50 of the Illinois Procurement Code. | 23 | | Section 95. The State Finance Act is amended by adding | 24 | | Section 5.811 as follows: |
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| 1 | | (30 ILCS 105/5.811 new) | 2 | | Sec. 5.811. Energy Efficiency in State Government | 3 | | Buildings Fund. | 4 | | Section 100. The Illinois Procurement Code is amended by | 5 | | changing Section 30-45 as follows:
| 6 | | (30 ILCS 500/30-45)
| 7 | | Sec. 30-45. Other Acts. This Article is subject to | 8 | | applicable
provisions of the following Acts:
| 9 | | (1) the Prevailing Wage Act;
| 10 | | (2) the Public Construction Bond Act;
| 11 | | (3) the Public Works Employment Discrimination Act;
| 12 | | (4) the Public Works Preference Act (repealed on June | 13 | | 16, 2010 by Public Act 96-929);
| 14 | | (5) the Employment of Illinois Workers on Public Works
| 15 | | Act;
| 16 | | (6) the Public Contract Fraud Act;
| 17 | | (7) the Illinois Construction Evaluation Act; and | 18 | | (8) the Project Labor Agreements Act ; and . | 19 | | (9) the Energy Efficiency Program for State Government | 20 | | Buildings Act.
| 21 | | (Source: P.A. 97-199, eff. 7-27-11; 97-333, eff. 8-12-11.)
| 22 | | Section 999. Effective date. This Act takes effect upon |
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| 1 | | becoming law.".
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