Full Text of SB3464 100th General Assembly
SB3464eng 100TH GENERAL ASSEMBLY |
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|
| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Counties Code is amended by changing Section | 5 | | 5-1095.1 as follows: | 6 | | (55 ILCS 5/5-1095.1)
| 7 | | Sec. 5-1095.1. County franchise fee or service provider fee | 8 | | review; requests for information. | 9 | | (a) If pursuant to its franchise agreement with a community | 10 | | antenna television system (CATV) operator, a county imposes a | 11 | | franchise fee authorized by 47 U.S.C. 542 or
if
a
community
| 12 | | antenna
television
system
(CATV)
operator
providing
cable
or
| 13 | | video
service
in
that
county is
required
to
pay
the
service
| 14 | | provider
fees
imposed
by
the
Cable
and
Video
Competition
Law
of
| 15 | | 2007, then the county may conduct an audit of that CATV | 16 | | operator's franchise fees or service provider fees derived from | 17 | | the provision of cable and video services to subscribers within | 18 | | the franchise area to determine whether the amount of franchise | 19 | | fees or service provider fees paid by that CATV operator to the | 20 | | county was accurate. Any audit conducted under this subsection | 21 | | (a) shall determine, for a period of not more than 4 years | 22 | | after the date the franchise fees or service provider fees were | 23 | | due, any overpayment or underpayment to the county by the CATV |
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| 1 | | operator, and the amount due to the county or CATV operator is | 2 | | limited to the net difference. | 3 | | (b) Not more than once every 2 years, a county or its agent | 4 | | that is authorized to perform an audit as set forth in | 5 | | subsection (a) may, subject to the limitations and protections | 6 | | stated in the Local Government Taxpayers' Bill of Rights Act, | 7 | | request information from the CATV operator in the format | 8 | | maintained by the CATV operator in the ordinary course of its | 9 | | business that the county reasonably requires in order to | 10 | | perform an audit under subsection (a). The information that may | 11 | | be requested by the county includes without limitation the | 12 | | following: | 13 | | (1) in an electronic format used by the CATV operator | 14 | | in the ordinary course of its business, the database used | 15 | | by the CATV operator to determine the amount of the | 16 | | franchise fee or service provider fee due to the county; | 17 | | and | 18 | | (2) in a format used by the CATV operator in the | 19 | | ordinary course of its business, summary data, as needed by | 20 | | the county, to determine the CATV operator's franchise fees | 21 | | or service provider fees derived from the provision of | 22 | | cable and video services to subscribers within the CATV | 23 | | operator's franchise area. | 24 | | (c) The CATV operator must provide the information | 25 | | requested under subsection (b) within: | 26 | | (1) 60 days after the receipt of the request if the |
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| 1 | | population of the requesting county is 500,000 or less; or | 2 | | (2) 90 days after the receipt of the request if the | 3 | | population of the requesting county exceeds 500,000. | 4 | | The time in which a CATV operator must provide the | 5 | | information requested under subsection (b) may be extended by | 6 | | written agreement between the county or its agent and the CATV | 7 | | operator. | 8 | | (c-5) The
county
or
its
agent
must
provide
an
initial
| 9 | | report
of
its
audit
findings
to
the
CATV
operator
no
later
than
| 10 | | 90
days
after
the
information
set
forth
in
subsection
(b) of | 11 | | this Section
has
been
provided
by
the
CATV
operator.
This
| 12 | | 90-day
timeline
may
be
extended
one
time
by
written
agreement
| 13 | | between
the
county
or
its
agent
and
the
CATV
operator.
However,
| 14 | | in
no
event
shall
an
extension
of
time
exceed
90
days.
This
| 15 | | initial
report
of
audit
findings
shall
detail
the
basis
of
its
| 16 | | findings
and
provide,
but
not
be
limited
to,
the
following
| 17 | | information:
(i)
any
overpayments
of
franchise
fees
or
service
| 18 | | provider
fees,
(ii)
any
underpayments
of
franchise
fees
or
| 19 | | service
provider
fees,
(iii)
the complete list of all addresses | 20 | | within the corporate limits of the county for which the audit | 21 | | is being conducted, (iv) all
county
addresses
that
should
be
| 22 | | included
in
the
CATV
operator's
database
and
attributable
to
| 23 | | that
county
for
determination
of
franchise
fees
or
service
| 24 | | provider
fees,
and
(v) (iv)
addresses
that
should
not
be
| 25 | | included
in
the
CATV
operator's
database
and
addresses
that
are
| 26 | | not
attributable
to
that
county
for
determination
of
franchise
|
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| 1 | | fees
or
service
provider
fees.
Generally
accepted
auditing
| 2 | | standards
shall
be
utilized
by
the
county
and
its
agents
in
its
| 3 | | review
of
information
provided
by
the
CATV
operator. | 4 | | (c-10)
In
the
event
that
the
county
or
its
agent
does
not
| 5 | | provide
the
initial
report
of
the
audit
findings
to
the
CATV
| 6 | | operator
with
the
timeframes
set
forth
in
subsection
(c-5) of | 7 | | this Section,
then
the
audit
shall
be
deemed
completed
and
to
| 8 | | have
conclusively
found
that
there
was
no
overpayment
or
| 9 | | underpayment
by
the
CATV
operator
for the audit period. | 10 | | Further, the county may not thereafter commence or conduct any | 11 | | such audit for the same audit period or for any part of that | 12 | | same audit period during
the
24
months
prior
to
the
county
or
| 13 | | its
agents
requesting
the
information
set
forth
in
subsection
| 14 | | (b) of this Section . | 15 | | (d) If an audit by the county or its agents finds an error | 16 | | by the CATV operator in the amount of the franchise fees or | 17 | | service provider fees paid by the CATV operator to the county, | 18 | | then the county shall notify the CATV operator of the error. | 19 | | Any such notice must be given to the CATV operator by the | 20 | | county or its agent within 90 days after the county or its | 21 | | agent discovers the error, and no later than 4 years after the | 22 | | date the franchise fee or service provider fee was due. Upon | 23 | | such a notice, the CATV operator must submit a written response | 24 | | within 60 days after receipt of the notice stating that the | 25 | | CATV operator has corrected the error on a prospective basis or | 26 | | stating the reason that the error is inapplicable or |
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| 1 | | inaccurate. The county or its agent then has 60 days after the | 2 | | receipt of the CATV operator's response to review and contest | 3 | | the conclusion of the CATV operator. No legal proceeding to | 4 | | collect a deficiency or overpayment based upon an alleged error | 5 | | shall be commenced unless within 180 days after the county's | 6 | | notification of the error to the CATV operator the parties are | 7 | | unable to agree on the disposition of the audit findings. | 8 | | Any
legal
proceeding
to
collect
a
deficiency
as
set
forth
| 9 | | in
this subsection
(d)
shall
be
filed
in
the
appropriate
| 10 | | circuit
court. | 11 | | (e) No CATV operator is liable for any error in past | 12 | | franchise fee or service provider fee payments that was unknown | 13 | | by the CATV operator prior to the audit process unless (i) the | 14 | | error was due to negligence on the part of the CATV operator in | 15 | | the collection or processing of required data and (ii) the | 16 | | county had not failed to respond in writing in a timely manner | 17 | | to any written request of the CATV operator to review and | 18 | | correct information used by the CATV operator to calculate the | 19 | | appropriate franchise fees or service provider fees if a | 20 | | diligent review of such information by the county reasonably | 21 | | could have been expected to discover such error. | 22 | | (f) All account specific information provided by a CATV | 23 | | operator under this Section may be used only for the purpose of | 24 | | an audit conducted under this Section and the enforcement of | 25 | | any franchise fee or service provider fee delinquent claim. All | 26 | | such information must be held in strict confidence by the |
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| 1 | | county and its agents and may not be disclosed to the public | 2 | | under the Freedom of Information Act or under any other similar | 3 | | statutes allowing for or requiring public disclosure. | 4 | | (f-5)
All
contracts
by
and
between
a
county
and
a
third
| 5 | | party
for
the
purposes
of
conducting
an
audit
as
contemplated
| 6 | | in
this
Code
shall
be
disclosed
to
the
public
under
the
Freedom
| 7 | | of
Information
Act
or
under
similar
statutes
allowing
for
or
| 8 | | requiring
public
disclosure. | 9 | | (g) For the purposes of this Section, "CATV operator" means | 10 | | a person or entity that provides cable and video services under | 11 | | a franchise agreement with a county pursuant to Section 5-1095 | 12 | | of the Counties Code and a holder authorized under Section | 13 | | 21-401 of the Cable and Video Competition Law of 2007 as | 14 | | consistent with Section 21-901 of that Law. | 15 | | (h) This Section does not apply to any action that was | 16 | | commenced, to any complaint that was filed, or to any audit | 17 | | that was commenced before the effective date of this amendatory | 18 | | Act of the 96th General Assembly. This Section also does not | 19 | | apply to any franchise agreement that was entered into before | 20 | | the effective date of this amendatory Act of the 96th General | 21 | | Assembly unless the franchise agreement contains audit | 22 | | provisions but no specifics regarding audit procedures . | 23 | | (h-5) The audit procedures set forth in this Section shall | 24 | | be the exclusive audit procedures for: (i) any franchise | 25 | | agreement entered into, amended, or renewed on or after the | 26 | | effective date of this amendatory Act of the 100th General |
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| 1 | | Assembly; and (ii) any franchise fee or service provider fee | 2 | | audit of a CATV operator commenced on or after the effective | 3 | | date of this amendatory Act of the 100th General Assembly. | 4 | | (i) The provisions of this Section shall not be construed | 5 | | as diminishing or replacing any civil remedy available to a | 6 | | county, taxpayer, or tax collector. | 7 | | (j) If a contingent fee is paid to an auditor, then the | 8 | | payment must be based upon the net difference of the complete | 9 | | audit. | 10 | | (k) A Within 90 days after the effective date of this | 11 | | amendatory Act of the 96th General Assembly, a county shall | 12 | | provide to each any CATV operator an updated a complete list of | 13 | | addresses within the corporate limits of the county and shall | 14 | | annually update the list . In addition, the county shall provide | 15 | | a CATV operator the updated address list within 90 days after | 16 | | the date of a written request by the CATV operator. | 17 | | As a prerequisite to performing an audit of a CATV | 18 | | operator's franchise fees or service provider fees derived from | 19 | | the provision of cable and video services to subscribers within | 20 | | the franchise area, a county shall provide to a CATV operator | 21 | | the complete list of addresses within the corporate limits of | 22 | | the county for each calendar year subject to the audit. If an | 23 | | address is not included in the list or if no list is provided, | 24 | | the CATV operator shall be held harmless for any franchise fee | 25 | | underpayments, including penalty and interest, from situsing | 26 | | errors if it used a reasonable methodology to assign the |
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| 1 | | address or addresses to a county. | 2 | | An address list provided by a county to a CATV operator | 3 | | shall be maintained as confidential by the CATV operator and | 4 | | shall only be used by the CATV operator for the purposes of | 5 | | determining the situs of any franchise fee or service provider | 6 | | fee. Any situs issues identified by a CATV operator as a result | 7 | | of the provision of an address list by a county to the CATV | 8 | | operator shall first be confirmed in writing to the county by | 9 | | the CATV operator prior to the CATV operator making any situs | 10 | | change that may result in a change of allocation of a franchise | 11 | | fee or service provider fee to the county. | 12 | | (l) This Section is a denial and limitation of home rule | 13 | | powers and functions under subsection (h) of Section 6 of | 14 | | Article VII of the Illinois Constitution.
| 15 | | (Source: P.A. 99-6, eff. 6-29-15.) | 16 | | Section 10. The Illinois Municipal Code is amended by | 17 | | changing Section 11-42-11.05 as follows: | 18 | | (65 ILCS 5/11-42-11.05)
| 19 | | Sec. 11-42-11.05. Municipal franchise fee or service | 20 | | provider fee review; requests for information. | 21 | | (a) If pursuant to its franchise agreement with a community | 22 | | antenna television system (CATV) operator, a municipality | 23 | | imposes a franchise fee authorized by 47 U.S.C. 542 or
if
a
| 24 | | community
antenna
television
system
(CATV)
operator
providing
|
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| 1 | | cable
or
video
service
in
that
municipality
is
required
to
pay
| 2 | | the
service
provider
fees
imposed
by
the
Cable
and
Video
| 3 | | Competition
Law
of
2007, then the municipality may conduct an | 4 | | audit of that CATV operator's franchise fees or service | 5 | | provider fees derived from the provision of cable and video | 6 | | services to subscribers within the franchise area to determine | 7 | | whether the amount of franchise fees or service provider fees | 8 | | paid by that CATV operator to the municipality was accurate. | 9 | | Any audit conducted under this subsection (a) shall determine, | 10 | | for a period of not more than 4 years after the date the | 11 | | franchise fees or service provider fees were due, any | 12 | | overpayment or underpayment to the municipality by the CATV | 13 | | operator, and the amount due to the municipality or CATV | 14 | | operator is limited to the net difference. | 15 | | (b) Not more than once every 2 years, a municipality or its | 16 | | agent that is authorized to perform an audit as set forth in | 17 | | subsection (a) of this Section may, subject to the limitations | 18 | | and protections stated in the Local Government Taxpayers' Bill | 19 | | of Rights Act, request information from the CATV operator in | 20 | | the format maintained by the CATV operator in the ordinary | 21 | | course of its business that the municipality reasonably | 22 | | requires in order to perform an audit under subsection (a). The | 23 | | information that may be requested by the municipality includes | 24 | | without limitation the following: | 25 | | (1) in an electronic format used by the CATV operator | 26 | | in the ordinary course of its business, the database used |
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| 1 | | by the CATV operator to determine the amount of the | 2 | | franchise fee or service provider fee due to the | 3 | | municipality; and | 4 | | (2) in a format used by the CATV operator in the | 5 | | ordinary course of its business, summary data, as needed by | 6 | | the municipality, to determine the CATV operator's | 7 | | franchise fees or service provider fees derived from the | 8 | | provision of cable and video services to subscribers within | 9 | | the CATV operator's franchise area. | 10 | | (c) The CATV operator must provide the information | 11 | | requested under subsection (b) within: | 12 | | (1) 60 days after the receipt of the request if the | 13 | | population of the requesting municipality is 500,000 or | 14 | | less; or | 15 | | (2) 90 days after the receipt of the request if the | 16 | | population of the requesting municipality exceeds 500,000. | 17 | | The time in which a CATV operator must provide the | 18 | | information requested under subsection (b) may be extended by | 19 | | written agreement between the municipality or its agent and the | 20 | | CATV operator. | 21 | | (c-5) The
municipality
or
its
agent
must
provide
an
initial
| 22 | | report
of
its
audit
findings
to
the
CATV
operator
no
later
than
| 23 | | 90
days
after
the
information
set
forth
in
subsection
(b)
of | 24 | | this Section has
been
provided
by
the
CATV
operator.
This
| 25 | | 90-day
timeline
may
be
extended
one
time
by
written
agreement
| 26 | | between
the
municipality
or
its
agents
and
the
CATV
operator.
|
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| 1 | | However,
in
no
event
shall
an
extension
of
time
exceed
90
days.
| 2 | | This
initial
report
of
audit
findings
shall
detail
the
basis
of
| 3 | | its
findings
and
provide,
but
not
be
limited
to,
the
following
| 4 | | information:
(i)
any
overpayments
of
franchise
fees
or
service
| 5 | | provider
fees,
(ii)
any
underpayments
of
franchise
fees
or
| 6 | | service
provider
fees,
(iii)
the complete list of all addresses | 7 | | within the corporate limits of the municipality for which the | 8 | | audit is being conducted, (iv) all
municipal
addresses
that
| 9 | | should
be
included
in
the
CATV
operator's
database
and
| 10 | | attributable
to
that
municipality
for
determination
of
| 11 | | franchise
fees
or
service
provider
fees,
and
(v) (iv)
addresses
| 12 | | that
should
not
be
included
in
the
CATV
operator's
database
and
| 13 | | addresses
that
are
not
attributable
to
that
municipality
for
| 14 | | determination
of
franchise
fees
or
service
provider
fees.
| 15 | | Generally
accepted
auditing
standards
shall
be
utilized
by
the
| 16 | | municipality
and
its
agents
in
its
review
of
information
| 17 | | provided
by
the
CATV
operator. | 18 | | (c-10)
In
the
event
that
the
municipality
or
its
agent
does
| 19 | | not
provide
the
initial
report
of
the
audit
findings
to
the
| 20 | | CATV
operator
with
the
timeframes
set
forth
in
subsection
(c-5) | 21 | | of this Section,
then
the
audit
shall
be
deemed
completed
and
| 22 | | to
have
conclusively
found
that
there
was
no
overpayment
or
| 23 | | underpayment
by
the
CATV
operator
for the audit period. | 24 | | Further, the municipality may not thereafter commence or | 25 | | conduct any such audit for the same audit period or for any | 26 | | part of that same audit period during
the
24
months
prior
to
|
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| 1 | | the
municipality
or
its
agents
requesting
the
information
set
| 2 | | forth
in
subsection
(b) of this Section . | 3 | | (d) If an audit by the municipality or its agents finds an | 4 | | error by the CATV operator in the amount of the franchise fees | 5 | | or service provider fees paid by the CATV operator to the | 6 | | municipality, then the municipality shall notify the CATV | 7 | | operator of the error. Any such notice must be given to the | 8 | | CATV operator by the municipality or its agent within 90 days | 9 | | after the municipality or its agent discovers the error, and no | 10 | | later than 4 years after the date the franchise fee or service | 11 | | provider fee was due. Upon such a notice, the CATV operator | 12 | | must submit a written response within 60 days after receipt of | 13 | | the notice stating that the CATV operator has corrected the | 14 | | error on a prospective basis or stating the reason that the | 15 | | error is inapplicable or inaccurate. The municipality or its | 16 | | agent then has 60 days after the receipt of the CATV operator's | 17 | | response to review and contest the conclusion of the CATV | 18 | | operator. No legal proceeding to collect a deficiency or | 19 | | overpayment based upon an alleged error shall be commenced | 20 | | unless within 180 days after the municipality's notification of | 21 | | the error to the CATV operator the parties are unable to agree | 22 | | on the disposition of the audit findings. | 23 | | Any
legal
proceeding
to
collect
a
deficiency
as
set
forth
| 24 | | in
this subsection
(d)
shall
be
filed
in
the
appropriate
| 25 | | circuit
court. | 26 | | (e) No CATV operator is liable for any error in past |
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| 1 | | franchise fee or service provider fee payments that was unknown | 2 | | by the CATV operator prior to the audit process unless (i) the | 3 | | error was due to negligence on the part of the CATV operator in | 4 | | the collection or processing of required data and (ii) the | 5 | | municipality had not failed to respond in writing in a timely | 6 | | manner to any written request of the CATV operator to review | 7 | | and correct information used by the CATV operator to calculate | 8 | | the appropriate franchise fees or service provider fees if a | 9 | | diligent review of such information by the municipality | 10 | | reasonably could have been expected to discover such error. | 11 | | (f) All account specific information provided by a CATV | 12 | | operator under this Section may be used only for the purpose of | 13 | | an audit conducted under this Section and the enforcement of | 14 | | any franchise fee or service provider fee delinquent claim. All | 15 | | such information must be held in strict confidence by the | 16 | | municipality and its agents and may not be disclosed to the | 17 | | public under the Freedom of Information Act or under any other | 18 | | similar statutes allowing for or requiring public disclosure. | 19 | | (f-5)
All
contracts
by
and
between
a
municipality
and
a
| 20 | | third
party
for
the
purposes
of
conducting
an
audit
as
| 21 | | contemplated
in
this
Article
shall
be
disclosed
to
the
public
| 22 | | under
the
Freedom
of
Information
Act
or
under
similar
statutes
| 23 | | allowing
for
or
requiring
public
disclosure. | 24 | | (g) For the purposes of this Section, "CATV operator" means | 25 | | a person or entity that provides cable and video services under | 26 | | a franchise agreement with a municipality pursuant to Section |
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| 1 | | 11-42-11 of the Municipal Code and a holder authorized under | 2 | | Section 21-401 of the Cable and Video Competition Law of 2007 | 3 | | as consistent with Section 21-901 of that Law. | 4 | | (h) This Section does not apply to any action that was | 5 | | commenced, to any complaint that was filed, or to any audit | 6 | | that was commenced before the effective date of this amendatory | 7 | | Act of the 96th General Assembly. This Section also does not | 8 | | apply to any franchise agreement that was entered into before | 9 | | the effective date of this amendatory Act of the 96th General | 10 | | Assembly unless the franchise agreement contains audit | 11 | | provisions but no specifics regarding audit procedures . | 12 | | (h-5) The audit procedures set forth in this Section shall | 13 | | be the exclusive audit procedures for: (i) any franchise | 14 | | agreement entered into, amended, or renewed on or after the | 15 | | effective date of this amendatory Act of the 100th General | 16 | | Assembly; and (ii) any franchise fee or service provider fee | 17 | | audit of a CATV operator commenced on or after the effective | 18 | | date of this amendatory Act of the 100th General Assembly. | 19 | | (i) The provisions of this Section shall not be construed | 20 | | as diminishing or replacing any civil remedy available to a | 21 | | municipality, taxpayer, or tax collector. | 22 | | (j) If a contingent fee is paid to an auditor, then the | 23 | | payment must be based upon the net difference of the complete | 24 | | audit. | 25 | | (k) A Within 90 days after the effective date of this | 26 | | amendatory Act of the 96th General Assembly, a municipality |
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| 1 | | shall provide to each any CATV operator an updated a complete | 2 | | list of addresses within the corporate limits of the | 3 | | municipality and shall annually update the list . In addition, | 4 | | the municipality shall provide a CATV operator the updated | 5 | | address list within 90 days after the date of a written request | 6 | | by the CATV operator. | 7 | | As a prerequisite to performing an audit of a CATV | 8 | | operator's franchise fees or service provider fees derived from | 9 | | the provision of cable and video services to subscribers within | 10 | | the franchise area, a municipality shall provide to a CATV | 11 | | operator the complete list of addresses within the corporate | 12 | | limits of the municipality for each calendar year subject to | 13 | | the audit. If an address is not included in the list or if no | 14 | | list is provided, the CATV operator shall be held harmless for | 15 | | any franchise fee underpayments, including penalty and | 16 | | interest, from situsing errors if it used a reasonable | 17 | | methodology to assign the address or addresses to a | 18 | | municipality. | 19 | | An address list provided by a municipality to a CATV | 20 | | operator shall be maintained as confidential by the CATV | 21 | | operator and shall only be used by the CATV operator for the | 22 | | purposes of determining the situs of any franchise fee or | 23 | | service provider fee. Any situs issues identified by a CATV | 24 | | provider as a result of the provision of an address list by a | 25 | | municipality to the CATV operator shall first be confirmed in | 26 | | writing to the municipality by the CATV operator prior to the |
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| 1 | | CATV operator making any situs change that may result in a | 2 | | change of allocation of a franchise fee or service provider fee | 3 | | to the municipality. | 4 | | (l) This Section is a denial and limitation of home rule | 5 | | powers and functions under subsection (h) of Section 6 of | 6 | | Article VII of the Illinois Constitution. | 7 | | (m) This Section does not apply to any municipality having | 8 | | a population of more than 1,000,000.
| 9 | | (Source: P.A. 99-6, eff. 6-29-15.)
| 10 | | Section 99. Effective date. This Act takes effect upon | 11 | | becoming law.
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