Full Text of HB4425 95th General Assembly
HB4425eng 95TH GENERAL ASSEMBLY
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Retailers' Occupation Tax Act is amended by | 5 |
| changing Section 2a as follows:
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| (35 ILCS 120/2a) (from Ch. 120, par. 441a)
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| Sec. 2a. It is unlawful for any person to engage in the | 8 |
| business of
selling tangible personal property at retail in | 9 |
| this State without a
certificate of registration from the | 10 |
| Department. Application
for a certificate of registration | 11 |
| shall be made to the Department upon
forms furnished by it. | 12 |
| Each such application shall be signed and verified
and shall | 13 |
| state: (1) the name and social security number of the
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| applicant; (2) the address of his principal place
of business; | 15 |
| (3) the address of the principal place of business from which
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| he engages in the business of selling tangible personal | 17 |
| property at retail
in this State and the addresses of all other | 18 |
| places of business, if any
(enumerating such addresses, if any, | 19 |
| in a separate list attached to and
made a part of the | 20 |
| application), from which he engages in the business of
selling | 21 |
| tangible personal property at retail in this State; (4)
the
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| name and address of the person or persons who will be | 23 |
| responsible for
filing returns and payment of taxes due under |
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| this Act; (5) in the case of a publicly-traded corporation, the | 2 |
| name and title of each corporate officer and in the
case of
all | 3 |
| other corporations a corporation , the name, title, and social | 4 |
| security number of
each corporate officer; (6) in the case of a | 5 |
| limited liability
company, the
name, social security number, | 6 |
| and FEIN number of
each
manager and member; and (7) such other | 7 |
| information
as the Department may reasonably require. The | 8 |
| application shall contain
an acceptance of responsibility | 9 |
| signed by the person or persons who will be
responsible for | 10 |
| filing returns and payment of the taxes due under this
Act. If | 11 |
| the applicant will sell tangible personal property at retail
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| through vending machines, his application to register shall | 13 |
| indicate the
number of vending machines to be so operated; and | 14 |
| thereafter, he shall
notify the Department by January 31 of the | 15 |
| number of vending machines which
such person was using in his | 16 |
| business of selling tangible personal property
at retail on the | 17 |
| preceding December 31.
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| Notwithstanding any other rulemaking authority that may | 19 |
| exist, neither the Governor nor any agency or agency head under | 20 |
| the jurisdiction of the Governor has any authority to make or | 21 |
| promulgate rules to implement or enforce the provisions of this | 22 |
| amendatory Act of the 95th General Assembly. If, however, the | 23 |
| Governor believes that rules are necessary to implement or | 24 |
| enforce the provisions of this amendatory Act of the 95th | 25 |
| General Assembly, the Governor may suggest rules to the General | 26 |
| Assembly by filing them with the Clerk of the House and the |
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| Secretary of the Senate and by requesting that the General | 2 |
| Assembly authorize such rulemaking by law, enact those | 3 |
| suggested rules into law, or take any other appropriate action | 4 |
| in the General Assembly's discretion. Nothing contained in this | 5 |
| amendatory Act of the 95th General Assembly shall be | 6 |
| interpreted to grant rulemaking authority under any other | 7 |
| Illinois statute where such authority is not otherwise | 8 |
| explicitly given. For the purposes of this paragraph, "rules" | 9 |
| is given the meaning contained in Section 1-70 of the Illinois | 10 |
| Administrative Procedure Act, and "agency" and "agency head" | 11 |
| are given the meanings contained in Sections 1-20 and 1-25 of | 12 |
| the Illinois Administrative Procedure Act to the extent that | 13 |
| such definitions apply to agencies or agency heads under the | 14 |
| jurisdiction of the Governor. | 15 |
| The Department may deny a certificate of registration to | 16 |
| any applicant
if the owner, any partner, any manager or member | 17 |
| of a limited liability
company, or a corporate officer of the | 18 |
| applicant, is or
has been the owner, a partner, a manager or | 19 |
| member of a limited
liability company, or a corporate officer, | 20 |
| of another retailer
that is in default for moneys due under | 21 |
| this Act.
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| Every applicant for a certificate of registration | 23 |
| hereunder shall, at
the time of filing such application, | 24 |
| furnish a bond from a surety company
authorized to do business | 25 |
| in the State of Illinois, or an irrevocable
bank letter of | 26 |
| credit or a bond signed by 2
personal sureties who have filed, |
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| with the Department, sworn statements
disclosing net assets | 2 |
| equal to at least 3 times the amount of the bond to
be required | 3 |
| of such applicant, or a bond secured by an assignment of a bank
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| account or certificate of deposit, stocks or bonds, conditioned | 5 |
| upon the
applicant paying to the State of Illinois all moneys | 6 |
| becoming due under
this Act and under any other State tax law | 7 |
| or municipal or county tax
ordinance or resolution under which | 8 |
| the certificate of registration that is
issued to the applicant | 9 |
| under this Act will permit the applicant to engage
in business | 10 |
| without registering separately under such other law, ordinance
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| or resolution. The Department shall fix the amount of such | 12 |
| security in each
case, taking into consideration the amount of | 13 |
| money expected to become due
from the applicant under this Act | 14 |
| and under any other State tax law or
municipal or county tax | 15 |
| ordinance or resolution under which the certificate
of | 16 |
| registration that is issued to the applicant under this Act | 17 |
| will permit
the applicant to engage in business without | 18 |
| registering separately under
such other law, ordinance or | 19 |
| resolution. The amount of security required by
the Department | 20 |
| shall be such as, in its opinion, will protect the State of
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| Illinois against failure to pay the amount which may become due | 22 |
| from the
applicant under this Act and under any other State tax | 23 |
| law or municipal or
county tax ordinance or resolution under | 24 |
| which the certificate of
registration that is issued to the | 25 |
| applicant under this Act will permit the
applicant to engage in | 26 |
| business without registering separately under such
other law, |
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| ordinance or resolution, but the amount of the security | 2 |
| required
by the Department shall not exceed three times the | 3 |
| amount of the
applicant's average monthly tax liability, or | 4 |
| $50,000.00, whichever amount
is lower.
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| No certificate of registration under this Act shall be | 6 |
| issued by the
Department until the applicant provides the | 7 |
| Department with satisfactory
security as herein provided for.
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| Upon receipt of the application for certificate of | 9 |
| registration in
proper form, and upon approval by the | 10 |
| Department of the security furnished
by the applicant, the | 11 |
| Department shall issue to such applicant a
certificate of | 12 |
| registration which shall permit the person to whom it is
issued | 13 |
| to engage in the business of selling tangible personal property | 14 |
| at
retail in this State. The certificate of registration shall | 15 |
| be
conspicuously displayed at the place of business which the | 16 |
| person so
registered states in his application to be the | 17 |
| principal place of business
from which he engages in the | 18 |
| business of selling tangible personal property
at retail in | 19 |
| this State.
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| No certificate of registration issued to a taxpayer who | 21 |
| files returns
required by this Act on a monthly basis shall be | 22 |
| valid after the expiration
of 5 years from the date of its | 23 |
| issuance or last renewal. The expiration
date of a | 24 |
| sub-certificate of registration shall be that of the | 25 |
| certificate
of registration to which the sub-certificate | 26 |
| relates. A certificate of
registration shall automatically be |
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| renewed, subject to revocation as
provided by this Act, for an | 2 |
| additional 5 years from the date of its
expiration unless | 3 |
| otherwise notified by the Department as provided by this
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| paragraph. Where a taxpayer to whom a certificate of | 5 |
| registration is
issued under this Act is in default to the | 6 |
| State of Illinois for delinquent
returns or for moneys due
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| under this Act or any other State tax law or municipal or | 8 |
| county ordinance
administered or enforced by the Department, | 9 |
| the Department shall, not less
than 120 days before the | 10 |
| expiration date of such certificate of
registration, give | 11 |
| notice to the taxpayer to whom the certificate was
issued of | 12 |
| the account period of the delinquent returns, the amount of
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| tax,
penalty and interest due and owing from the
taxpayer, and | 14 |
| that the certificate of registration shall not be
automatically | 15 |
| renewed upon its expiration date unless the taxpayer, on or
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| before the date of expiration, has filed and paid the | 17 |
| delinquent returns or
paid the defaulted amount in full. A
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| taxpayer to whom such a notice is issued shall be deemed an | 19 |
| applicant for
renewal. The Department shall promulgate | 20 |
| regulations establishing
procedures for taxpayers who file | 21 |
| returns on a monthly basis but desire and
qualify to change to | 22 |
| a quarterly or yearly filing basis and will no longer
be | 23 |
| subject to renewal under this Section, and for taxpayers who | 24 |
| file
returns on a yearly or quarterly basis but who desire or | 25 |
| are required to
change to a monthly filing basis and will be | 26 |
| subject to renewal under
this Section.
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| The Department may in its discretion approve renewal by an | 2 |
| applicant
who is in default if, at the time of application for | 3 |
| renewal, the applicant
files all of the delinquent returns or | 4 |
| pays to the Department such
percentage of the defaulted amount | 5 |
| as may be
determined by the Department and agrees in writing to | 6 |
| waive all limitations
upon the Department for collection of the | 7 |
| remaining defaulted amount to the
Department over a period not | 8 |
| to exceed 5 years from the date of renewal of
the certificate; | 9 |
| however, no renewal application submitted by an applicant
who | 10 |
| is in default shall be approved if the immediately preceding | 11 |
| renewal by
the applicant was conditioned upon the installment | 12 |
| payment
agreement described in this Section. The payment | 13 |
| agreement herein provided
for shall be in addition to and not | 14 |
| in lieu of the security required by
this Section of a taxpayer | 15 |
| who is no longer considered a prior continuous
compliance | 16 |
| taxpayer. The execution of the payment agreement as provided in
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| this Act shall not toll the accrual of interest at the | 18 |
| statutory rate.
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| A certificate of registration issued under this Act more | 20 |
| than 5 years
before the effective date of this amendatory Act | 21 |
| of 1989 shall expire and
be subject to the renewal provisions | 22 |
| of this Section on the next
anniversary of the date of issuance | 23 |
| of such certificate which occurs more
than 6 months after the | 24 |
| effective date of this amendatory Act of 1989. A
certificate of | 25 |
| registration issued less than 5 years before the effective
date | 26 |
| of this amendatory Act of 1989 shall expire and be subject to |
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| the
renewal provisions of this Section on the 5th anniversary | 2 |
| of the issuance
of the certificate.
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| If the person so registered states that he operates other | 4 |
| places of
business from which he engages in the business of | 5 |
| selling tangible personal
property at retail in this State, the | 6 |
| Department shall furnish him with a
sub-certificate of | 7 |
| registration for each such place of business, and the
applicant | 8 |
| shall display the appropriate sub-certificate of registration | 9 |
| at
each such place of business. All sub-certificates of | 10 |
| registration shall
bear the same registration number as that | 11 |
| appearing upon the certificate of
registration to which such | 12 |
| sub-certificates relate.
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| If the applicant will sell tangible personal property at | 14 |
| retail through
vending machines, the Department shall furnish | 15 |
| him with a sub-certificate
of registration for each such | 16 |
| vending machine, and the applicant shall
display the | 17 |
| appropriate sub-certificate of registration on each such
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| vending machine by attaching the sub-certificate of | 19 |
| registration to a
conspicuous part of such vending machine.
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| Where the same person engages in 2 or more businesses of | 21 |
| selling
tangible personal property at retail in this State, | 22 |
| which businesses are
substantially different in character or | 23 |
| engaged in under different trade
names or engaged in under | 24 |
| other substantially dissimilar circumstances (so
that it is | 25 |
| more practicable, from an accounting, auditing or bookkeeping
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| standpoint, for such businesses to be separately registered), |
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| the
Department may require or permit such person (subject to | 2 |
| the same
requirements concerning the furnishing of security as | 3 |
| those that are
provided for hereinbefore in this Section as to | 4 |
| each application for a
certificate of registration) to apply | 5 |
| for and obtain a separate certificate
of registration for each | 6 |
| such business or for any of such businesses, under
a single | 7 |
| certificate of registration supplemented by related
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| sub-certificates of registration.
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| Any person who is registered under the "Retailers' | 10 |
| Occupation Tax Act"
as of March 8, 1963, and who, during the | 11 |
| 3-year period immediately prior to
March 8, 1963, or during a | 12 |
| continuous 3-year period part of which passed
immediately | 13 |
| before and the remainder of which passes immediately after
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| March 8, 1963, has been so registered continuously and who is | 15 |
| determined by
the Department not to have been either delinquent | 16 |
| or deficient in the
payment of tax liability during that period | 17 |
| under this Act or under any
other State tax law or municipal or | 18 |
| county tax ordinance or resolution
under which the certificate | 19 |
| of registration that is issued to the
registrant under this Act | 20 |
| will permit the registrant to engage in business
without | 21 |
| registering separately under such other law, ordinance or
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| resolution, shall be considered to be a Prior Continuous | 23 |
| Compliance
taxpayer. Also any taxpayer who has, as verified by | 24 |
| the Department,
faithfully and continuously complied with the | 25 |
| condition of his bond or
other security under the provisions of | 26 |
| this Act for a period of 3
consecutive years shall be |
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| considered to be a Prior Continuous Compliance
taxpayer.
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| Every Prior Continuous Compliance taxpayer shall be exempt | 3 |
| from all
requirements under this Act concerning the furnishing | 4 |
| of security as a
condition precedent to his being authorized to | 5 |
| engage in the business of
selling tangible personal property at | 6 |
| retail in this State. This exemption
shall continue for each | 7 |
| such taxpayer until such time as he may be
determined by the | 8 |
| Department to be delinquent in the filing of any returns,
or is | 9 |
| determined by the Department (either through the Department's
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| issuance of a final assessment which has become final under the | 11 |
| Act, or by
the taxpayer's filing of a return which admits tax | 12 |
| that is not paid to be
due) to be delinquent or deficient in | 13 |
| the paying of any tax under this Act
or under any other State | 14 |
| tax law or municipal or county tax ordinance or
resolution | 15 |
| under which the certificate of registration that is issued to
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| the registrant under this Act will permit the registrant to | 17 |
| engage in
business without registering separately under such | 18 |
| other law, ordinance or
resolution, at which time that taxpayer | 19 |
| shall become subject to all the
financial responsibility | 20 |
| requirements of this Act and, as a condition of
being allowed | 21 |
| to continue to engage in the business of selling tangible
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| personal property at retail, shall be required to post bond or | 23 |
| other
acceptable security with the Department covering | 24 |
| liability which such
taxpayer may thereafter incur. Any | 25 |
| taxpayer who fails to pay an admitted or
established liability | 26 |
| under this Act may also be required to post bond or
other |
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| acceptable security with this Department guaranteeing the | 2 |
| payment of
such admitted or established liability.
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| No certificate of registration shall be issued to any | 4 |
| person who is in
default to the State of Illinois for moneys | 5 |
| due under this Act or under any
other State tax law or | 6 |
| municipal or county tax ordinance or resolution
under which the | 7 |
| certificate of registration that is issued to the applicant
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| under this Act will permit the applicant to engage in business | 9 |
| without
registering separately under such other law, ordinance | 10 |
| or resolution.
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| Any person aggrieved by any decision of the Department | 12 |
| under this
Section may, within 20 days after notice of such | 13 |
| decision, protest and
request a hearing, whereupon the | 14 |
| Department shall give notice to such
person of the time and | 15 |
| place fixed for such hearing and shall hold a
hearing in | 16 |
| conformity with the provisions of this Act and then issue its
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| final administrative decision in the matter to such person. In | 18 |
| the absence
of such a protest within 20 days, the Department's | 19 |
| decision shall become
final without any further determination | 20 |
| being made or notice given.
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| With respect to security other than bonds (upon which the | 22 |
| Department may
sue in the event of a forfeiture), if the | 23 |
| taxpayer fails to pay, when due,
any amount whose payment such | 24 |
| security guarantees, the Department shall,
after such | 25 |
| liability is admitted by the taxpayer or established by the
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| Department through the issuance of a final assessment that has |
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| become final
under the law, convert the security which that | 2 |
| taxpayer has furnished into
money for the State, after first | 3 |
| giving the taxpayer at least 10 days'
written notice, by | 4 |
| registered or certified mail, to pay the liability or
forfeit | 5 |
| such security to the Department. If the security consists of | 6 |
| stocks
or bonds or other securities which are listed on a | 7 |
| public exchange, the
Department shall sell such securities | 8 |
| through such public exchange. If
the security consists of an | 9 |
| irrevocable bank letter of credit, the
Department shall convert | 10 |
| the security in the manner provided for in the
Uniform | 11 |
| Commercial Code. If the security consists of a bank certificate | 12 |
| of
deposit, the Department shall convert the security into | 13 |
| money by demanding
and collecting the amount of such bank | 14 |
| certificate of deposit from the bank
which issued such | 15 |
| certificate. If the security consists of a type of stocks
or | 16 |
| other securities which are not listed on a public exchange, the
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| Department shall sell such security to the highest and best | 18 |
| bidder after
giving at least 10 days' notice of the date, time | 19 |
| and place of the intended
sale by publication in the "State | 20 |
| Official Newspaper". If the Department
realizes more than the | 21 |
| amount of such liability from the security, plus the
expenses | 22 |
| incurred by the Department in converting the security into | 23 |
| money,
the Department shall pay such excess to the taxpayer who | 24 |
| furnished such
security, and the balance shall be paid into the | 25 |
| State Treasury.
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| The Department shall discharge any surety and shall release |
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| and return
any security deposited, assigned, pledged or | 2 |
| otherwise provided to it by
a taxpayer under this Section | 3 |
| within 30 days after:
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| (1) such taxpayer becomes a Prior Continuous | 5 |
| Compliance taxpayer; or
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| (2) such taxpayer has ceased to collect receipts on | 7 |
| which he is required
to remit tax to the Department, has | 8 |
| filed a final tax return, and has paid
to the Department an | 9 |
| amount sufficient to discharge his remaining tax
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| liability, as determined by the Department, under this Act | 11 |
| and under every
other State tax law or municipal or county | 12 |
| tax ordinance or resolution
under which the certificate of | 13 |
| registration issued under this Act permits
the registrant | 14 |
| to engage in business without registering separately under
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| such other law, ordinance or resolution. The Department | 16 |
| shall make a final
determination of the taxpayer's | 17 |
| outstanding tax liability as expeditiously
as possible | 18 |
| after his final tax return has been filed; if the | 19 |
| Department
cannot make such final determination within 45 | 20 |
| days after receiving the
final tax return, within such | 21 |
| period it shall so notify the taxpayer,
stating its reasons | 22 |
| therefor.
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| (Source: P.A. 90-491, eff. 1-1-98; 91-357, eff. 7-29-99.)
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| Section 99. Effective date. This Act takes effect upon | 25 |
| becoming law.
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