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90_HB2107ham001
LRB9004298KDksam01
1 AMENDMENT TO HOUSE BILL 2107
2 AMENDMENT NO. . Amend House Bill 2107 by replacing
3 everything after the enacting clause with the following:
4 "Section 1. Short title. This Act may be cited as the
5 Rural Manufacturing Incentives Act.
6 Section 5. Legislative findings.
7 (1) The General Assembly finds and declares that the
8 general welfare and material well-being of citizens of the
9 State, and particularly those residing in qualified counties,
10 depends in large measure upon the development and growth of
11 industry in the State.
12 (2) The General Assembly further finds and declares that
13 it is in the best interest of the State to induce the
14 location of manufacturing facilities and agribusiness
15 operations within the qualified counties of the State in
16 order to advance the public purposes of relieving
17 unemployment by creating new jobs within the qualified
18 counties that but for the inducements to be offered by the
19 Department to approved companies as herein provided would not
20 exist and of creating new sources of tax revenues for the
21 support of the public services provided by the State and
22 qualified counties.
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1 (3) The General Assembly further finds and declares that
2 the authority granted by this Act and the purposes to be
3 accomplished hereby are proper governmental and public
4 purposes for which public moneys may be expended, and that
5 the inducement of the location of manufacturing facilities
6 and agribusiness operations within qualified counties is of
7 paramount importance, mandating that the provisions of this
8 Act be liberally construed and applied in order to advance
9 the public purposes.
10 Section 10. Definitions. As used in this Act:
11 "Affiliate" means the following:
12 (a) Members of a family, including only brothers
13 and sisters of the whole or half blood, spouse,
14 ancestors, and lineal descendents of an individual;
15 (b) An individual, and a corporation more than 50%
16 in value of the outstanding stock of which is owned,
17 directly or indirectly, by or for that individual;
18 (c) An individual, and a limited liability company
19 of which more than 50% of the capital interest or profits
20 are owned or controlled, directly or indirectly, by or
21 for that individual;
22 (d) Two corporations that are members of the same
23 controlled group, which includes and is limited to:
24 (1) One or more claims of corporations
25 connected through stock ownership with a common
26 parent corporation if:
27 (A) Stock possessing more than 50% of the
28 total combined voting power of all classes of
29 stock entitled to vote or more than 50% of the
30 total value of shares of all classes of stock
31 of each of the corporations, except the common
32 parent corporation, is owned by one or more of
33 the other corporations; and
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1 (B) The common parent corporation owns
2 stock possessing more than 50% of the total
3 combined voting power of all classes of stock
4 entitled to vote or more than 50% of the total
5 value of shares of all classes of stock of at
6 least one of the other corporations, excluding,
7 in computing the voting power or value, stock
8 owned directly by the other corporations; or
9 (2) Two or more corporations if 5 or fewer
10 persons who are individuals, estates, or trusts own
11 stock possessing more than 50% of the total combined
12 voting power of all classes of stock entitled to
13 vote or more than 50% of the total value of shares
14 of all classes of stock of each corporation, taking
15 into account the stock ownership of each person only
16 to the extent the stock ownership is identical with
17 respect to each corporation;
18 (e) A grantor and fiduciary of any trust;
19 (f) A fiduciary of a trust and fiduciary of another
20 trust, if the same person is a grantor of both trusts;
21 (g) A fiduciary of a trust and a beneficiary of
22 that trust;
23 (h) A fiduciary of a trust and a beneficiary of
24 another trust, if the same person is a grantor of both
25 trusts;
26 (i) A fiduciary of a trust and a corporation more
27 than 50% in value of the outstanding stock of which is
28 owned, directly or indirectly, by or for the trust or by
29 or for a person who is a grantor of the trust;
30 (j) A fiduciary of a trust and a limited liability
31 company more than 50% of the capital interest, or the
32 interest in profits, of which is owned directly or
33 indirectly, by or for the trust or by or for a person who
34 is a grantor of the trust;
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1 (k) A corporation and a partnership, including a
2 registered limited liability partnership, if the same
3 persons own:
4 (1) More than 50% in value of the outstanding
5 stock of the corporation; and
6 (2) More than 50% of the capital interest, or
7 the profits interest, in the partnership, including
8 a registered limited liability partnership;
9 (l) A corporation and a limited liability company
10 if the same persons own:
11 (1) More than 50% in value of the outstanding
12 stock of the corporation; and
13 (2) More than 50% of the capital interest or
14 the profits in the limited liability company;
15 (m) A partnership, including a registered limited
16 liability partnership, and a limited liability company if
17 the same persons own:
18 (1) More than 50% of the capital interest or
19 profits in the partnership, including a registered
20 limited liability partnership; and
21 (2) More than 50% of the capital interest or the
22 profits in the limited liability company;
23 (n) An S corporation and another S corporation if
24 the same persons own more than 50% in value of the
25 outstanding stock of each corporation, S corporation
26 designation being the same as that designation under the
27 Internal Revenue Code of 1986, as amended; or
28 (o) An S corporation and a C corporation, if the
29 same persons own more than 50% in value of the
30 outstanding stock of each corporation; S and C
31 corporation designations being the same as those
32 designations under the Internal Revenue Code of 1986, as
33 amended.
34 "Agribusiness" means any activity involving the
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1 processing of raw agricultural products, including timber, or
2 the providing of value-added functions with regard to raw
3 agricultural products.
4 "Approved company" means any eligible company seeking to
5 locate an economic development project in a qualified county,
6 which eligible company is approved by the Department under
7 this Act.
8 "Approved costs" means:
9 (a) Obligations incurred for labor and to
10 contractors, subcontractors, builders, and materialmen in
11 connection with the acquisition, construction,
12 installation, equipping, and rehabilitation of an
13 economic development project;
14 (b) The cost of acquiring land or rights in land
15 and any cost incidental thereto, including recording
16 fees;
17 (c) The cost of contract bonds and of insurance of
18 all kinds that may be required or necessary during the
19 course of acquisition, construction, installation,
20 equipping, and rehabilitation of an economic development
21 project that is not paid by the contractor or contractors
22 or otherwise provided for;
23 (d) All costs of architectural and engineering
24 services, including test borings, surveys, estimates,
25 plans and specifications, preliminary investigations, and
26 supervision of construction, as well as for the
27 performance of all the duties required by or consequent
28 upon the acquisition, construction, installation,
29 equipping, and rehabilitation of an economic development
30 project;
31 (e) All costs that shall be required to be paid
32 under the terms of any contract or contracts for the
33 acquisition, construction, installation, equipping, and
34 rehabilitation of an economic development project; and
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1 (f) All other costs of a nature comparable to those
2 described above.
3 "Authority" means the Illinois Development Finance
4 Authority as created in the Illinois Development Finance
5 Authority Act.
6 "Bonds" means the revenue bonds, notes, or other debt
7 obligations of the Authority authorized to be issued by the
8 Authority, in cooperation with the Department.
9 "Department" means the Department of Commerce and
10 Community Affairs.
11 "Eligible economic development project" means a new or
12 expanding manufacturing company expenditure for land
13 acquisitions, site development including architectural,
14 engineering, and legal services, utility extensions, costs
15 and fees, building construction or rehabilitation, equipment
16 purchases, re-location of existing equipment including
17 installation cost, new or expanding, storage, warehousing,
18 and related office facilities on or off existing premises
19 within the qualified counties.
20 "Eligible company" means any corporation, limited
21 liability company, partnership, registered limited liability
22 partnership, sole proprietorship, business trust, or any
23 other entity engaged in manufacturing or in agribusiness.
24 "Final approval" means the action taken by the Department
25 authorizing the eligible company to receive inducements under
26 this Act.
27 "Financing agreement" means any agreement entered into,
28 pursuant to this Act, on behalf of the Department or other
29 lenders, or both, and an approved company with respect to an
30 economic development project.
31 "Inducements" means the income tax credits allowed by
32 Section 30 of this Act and Section 211 of the Illinois Income
33 Tax Act.
34 "Manufacturing" means any activity involving the
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1 manufacturing, processing, assembling, or production of any
2 property, including the processing resulting in a change in
3 the conditions of the property and any activity related to
4 it, together with the storage, warehousing, distribution, and
5 related office facilities; however, "manufacturing" shall not
6 include mining, coal or mineral processing, or extraction of
7 minerals.
8 "Preliminary approval" means the action taken by the
9 Department conditioning final approval by the Department upon
10 satisfaction by the eligible company of the requirements
11 under this Act.
12 "Qualified county" means any county certified as such by
13 the Department under Section 15.
14 "Revenues" shall not be considered State funds.
15 Section 15. Certification of qualified counties;
16 selection of eligible companies.
17 (a) Each year the Department shall under this Act, on the
18 basis of the final unemployment figures calculated by the
19 Department of Employment Security, determine which counties
20 have had a countywide average annual unemployment rate
21 exceeding the statewide unemployment rate in the most recent
22 5 consecutive calendar years and shall certify those counties
23 as qualified counties. If the Department determines that a
24 county that has previously been certified as a qualified
25 county no longer has an unemployment rate above the State
26 average, the Department shall decertify the county. The
27 Department shall not finance any facilities in that county
28 under this Act and an approved company shall not be eligible
29 for the incentives offered by this Act unless the financing
30 agreements required herein are entered into by all parties
31 prior to July 1 of the year following the calendar year in
32 which the Department decertified that county.
33 (b) The Department shall prescribe rules to establish
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1 the procedures and standards for the determination and
2 approval of eligible companies and their economic development
3 projects. The criteria for approval of eligible companies
4 and economic development projects shall include but not be
5 limited to the creditworthiness of eligible companies; the
6 number of new jobs to be provided by an economic development
7 project to residents of the State; and the likelihood of the
8 economic success of the economic development project.
9 (c) The economic development project shall involve a
10 minimum investment of $500,000 by the eligible company and
11 shall result in the creation by the eligible company, within
12 2 years from the date of the final approval authorizing the
13 economic development project, a minimum of 15 new full-time
14 jobs of at least 35 hours per week at the site of the
15 economic development project for Illinois residents to be
16 employed by the eligible company. The Department may extend
17 this 2 year period upon the written application of an
18 eligible company requesting an extension. No economic
19 development project that will result in the replacement of
20 existing manufacturing facilities in the State shall be
21 approved by the Department; however, the Department may
22 approve an economic development project that:
23 (1) Rehabilitates a manufacturing facility:
24 (A) That has not been in operation for a
25 period of 90 or more consecutive days; or
26 (B) The title to which is vested in other than
27 the eligible company or an affiliate of the eligible
28 company and that is sold or transferred under a
29 foreclosure ordered by a court of competent
30 jurisdiction or an order of a bankruptcy court of
31 competent jurisdiction;
32 (2) Replaces a manufacturing facility existing in
33 the State:
34 (A) The title to which shall have been taken
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1 under the exercise of the power of eminent domain,
2 or the title to which shall be the subject of a
3 nonappealable judgment granting the authority to
4 exercise the power of eminent domain, in either
5 event to the extent that normal operations cannot be
6 resumed at the facility within 12 months; or
7 (B) That has been damaged or destroyed by fire
8 or other casualty to the extent that normal
9 operations cannot be resumed at the facility within
10 12 months; or
11 (3) Replaces an existing manufacturing facility
12 located in the same qualified county, and the existing
13 manufacturing facility to be replaced cannot be expanded
14 due to the unavailability of real estate at or adjacent
15 to the manufacturing facility to be replaced. Any
16 economic development project satisfying the requirements
17 of this paragraph shall only be eligible for inducements
18 to the extent of the expansion, and no inducements shall
19 be available for the equivalent of the manufacturing
20 facility to be replaced. No economic development project
21 otherwise satisfying the requirements of this paragraph
22 shall be approved by the Department which results in a
23 lease abandonment or lease termination by the approved
24 company without the consent of the lessor.
25 (d) With respect to each eligible company making an
26 application to the Department for inducements, and with
27 respect to the economic development project described in the
28 application, the Department shall request materials and make
29 inquiries of the applicant as necessary or appropriate. Upon
30 review of the application and completion of initial
31 inquiries, the Department may give its preliminary approval
32 by designating an eligible company as a preliminarily
33 approved company and authorizing the undertaking of the
34 economic development project. After preliminary approval and
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1 completion by the eligible company of its bond, loan, or
2 other financing and review thereof by the Department, the
3 Department may by final approval designate an eligible
4 company to be an approved company.
5 Section 20. Financing agreement; terms; payback; income
6 tax credit; default; activation date. The Department may
7 enter into, with any approved company, a financing agreement
8 with respect to its economic development project. Subject to
9 the inclusion of the mandatory provisions set forth below,
10 the terms and provisions of each financing agreement shall be
11 determined by negotiations between the Department and the
12 approved company.
13 (a) If an eligible company, at the time of submission of
14 its application to the Department to become an approved
15 company, requests the Department, in cooperation with the
16 Authority, in writing to arrange for the issuance of bonds
17 on the company's behalf, then each financing agreement used
18 in connection with the issuance of bonds by the Authority, in
19 cooperation with the Department, shall include the following
20 provisions:
21 (1) The term of a financing agreement shall not be
22 less than the last maturity of the bonds issued with
23 respect to the economic development project, except that
24 the financing agreement may terminate upon the earlier
25 redemption of all of the bonds issued with respect to the
26 economic development project and, if the Department owns
27 the economic development project, the Department may
28 grant to the approved company or its affiliate an option
29 to purchase, for the consideration the Department may
30 approve, the economic development project from the
31 Department upon the termination of the financing
32 agreement. Nothing in this paragraph shall limit the
33 extension of the term of a financing agreement if there
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1 is a refunding of the correlative bonds or otherwise.
2 (2) All proceeds of any bonds incurred in connection
3 with the economic development project shall be expended
4 by the approved company within 3 years from the date of
5 the financing agreement. In the event that all proceeds
6 of bonds incurred in connection with the economic
7 development project are not fully expended within the 3
8 year period, the amount of the authorized inducements
9 shall automatically be reduced to and shall not be
10 greater than the amount of proceeds actually expended by
11 the approved company within the 3 year period.
12 (3) The financing agreement shall specify that the
13 annual obligations of the approved company under this Act
14 shall equal in each year the annual debt service for that
15 year on the bonds issued with respect to the economic
16 development project; and the approved company shall pay
17 such obligation of the financing agreement to the trustee
18 for the bonds issued for the benefit of the approved
19 company, at such time and in such amounts sufficient to
20 amortize such bonds.
21 (4) (A) In consideration for financing
22 agreement payment, the approved company may be
23 permitted, during the period of time not to exceed
24 18 years from the activation date in which the
25 financing agreement is in effect, which period of
26 time shall commence for purposes of the following
27 upon the date of the financing agreement, a 100%
28 credit against the Illinois income tax that
29 otherwise would be owed in the year to the State by
30 the approved company on the income of the approved
31 company generated by or arising out of the economic
32 development project, the credit not to exceed the
33 total debt service paid under the respective
34 financing agreement.
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1 (B) The income tax credited to the approved
2 company referred to herein shall be credited for the
3 fiscal year for which the tax return of the approved
4 company is filed. The approved company shall not be
5 required to pay estimated income tax payments as
6 prescribed in Section 803 of the Illinois Income Tax
7 Act.
8 (5) (A) The financing agreement shall provide
9 that the credit under Section 211 of the Illinois
10 Income Tax Act, shall not exceed the total annual
11 debt service payments of the approved company with
12 respect to the loans or other financing incurred in
13 connection with the economic development project in
14 any year; however, to the extent that such annual
15 debt service payments excess payments may recouped
16 from excess credits in succeeding years.
17 (B) If in any fiscal year of the approved
18 company during which the financing agreement is in
19 effect, the total of the income tax credit granted
20 to the approved company exceeds the annual payment
21 pursuant to the financing agreement, and if all
22 excess payments pursuant to the financing agreement
23 accumulated in prior years have been recouped, the
24 approved company shall pay the excess to the State
25 as income tax.
26 (6) The financing agreement shall provide in
27 substance that:
28 (A) It may be assigned by the approved company
29 only upon the prior written consent of the
30 Department following the adoption of a resolution by
31 the Department to such effect; and
32 (B) Upon default by the approved company in
33 any obligations under the financing agreement or
34 other documents evidencing, securing, or related to
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1 the approved company's obligations, the Department,
2 or any of its assignees, shall have the right, at
3 its option, to declare the financing agreement or
4 such other documents in default; and
5 (i) Accelerate and declare the total of
6 all such payments due by the approved company
7 and sell the economic development project at
8 public, private, or judicial sale;
9 (ii) Pursue any remedy provided under the
10 financing agreement or other such documents;
11 (iii) Pursue all other remedies available
12 to it under the Illinois Uniform Commercial
13 Code;
14 (iv) Be entitled to the appointment of a
15 receiver by the circuit court of any county
16 where any part of the economic development
17 project is located; and
18 (v) Pursue any other remedy at law to
19 which it appears entitled.
20 (C) All remedies proved in item B of paragraph
21 (6) of subsection (a) of this Section shall be
22 cumulative.
23 (D) If an eligible company, at the time of
24 submission of its application to the Department to
25 become an approved company, does not request the
26 Department in writing to arrange with the Authority
27 for the issuance of bonds on the behalf of the
28 company, then each financing agreement used in
29 connection with loans or other financing (other than
30 bonds issued by the Authority for which subsection
31 (a) of this Section shall be used) shall include the
32 following provisions:
33 (b)(1) The term of a financing agreement, which
34 shall commence on the date of the financing agreement,
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1 shall not be longer than:
2 (A) The maturity of any loan or other
3 financing incurred in connection with the economic
4 development project, except that the financing
5 agreement may terminate upon the earlier prepayment
6 of all loans or other financing incurred in
7 connection with the economic development project; or
8 (B) Fifteen years from the activation date.
9 (C) Nothing in this subsection shall limit the
10 extension of the term of a financing agreement if
11 there is a refinancing of the loans or other
12 financing. The authority shall not own an economic
13 development project that is the subject of this
14 form of financing agreement.
15 (2) All proceeds of any loan or other financing
16 incurred in connection with the economic development
17 project shall be expended by the approved company within
18 3 years from the date of the financing agreement. In
19 the event that all proceeds of any loan or other
20 financing incurred in connection with the economic
21 development project are not fully expended within the 3
22 year period, the authorized inducements shall
23 automatically be reduced to and shall not be greater
24 than the amount of proceeds actually expended by the
25 approved company within the 3 year period.
26 (3)(A) The approved company may be permitted,
27 during the term of the financing agreement, a 100% credit
28 against the Illinois income tax that otherwise would be
29 owed in the year, as determined under the Illinois
30 Income Tax Act, to the State by the approved company on
31 the income of the approved company generated by or
32 arising out of the economic development project, such
33 credit not to exceed the total debt service paid with
34 respect to the loans or other financing incurred in
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1 connection with the economic development project.
2 (B) The income tax credited to the approved
3 company shall be credited for the fiscal year for
4 which the tax return of the approved company is
5 filed. The approved company shall not be required
6 to pay estimated income tax as prescribed in
7 Section 803 of the Illinois Income Tax Act.
8 (4)(A) The financing agreement shall provide
9 that the credit under Section 211 of the Illinois
10 Income Tax Act, shall not exceed the total annual
11 debt service payments of the approved company with
12 respect to the loans or other financing incurred in
13 connection with the economic development project in
14 any year; however, to the extent that such annual
15 debt service payments exceed credits received in any
16 year, the excess payment may be recouped from excess
17 credits in succeeding years.
18 (B) If in any fiscal year of the approved
19 company during which the financing agreement is in
20 effect, the total of the income tax credit granted
21 to the approved company exceeds the annual payment
22 pursuant to the financing agreement, and if all
23 excess payments pursuant to the financing agreement
24 accumulated in prior years have been recouped, the
25 approved company shall pay the excess to the State
26 as income tax.
27 (5) The financing agreement shall provide in
28 substance that it may be assigned by the approved
29 company only upon the prior written consent of the
30 Department following the adoption of a resolution by the
31 Department to that effect.
32 (6) The financing agreement shall provide that an
33 approved company shall require of any lender to the
34 approved company funding the loans or other financing
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1 incurred in connection with the economic development
2 project written evidence to be provided to the Department
3 of payments of annual debt service to such lender. Such
4 evidence shall be provided to the Department within 45
5 days after the end of each fiscal year of the financing
6 agreement.
7 (7) The financing agreement shall provide that if
8 an approved company fails to comply with its respective
9 obligations under the financing agreement, or that the
10 lender to an approved company fails to comply with its
11 requirements set forth in paragraph (6) of subsection (b)
12 of this Section, or is declared in default under the
13 loans or other financing incurred in connection with the
14 economic development project, then the Department, or
15 any of its assignees, shall have the right, at its
16 option, to:
17 (A) Suspend the availability of the income tax
18 credits to the approved company;
19 (B) Pursue any remedy provided under the financing
20 agreement, including termination thereof; and
21 (C) Pursue any other remedy at law to which it
22 appears entitled.
23 (c) All remedies provided in item (B) of paragraph (7)
24 of subsection (b) of this Section shall be deemed cumulative.
25 (d) Pursuant to this Section, the activation date shall
26 be established by the approved company in the financing
27 agreement at any time in a 2 year period after the date of
28 final approval of the financing agreement by the authority.
29 To implement the activation date, the approved company shall
30 notify the Department, the Department of Revenue, and the
31 approved company's employees of the activation date when the
32 implementation of the inducements authorized in the financing
33 agreement shall occur. If the approved company does not
34 satisfy the minimum investment and minimum employment
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1 requirements of subsection (c) of Section 15 of this Act by
2 the activation date, the approved company shall not be
3 entitled to receive inducements under this Act until the
4 approved company satisfies the requirements; however, the 15
5 year period for the term of the financing agreement shall
6 begin from the activation date. Notwithstanding the previous
7 sentence, if the approved company does not satisfy the
8 minimum investment and minimum employment requirements of
9 subsection (c) of Section 15 of this Act within 2 years from
10 the date of final approval of the financing agreement, then
11 the approved company shall be ineligible to receive
12 inducements under this Act unless an extension is approved by
13 the Department.
14 Section 25. Financing agreement; adoption; publication.
15 (a) The Department may execute and deliver a financing
16 agreement and consummate the transactions described in the
17 agreement upon:
18 (1) The approval by the Department authorizing the
19 financing agreement, as described in subsection (b) of
20 Section 20, with respect to an approved company and loans
21 for other financing in connection with an economic
22 development project; and
23 (2) The publication of a summary of the agreement
24 in:
25 (A) A newspaper authorized to publish official
26 advertisements for the Department; and
27 (B) A newspaper of general circulation in the
28 qualified county in which the economic development
29 project is to be located.
30 (b) The summary of the agreement as provided in
31 paragraph (2) of subsection (a) of this Section shall include
32 the following:
33 (1) The date the resolution was adopted by the
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1 Department;
2 (2) The title of the resolution;
3 (3) The maximum amount of loans or other financing,
4 as described in subsection (b) of Section 20, incurred in
5 connection with the economic development project; and
6 (4) The name of the approved company.
7 Section 30. Determination of income tax credit by the
8 Department of Revenue.
9 (a) The approved company shall be entitled to a tax
10 credit as provided in Section 211 of the Illinois Income Tax
11 Act on any income that may result from the operation of the
12 approved economic development project. The credit shall be
13 equal to the total amount of the tax liability not to exceed
14 the total debt service paid:
15 (1) Under the financing agreement in connection with
16 the economic development project financed by bonds as
17 described in subsection (a) of Section 20; or
18 (2) On loans or other financing, as described in
19 subsection (b) of Section 20, incurred in connection with
20 the economic development project.
21 (b) Ninety days after the filing of the tax return of
22 the approved company, the Department of Revenue shall certify
23 to the Department the income tax liability for the preceding
24 fiscal year of the approved company for which the return was
25 filed with respect to an economic development project
26 financed through the issuance of bonds, loans, or other
27 financing incurred in connection with the economic
28 development project and the amounts of any tax credits taken
29 under the Act.
30 Section 80. The Illinois Income Tax Act is amended by
31 adding Section 211 as follows:
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1 (35 ILCS 5/211 new)
2 Sec. 211. Rural manufacturing incentive tax. For a period
3 of 15 years beginning with tax years ending on or after
4 December 31, 1997, an approved company under the Rural
5 Manufacturing Incentives Act subject to this Act is entitled
6 to a credit against the tax imposed by subsections (a) and
7 (b) of Section 201 in an amount equal to 100% of the amount
8 expended by the taxpayer during the tax year on debt service
9 for capital investments and expenditures in Illinois as
10 prescribed in Section 30 of the Rural Manufacturing
11 Incentives Act.
12 If the amount of credit exceeds the tax liability for the
13 year, the excess may be carried forward and applied to the
14 tax liability of the term of the financing agreement plus the
15 3 years immediately following the termination of the
16 financing agreement. The credit shall be applied to the
17 earliest year for which there is a tax liability. If there
18 are credits from more than one tax year that are available to
19 offset a liability, the earlier credit shall be applied
20 first.
21 Section 99. Effective date. This Act takes effect upon
22 becoming law.".