Bill Text: IL HB4563 | 2013-2014 | 98th General Assembly | Introduced
Bill Title: Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that any taxpayer that has been awarded an EDGE credit for a taxable year beginning on or after January 1, 2014 may elect to claim up to 20% of the amount of the credit against its obligation to pay over withholding taxes. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2014-12-03 - Session Sine Die [HB4563 Detail]
Download: Illinois-2013-HB4563-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by | ||||||||||||||||||||||||||
5 | changing Section 704A as follows:
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6 | (35 ILCS 5/704A) | ||||||||||||||||||||||||||
7 | Sec. 704A. Employer's return and payment of tax withheld. | ||||||||||||||||||||||||||
8 | (a) In general, every employer who deducts and withholds or | ||||||||||||||||||||||||||
9 | is required to deduct and withhold tax under this Act on or | ||||||||||||||||||||||||||
10 | after January 1, 2008 shall make those payments and returns as | ||||||||||||||||||||||||||
11 | provided in this Section. | ||||||||||||||||||||||||||
12 | (b) Returns. Every employer shall, in the form and manner | ||||||||||||||||||||||||||
13 | required by the Department, make returns with respect to taxes | ||||||||||||||||||||||||||
14 | withheld or required to be withheld under this Article 7 for | ||||||||||||||||||||||||||
15 | each quarter beginning on or after January 1, 2008, on or | ||||||||||||||||||||||||||
16 | before the last day of the first month following the close of | ||||||||||||||||||||||||||
17 | that quarter. | ||||||||||||||||||||||||||
18 | (c) Payments. With respect to amounts withheld or required | ||||||||||||||||||||||||||
19 | to be withheld on or after January 1, 2008: | ||||||||||||||||||||||||||
20 | (1) Semi-weekly payments. For each calendar year, each | ||||||||||||||||||||||||||
21 | employer who withheld or was required to withhold more than | ||||||||||||||||||||||||||
22 | $12,000 during the one-year period ending on June 30 of the | ||||||||||||||||||||||||||
23 | immediately preceding calendar year, payment must be made: |
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1 | (A) on or before each Friday of the calendar year, | ||||||
2 | for taxes withheld or required to be withheld on the | ||||||
3 | immediately preceding Saturday, Sunday, Monday, or | ||||||
4 | Tuesday; | ||||||
5 | (B) on or before each Wednesday of the calendar | ||||||
6 | year, for taxes withheld or required to be withheld on | ||||||
7 | the immediately preceding Wednesday, Thursday, or | ||||||
8 | Friday. | ||||||
9 | Beginning with calendar year 2011, payments made under | ||||||
10 | this paragraph (1) of subsection (c) must be made by | ||||||
11 | electronic funds transfer. | ||||||
12 | (2) Semi-weekly payments. Any employer who withholds | ||||||
13 | or is required to withhold more than $12,000 in any quarter | ||||||
14 | of a calendar year is required to make payments on the | ||||||
15 | dates set forth under item (1) of this subsection (c) for | ||||||
16 | each remaining quarter of that calendar year and for the | ||||||
17 | subsequent calendar year.
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18 | (3) Monthly payments. Each employer, other than an | ||||||
19 | employer described in items (1) or (2) of this subsection, | ||||||
20 | shall pay to the Department, on or before the 15th day of | ||||||
21 | each month the taxes withheld or required to be withheld | ||||||
22 | during the immediately preceding month. | ||||||
23 | (4) Payments with returns. Each employer shall pay to | ||||||
24 | the Department, on or before the due date for each return | ||||||
25 | required to be filed under this Section, any tax withheld | ||||||
26 | or required to be withheld during the period for which the |
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1 | return is due and not previously paid to the Department. | ||||||
2 | (d) Regulatory authority. The Department may, by rule: | ||||||
3 | (1) Permit employers, in lieu of the requirements of | ||||||
4 | subsections (b) and (c), to file annual returns due on or | ||||||
5 | before January 31 of the year for taxes withheld or | ||||||
6 | required to be withheld during the previous calendar year | ||||||
7 | and, if the aggregate amounts required to be withheld by | ||||||
8 | the employer under this Article 7 (other than amounts | ||||||
9 | required to be withheld under Section 709.5) do not exceed | ||||||
10 | $1,000 for the previous calendar year, to pay the taxes | ||||||
11 | required to be shown on each such return no later than the | ||||||
12 | due date for such return. | ||||||
13 | (2) Provide that any payment required to be made under | ||||||
14 | subsection (c)(1) or (c)(2) is deemed to be timely to the | ||||||
15 | extent paid by electronic funds transfer on or before the | ||||||
16 | due date for deposit of federal income taxes withheld from, | ||||||
17 | or federal employment taxes due with respect to, the wages | ||||||
18 | from which the Illinois taxes were withheld. | ||||||
19 | (3) Designate one or more depositories to which payment | ||||||
20 | of taxes required to be withheld under this Article 7 must | ||||||
21 | be paid by some or all employers. | ||||||
22 | (4) Increase the threshold dollar amounts at which | ||||||
23 | employers are required to make semi-weekly payments under | ||||||
24 | subsection (c)(1) or (c)(2). | ||||||
25 | (e) Annual return and payment. Every employer who deducts | ||||||
26 | and withholds or is required to deduct and withhold tax from a |
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1 | person engaged in domestic service employment, as that term is | ||||||
2 | defined in Section 3510 of the Internal Revenue Code, may | ||||||
3 | comply with the requirements of this Section with respect to | ||||||
4 | such employees by filing an annual return and paying the taxes | ||||||
5 | required to be deducted and withheld on or before the 15th day | ||||||
6 | of the fourth month following the close of the employer's | ||||||
7 | taxable year. The Department may allow the employer's return to | ||||||
8 | be submitted with the employer's individual income tax return | ||||||
9 | or to be submitted with a return due from the employer under | ||||||
10 | Section 1400.2 of the Unemployment Insurance Act. | ||||||
11 | (f) Magnetic media and electronic filing. Any W-2 Form | ||||||
12 | that, under the Internal Revenue Code and regulations | ||||||
13 | promulgated thereunder, is required to be submitted to the | ||||||
14 | Internal Revenue Service on magnetic media or electronically | ||||||
15 | must also be submitted to the Department on magnetic media or | ||||||
16 | electronically for Illinois purposes, if required by the | ||||||
17 | Department. | ||||||
18 | (g) For amounts deducted or withheld after December 31, | ||||||
19 | 2009, a taxpayer who makes an election under subsection (f) of | ||||||
20 | Section 5-15 of the Economic Development for a Growing Economy | ||||||
21 | Tax Credit Act for a taxable year shall be allowed a credit | ||||||
22 | against payments due under this Section for amounts withheld | ||||||
23 | during the first calendar year beginning after the end of that | ||||||
24 | taxable year equal to the amount of the credit for the | ||||||
25 | incremental income tax attributable to full-time employees of | ||||||
26 | the taxpayer awarded to the taxpayer by the Department of |
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1 | Commerce and Economic Opportunity under the Economic | ||||||
2 | Development for a Growing Economy Tax Credit Act for the | ||||||
3 | taxable year and credits not previously claimed and allowed to | ||||||
4 | be carried forward under Section 211(4) of this Act as provided | ||||||
5 | in subsection (f) of Section 5-15 of the Economic Development | ||||||
6 | for a Growing Economy Tax Credit Act , except that, in the case | ||||||
7 | of an election made under item (1.8) of subsection (f) of | ||||||
8 | Section 5-15 of the Economic Development for a Growing Economy | ||||||
9 | Tax Credit Act, the amount of the credit that may be taken | ||||||
10 | against payments due under this Section shall be limited to 20% | ||||||
11 | of the amount of the credit awarded under the Economic | ||||||
12 | Development for a Growing Economy Tax Credit Act . The credit or | ||||||
13 | credits may not reduce the taxpayer's obligation for any | ||||||
14 | payment due under this Section to less than zero. If the amount | ||||||
15 | of the credit or credits exceeds the total payments due under | ||||||
16 | this Section with respect to amounts withheld during the | ||||||
17 | calendar year, the excess may be carried forward and applied | ||||||
18 | against the taxpayer's liability under this Section in the | ||||||
19 | succeeding calendar years as allowed to be carried forward | ||||||
20 | under paragraph (4) of Section 211 of this Act. The credit or | ||||||
21 | credits shall be applied to the earliest year for which there | ||||||
22 | is a tax liability. If there are credits from more than one | ||||||
23 | taxable year that are available to offset a liability, the | ||||||
24 | earlier credit shall be applied first. Each employer who | ||||||
25 | deducts and withholds or is required to deduct and withhold tax | ||||||
26 | under this Act and who retains income tax withholdings under |
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1 | subsection (f) of Section 5-15 of the Economic Development for | ||||||
2 | a Growing Economy Tax Credit Act must make a return with | ||||||
3 | respect to such taxes and retained amounts in the form and | ||||||
4 | manner that the Department, by rule, requires and pay to the | ||||||
5 | Department or to a depositary designated by the Department | ||||||
6 | those withheld taxes not retained by the taxpayer. For purposes | ||||||
7 | of this subsection (g), the term taxpayer shall include | ||||||
8 | taxpayer and members of the taxpayer's unitary business group | ||||||
9 | as defined under paragraph (27) of subsection (a) of Section | ||||||
10 | 1501 of this Act. This Section is exempt from the provisions of | ||||||
11 | Section 250 of this Act. | ||||||
12 | (h) An employer may claim a credit against payments due | ||||||
13 | under this Section for amounts withheld during the first | ||||||
14 | calendar year ending after the date on which a tax credit | ||||||
15 | certificate was issued under Section 35 of the Small Business | ||||||
16 | Job Creation Tax Credit Act. The credit shall be equal to the | ||||||
17 | amount shown on the certificate, but may not reduce the | ||||||
18 | taxpayer's obligation for any payment due under this Section to | ||||||
19 | less than zero. If the amount of the credit exceeds the total | ||||||
20 | payments due under this Section with respect to amounts | ||||||
21 | withheld during the calendar year, the excess may be carried | ||||||
22 | forward and applied against the taxpayer's liability under this | ||||||
23 | Section in the 5 succeeding calendar years. The credit shall be | ||||||
24 | applied to the earliest year for which there is a tax | ||||||
25 | liability. If there are credits from more than one calendar | ||||||
26 | year that are available to offset a liability, the earlier |
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1 | credit shall be applied first. This Section is exempt from the | ||||||
2 | provisions of Section 250 of this Act. | ||||||
3 | (Source: P.A. 96-834, eff. 12-14-09; 96-888, eff. 4-13-10; | ||||||
4 | 96-905, eff. 6-4-10; 96-1027, eff. 7-12-10; 97-333, eff. | ||||||
5 | 8-12-11; 97-507, eff. 8-23-11.)
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6 | Section 10. The Economic Development for a Growing Economy | ||||||
7 | Tax Credit Act is amended by changing Section 5-15 as follows:
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8 | (35 ILCS 10/5-15) | ||||||
9 | Sec. 5-15. Tax Credit Awards. Subject to the conditions set | ||||||
10 | forth in this
Act, a Taxpayer is
entitled to a Credit against | ||||||
11 | or, as described in subsection (g) of this Section, a payment | ||||||
12 | towards taxes imposed pursuant to subsections (a) and (b)
of | ||||||
13 | Section 201 of the Illinois
Income Tax Act that may be imposed | ||||||
14 | on the Taxpayer for a taxable year beginning
on or
after | ||||||
15 | January 1, 1999,
if the Taxpayer is awarded a Credit by the | ||||||
16 | Department under this Act for that
taxable year. | ||||||
17 | (a) The Department shall make Credit awards under this Act | ||||||
18 | to foster job
creation and retention in Illinois. | ||||||
19 | (b) A person that proposes a project to create new jobs in | ||||||
20 | Illinois must
enter into an Agreement with the
Department for | ||||||
21 | the Credit under this Act. | ||||||
22 | (c) The Credit shall be claimed for the taxable years | ||||||
23 | specified in the
Agreement. | ||||||
24 | (d) The Credit shall not exceed the Incremental Income Tax |
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1 | attributable to
the project that is the subject of the | ||||||
2 | Agreement. | ||||||
3 | (e) Nothing herein shall prohibit a Tax Credit Award to an | ||||||
4 | Applicant that uses a PEO if all other award criteria are | ||||||
5 | satisfied.
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6 | (f) In lieu of the Credit allowed under this Act against | ||||||
7 | the taxes imposed pursuant to subsections (a) and (b) of | ||||||
8 | Section 201 of the Illinois Income Tax Act for any taxable year | ||||||
9 | ending on or after December 31, 2009, the Taxpayer may elect to | ||||||
10 | claim the Credit against its obligation to pay over withholding | ||||||
11 | under Section 704A of the Illinois Income Tax Act. | ||||||
12 | (1) The election under this subsection (f) may be made | ||||||
13 | only by a Taxpayer that (i) is primarily engaged in one of | ||||||
14 | the following business activities: water purification and | ||||||
15 | treatment, motor vehicle metal stamping, automobile | ||||||
16 | manufacturing, automobile and light duty motor vehicle | ||||||
17 | manufacturing, motor vehicle manufacturing, light truck | ||||||
18 | and utility vehicle manufacturing, heavy duty truck | ||||||
19 | manufacturing, motor vehicle body manufacturing, cable | ||||||
20 | television infrastructure design or manufacturing, or | ||||||
21 | wireless telecommunication or computing terminal device | ||||||
22 | design or manufacturing for use on public networks and (ii) | ||||||
23 | meets the following criteria: | ||||||
24 | (A) the Taxpayer (i) had an Illinois net loss or an | ||||||
25 | Illinois net loss deduction under Section 207 of the | ||||||
26 | Illinois Income Tax Act for the taxable year in which |
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1 | the Credit is awarded, (ii) employed a minimum of 1,000 | ||||||
2 | full-time employees in this State during the taxable | ||||||
3 | year in which the Credit is awarded, (iii) has an | ||||||
4 | Agreement under this Act on December 14, 2009 (the | ||||||
5 | effective date of Public Act 96-834), and (iv) is in | ||||||
6 | compliance with all provisions of that Agreement; | ||||||
7 | (B) the Taxpayer (i) had an Illinois net loss or an | ||||||
8 | Illinois net loss deduction under Section 207 of the | ||||||
9 | Illinois Income Tax Act for the taxable year in which | ||||||
10 | the Credit is awarded, (ii) employed a minimum of 1,000 | ||||||
11 | full-time employees in this State during the taxable | ||||||
12 | year in which the Credit is awarded, and (iii) has | ||||||
13 | applied for an Agreement within 365 days after December | ||||||
14 | 14, 2009 (the effective date of Public Act 96-834); | ||||||
15 | (C) the Taxpayer (i) had an Illinois net operating | ||||||
16 | loss carryforward under Section 207 of the Illinois | ||||||
17 | Income Tax Act in a taxable year ending during calendar | ||||||
18 | year 2008, (ii) has applied for an Agreement within 150 | ||||||
19 | days after the effective date of this amendatory Act of | ||||||
20 | the 96th General Assembly, (iii) creates at least 400 | ||||||
21 | new jobs in Illinois, (iv) retains at least 2,000 jobs | ||||||
22 | in Illinois that would have been at risk of relocation | ||||||
23 | out of Illinois over a 10-year period, and (v) makes a | ||||||
24 | capital investment of at least $75,000,000; | ||||||
25 | (D) the Taxpayer (i) had an Illinois net operating | ||||||
26 | loss carryforward under Section 207 of the Illinois |
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1 | Income Tax Act in a taxable year ending during calendar | ||||||
2 | year 2009, (ii) has applied for an Agreement within 150 | ||||||
3 | days after the effective date of this amendatory Act of | ||||||
4 | the 96th General Assembly, (iii) creates at least 150 | ||||||
5 | new jobs, (iv) retains at least 1,000 jobs in Illinois | ||||||
6 | that would have been at risk of relocation out of | ||||||
7 | Illinois over a 10-year period, and (v) makes a capital | ||||||
8 | investment of at least $57,000,000; or | ||||||
9 | (E) the Taxpayer (i) employed at least 2,500 | ||||||
10 | full-time employees in the State during the year in | ||||||
11 | which the Credit is awarded, (ii) commits to make at | ||||||
12 | least $500,000,000 in combined capital improvements | ||||||
13 | and project costs under the Agreement, (iii) applies | ||||||
14 | for an Agreement between January 1, 2011 and June 30, | ||||||
15 | 2011, (iv) executes an Agreement for the Credit during | ||||||
16 | calendar year 2011, and (v) was incorporated no more | ||||||
17 | than 5 years before the filing of an application for an | ||||||
18 | Agreement. | ||||||
19 | (1.5) The election under this subsection (f) may also | ||||||
20 | be made by a Taxpayer for any Credit awarded pursuant to an | ||||||
21 | agreement that was executed between January 1, 2011 and | ||||||
22 | June 30, 2011, if the Taxpayer (i) is primarily engaged in | ||||||
23 | the manufacture of inner tubes or tires, or both, from | ||||||
24 | natural and synthetic rubber, (ii) employs a minimum of | ||||||
25 | 2,400 full-time employees in Illinois at the time of | ||||||
26 | application, (iii) creates at least 350 full-time jobs and |
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1 | retains at least 250 full-time jobs in Illinois that would | ||||||
2 | have been at risk of being created or retained outside of | ||||||
3 | Illinois, and (iv) makes a capital investment of at least | ||||||
4 | $200,000,000 at the project location. | ||||||
5 | (1.6) The election under this subsection (f) may also | ||||||
6 | be made by a Taxpayer for any Credit awarded pursuant to an | ||||||
7 | agreement that was executed within 150 days after the | ||||||
8 | effective date of this amendatory Act of the 97th General | ||||||
9 | Assembly, if the Taxpayer (i) is primarily engaged in the | ||||||
10 | operation of a discount department store, (ii) maintains | ||||||
11 | its corporate headquarters in Illinois, (iii) employs a | ||||||
12 | minimum of 4,250 full-time employees at its corporate | ||||||
13 | headquarters in Illinois at the time of application, (iv) | ||||||
14 | retains at least 4,250 full-time jobs in Illinois that | ||||||
15 | would have been at risk of being relocated outside of | ||||||
16 | Illinois, (v) had a minimum of $40,000,000,000 in total | ||||||
17 | revenue in 2010, and (vi) makes a capital investment of at | ||||||
18 | least $300,000,000 at the project location. | ||||||
19 | (1.7) Notwithstanding any other provision of law, the | ||||||
20 | election under this subsection (f) may also be made by a | ||||||
21 | Taxpayer for any Credit awarded pursuant to an agreement | ||||||
22 | that was executed or applied for on or after July 1, 2011 | ||||||
23 | and on or before March 31, 2012, if the Taxpayer is | ||||||
24 | primarily engaged in the manufacture of original and | ||||||
25 | aftermarket filtration parts and products for automobiles, | ||||||
26 | motor vehicles, light duty motor vehicles, light trucks and |
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1 | utility vehicles, and heavy duty trucks, (ii) employs a | ||||||
2 | minimum of 1,000 full-time employees in Illinois at the | ||||||
3 | time of application, (iii) creates at least 250 full-time | ||||||
4 | jobs in Illinois, (iv) relocates its corporate | ||||||
5 | headquarters to Illinois from another state, and (v) makes | ||||||
6 | a capital investment of at least $4,000,000 at the project | ||||||
7 | location. | ||||||
8 | (1.8) Notwithstanding any other provision of law, any | ||||||
9 | taxpayer that (i) is awarded a credit under this Act for a | ||||||
10 | taxable year beginning on or after January 1, 2014 and (ii) | ||||||
11 | is not a taxpayer that is otherwise entitled to make an | ||||||
12 | election under items (1) through (1.7) of this subsection | ||||||
13 | (f) may elect to claim up to 20% of the amount of the | ||||||
14 | credit awarded for the taxable year, including unused | ||||||
15 | credits that are carried forward from previous taxable | ||||||
16 | years, against its obligation to pay over withholding under | ||||||
17 | Section 704A of the Illinois Income Tax Act. If such an | ||||||
18 | election is made, the amount of the credit that may be used | ||||||
19 | against the taxes imposed under subsections (a) and (b) of | ||||||
20 | Section 201 of the Illinois Income Tax Act shall be reduced | ||||||
21 | accordingly. | ||||||
22 | (2) An election under this subsection shall allow the | ||||||
23 | credit to be taken against payments otherwise due under | ||||||
24 | Section 704A of the Illinois Income Tax Act during the | ||||||
25 | first calendar year beginning after the end of the taxable | ||||||
26 | year in which the credit is awarded under this Act. |
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1 | (3) The election shall be made in the form and manner | ||||||
2 | required by the Illinois Department of Revenue and, once | ||||||
3 | made, shall be irrevocable. | ||||||
4 | (4) If a Taxpayer who meets the requirements of | ||||||
5 | subparagraph (A) of paragraph (1) of this subsection (f) | ||||||
6 | elects to claim the Credit against its withholdings as | ||||||
7 | provided in this subsection (f), then, on and after the | ||||||
8 | date of the election, the terms of the Agreement between | ||||||
9 | the Taxpayer and the Department may not be further amended | ||||||
10 | during the term of the Agreement. | ||||||
11 | (g) A pass-through entity that has been awarded a credit | ||||||
12 | under this Act, its shareholders, or its partners may treat | ||||||
13 | some or all of the credit awarded pursuant to this Act as a tax | ||||||
14 | payment for purposes of the Illinois Income Tax Act. The term | ||||||
15 | "tax payment" means a payment as described in Article 6 or | ||||||
16 | Article 8 of the Illinois Income Tax Act or a composite payment | ||||||
17 | made by a pass-through entity on behalf of any of its | ||||||
18 | shareholders or partners to satisfy such shareholders' or | ||||||
19 | partners' taxes imposed pursuant to subsections (a) and (b) of | ||||||
20 | Section 201 of the Illinois Income Tax Act. In no event shall | ||||||
21 | the amount of the award credited pursuant to this Act exceed | ||||||
22 | the Illinois income tax liability of the pass-through entity or | ||||||
23 | its shareholders or partners for the taxable year. | ||||||
24 | (Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09; | ||||||
25 | 96-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff. | ||||||
26 | 3-4-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12 .)
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1 | Section 99. Effective date. This Act takes effect upon | ||||||
2 | becoming law.
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