Illinois General Assembly - Full Text of HB3422
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Full Text of HB3422  99th General Assembly

HB3422 99TH GENERAL ASSEMBLY

  
  

 


 
99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3422

 

Introduced , by Rep. Christian L. Mitchell

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Creates the Gun Dealer and Ammunition Seller Act. Provides that it is unlawful for any person to engage in the business of selling, leasing, or otherwise transferring firearms or ammunition without a dealer license issued by the Department of Financial and Professional Regulation. Provides that a dealer license expires 5 years after the date of issuance. Provides that a license may be renewed for additional 5-year periods if the licensee submits a timely application for renewal, accompanied by a nonrefundable renewal fee established by the Department. Establishes licensing requirements. Provides that the Department shall require each applicant for a dealer license or the renewal of a dealer license, as part of the application process, and each prospective employee of a licensee, as a condition of employment, to: (1) provide a copy of a currently valid Firearm Owner's Identification Card issued to that person; and (2) authorize an investigation to determine if any of the conditions for license denial exist. Establishes conditions for denial of a license. Provides that the licensee shall not allow any person to consume alcohol on the premises of the business. Provides that the Department of State Police may establish rules requiring employees and agents of licensees to undergo training regarding legal requirements and responsible business practices as applicable to the sale or transfer of firearms or ammunition. Amends the Firearm Owners Identification Card Act and the Firearm Concealed Carry Act to make conforming changes.


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CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY
FISCAL NOTE ACT MAY APPLY
HOME RULE NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning firearms.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the Gun
5Dealer and Ammunition Seller Act.
 
6    Section 5. Legislative findings; purpose and intent. The
7General Assembly hereby finds and declares that the business of
8selling, leasing, or otherwise transferring firearms or
9ammunition is hereby declared to affect the public health,
10safety, and welfare of the people of Illinois and to be subject
11to regulation in the public interest. The purpose of this Act
12is to protect and benefit the public by requiring firearms
13dealers and ammunition sellers to obtain a State license and
14conduct business responsibly, and to protect the public from
15the diversion of firearms or ammunition into the illegal
16market. This Act shall be liberally construed to best carry out
17these subjects and purposes.
 
18    Section 10. Definitions. As used in this Act:
19    "Ammunition" has the same meaning as "firearm ammunition"
20in Section 1.1 of the Firearm Owners Identification Card Act.
21    "Applicant" means any person who applies for a dealer
22license, or the renewal of the license, to sell, lease, or

 

 

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1transfer firearms or ammunition.
2    "Dealer license" means a license issued by the Department
3to sell, lease, or transfer firearms or ammunition under this
4Act.
5    "Department" means the Department of Financial and
6Professional Regulation.
7    "Engage in the business of selling, leasing, or otherwise
8transferring firearms or ammunition" means to:
9        (1) conduct a business selling, leasing, or
10    transferring firearms or ammunition;
11        (2) hold himself or herself out as engaged in the
12    business of selling, leasing or otherwise transferring
13    firearms or ammunition; or
14        (3) sell, lease, or transfer firearms or ammunition in
15    quantity, in series, or in any other manner indicative of
16    trade.
17    "Firearm" has the same meaning as "firearm" in Section 1.1
18of the Firearm Owners Identification Card Act.
19    "Licensee" or "firearms dealer licensee" means any person
20engaged in the business of selling, leasing, or otherwise
21transferring firearms or ammunition who has obtained a license
22from the Department to sell, lease, or transfer firearms or
23ammunition under this Act.
 
24    Section 15. License requirement. It is unlawful for any
25person to engage in the business of selling, leasing, or

 

 

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1otherwise transferring firearms or ammunition without a dealer
2license, as required by this Act.
 
3    Section 20. Application for a dealer license.
4    (a) Any person who is required to obtain a dealer license
5under this Act shall:
6        (1) complete and submit to the Department an
7    application, in writing, signed under penalty of perjury,
8    on a form prescribed by the Department;
9        (2) provide all relevant information that the
10    Department requests to demonstrate compliance with this
11    Act, including:
12            (A) the applicant's full name and any other name by
13        which the applicant has ever been known;
14            (B) the home address and telephone number of the
15        applicant;
16            (C) the present occupation, business address and
17        business telephone number of the applicant;
18            (D) information relating to every other license to
19        sell, lease, transfer, purchase, possess, or carry
20        firearms or ammunition which the applicant or an
21        employer of the applicant sought at any time from the
22        federal government or from any state or subdivision of
23        any state, including, but not limited to, the type of
24        license sought, the date of each application and
25        whether it resulted in the issuance of the license, and

 

 

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1        the date and circumstances of any revocation or
2        suspension;
3            (E) the address of the proposed location for which
4        the license is sought, if different than applicant's
5        business address;
6            (F) the business name, and the name of any
7        corporation, partnership, or other entity that has any
8        ownership in, or control over, the business;
9            (G) the names, dates of birth, and addresses of all
10        paid or unpaid employees, agents, or volunteers who
11        will have access to or control of firearms or
12        ammunition, if any;
13            (H) proof of a possessory interest in the property
14        at which the proposed business will be conducted, as
15        owner, lessee, or other legal occupant, and, if the
16        applicant is not the owner of record of the real
17        property upon which the applicant's business is to be
18        located and conducted, the written consent of the owner
19        of record of the real property to the applicant's
20        proposed business;
21            (I) the date, location, and nature of all criminal
22        convictions of the applicant, if any, in any
23        jurisdiction in the United States;
24            (J) proof that the applicant has applied for or
25        received a certificate of registration under the
26        Retailers' Occupation Tax Act; and

 

 

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1            (K) written approval from the sheriff of the county
2        or chief of police of the municipality in which the
3        business is located, together with a statement of any
4        additional requirements or conditions the business
5        must fulfill in order to comply with local law or
6        ordinance, including requirements or conditions
7        imposed by the sheriff or chief at his or her
8        discretion. A municipality or county may impose
9        additional requirements for the licensing and
10        operation of licensees beyond the requirements of this
11        Act, provided they are included within this statement.
12        This subparagraph (K) supersedes Section 13.1 of the
13        Firearm Owners Identification Card Act and Section 90
14        of the Firearm Concealed Carry Act as applied to the
15        local regulation of licensees and applications for
16        dealer licenses.
17    (b) The Department may charge a fee to cover the
18administrative costs of the issuance of the license.
 
19    Section 25. Employee background checks.
20    (a) In addition to the requirements of Section 20, the
21Department shall require each applicant for a dealer license or
22the renewal of a dealer license, as part of the application
23process, and each prospective employee of a licensee, as a
24condition of employment, to:
25        (1) provide a copy of a currently valid Firearm Owner's

 

 

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1    Identification Card issued to that person; and
2        (2) authorize an investigation to determine if any of
3    the of the conditions listed in Section 30 exist.
4    (b) The Department shall contact the Department of State
5Police with the applicant or prospective employee's Firearm
6Owner's Identification Card number to determine the validity of
7the applicant or prospective employee's Firearm Owner's
8Identification Card. The Department of State Police shall
9provide the Department with an approval number if the Firearm
10Owner's Identification Card is valid.
11    (c) Prior to renewal of a dealer license, the Department
12shall contact the Department of State Police to confirm the
13validity of the Firearm Owner's Identification Card issued to
14each employee of the licensee who will have access to or
15control over firearms or ammunition, and the Department of
16State Police shall provide the Department with an approval
17number if the Firearm Owner's Identification Card is currently
18valid.
19    (d) The Department may conduct any additional
20investigation necessary to determine whether any of the
21conditions listed in Section 30 exist for each applicant,
22employee, or prospective employee. The Department may require
23each individual to provide fingerprints, a recent photograph, a
24signed authorization for the release of pertinent records, and
25any additional information which the Department considers
26necessary to complete the investigation.

 

 

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1    (e) A licensee shall not allow an employee or other agent
2of the licensee to have access to or control over firearms or
3ammunition until the Department has conducted an investigation
4under this Section, and verified that the person is the holder
5of a currently valid Firearm Owner's Identification Card and
6that none of the conditions listed in Section 30 exist, as
7applied to the person.
8    (f) This Section shall only apply to employees, or
9prospective employees of a licensee if those individuals will
10have access to or control over firearms or ammunition. This
11Section shall apply to unpaid or paid volunteers or agents of
12the licensee who will have access to or control over firearms
13or ammunition, just as it applies to employees.
 
14    Section 30. Grounds for license denial. The Department
15shall deny the issuance or renewal of a dealer license if the
16operation of the business would not or does not comply with
17federal, State, or local law or ordinance, including this Act,
18or if the applicant:
19        (1) is under 21 years of age;
20        (2) is not licensed as required by all applicable
21    federal and local laws and ordinances;
22        (3) has made a false or misleading statement of a
23    material fact or omission of a material fact in an
24    application for a dealer license, or in any other documents
25    submitted to the Department under this Act. If a license is

 

 

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1    denied on this ground, the applicant is prohibited from
2    reapplying for a license for a period of 5 years;
3        (4) has had a license or permit to sell, lease,
4    transfer, purchase, or possess firearms or ammunition from
5    the federal government or the government of any state or
6    subdivision of any state revoked or suspended for good
7    cause within the preceding 5 years, or been terminated from
8    employment with a licensee or former licensee for good
9    cause within the preceding 5 years; and
10        (5) is prohibited by any federal, State, or local law
11    or ordinance from purchasing or possessing firearms or
12    ammunition.
 
13    Section 35. Issuance of dealer license; duration.
14    (a) A dealer license expires 5 years after the date of
15issuance. A license may be renewed for additional 5-year
16periods if the licensee submits a timely application for
17renewal, accompanied by a nonrefundable renewal fee
18established by the Department. The renewal application and the
19renewal fee must be received by the Department no later than 90
20days before the expiration of the current license.
21    (b) A decision regarding issuance or renewal of the dealer
22license may be appealed in the manner provided under the
23Illinois Administrative Procedure Act.
 
24    Section 40. Semi-annual inventory reports. Within the

 

 

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1first 5 business days of April and October of each year, the
2licensee shall cause a physical inventory to be taken that
3includes a listing of each firearm held by the licensee by
4make, model, and serial number, together with a listing of each
5firearm the licensee has sold since the last inventory period.
6In addition, the inventory shall include a listing of each
7firearm lost or stolen that is required to be reported under
8federal law. The licensee shall include with the inventory an
9affidavit signed by an authorized agent or employee on behalf
10of the licensee under penalty of perjury stating that within
11that particular date in April or October, as the case may be,
12the signer personally confirmed the presence of the firearms
13reported on the inventory. The licensee shall maintain the
14inventory on the premises for which the license was issued for
15a period of not less than 5 years from the date of the
16inventory and shall make the copy available for inspection by
17federal, State, or local law enforcement upon request.
 
18    Section 45. Rules. The Department of State Police may adopt
19rules requiring employees and agents of licensees to undergo
20training regarding legal requirements and responsible business
21practices as applicable to the sale or transfer of firearms or
22ammunition. Before an employee or agent of a licensee has
23access to or control over firearms or ammunition in the
24licensee's inventory, the licensee shall ensure that the
25employee or agent receives the training that the Department of

 

 

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1State Police may require.
 
2    Section 50. Display of dealer license. The dealer license,
3or a certified copy of it, shall be displayed in a prominent
4place on the business premises where it can be easily seen by
5those entering the premises.
 
6    Section 55. Non-assignability. A dealer license issued
7under this Act is not assignable. Any attempt to assign a
8dealer license shall result in revocation of the license.
 
9    Section 60. Ammunition sales records.
10    (a) No licensee or other person acting under the licensee's
11authority shall sell or otherwise transfer ammunition from the
12licensee's inventory without recording, on a form to be
13provided by the Department, the date of the transaction, the
14name, address, telephone number, and date of birth of the
15transferee, the number of the transferee's current Firearm
16Owner's Identification Card, or, if the transferee does not
17have a Firearm Owner's Identification Card, the driver's
18license or other government-issued identification card
19containing a photograph of the transferee and the name of the
20governmental authority that issued it, the caliber or gauge,
21brand, type, and amount of any ammunition transferred, the
22transferee's signature, and the name of the licensee's agent or
23employee who processed the transaction. The licensee or other

 

 

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1person acting under the licensee's authority shall also, at the
2time of purchase or transfer, obtain the right thumbprint of
3the transferee on this form.
4    (b) A licensee shall maintain the forms described in this
5Section on the premises for which the licensee was issued for a
6period of not less than 5 years from the date of the sale or
7transfer, and shall make the copy available for inspection by
8federal, State, or local law enforcement upon request.
 
9    Section 65. Law enforcement inspections.
10    (a) Before issuance or renewal of the dealer license, the
11Department of State Police or the local sheriff or local chief
12of police may inspect the premises of the proposed business to
13ensure compliance with this Act.
14    (b) Licensees shall have their places of business open for
15inspection by federal, State, and local law enforcement during
16all hours of operation. Licensees shall make all records,
17documents, firearms, and ammunition accessible for inspection
18upon the request of federal, State, or local law enforcement.
 
19    Section 70. On-site security.
20    (a) The licensed business location shall be equipped with a
21video surveillance system sufficient to monitor the critical
22areas of the business premises, including, but not limited to,
23all places where firearms are stored, handled, sold,
24transferred, or carried. The video surveillance system shall

 

 

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1operate without interruption, whenever the licensee is open for
2business. Whenever the licensee is not open for business, the
3system shall be triggered by a motion detector and begin
4recording immediately upon detection of any motion within the
5monitored area. In addition, every sale or transfer of a
6firearm shall be recorded by the video surveillance system in a
7way that the facial features of the purchaser or transferee are
8clearly visible. The stored images shall be maintained on the
9business premises of the licensee for a period of not less than
10one year from the date of recordation and shall be made
11available for inspection by federal, State, or local law
12enforcement upon request. The licensee shall post a sign in a
13conspicuous place at each entrance to the premises that states
14in block letters not less than one inch in height:
15    THESE PREMISES ARE UNDER VIDEO SURVEILLANCE. YOUR IMAGE MAY
16    BE RECORDED.
17    (b) In addition to the requirements of this Section, a
18licensee shall comply with standards specifying minimum
19security requirements for licensees to prevent thefts as
20adopted by the Department of State Police. By January 1, 2017,
21all licensees shall comply with the standards. The standards
22may provide for:
23        (1) the manner of securing firearms and ammunition when
24    the location is both open and closed for business;
25        (2) alarm systems for licensees; and
26        (3) other reasonable requirements to deter illegal

 

 

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1    sales and reduce the risk of burglaries and other crimes or
2    accidents at licensees' business establishments.
 
3    Section 75. Alcohol consumption on premises. The licensee
4shall not allow any person to consume alcohol on the premises
5of the business.
 
6    Section 80. Location of business premises.
7    (a) The business of a licensee shall be carried on only in
8the building located at the street address shown on the
9license, and all firearms and ammunition in the inventory of a
10licensee must be kept at the licensed business location. This
11subsection does not prohibit the licensee from participating in
12a gun show or event as defined under federal law that is
13authorized by federal, State, or local law or ordinance upon
14compliance with those laws.
15    (b) The business premises shall not be located in any
16district or area that is zoned for residential use, or within
171,000 feet of any school, pre-school, day-care facility, or in
18any location where it violates a valid local ordinance.
 
19    Section 85. Warnings to consumers.
20    (a) A licensee shall post in a conspicuous position on the
21premises where the licensee conducts business a sign that
22contains the following warning in block letters not less than
23one inch in height: "With few exceptions, it is unlawful for

 

 

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1you to:
2        (1) store or leave an unsecured firearm in a place
3    where a child can obtain access to it,
4        (2) sell or transfer your firearm to someone else
5    without receiving approval for the transfer from the
6    Department of State Police, or
7        (3) fail to report the loss or theft of your firearm to
8    local law enforcement within 72 hours."
9    (b) The Department of State Police may require licensees to
10post additional warnings or otherwise provide information to
11consumers regarding firearms laws and the safe storage of
12firearms. A licensee shall post any warnings or provide any
13information to consumers as required by the Department.
 
14    Section 90. Compliance by existing businesses. A person
15engaged in the business of selling, leasing, or otherwise
16transferring any firearm or ammunition on the effective date of
17this Act shall, within 180 days of the effective date, comply
18with this Act. However, any person whose business is located in
19any location described in Section 80 of this Act may continue
20to sell, lease, or transfer firearms or ammunition for up to 2
21years after the effective date of this Act. After the 2-year
22period has expired, that person is prohibited from selling,
23leasing or transferring firearms or ammunition in the named
24location.
 

 

 

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1    Section 95. Penalty.
2    (a) Any person who engages in the business of selling,
3leasing, or otherwise transferring firearms or ammunition
4without a dealer license as required by this Act is guilty of a
5Class 4 felony. The Department, the Department of State Police
6and any law enforcement officer shall have the authority and
7power to investigate any and all unlicensed activity.
8    (b) The Department may refuse to renew, or may revoke or
9suspend a license, or place on probation, reprimand, or take
10other disciplinary or non-disciplinary action against a
11licensee as the Department may deem appropriate, including
12imposing fines not to exceed $10,000, for each violation of any
13provision of this Act or any other applicable federal, State,
14or local law by the licensee.
15    (c) In addition to any other penalty or remedy, the
16Department shall report any person or entity whose dealer
17license is revoked or suspended or who is subject to other
18disciplinary action under this Act to the Bureau of Alcohol,
19Tobacco, Firearms and Explosives within the U.S. Department of
20Justice, the Department of State Police, and to the local
21sheriff or chief of police.
 
22    Section 100. Enforcement; rulemaking.
23    (a) This Act must be enforced by the Department, and may be
24enforced, for the purpose of determining compliance with this
25Act, by any municipality in which the licensee is located or,

 

 

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1if the licensee is not located in a municipality, by the county
2in which the licensee is located.
3    (b) The Department shall adopt rules necessary for the
4implementation and administration of this Act, in consultation
5with the Department of State Police. The provisions of the
6Illinois Administrative Procedure Act are hereby expressly
7adopted and shall apply to all administrative rules and
8procedures of the Department under this Act, except that the
9provision of paragraph (d) of Section 10-65 of the Illinois
10Administrative Procedure Act, which provides that at hearings
11the licensee or person holding a license has the right to show
12compliance with all lawful requirements for retention or
13continuation of the license, is specifically excluded. For the
14purpose of this Act, the notice required under Section 10-25 of
15the Illinois Administrative Procedure Act is deemed sufficient
16when mailed to the last known address of record of a party.
 
17    Section 1005. The Firearm Owners Identification Card Act is
18amended by changing Section 13.1 as follows:
 
19    (430 ILCS 65/13.1)  (from Ch. 38, par. 83-13.1)
20    Sec. 13.1. Preemption.
21    (a) Except as otherwise provided in the Firearm Concealed
22Carry Act and subsections (b) and (c) of this Section, the
23provisions of any ordinance enacted by any municipality which
24requires registration or imposes greater restrictions or

 

 

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1limitations on the acquisition, possession and transfer of
2firearms than are imposed by this Act, are not invalidated or
3affected by this Act.
4    (b) Notwithstanding subsection (a) of this Section, the
5regulation, licensing, possession, and registration of
6handguns and ammunition for a handgun, and the transportation
7of any firearm and ammunition by a holder of a valid Firearm
8Owner's Identification Card issued by the Department of State
9Police under this Act are exclusive powers and functions of
10this State. Any ordinance or regulation, or portion of that
11ordinance or regulation, enacted on or before the effective
12date of this amendatory Act of the 98th General Assembly that
13purports to impose regulations or restrictions on a holder of a
14valid Firearm Owner's Identification Card issued by the
15Department of State Police under this Act in a manner that is
16inconsistent with this Act, on the effective date of this
17amendatory Act of the 98th General Assembly, shall be invalid
18in its application to a holder of a valid Firearm Owner's
19Identification Card issued by the Department of State Police
20under this Act.
21    (c) Notwithstanding subsection (a) of this Section, the
22regulation of the possession or ownership of assault weapons
23are exclusive powers and functions of this State. Any ordinance
24or regulation, or portion of that ordinance or regulation, that
25purports to regulate the possession or ownership of assault
26weapons in a manner that is inconsistent with this Act, shall

 

 

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1be invalid unless the ordinance or regulation is enacted on,
2before, or within 10 days after the effective date of this
3amendatory Act of the 98th General Assembly. Any ordinance or
4regulation described in this subsection (c) enacted more than
510 days after the effective date of this amendatory Act of the
698th General Assembly is invalid. An ordinance enacted on,
7before, or within 10 days after the effective date of this
8amendatory Act of the 98th General Assembly may be amended. The
9enactment or amendment of ordinances under this subsection (c)
10are subject to the submission requirements of Section 13.3. For
11the purposes of this subsection, "assault weapons" means
12firearms designated by either make or model or by a test or
13list of cosmetic features that cumulatively would place the
14firearm into a definition of "assault weapon" under the
15ordinance.
16    (c-5) Notwithstanding the provisions of this Section, a
17dealer of firearms or ammunition is subject to the provisions
18of subparagraph (K) of paragraph (2) of subsection (a) of
19Section 20 of the Gun Dealer and Ammunition Seller Act.
20    (d) For the purposes of this Section, "handgun" has the
21meaning ascribed to it in Section 5 of the Firearm Concealed
22Carry Act.
23    (e) This Section is a denial and limitation of home rule
24powers and functions under subsection (h) of Section 6 of
25Article VII of the Illinois Constitution.
26(Source: P.A. 98-63, eff. 7-9-13.)
 

 

 

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1    Section 1010. The Firearm Concealed Carry Act is amended by
2changing Section 90 as follows:
 
3    (430 ILCS 66/90)
4    Sec. 90. Preemption. Except as otherwise provided in
5subparagraph (K) of paragraph (2) of subsection (a) of Section
620 of the Gun Dealer and Ammunition Seller Act, the The
7regulation, licensing, possession, registration, and
8transportation of handguns and ammunition for handguns by
9licensees are exclusive powers and functions of the State. Any
10ordinance or regulation, or portion thereof, enacted on or
11before the effective date of this Act that purports to impose
12regulations or restrictions on licensees or handguns and
13ammunition for handguns in a manner inconsistent with this Act
14shall be invalid in its application to licensees under this Act
15on the effective date of this Act. This Section is a denial and
16limitation of home rule powers and functions under subsection
17(h) of Section 6 of Article VII of the Illinois Constitution.
18(Source: P.A. 98-63, eff. 7-9-13.)

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    New Act
4    430 ILCS 65/13.1from Ch. 38, par. 83-13.1
5    430 ILCS 66/90