Full Text of HB4854 96th General Assembly
HB4854ham002 96TH GENERAL ASSEMBLY
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Rep. John A. Fritchey
Filed: 2/17/2010
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| AMENDMENT TO HOUSE BILL 4854
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| AMENDMENT NO. ______. Amend House Bill 4854, AS AMENDED, by | 3 |
| replacing everything after the enacting clause with the | 4 |
| following:
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| "Section 5. The Pawnbroker Regulation Act is amended by | 6 |
| changing Sections 0.05, 6, and 7.5 and by adding Section 15 as | 7 |
| follows:
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| (205 ILCS 510/0.05)
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| Sec. 0.05. Administration of Act.
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| (a) This Act shall be administered by the
Secretary of | 11 |
| Financial and Professional Regulation Commissioner of Banks | 12 |
| and Real Estate who shall have all of the following
powers and | 13 |
| duties in administering this Act:
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| (1) To promulgate reasonable rules for the purpose of | 15 |
| administering the
provisions of this Act.
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| (2) To issue orders for the purpose of administering |
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| the provisions of
this
Act and any rule promulgated in | 2 |
| accordance with this Act.
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| (3) To appoint hearing officers and to hire employees | 4 |
| or to contract with
appropriate persons to execute any of | 5 |
| the powers granted to
the Secretary Commissioner under this | 6 |
| Section for the purpose of administering this
Act and any | 7 |
| rule promulgated in accordance with this Act.
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| (4) To subpoena witnesses, to compel their attendance, | 9 |
| to administer an
oath, to examine any person under oath, | 10 |
| and to require the production of any
relevant books, | 11 |
| papers, accounts, and documents in the course of and | 12 |
| pursuant
to any investigation being conducted, or any | 13 |
| action being taken, by the
Secretary Commissioner in | 14 |
| respect of any matter relating to the duties imposed upon, | 15 |
| or
the powers vested in, the Secretary Commissioner under | 16 |
| the provisions of this Act or any
rule promulgated in | 17 |
| accordance with this Act.
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| (5) To conduct hearings.
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| (6) To impose civil penalties graduated up to $1,000 | 20 |
| against any person
for each
violation of any provision of | 21 |
| this Act, any rule promulgated in
accordance
with this Act, | 22 |
| or any order of the Secretary Commissioner
based upon the | 23 |
| seriousness of the violation.
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| (6.5) To initiate, through the Attorney General, | 25 |
| injunction proceedings
whenever it appears to the | 26 |
| Secretary Commissioner that any person, whether licensed |
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| under
this Act or not, is engaged or about to engage in an | 2 |
| act or practice that
constitutes or will constitute a | 3 |
| violation of this Act or any rule prescribed
under the | 4 |
| authority of this Act. The Secretary Commissioner may, in | 5 |
| his or her
discretion, through the Attorney General, apply | 6 |
| for an injunction, and upon a
proper showing, any circuit | 7 |
| court may enter a permanent or preliminary
injunction or a | 8 |
| temporary restraining order without bond to enforce this | 9 |
| Act in
addition to the penalties and other remedies | 10 |
| provided for in this Act.
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| (7) To issue a cease and desist order and, for | 12 |
| violations of
this Act, any order issued by the Secretary | 13 |
| Commissioner pursuant to this Act, any
rule promulgated in | 14 |
| accordance with this Act,
or any other applicable law in | 15 |
| connection with the operation of a pawnshop,
to suspend a | 16 |
| license issued under this Act for up to 30 days.
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| (8) To determine
compliance with applicable law and | 18 |
| rules related to the operation of pawnshops
and to verify | 19 |
| the accuracy of reports filed with the Secretary | 20 |
| Commissioner , the Secretary
Commissioner , not more than | 21 |
| one time every 2 years, may, but is not required
to, | 22 |
| conduct a routine examination of a pawnshop, and in
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| addition, the Secretary Commissioner may examine the | 24 |
| affairs of any pawnshop at any time if the Secretary | 25 |
| Commissioner
has
reasonable cause to believe that unlawful | 26 |
| or fraudulent activity is occurring,
or has occurred, |
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| therein.
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| (9) In response to a complaint, to address any | 3 |
| inquiries to any pawnshop
in relation to its affairs, and | 4 |
| it shall be the duty of the pawnshop to
promptly reply in | 5 |
| writing to such inquiries. The Secretary Commissioner may | 6 |
| also require
reports or information from any pawnshop at | 7 |
| any time the Secretary Commissioner may deem
desirable.
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| (10) To revoke a license issued under this Act if the | 9 |
| Secretary Commissioner
determines that (a) a licensee has | 10 |
| been convicted of a felony in connection
with the | 11 |
| operations of a pawnshop; (b) a licensee knowingly, | 12 |
| recklessly, or
continuously violated this Act, a rule | 13 |
| promulgated in
accordance with this Act, or any order of | 14 |
| the Secretary Commissioner ; (c) a fact or
condition exists | 15 |
| that, if it had existed or had been known at the time of | 16 |
| the
original application, would have justified license | 17 |
| refusal; or (d) the licensee
knowingly submits materially | 18 |
| false or misleading documents with the intent to
deceive | 19 |
| the Secretary Commissioner or any other party.
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| (11) Following license revocation, to take possession | 21 |
| and control of a
pawnshop for the purpose of examination, | 22 |
| reorganization, or liquidation through
receivership and to | 23 |
| appoint a receiver, which may be the Secretary | 24 |
| Commissioner , a
pawnshop, or
another suitable person.
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| (b) After consultation with local law enforcement | 26 |
| officers, the Attorney
General, and the industry, the Secretary |
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| Commissioner may by rule require that
pawnbrokers
operate video | 2 |
| camera surveillance systems to record photographic
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| representations of customers and retain the tapes produced for | 4 |
| up to 30 days.
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| (c) Pursuant to rule, the Secretary Commissioner shall | 6 |
| issue licenses on an annual or
multi-year basis for operating a
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| pawnshop. Any person currently operating or
who has operated a | 8 |
| pawnshop in this State during the 2 years preceding the
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| effective date of this amendatory Act of 1997 shall be issued a | 10 |
| license upon
payment of the fee required under this Act. New | 11 |
| applicants shall meet
standards for a license as established by | 12 |
| the Secretary Commissioner .
Except with the prior written | 13 |
| consent of the Secretary Commissioner , no individual,
either a | 14 |
| new applicant or a person currently operating a pawnshop, may | 15 |
| be
issued a license to operate a pawnshop if the individual has | 16 |
| been convicted
of a felony or of any criminal offense relating | 17 |
| to dishonesty or breach of
trust in connection with the | 18 |
| operations of a pawnshop.
The Secretary Commissioner shall
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| establish license fees. The fees shall not exceed the amount | 20 |
| reasonably
required for administration of this Act. It shall be | 21 |
| unlawful to operate a
pawnshop without a license issued by the | 22 |
| Secretary Commissioner .
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| (d) In addition to license fees, the Secretary Commissioner | 24 |
| may, by rule, establish
fees in connection with a review, | 25 |
| approval, or provision of a service, and levy
a reasonable | 26 |
| charge to recover the cost of the review, approval, or service
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| (such as a change in control, change in location, or renewal of | 2 |
| a license).
The Secretary Commissioner may also levy a | 3 |
| reasonable charge to recover the cost of an
examination if the | 4 |
| Secretary Commissioner determines that unlawful or fraudulent | 5 |
| activity
has occurred. The Secretary Commissioner may require | 6 |
| payment of the fees and charges
provided in this Act by | 7 |
| certified check, money order, an electronic transfer of
funds, | 8 |
| or an automatic debit of an account.
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| (e) The Pawnbroker Regulation Fund is established as a | 10 |
| special
fund in the State treasury. Moneys collected under this | 11 |
| Act shall be deposited
into the Fund and used for the | 12 |
| administration of this Act.
In the event that General Revenue | 13 |
| Funds are appropriated to the Department of Financial and | 14 |
| Professional Regulation Office of the
Commissioner of Banks and | 15 |
| Real Estate for the initial implementation of this
Act, the | 16 |
| Governor may direct the repayment from the Pawnbroker | 17 |
| Regulation
Fund to the General Revenue Fund of such advance in | 18 |
| an amount not to exceed
$30,000. The Governor may direct this | 19 |
| interfund transfer at such time as he
deems appropriate by | 20 |
| giving appropriate written notice. Moneys in the Pawnbroker | 21 |
| Regulation Fund may be transferred to the Professions Indirect | 22 |
| Cost Fund, as authorized under Section 2105-300 of the | 23 |
| Department of Professional Regulation Law of the Civil | 24 |
| Administrative Code of Illinois.
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| (f) The Secretary Commissioner may, by rule, require all | 26 |
| pawnshops to provide for
the expenses that would arise from the |
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| administration of the receivership of a
pawnshop under this Act | 2 |
| through the assessment of fees, the requirement to
pledge | 3 |
| surety bonds, or such other methods as determined by the | 4 |
| Secretary Commissioner .
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| (g) All final administrative decisions of the Secretary | 6 |
| Commissioner under
this Act shall be subject to judicial review | 7 |
| pursuant to the provisions of the
Administrative Review Law. | 8 |
| For matters involving administrative review, venue
shall be in
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| either Sangamon County or Cook County.
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| (Source: P.A. 94-91, eff. 7-1-05.)
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| (205 ILCS 510/5) (from Ch. 17, par. 4655)
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| Sec. 5. Record requirements.
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| (a) Except in municipalities located in counties having | 14 |
| 3,000,000 or more
inhabitants, every pawn and loan broker shall | 15 |
| keep a standard record book
that has been approved by the | 16 |
| sheriff of the county in which the pawnbroker
does business. In | 17 |
| municipalities in counties with
3,000,000 or more inhabitants, | 18 |
| the record book shall be approved by the police
department of | 19 |
| the municipality in which the pawn or loan broker does | 20 |
| business.
At the time of each and every loan or taking of a | 21 |
| pledge,
an accurate account and description, in the English | 22 |
| language, of all the
goods, articles and other things pawned or | 23 |
| pledged, the amount of money,
value or thing loaned thereon, | 24 |
| the time of pledging the same, the rate of
interest to be paid | 25 |
| on such loan, and the name and residence of the person
making |
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| such pawn or pledge shall be printed, typed, or written in ink | 2 |
| in
the record book. Such entry shall include the serial number | 3 |
| or
identification number of items received which bear such
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| number. Except for items purchased from dealers possessing a | 5 |
| federal employee
identification number who have provided a | 6 |
| receipt to the pawnbroker, every
pawnbroker shall also record | 7 |
| in his book, an accurate account and description,
in the | 8 |
| English language, of all goods, articles and other things | 9 |
| purchased or
received for the purpose of resale or loan | 10 |
| collateral by the pawnbroker from
any source, not in the course | 11 |
| of a pledge or loan, the time of such purchase
or receipt and | 12 |
| the name and address of the person or business which sold or
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| delivered such goods, articles, or other things to the | 14 |
| pawnbroker. No entry
in such book shall be erased, mutilated or | 15 |
| changed.
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| (b) Every pawnbroker shall require identification to be
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| shown him by each person pledging or pawning any goods, | 18 |
| articles or other
things to the pawnbroker. If the | 19 |
| identification shown is a driver's license
or a State | 20 |
| identification card issued by the Secretary of State and | 21 |
| contains a
photograph of the person being identified,
only one | 22 |
| form of identification must be shown. If the identification | 23 |
| shown
is not a driver's license or a State identification card | 24 |
| issued by the
Secretary
of State and does not contain a | 25 |
| photograph, 2 forms of identification must be
shown, and one of | 26 |
| the 2 forms of
identification must
include his or her residence |
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| address. These forms of identification shall
include, but not | 2 |
| be limited to, any of the following: driver's license,
social | 3 |
| security card, utility bill, employee or student | 4 |
| identification card,
credit card, or a civic, union or | 5 |
| professional association membership card.
In addition, in a | 6 |
| municipality with a population of 1,000,000 or more
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| inhabitants, if the customer does not have an identification | 8 |
| issued by a
governmental entity containing a photograph of the | 9 |
| person being identified, the
pawnbroker shall photograph the | 10 |
| customer in color and record the customer's
name, residence | 11 |
| address, date of birth, social security number, gender, height,
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| and weight on the reverse side of the photograph. If the | 13 |
| customer has no
social security number,
the pawnbroker shall | 14 |
| record this fact.
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| A county or municipality, including a home rule unit, may | 16 |
| regulate a
pawnbroker's identification requirements for | 17 |
| persons pledging or pawning goods,
articles, or other things to | 18 |
| the pawnbroker in a manner that is not less
restrictive than | 19 |
| the regulation by the State of a pawnbroker's identification
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| requirements for persons pledging or pawning goods, articles, | 21 |
| or other things.
A home rule unit
may not regulate a | 22 |
| pawnbroker's identification requirements for persons
pledging
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| or pawning goods, articles, or other things to the pawnbroker | 24 |
| in a manner less
restrictive than the regulation by the State | 25 |
| of a pawnbroker's identification
requirements for persons | 26 |
| pledging or pawning goods, articles, or other things.
This |
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| Section is a limitation under subsection (i) of Section 6 of | 2 |
| Article VII
of the Illinois Constitution on the concurrent | 3 |
| exercise by home rule units of
the powers and functions | 4 |
| exercised by the State.
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| (c) A pawnbroker may maintain the records required by | 6 |
| subsection (a) in
computer form if the computer form has been | 7 |
| approved by the Commissioner, the
sheriff of the county in | 8 |
| which the shop is located, and the police department
of the | 9 |
| municipality in which the shop is located.
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| (d) Records, including reports to the Secretary | 11 |
| Commissioner , maintained by
pawnbrokers shall be confidential, | 12 |
| and no disclosure of pawnbroker records
shall be made except | 13 |
| disclosures authorized by this Act or ordered by a court
of | 14 |
| competent jurisdiction. No record transferred to a | 15 |
| governmental official
shall be improperly disclosed, provided | 16 |
| that use of those records as evidence
of a felony or | 17 |
| misdemeanor shall be a proper purpose.
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| (e) Pawnbrokers and their associations may lawfully give | 19 |
| appropriate
governmental agencies computer equipment for the | 20 |
| purpose of transferring
information pursuant to this Act.
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| (Source: P.A. 91-608, eff. 8-19-99; 92-215, eff. 8-2-01.)
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| (205 ILCS 510/6) (from Ch. 17, par. 4656)
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| Sec. 6. Inspection of records.
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| (a) The book or computer
records, as well as every article | 25 |
| or other thing of value so
pawned or pledged, shall at all |
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| times be open to the inspection of the Secretary
Commissioner , | 2 |
| the sheriff of the county, his deputies, or any members
of the
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| police force of
any city in the county in which such pawnbroker | 4 |
| does business.
In addition, the Secretary Commissioner shall be | 5 |
| authorized to inspect the books or
records of any business he | 6 |
| or she has reasonable cause to believe is conducting
pawn | 7 |
| transactions and should be licensed under this Act.
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| (b) The book or computer records, pawn tickets, or any | 9 |
| other records
required by the Secretary Commissioner under this | 10 |
| Act or any rule promulgated in
accordance with this Act shall | 11 |
| be maintained for a period of 3 years after the
date on which | 12 |
| the record or ticket was prepared. These records and tickets
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| shall be open
to inspection of the Secretary Commissioner at | 14 |
| all times during the 3-year period.
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| (Source: P.A. 92-215, eff. 8-2-01.)
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| (205 ILCS 510/7.5)
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| Sec. 7.5. Report to the Secretary Commissioner .
The | 18 |
| Secretary Commissioner , as often as the Secretary Commissioner | 19 |
| shall deem necessary or
proper, may require a pawnshop to | 20 |
| submit a full and detailed report of its
operations including, | 21 |
| but not limited to, the number of pawns made, the amount
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| financed on pawn transactions, and the number and amount of | 23 |
| pawns surrendered
to law enforcement.
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| The Secretary Commissioner shall
prescribe the form of the | 25 |
| report and establish the date by which the report
must be |
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| filed.
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| (Source: P.A. 90-477, eff. 7-1-98; 90-602, eff. 7-1-98.)
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| (205 ILCS 510/15 new) | 4 |
| Sec. 15. Temporary buying locations; unregistered buyers. | 5 |
| (a) For purposes of this Section: | 6 |
| "Temporary buying location" means a location used by an | 7 |
| unregistered buyer, including, but not limited to, hotels and | 8 |
| motels. | 9 |
| "Unregistered buyer" means an individual business, or an | 10 |
| agent of an individual business, engaged in the business of | 11 |
| purchasing from the public, scrap precious metals, including, | 12 |
| but not limited to, jewelry, precious stones, semi-precious | 13 |
| stones, coins, silver, gold, and platinum, that conducts | 14 |
| transactions at a temporary buying location but is not | 15 |
| registered under this Act. | 16 |
| (b) An unregistered buyer that seeks to conduct business at | 17 |
| a temporary buying location in this State must comply with all | 18 |
| of the following: | 19 |
| (1) An unregistered buyer must register with the | 20 |
| sheriff of the county at least 30 days prior to its | 21 |
| intention to conduct transactions in that county. | 22 |
| (2) An unregistered buyer must submit by 6 a.m. each | 23 |
| day to the sheriff of the county in which he or she is | 24 |
| located detailed transaction records for the previous day, | 25 |
| which must include purchaser, seller, and inventory |
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| information pursuant to subsection (b) of Section 5 of this | 2 |
| Act. | 3 |
| (3) An unregistered buyer must pay a registration fee | 4 |
| to the sheriff of the county in which it seeks to conduct | 5 |
| business. This fee shall be used to defray the cost of | 6 |
| reviewing the records required under this Section and may | 7 |
| be apportioned as the sheriff sees fit. | 8 |
| (c) The Department of Financial and Professional | 9 |
| Regulation may adopt rules necessary for administration of this | 10 |
| Section, which must include a fee schedule for counties to | 11 |
| follow.
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| Section 99. Effective date. This Act takes effect upon | 13 |
| becoming law.".
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