Rep. Fred Crespo

Filed: 3/27/2019

 

 


 

 


 
10100HB0833ham001LRB101 05359 HLH 57771 a

1
AMENDMENT TO HOUSE BILL 833

2    AMENDMENT NO. ______. Amend House Bill 833 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Property Tax Code is amended by changing
5Sections 9-275 and 15-170 as follows:
 
6    (35 ILCS 200/9-275)
7    Sec. 9-275. Erroneous homestead exemptions.
8    (a) For purposes of this Section:
9    "Erroneous homestead exemption" means a homestead
10exemption that was granted for real property in a taxable year
11if the property was not eligible for that exemption in that
12taxable year. If the taxpayer receives an erroneous homestead
13exemption under a single Section of this Code for the same
14property in multiple years, that exemption is considered a
15single erroneous homestead exemption for purposes of this
16Section. However, if the taxpayer receives erroneous homestead

 

 

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1exemptions under multiple Sections of this Code for the same
2property, or if the taxpayer receives erroneous homestead
3exemptions under the same Section of this Code for multiple
4properties, then each of those exemptions is considered a
5separate erroneous homestead exemption for purposes of this
6Section.
7    "Homestead exemption" means an exemption under Section
815-165 (veterans with disabilities), 15-167 (returning
9veterans), 15-168 (persons with disabilities), 15-169
10(standard homestead for veterans with disabilities), 15-170
11(senior citizens), 15-172 (senior citizens assessment freeze),
1215-175 (general homestead), 15-176 (alternative general
13homestead), or 15-177 (long-time occupant).
14    "Erroneous exemption principal amount" means the total
15difference between the property taxes actually billed to a
16property index number and the amount of property taxes that
17would have been billed but for the erroneous exemption or
18exemptions.
19    "Taxpayer" means the property owner or leasehold owner that
20erroneously received a homestead exemption upon property.
21    (b) Notwithstanding any other provision of law, in counties
22with 3,000,000 or more inhabitants, the chief county assessment
23officer shall include the following information with each
24assessment notice sent in a general assessment year: (1) a list
25of each homestead exemption available under Article 15 of this
26Code and a description of the eligibility criteria for that

 

 

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1exemption, including the number of assessment years of
2automatic renewal remaining on a current senior citizens
3homestead exemption if such an exemption has been applied to
4the property; (2) a list of each homestead exemption applied to
5the property in the current assessment year; (3) information
6regarding penalties and interest that may be incurred under
7this Section if the taxpayer received an erroneous homestead
8exemption in a previous taxable year; and (4) notice of the
960-day grace period available under this subsection. If, within
1060 days after receiving his or her assessment notice, the
11taxpayer notifies the chief county assessment officer that he
12or she received an erroneous homestead exemption in a previous
13taxable year, and if the taxpayer pays the erroneous exemption
14principal amount, plus interest as provided in subsection (f),
15then the taxpayer shall not be liable for the penalties
16provided in subsection (f) with respect to that exemption.
17    (c) In counties with 3,000,000 or more inhabitants, when
18the chief county assessment officer determines that one or more
19erroneous homestead exemptions was applied to the property, the
20erroneous exemption principal amount, together with all
21applicable interest and penalties as provided in subsections
22(f) and (j), shall constitute a lien in the name of the People
23of Cook County on the property receiving the erroneous
24homestead exemption. Upon becoming aware of the existence of
25one or more erroneous homestead exemptions, the chief county
26assessment officer shall cause to be served, by both regular

 

 

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1mail and certified mail, a notice of discovery as set forth in
2subsection (c-5). The chief county assessment officer in a
3county with 3,000,000 or more inhabitants may cause a lien to
4be recorded against property that (1) is located in the county
5and (2) received one or more erroneous homestead exemptions if,
6upon determination of the chief county assessment officer, the
7taxpayer received: (A) one or 2 erroneous homestead exemptions
8for real property, including at least one erroneous homestead
9exemption granted for the property against which the lien is
10sought, during any of the 3 collection years immediately prior
11to the current collection year in which the notice of discovery
12is served; or (B) 3 or more erroneous homestead exemptions for
13real property, including at least one erroneous homestead
14exemption granted for the property against which the lien is
15sought, during any of the 6 collection years immediately prior
16to the current collection year in which the notice of discovery
17is served. Prior to recording the lien against the property,
18the chief county assessment officer shall cause to be served,
19by both regular mail and certified mail, return receipt
20requested, on the person to whom the most recent tax bill was
21mailed and the owner of record, a notice of intent to record a
22lien against the property. The chief county assessment officer
23shall cause the notice of intent to record a lien to be served
24within 3 years from the date on which the notice of discovery
25was served.
26    (c-5) The notice of discovery described in subsection (c)

 

 

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1shall: (1) identify, by property index number, the property for
2which the chief county assessment officer has knowledge
3indicating the existence of an erroneous homestead exemption;
4(2) set forth the taxpayer's liability for principal, interest,
5penalties, and administrative costs including, but not limited
6to, recording fees described in subsection (f); (3) inform the
7taxpayer that he or she will be served with a notice of intent
8to record a lien within 3 years from the date of service of the
9notice of discovery; (4) inform the taxpayer that he or she may
10pay the outstanding amount, plus interest, penalties, and
11administrative costs at any time prior to being served with the
12notice of intent to record a lien or within 30 days after the
13notice of intent to record a lien is served; and (5) inform the
14taxpayer that, if the taxpayer provided notice to the chief
15county assessment officer as provided in subsection (d-1) of
16Section 15-175 of this Code, upon submission by the taxpayer of
17evidence of timely notice and receipt thereof by the chief
18county assessment officer, the chief county assessment officer
19will withdraw the notice of discovery and reissue a notice of
20discovery in compliance with this Section in which the taxpayer
21is not liable for interest and penalties for the current tax
22year in which the notice was received.
23    For the purposes of this subsection (c-5):
24    "Collection year" means the year in which the first and
25second installment of the current tax year is billed.
26    "Current tax year" means the year prior to the collection

 

 

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1year.
2    (d) The notice of intent to record a lien described in
3subsection (c) shall: (1) identify, by property index number,
4the property against which the lien is being sought; (2)
5identify each specific homestead exemption that was
6erroneously granted and the year or years in which each
7exemption was granted; (3) set forth the erroneous exemption
8principal amount due and the interest amount and any penalty
9and administrative costs due; (4) inform the taxpayer that he
10or she may request a hearing within 30 days after service and
11may appeal the hearing officer's ruling to the circuit court;
12(5) inform the taxpayer that he or she may pay the erroneous
13exemption principal amount, plus interest and penalties,
14within 30 days after service; and (6) inform the taxpayer that,
15if the lien is recorded against the property, the amount of the
16lien will be adjusted to include the applicable recording fee
17and that fees for recording a release of the lien shall be
18incurred by the taxpayer. A lien shall not be filed pursuant to
19this Section if the taxpayer pays the erroneous exemption
20principal amount, plus penalties and interest, within 30 days
21of service of the notice of intent to record a lien.
22    (e) The notice of intent to record a lien shall also
23include a form that the taxpayer may return to the chief county
24assessment officer to request a hearing. The taxpayer may
25request a hearing by returning the form within 30 days after
26service. The hearing shall be held within 90 days after the

 

 

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1taxpayer is served. The chief county assessment officer shall
2promulgate rules of service and procedure for the hearing. The
3chief county assessment officer must generally follow rules of
4evidence and practices that prevail in the county circuit
5courts, but, because of the nature of these proceedings, the
6chief county assessment officer is not bound by those rules in
7all particulars. The chief county assessment officer shall
8appoint a hearing officer to oversee the hearing. The taxpayer
9shall be allowed to present evidence to the hearing officer at
10the hearing. After taking into consideration all the relevant
11testimony and evidence, the hearing officer shall make an
12administrative decision on whether the taxpayer was
13erroneously granted a homestead exemption for the taxable year
14in question. The taxpayer may appeal the hearing officer's
15ruling to the circuit court of the county where the property is
16located as a final administrative decision under the
17Administrative Review Law.
18    (f) A lien against the property imposed under this Section
19shall be filed with the county recorder of deeds, but may not
20be filed sooner than 60 days after the notice of intent to
21record a lien was delivered to the taxpayer if the taxpayer
22does not request a hearing, or until the conclusion of the
23hearing and all appeals if the taxpayer does request a hearing.
24If a lien is filed pursuant to this Section and the taxpayer
25received one or 2 erroneous homestead exemptions during any of
26the 3 collection years immediately prior to the current

 

 

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1collection year in which the notice of discovery is served,
2then the erroneous exemption principal amount, plus 10%
3interest per annum or portion thereof from the date the
4erroneous exemption principal amount would have become due if
5properly included in the tax bill, shall be charged against the
6property by the chief county assessment officer. However, if a
7lien is filed pursuant to this Section and the taxpayer
8received 3 or more erroneous homestead exemptions during any of
9the 6 collection years immediately prior to the current
10collection year in which the notice of discovery is served, the
11erroneous exemption principal amount, plus a penalty of 50% of
12the total amount of the erroneous exemption principal amount
13for that property and 10% interest per annum or portion thereof
14from the date the erroneous exemption principal amount would
15have become due if properly included in the tax bill, shall be
16charged against the property by the chief county assessment
17officer. If a lien is filed pursuant to this Section, the
18taxpayer shall not be liable for interest that accrues between
19the date the notice of discovery is served and the date the
20lien is filed. Before recording the lien with the county
21recorder of deeds, the chief county assessment officer shall
22adjust the amount of the lien to add administrative costs,
23including but not limited to the applicable recording fee, to
24the total lien amount.
25    (g) If a person received an erroneous homestead exemption
26under Section 15-170 and: (1) the person was the spouse, child,

 

 

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1grandchild, brother, sister, niece, or nephew of the previous
2taxpayer; and (2) the person received the property by bequest
3or inheritance; then the person is not liable for the penalties
4imposed under this Section for any year or years during which
5the chief county assessment officer did not require an annual
6application for the exemption or, in a county with 3,000,000 or
7more inhabitants, an application for renewal of a multi-year
8exemption pursuant to subsection (i) of Section 15-170, as the
9case may be. However, that person is responsible for any
10interest owed under subsection (f).
11    (h) If the erroneous homestead exemption was granted as a
12result of a clerical error or omission on the part of the chief
13county assessment officer, and if the taxpayer has paid the tax
14bills as received for the year in which the error occurred,
15then the interest and penalties authorized by this Section with
16respect to that homestead exemption shall not be chargeable to
17the taxpayer. However, nothing in this Section shall prevent
18the collection of the erroneous exemption principal amount due
19and owing.
20    (i) A lien under this Section is not valid as to (1) any
21bona fide purchaser for value without notice of the erroneous
22homestead exemption whose rights in and to the underlying
23parcel arose after the erroneous homestead exemption was
24granted but before the filing of the notice of lien; or (2) any
25mortgagee, judgment creditor, or other lienor whose rights in
26and to the underlying parcel arose before the filing of the

 

 

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1notice of lien. A title insurance policy for the property that
2is issued by a title company licensed to do business in the
3State showing that the property is free and clear of any liens
4imposed under this Section shall be prima facie evidence that
5the taxpayer is without notice of the erroneous homestead
6exemption. Nothing in this Section shall be deemed to impair
7the rights of subsequent creditors and subsequent purchasers
8under Section 30 of the Conveyances Act.
9    (j) When a lien is filed against the property pursuant to
10this Section, the chief county assessment officer shall mail a
11copy of the lien to the person to whom the most recent tax bill
12was mailed and to the owner of record, and the outstanding
13liability created by such a lien is due and payable within 30
14days after the mailing of the lien by the chief county
15assessment officer. This liability is deemed delinquent and
16shall bear interest beginning on the day after the due date at
17a rate of 1.5% per month or portion thereof. Payment shall be
18made to the county treasurer. Upon receipt of the full amount
19due, as determined by the chief county assessment officer, the
20county treasurer shall distribute the amount paid as provided
21in subsection (k). Upon presentment by the taxpayer to the
22chief county assessment officer of proof of payment of the
23total liability, the chief county assessment officer shall
24provide in reasonable form a release of the lien. The release
25of the lien provided shall clearly inform the taxpayer that it
26is the responsibility of the taxpayer to record the lien

 

 

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1release form with the county recorder of deeds and to pay any
2applicable recording fees.
3    (k) The county treasurer shall pay collected erroneous
4exemption principal amounts, pro rata, to the taxing districts,
5or their legal successors, that levied upon the subject
6property in the taxable year or years for which the erroneous
7homestead exemptions were granted, except as set forth in this
8Section. The county treasurer shall deposit collected
9penalties and interest into a special fund established by the
10county treasurer to offset the costs of administration of the
11provisions of this Section by the chief county assessment
12officer's office, as appropriated by the county board. If the
13costs of administration of this Section exceed the amount of
14interest and penalties collected in the special fund, the chief
15county assessor shall be reimbursed by each taxing district or
16their legal successors for those costs. Such costs shall be
17paid out of the funds collected by the county treasurer on
18behalf of each taxing district pursuant to this Section.
19    (l) The chief county assessment officer in a county with
203,000,000 or more inhabitants shall establish an amnesty period
21for all taxpayers owing any tax due to an erroneous homestead
22exemption granted in a tax year prior to the 2013 tax year. The
23amnesty period shall begin on the effective date of this
24amendatory Act of the 98th General Assembly and shall run
25through December 31, 2013. If, during the amnesty period, the
26taxpayer pays the entire arrearage of taxes due for tax years

 

 

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1prior to 2013, the county clerk shall abate and not seek to
2collect any interest or penalties that may be applicable and
3shall not seek civil or criminal prosecution for any taxpayer
4for tax years prior to 2013. Failure to pay all such taxes due
5during the amnesty period established under this Section shall
6invalidate the amnesty period for that taxpayer.
7    The chief county assessment officer in a county with
83,000,000 or more inhabitants shall (i) mail notice of the
9amnesty period with the tax bills for the second installment of
10taxes for the 2012 assessment year and (ii) as soon as possible
11after the effective date of this amendatory Act of the 98th
12General Assembly, publish notice of the amnesty period in a
13newspaper of general circulation in the county. Notices shall
14include information on the amnesty period, its purpose, and the
15method by which to make payment.
16    Taxpayers who are a party to any criminal investigation or
17to any civil or criminal litigation that is pending in any
18circuit court or appellate court, or in the Supreme Court of
19this State, for nonpayment, delinquency, or fraud in relation
20to any property tax imposed by any taxing district located in
21the State on the effective date of this amendatory Act of the
2298th General Assembly may not take advantage of the amnesty
23period.
24    A taxpayer who has claimed 3 or more homestead exemptions
25in error shall not be eligible for the amnesty period
26established under this subsection.

 

 

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1    (m) Notwithstanding any other provision of law, in counties
2with 3,000,000 or more inhabitants, the chief county assessment
3officer shall, if he or she learns that a taxpayer who has been
4granted a senior citizens homestead exemption has died during
5the period to which the exemption applies, send a notice to the
6address on record for the owner of record of the property
7notifying the owner that the exemption will be terminated
8unless, within 90 days after the notice is sent, the chief
9county assessment officer is provided with a basis to continue
10the exemption.
11(Source: P.A. 98-93, eff. 7-16-13; 98-756, eff. 7-16-14;
1298-811, eff. 1-1-15; 98-1143, eff. 1-1-15; 99-143, eff.
137-27-15; 99-851, eff. 8-19-16.)
 
14    (35 ILCS 200/15-170)
15    Sec. 15-170. Senior citizens homestead exemption.
16    (a) An annual homestead exemption limited, except as
17described here with relation to cooperatives or life care
18facilities, to a maximum reduction set forth below from the
19property's value, as equalized or assessed by the Department,
20is granted for property that is occupied as a residence by a
21person 65 years of age or older who is liable for paying real
22estate taxes on the property and is an owner of record of the
23property or has a legal or equitable interest therein as
24evidenced by a written instrument, except for a leasehold
25interest, other than a leasehold interest of land on which a

 

 

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1single family residence is located, which is occupied as a
2residence by a person 65 years or older who has an ownership
3interest therein, legal, equitable or as a lessee, and on which
4he or she is liable for the payment of property taxes. Before
5taxable year 2004, the maximum reduction shall be $2,500 in
6counties with 3,000,000 or more inhabitants and $2,000 in all
7other counties. For taxable years 2004 through 2005, the
8maximum reduction shall be $3,000 in all counties. For taxable
9years 2006 and 2007, the maximum reduction shall be $3,500. For
10taxable years 2008 through 2011, the maximum reduction is
11$4,000 in all counties. For taxable year 2012, the maximum
12reduction is $5,000 in counties with 3,000,000 or more
13inhabitants and $4,000 in all other counties. For taxable years
142013 through 2016, the maximum reduction is $5,000 in all
15counties. For taxable years 2017 and thereafter, the maximum
16reduction is $8,000 in counties with 3,000,000 or more
17inhabitants and $5,000 in all other counties.
18    (b) For land improved with an apartment building owned and
19operated as a cooperative, the maximum reduction from the value
20of the property, as equalized by the Department, shall be
21multiplied by the number of apartments or units occupied by a
22person 65 years of age or older who is liable, by contract with
23the owner or owners of record, for paying property taxes on the
24property and is an owner of record of a legal or equitable
25interest in the cooperative apartment building, other than a
26leasehold interest. For land improved with a life care

 

 

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1facility, the maximum reduction from the value of the property,
2as equalized by the Department, shall be multiplied by the
3number of apartments or units occupied by persons 65 years of
4age or older, irrespective of any legal, equitable, or
5leasehold interest in the facility, who are liable, under a
6contract with the owner or owners of record of the facility,
7for paying property taxes on the property. In a cooperative or
8a life care facility where a homestead exemption has been
9granted, the cooperative association or the management firm of
10the cooperative or facility shall credit the savings resulting
11from that exemption only to the apportioned tax liability of
12the owner or resident who qualified for the exemption. Any
13person who willfully refuses to so credit the savings shall be
14guilty of a Class B misdemeanor. Under this Section and
15Sections 15-175, 15-176, and 15-177, "life care facility" means
16a facility, as defined in Section 2 of the Life Care Facilities
17Act, with which the applicant for the homestead exemption has a
18life care contract as defined in that Act.
19    (c) When a homestead exemption has been granted under this
20Section and the person qualifying subsequently becomes a
21resident of a facility licensed under the Assisted Living and
22Shared Housing Act, the Nursing Home Care Act, the Specialized
23Mental Health Rehabilitation Act of 2013, the ID/DD Community
24Care Act, or the MC/DD Act, the exemption shall continue so
25long as the residence continues to be occupied by the
26qualifying person's spouse if the spouse is 65 years of age or

 

 

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1older, or if the residence remains unoccupied but is still
2owned by the person qualified for the homestead exemption.
3    (d) A person who will be 65 years of age during the current
4assessment year shall be eligible to apply for the homestead
5exemption during that assessment year. Application shall be
6made during the application period in effect for the county of
7his residence.
8    (e) Beginning with assessment year 2003, for taxes payable
9in 2004, property that is first occupied as a residence after
10January 1 of any assessment year by a person who is eligible
11for the senior citizens homestead exemption under this Section
12must be granted a pro-rata exemption for the assessment year.
13The amount of the pro-rata exemption is the exemption allowed
14in the county under this Section divided by 365 and multiplied
15by the number of days during the assessment year the property
16is occupied as a residence by a person eligible for the
17exemption under this Section. The chief county assessment
18officer must adopt reasonable procedures to establish
19eligibility for this pro-rata exemption.
20    (f) The assessor or chief county assessment officer may
21determine the eligibility of a life care facility to receive
22the benefits provided by this Section, by affidavit,
23application, visual inspection, questionnaire or other
24reasonable methods in order to insure that the tax savings
25resulting from the exemption are credited by the management
26firm to the apportioned tax liability of each qualifying

 

 

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1resident. The assessor may request reasonable proof that the
2management firm has so credited the exemption.
3    (g) The chief county assessment officer of each county with
4less than 3,000,000 inhabitants shall provide to each person
5allowed a homestead exemption under this Section a form to
6designate any other person to receive a duplicate of any notice
7of delinquency in the payment of taxes assessed and levied
8under this Code on the property of the person receiving the
9exemption. The duplicate notice shall be in addition to the
10notice required to be provided to the person receiving the
11exemption, and shall be given in the manner required by this
12Code. The person filing the request for the duplicate notice
13shall pay a fee of $5 to cover administrative costs to the
14supervisor of assessments, who shall then file the executed
15designation with the county collector. Notwithstanding any
16other provision of this Code to the contrary, the filing of
17such an executed designation requires the county collector to
18provide duplicate notices as indicated by the designation. A
19designation may be rescinded by the person who executed such
20designation at any time, in the manner and form required by the
21chief county assessment officer.
22    (h) The assessor or chief county assessment officer may
23determine the eligibility of residential property to receive
24the homestead exemption provided by this Section by
25application, visual inspection, questionnaire or other
26reasonable methods. The determination shall be made in

 

 

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1accordance with guidelines established by the Department.
2    (i) In counties with 3,000,000 or more inhabitants,
3beginning in taxable year 2010, each taxpayer who has been
4granted an exemption under this Section must reapply for the
5exemption every 4 years on an annual basis. The chief county
6assessment officer shall mail the application to the taxpayer
7at least 60 days prior to the last day of the application
8period for the county. If the property ceases to be qualified
9for the exemption under this Section in any year for which a
10reapplication is not required under this Section, then the
11owner of record of the property shall notify the chief county
12assessment officer that the property is no longer qualified. In
13addition, the chief county assessment officer shall enter into
14intergovernmental agreements with the county clerk of his or
15her county and the Department of Public Health, as well as any
16other appropriate governmental agency, to obtain information
17that documents the death of a taxpayer who has been granted an
18exemption under this Section. Notwithstanding another
19provision of law, the county clerk and the Department of Public
20Health shall provide that information to the chief county
21assessment officer. Information concerning the death of a
22taxpayer may be shared with the county treasurer. The chief
23county assessment officer shall, subject to the notice
24requirements under subsection (m) of Section 9-275, terminate
25the exemption under this Section if the information obtained
26indicates that the property is no longer qualified for the

 

 

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1exemption. In counties with less than 3,000,000 inhabitants,
2the county board may by resolution provide that if a person has
3been granted a homestead exemption under this Section, the
4person qualifying need not reapply for the exemption.
5    (j) In counties with less than 3,000,000 inhabitants, if
6the assessor or chief county assessment officer requires annual
7application for verification of eligibility for an exemption
8once granted under this Section, the application shall be
9mailed to the taxpayer.
10    (k) The assessor or chief county assessment officer shall
11notify each person who qualifies for an exemption under this
12Section that the person may also qualify for deferral of real
13estate taxes under the Senior Citizens Real Estate Tax Deferral
14Act. The notice shall set forth the qualifications needed for
15deferral of real estate taxes, the address and telephone number
16of county collector, and a statement that applications for
17deferral of real estate taxes may be obtained from the county
18collector.
19    (l) Notwithstanding Sections 6 and 8 of the State Mandates
20Act, no reimbursement by the State is required for the
21implementation of any mandate created by this Section.
22(Source: P.A. 99-180, eff. 7-29-15; 100-401, eff. 8-25-17.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.".