SB3245 EnrolledLRB097 18348 PJG 63574 b

1    AN ACT concerning government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Comptroller Act is amended by changing
5Section 9 as follows:
 
6    (15 ILCS 405/9)  (from Ch. 15, par. 209)
7    Sec. 9. Warrants; vouchers; preaudit.
8    (a) No payment may be made from public funds held by the
9State Treasurer in or outside of the State treasury, except by
10warrant drawn by the Comptroller and presented by him to the
11treasurer to be countersigned except for payments made pursuant
12to Section 9.03 or 9.05 of this Act.
13    (b) No warrant for the payment of money by the State
14Treasurer may be drawn by the Comptroller without the
15presentation of itemized vouchers indicating that the
16obligation or expenditure is pursuant to law and authorized,
17and authorizing the Comptroller to order payment.
18    (b-1) An itemized voucher for under $5 that is presented to
19the Comptroller for payment shall not be paid except through
20electronic funds transfer. This subsection (b-1) does not apply
21to (i) vouchers presented by the legislative branch of State
22government or (ii) vouchers presented by the State Treasurer's
23Office for the payment of unclaimed property claims authorized

 

 

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1under the Uniform Disposition of Unclaimed Property Act.
2    (c) The Comptroller shall examine each voucher required by
3law to be filed with him and determine whether unencumbered
4appropriations or unencumbered obligational or expenditure
5authority other than by appropriation are legally available to
6incur the obligation or to make the expenditure of public
7funds. If he determines that unencumbered appropriations or
8other obligational or expenditure authority are not available
9from which to incur the obligation or make the expenditure, the
10Comptroller shall refuse to draw a warrant.
11    (d) The Comptroller shall examine each voucher and all
12other documentation required to accompany the voucher, and
13shall ascertain whether the voucher and documentation meet all
14requirements established by or pursuant to law. If the
15Comptroller determines that the voucher and documentation do
16not meet applicable requirements established by or pursuant to
17law, he shall refuse to draw a warrant. As used in this
18Section, "requirements established by or pursuant to law"
19includes statutory enactments and requirements established by
20rules and regulations adopted pursuant to this Act.
21    (e) Prior to drawing a warrant, the Comptroller may review
22the voucher, any documentation accompanying the voucher, and
23any other documentation related to the transaction on file with
24him, and determine if the transaction is in accordance with the
25law. If based on his review the Comptroller has reason to
26believe that such transaction is not in accordance with the

 

 

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1law, he shall refuse to draw a warrant.
2    (f) Where the Comptroller refuses to draw a warrant
3pursuant to this Section, he shall maintain separate records of
4such transactions.
5    (g) State agencies shall have the principal responsibility
6for the preaudit of their encumbrances, expenditures, and other
7transactions as otherwise required by law.
8(Source: P.A. 97-969, eff. 8-16-12.)
 
9    Section 10. The State Prompt Payment Act is amended by
10changing Section 3-2 as follows:
 
11    (30 ILCS 540/3-2)
12    Sec. 3-2. Beginning July 1, 1993, in any instance where a
13State official or agency is late in payment of a vendor's bill
14or invoice for goods or services furnished to the State, as
15defined in Section 1, properly approved in accordance with
16rules promulgated under Section 3-3, the State official or
17agency shall pay interest to the vendor in accordance with the
18following:
19        (1) Any bill, except a bill submitted under Article V
20    of the Illinois Public Aid Code and except as provided
21    under paragraph (1.05) of this Section, approved for
22    payment under this Section must be paid or the payment
23    issued to the payee within 60 days of receipt of a proper
24    bill or invoice. If payment is not issued to the payee

 

 

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1    within this 60-day period, an interest penalty of 1.0% of
2    any amount approved and unpaid shall be added for each
3    month or fraction thereof after the end of this 60-day
4    period, until final payment is made. Any bill, except a
5    bill for pharmacy or nursing facility services or goods,
6    and except as provided under paragraph (1.05) of this
7    Section, submitted under Article V of the Illinois Public
8    Aid Code approved for payment under this Section must be
9    paid or the payment issued to the payee within 60 days
10    after receipt of a proper bill or invoice, and, if payment
11    is not issued to the payee within this 60-day period, an
12    interest penalty of 2.0% of any amount approved and unpaid
13    shall be added for each month or fraction thereof after the
14    end of this 60-day period, until final payment is made. Any
15    bill for pharmacy or nursing facility services or goods
16    submitted under Article V of the Illinois Public Aid Code,
17    except as provided under paragraph (1.05) of this Section,
18    and approved for payment under this Section must be paid or
19    the payment issued to the payee within 60 days of receipt
20    of a proper bill or invoice. If payment is not issued to
21    the payee within this 60-day period, an interest penalty of
22    1.0% of any amount approved and unpaid shall be added for
23    each month or fraction thereof after the end of this 60-day
24    period, until final payment is made.
25        (1.05) For State fiscal year 2012 and future fiscal
26    years, any bill approved for payment under this Section

 

 

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1    must be paid or the payment issued to the payee within 90
2    days of receipt of a proper bill or invoice. If payment is
3    not issued to the payee within this 90-day period, an
4    interest penalty of 1.0% of any amount approved and unpaid
5    shall be added for each month, or 0.033% (one-thirtieth of
6    one percent) 00.0033% (1/30%) of any amount approved and
7    unpaid for each day, after the end of this 90-day period,
8    until final payment is made.
9        (1.1) A State agency shall review in a timely manner
10    each bill or invoice after its receipt. If the State agency
11    determines that the bill or invoice contains a defect
12    making it unable to process the payment request, the agency
13    shall notify the vendor requesting payment as soon as
14    possible after discovering the defect pursuant to rules
15    promulgated under Section 3-3; provided, however, that the
16    notice for construction related bills or invoices must be
17    given not later than 30 days after the bill or invoice was
18    first submitted. The notice shall identify the defect and
19    any additional information necessary to correct the
20    defect. If one or more items on a construction related bill
21    or invoice are disapproved, but not the entire bill or
22    invoice, then the portion that is not disapproved shall be
23    paid.
24        (2) Where a State official or agency is late in payment
25    of a vendor's bill or invoice properly approved in
26    accordance with this Act, and different late payment terms

 

 

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1    are not reduced to writing as a contractual agreement, the
2    State official or agency shall automatically pay interest
3    penalties required by this Section amounting to $50 or more
4    to the appropriate vendor. Each agency shall be responsible
5    for determining whether an interest penalty is owed and for
6    paying the interest to the vendor. Except as provided in
7    paragraph (4), an individual interest payment amounting to
8    $5 or less shall not be paid by the State. Interest due to
9    a vendor that amounts to greater than $5 and less than $50
10    shall not be paid but shall be accrued until all interest
11    due the vendor for all similar warrants exceeds $50, at
12    which time the accrued interest shall be payable and
13    interest will begin accruing again, except that interest
14    accrued as of the end of the fiscal year that does not
15    exceed $50 shall be payable at that time. In the event an
16    individual has paid a vendor for services in advance, the
17    provisions of this Section shall apply until payment is
18    made to that individual.
19        (3) The provisions of Public Act 96-1501 reducing the
20    interest rate on pharmacy claims under Article V of the
21    Illinois Public Aid Code to 1.0% per month shall apply to
22    any pharmacy bills for services and goods under Article V
23    of the Illinois Public Aid Code received on or after the
24    date 60 days before January 25, 2011 (the effective date of
25    Public Act 96-1501) except as provided under paragraph
26    (1.05) of this Section.

 

 

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1        (4) Interest amounting to less than $5 shall not be
2    paid by the State, except for claims (i) to the Department
3    of Healthcare and Family Services or the Department of
4    Human Services, (ii) pursuant to Article V of the Illinois
5    Public Aid Code, the Covering ALL KIDS Health Insurance
6    Act, or the Children's Health Insurance Program Act, and
7    (iii) made (A) by pharmacies for prescriptive services or
8    (B) by any federally qualified health center for
9    prescriptive services or any other services.    
10    (Source: P.A. 96-555, eff. 8-18-09; 96-802, eff. 1-1-10;
1196-959, eff. 7-1-10; 96-1000, eff. 7-2-10; 96-1501, eff.
121-25-11; 96-1530, eff. 2-16-11; 97-72, eff. 7-1-11; 97-74, eff.
136-30-11; 97-348, eff. 8-12-11; 97-813, eff. 7-13-12; 97-932,
14eff. 8-10-12.)
 
15    Section 15. The Governmental Account Audit Act is amended
16by changing Sections 2, 3, and 4 as follows:
 
17    (50 ILCS 310/2)  (from Ch. 85, par. 702)
18    Sec. 2. Except as otherwise provided in Section 3, the
19governing body of each governmental unit shall cause an audit
20of the accounts of the unit to be made by a licensed public
21accountant. Such audit shall be made annually and shall cover
22the immediately preceding fiscal year of the governmental unit.
23The audit shall include all the accounts and funds of the
24governmental unit, including the accounts of any officer of the

 

 

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1governmental unit who receives fees or handles funds of the
2unit or who spends money of the unit. The audit shall begin as
3soon as possible after the close of the last fiscal year to
4which it pertains, and shall be completed and the audit report
5filed with the Comptroller within 6 months after the close of
6such fiscal year unless an extension of time is granted by the
7Comptroller in writing. An audit report which fails to meet the
8requirements of this Act shall be rejected by the Comptroller
9and returned to the governing body of the governmental unit for
10corrective action. The licensed public accountant making the
11audit shall submit not less than 3 copies of the audit report
12to the governing body of the governmental unit being audited.
13    All audits to be filed with the Comptroller under this
14Section must be submitted electronically and the Comptroller
15must post the audit reports on the Internet no later than 45
16days after they are received. If the governmental unit provides
17the Comptroller's Office with sufficient evidence that the
18audit report cannot be filed electronically, the Comptroller
19may waive this requirement. The Comptroller must also post a
20list of governmental units that are not in compliance with the
21reporting requirements set forth in this Section.
22    Any financial report under this Section shall include the
23name of the purchasing agent who oversees all competitively bid
24contracts. If there is no purchasing agent, the name of the
25person responsible for oversight of all competitively bid
26contracts shall be listed.

 

 

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1(Source: P.A. 97-932, eff. 8-10-12.)
 
2    (50 ILCS 310/3)  (from Ch. 85, par. 703)
3    Sec. 3. Any governmental unit receiving revenue of less
4than $850,000 for any fiscal year shall, in lieu of complying
5with the requirements of Section 2 for audits and audit
6reports, file with the Comptroller a financial report
7containing information required by the Comptroller. In
8addition, a governmental unit receiving revenue of less than
9$850,000 may file with the Comptroller any audit reports which
10may have been prepared under any other law. Any governmental
11unit receiving revenue of $850,000 or more for any fiscal year
12shall, in addition to complying with the requirements of
13Section 2 for audits and audit reports, file with the
14Comptroller the financial report required by this Section. Such
15financial reports shall be on forms so designed by the
16Comptroller as not to require professional accounting services
17for its preparation. All reports to be filed with the
18Comptroller under this Section must be submitted
19electronically and the Comptroller must post the reports on the
20Internet no later than 45 days after they are received. If the
21governmental unit provides the Comptroller's Office with
22sufficient evidence that the report cannot be filed
23electronically, the Comptroller may waive this requirement.
24The Comptroller must also post a list of governmental units
25municipalities that are not in compliance with the reporting

 

 

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1requirements set forth in this Section.
2    Any financial report under this Section shall include the
3name of the purchasing agent who oversees all competitively bid
4contracts. If there is no purchasing agent, the name of the
5person responsible for oversight of all competitively bid
6contracts shall be listed.
7(Source: P.A. 97-890, eff. 8-2-12.)
 
8    (50 ILCS 310/4)  (from Ch. 85, par. 704)
9    Sec. 4. Overdue report.
10    (a) If the required report for a governmental unit is not
11filed with the Comptroller in accordance with Section 2 or
12Section 3, whichever is applicable, within 6 months after the
13close of the fiscal year of the governmental unit, the
14Comptroller shall notify the governing body of that unit in
15writing that the report is due and may also grant a 60 day
16extension for the filing of the audit report. If the required
17report is not filed within the time specified in such written
18notice, the Comptroller shall cause an audit to be made by a
19licensed public accountant, and the governmental unit shall pay
20to the Comptroller actual compensation and expenses to
21reimburse him for the cost of preparing or completing such
22report.
23    (b) The Comptroller may decline to order an audit and the
24preparation of an audit report (i) if an initial examination of
25the books and records of the governmental unit indicates that

 

 

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1the books and records of the governmental unit are inadequate
2or unavailable due to the passage of time or the occurrence of
3a natural disaster or (ii) if the Comptroller determines that
4the cost of an audit would impose an unreasonable financial
5burden on the governmental unit.
6    (c) The State Comptroller may grant extensions for
7delinquent audits or reports. The Comptroller may charge a
8governmental unit a fee for a delinquent audit or report of $5
9per day for the first 15 days past due, $10 per day for 16
10through 30 days past due, $15 per day for 31 through 45 days
11past due, and $20 per day for the 46th day and every day
12thereafter. All fees collected under this subsection (c) shall
13be deposited into the Comptroller's Administrative Fund.
14(Source: P.A. 97-890, eff. 8-2-12.)
 
15    Section 20. The Counties Code is amended by changing
16Sections 6-31003 and 6-31004 as follows:
 
17    (55 ILCS 5/6-31003)  (from Ch. 34, par. 6-31003)
18    Sec. 6-31003. Annual audits and reports. The county board
19of each county shall cause an audit of all of the funds and
20accounts of the county to be made annually by an accountant or
21accountants chosen by the county board or by an accountant or
22accountants retained by the Comptroller, as hereinafter
23provided. In addition, each county shall file with the
24Comptroller a financial report containing information required

 

 

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1by the Comptroller. Such financial report shall be on a form so
2designed by the Comptroller as not to require professional
3accounting services for its preparation. All audits and reports
4to be filed with the Comptroller under this Section must be
5submitted electronically and the Comptroller must post the
6audits and reports on the Internet no later than 45 days after
7they are received. If the county provides the Comptroller's
8Office with sufficient evidence that the audit or report cannot
9be filed electronically, the Comptroller may waive this
10requirement. The Comptroller must also post a list of counties
11that are not in compliance with the reporting requirements set
12forth in this Section.
13    Any financial report under this Section shall include the
14name of the purchasing agent who oversees all competitively bid
15contracts. If there is no purchasing agent, the name of the
16person responsible for oversight of all competitively bid
17contracts shall be listed.
18    The audit shall commence as soon as possible after the
19close of each fiscal year and shall be completed within 6
20months after the close of such fiscal year, unless an extension
21of time is granted by the Comptroller in writing. Such
22extension of time shall not exceed 60 days. When the accountant
23or accountants have completed the audit a full report thereof
24shall be made and not less than 2 copies of each audit report
25shall be submitted to the county board. Each audit report shall
26be signed by the accountant making the audit and shall include

 

 

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1only financial information, findings and conclusions that are
2adequately supported by evidence in the auditor's working
3papers to demonstrate or prove, when called upon, the basis for
4the matters reported and their correctness and reasonableness.
5In connection with this, each county board shall retain the
6right of inspection of the auditor's working papers and shall
7make them available to the Comptroller, or his designee, upon
8request.
9    Within 60 days of receipt of an audit report, each county
10board shall file one copy of each audit report and each
11financial report with the Comptroller and any comment or
12explanation that the county board may desire to make concerning
13such audit report may be attached thereto. An audit report
14which fails to meet the requirements of this Division shall be
15rejected by the Comptroller and returned to the county board
16for corrective action. One copy of each such report shall be
17filed with the county clerk of the county so audited.
18    This Section is a limitation under subsection (i) of
19Section 6 of Article VII of the Illinois Constitution on the
20concurrent exercise by home rule counties of powers and
21functions exercised by the State.
22(Source: P.A. 97-890, eff. 8-2-12; 97-932, eff. 8-10-12;
23revised 8-23-12.)
 
24    (55 ILCS 5/6-31004)  (from Ch. 34, par. 6-31004)
25    Sec. 6-31004. Overdue reports.

 

 

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1    (a) In the event the required reports for a county are not
2filed with the Comptroller in accordance with Section 6-31003
3within 6 months after the close of the fiscal year of the
4county, the Comptroller shall notify the county board in
5writing that the reports are due, and may also grant an
6extension of time of up to 60 days for the filing of the
7reports. In the event the required reports are not filed within
8the time specified in such written notice, the Comptroller
9shall cause the audit to be made and the audit report prepared
10by an accountant or accountants.
11    (b) The Comptroller may decline to order an audit and the
12preparation of an audit report if an initial examination of the
13books and records of the governmental unit indicates that the
14books and records of the governmental unit are inadequate or
15unavailable due to the passage of time or the occurrence of a
16natural disaster.
17    (c) The State Comptroller may grant extensions for
18delinquent audits or reports. The Comptroller may charge a
19county a fee for a delinquent audit or report of $5 per day for
20the first 15 days past due, $10 per day for 16 through 30 days
21past due, $15 per day for 31 through 45 days past due, and $20
22per day for the 46th day and every day thereafter. All fees
23collected under this subsection (c) shall be deposited into the
24Comptroller's Administrative Fund.
25(Source: P.A. 97-890, eff. 8-2-12.)
 

 

 

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1    Section 25. The Illinois Municipal Code is amended by
2changing Sections 8-8-3 and 8-8-4 as follows:
 
3    (65 ILCS 5/8-8-3)  (from Ch. 24, par. 8-8-3)
4    Sec. 8-8-3. Audit requirements.
5    (a) The corporate authorities of each municipality coming
6under the provisions of this Division 8 shall cause an audit of
7the funds and accounts of the municipality to be made by an
8accountant or accountants employed by such municipality or by
9an accountant or accountants retained by the Comptroller, as
10hereinafter provided.
11    (b) The accounts and funds of each municipality having a
12population of 800 or more or having a bonded debt or owning or
13operating any type of public utility shall be audited annually.
14The audit herein required shall include all of the accounts and
15funds of the municipality. Such audit shall be begun as soon as
16possible after the close of the fiscal year, and shall be
17completed and the report submitted within 6 months after the
18close of such fiscal year, unless an extension of time shall be
19granted by the Comptroller in writing. The accountant or
20accountants making the audit shall submit not less than 2
21copies of the audit report to the corporate authorities of the
22municipality being audited. Municipalities not operating
23utilities may cause audits of the accounts of municipalities to
24be made more often than herein provided, by an accountant or
25accountants. The audit report of such audit when filed with the

 

 

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1Comptroller together with an audit report covering the
2remainder of the period for which an audit is required to be
3filed hereunder shall satisfy the requirements of this section.
4    (c) Municipalities of less than 800 population which do not
5own or operate public utilities and do not have bonded debt,
6shall file annually with the Comptroller a financial report
7containing information required by the Comptroller. Such
8annual financial report shall be on forms devised by the
9Comptroller in such manner as to not require professional
10accounting services for its preparation.
11    (d) In addition to any audit report required, all
12municipalities, except municipalities of less than 800
13population which do not own or operate public utilities and do
14not have bonded debt, shall file annually with the Comptroller
15a supplemental report on forms devised and approved by the
16Comptroller.
17    (e) Notwithstanding any provision of law to the contrary,
18if a municipality (i) has a population of less than 200, (ii)
19has bonded debt in the amount of $50,000 or less, and (iii)
20owns or operates a public utility, then the municipality shall
21cause an audit of the funds and accounts of the municipality to
22be made by an accountant employed by the municipality or
23retained by the Comptroller for fiscal year 2011 and every
24fourth fiscal year thereafter or until the municipality has a
25population of 200 or more, has bonded debt in excess of
26$50,000, or no longer owns or operates a public utility.

 

 

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1Nothing in this subsection shall be construed as limiting the
2municipality's duty to file an annual financial report with the
3Comptroller or to comply with the filing requirements
4concerning the county clerk.
5    (f) All audits and reports to be filed with the Comptroller
6under this Section must be submitted electronically and the
7Comptroller must post the audits and reports on the Internet no
8later than 45 days after they are received. If the municipality
9provides the Comptroller's Office with sufficient evidence
10that the audit or report cannot be filed electronically, the
11Comptroller may waive this requirement. The Comptroller must
12also post a list of municipalities that are not in compliance
13with the reporting requirements set forth in this Section.
14    (g) Subsection (f) of this Section is a limitation under
15subsection (i) of Section 6 of Article VII of the Illinois
16Constitution on the concurrent exercise by home rule
17municipalities of powers and functions exercised by the State.
18    (h) (f) Any financial report under this Section shall
19include the name of the purchasing agent who oversees all
20competitively bid contracts. If there is no purchasing agent,
21the name of the person responsible for oversight of all
22competitively bid contracts shall be listed.
23(Source: P.A. 96-1309, eff. 7-27-10; 97-890, eff. 8-2-12;
2497-932, eff. 8-10-12; revised 8-23-12.)
 
25    (65 ILCS 5/8-8-4)  (from Ch. 24, par. 8-8-4)

 

 

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1    Sec. 8-8-4. Overdue reports.
2    (a) In the event the required audit report for a
3municipality is not filed with the Comptroller in accordance
4with Section 8-8-7 within 6 months after the close of the
5fiscal year of the municipality, the Comptroller shall notify
6the corporate authorities of that municipality in writing that
7the audit report is due, and may also grant an extension of
8time of 60 days, for the filing of the audit report. In the
9event the required audit report is not filed within the time
10specified in such written notice, the Comptroller shall cause
11such audit to be made by an accountant or accountants. In the
12event the required annual or supplemental report for a
13municipality is not filed within 6 months after the close of
14the fiscal year of the municipality, the Comptroller shall
15notify the corporate authorities of that municipality in
16writing that the annual or supplemental report is due and may
17grant an extension in time of 60 days for the filing of such
18annual or supplemental report.
19    (b) In the event the annual or supplemental report is not
20filed within the time extended by the Comptroller, the
21Comptroller shall cause such annual or supplemental report to
22be prepared or completed and the municipality shall pay to the
23Comptroller reasonable compensation and expenses to reimburse
24him for the cost of preparing or completing such annual or
25supplemental report. Moneys paid to the Comptroller pursuant to
26the preceding sentence shall be deposited into the

 

 

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1Comptroller's Audit Expense Revolving Fund.
2    (c) The Comptroller may decline to order an audit or the
3completion of the supplemental report if an initial examination
4of the books and records of the municipality indicates that
5books and records of the municipality are inadequate or
6unavailable to support the preparation of the audit report or
7the supplemental report due to the passage of time or the
8occurrence of a natural disaster.
9    (d) The State Comptroller may grant extensions for
10delinquent audits or reports. The Comptroller may charge a
11municipality a fee for a delinquent audit or report of $5 per
12day for the first 15 days past due, $10 per day for 16 through
1330 days past due, $15 per day for 31 through 45 days past due,
14and $20 per day for the 46th day and every day thereafter. All
15fees collected under this subsection (d) shall be deposited
16into the Comptroller's Administrative Fund.
17(Source: P.A. 97-890, eff. 8-2-12.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.