Rep. Barbara Flynn Currie

Filed: 11/26/2012

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 3245

2    AMENDMENT NO. ______. Amend Senate Bill 3245, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The State Comptroller Act is amended by
6changing Section 9 as follows:
 
7    (15 ILCS 405/9)  (from Ch. 15, par. 209)
8    Sec. 9. Warrants; vouchers; preaudit.
9    (a) No payment may be made from public funds held by the
10State Treasurer in or outside of the State treasury, except by
11warrant drawn by the Comptroller and presented by him to the
12treasurer to be countersigned except for payments made pursuant
13to Section 9.03 or 9.05 of this Act.
14    (b) No warrant for the payment of money by the State
15Treasurer may be drawn by the Comptroller without the
16presentation of itemized vouchers indicating that the

 

 

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1obligation or expenditure is pursuant to law and authorized,
2and authorizing the Comptroller to order payment.
3    (b-1) An itemized voucher for under $5 that is presented to
4the Comptroller for payment shall not be paid except through
5electronic funds transfer. This subsection (b-1) does not apply
6to (i) vouchers presented by the legislative branch of State
7government or (ii) vouchers presented by the State Treasurer's
8Office for the payment of unclaimed property claims authorized
9under the Uniform Disposition of Unclaimed Property Act.
10    (c) The Comptroller shall examine each voucher required by
11law to be filed with him and determine whether unencumbered
12appropriations or unencumbered obligational or expenditure
13authority other than by appropriation are legally available to
14incur the obligation or to make the expenditure of public
15funds. If he determines that unencumbered appropriations or
16other obligational or expenditure authority are not available
17from which to incur the obligation or make the expenditure, the
18Comptroller shall refuse to draw a warrant.
19    (d) The Comptroller shall examine each voucher and all
20other documentation required to accompany the voucher, and
21shall ascertain whether the voucher and documentation meet all
22requirements established by or pursuant to law. If the
23Comptroller determines that the voucher and documentation do
24not meet applicable requirements established by or pursuant to
25law, he shall refuse to draw a warrant. As used in this
26Section, "requirements established by or pursuant to law"

 

 

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1includes statutory enactments and requirements established by
2rules and regulations adopted pursuant to this Act.
3    (e) Prior to drawing a warrant, the Comptroller may review
4the voucher, any documentation accompanying the voucher, and
5any other documentation related to the transaction on file with
6him, and determine if the transaction is in accordance with the
7law. If based on his review the Comptroller has reason to
8believe that such transaction is not in accordance with the
9law, he shall refuse to draw a warrant.
10    (f) Where the Comptroller refuses to draw a warrant
11pursuant to this Section, he shall maintain separate records of
12such transactions.
13    (g) State agencies shall have the principal responsibility
14for the preaudit of their encumbrances, expenditures, and other
15transactions as otherwise required by law.
16(Source: P.A. 97-969, eff. 8-16-12.)
 
17    Section 10. The State Prompt Payment Act is amended by
18changing Section 3-2 as follows:
 
19    (30 ILCS 540/3-2)
20    Sec. 3-2. Beginning July 1, 1993, in any instance where a
21State official or agency is late in payment of a vendor's bill
22or invoice for goods or services furnished to the State, as
23defined in Section 1, properly approved in accordance with
24rules promulgated under Section 3-3, the State official or

 

 

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

 

 

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1    the payment issued to the payee within 60 days of receipt
2    of a proper bill or invoice. If payment is not issued to
3    the payee within this 60-day period, an interest penalty of
4    1.0% of any amount approved and unpaid shall be added for
5    each month or fraction thereof after the end of this 60-day
6    period, until final payment is made.
7        (1.05) For State fiscal year 2012 and future fiscal
8    years, any bill approved for payment under this Section
9    must be paid or the payment issued to the payee within 90
10    days of receipt of a proper bill or invoice. If payment is
11    not issued to the payee within this 90-day period, an
12    interest penalty of 1.0% of any amount approved and unpaid
13    shall be added for each month, or 0.033% (one-thirtieth of
14    one percent) 00.0033% (1/30%) of any amount approved and
15    unpaid for each day, after the end of this 90-day period,
16    until final payment is made.
17        (1.1) A State agency shall review in a timely manner
18    each bill or invoice after its receipt. If the State agency
19    determines that the bill or invoice contains a defect
20    making it unable to process the payment request, the agency
21    shall notify the vendor requesting payment as soon as
22    possible after discovering the defect pursuant to rules
23    promulgated under Section 3-3; provided, however, that the
24    notice for construction related bills or invoices must be
25    given not later than 30 days after the bill or invoice was
26    first submitted. The notice shall identify the defect and

 

 

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1    any additional information necessary to correct the
2    defect. If one or more items on a construction related bill
3    or invoice are disapproved, but not the entire bill or
4    invoice, then the portion that is not disapproved shall be
5    paid.
6        (2) Where a State official or agency is late in payment
7    of a vendor's bill or invoice properly approved in
8    accordance with this Act, and different late payment terms
9    are not reduced to writing as a contractual agreement, the
10    State official or agency shall automatically pay interest
11    penalties required by this Section amounting to $50 or more
12    to the appropriate vendor. Each agency shall be responsible
13    for determining whether an interest penalty is owed and for
14    paying the interest to the vendor. Except as provided in
15    paragraph (4), an individual interest payment amounting to
16    $5 or less shall not be paid by the State. Interest due to
17    a vendor that amounts to greater than $5 and less than $50
18    shall not be paid but shall be accrued until all interest
19    due the vendor for all similar warrants exceeds $50, at
20    which time the accrued interest shall be payable and
21    interest will begin accruing again, except that interest
22    accrued as of the end of the fiscal year that does not
23    exceed $50 shall be payable at that time. In the event an
24    individual has paid a vendor for services in advance, the
25    provisions of this Section shall apply until payment is
26    made to that individual.

 

 

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1        (3) The provisions of Public Act 96-1501 reducing the
2    interest rate on pharmacy claims under Article V of the
3    Illinois Public Aid Code to 1.0% per month shall apply to
4    any pharmacy bills for services and goods under Article V
5    of the Illinois Public Aid Code received on or after the
6    date 60 days before January 25, 2011 (the effective date of
7    Public Act 96-1501) except as provided under paragraph
8    (1.05) of this Section.
9        (4) Interest amounting to less than $5 shall not be
10    paid by the State, except for claims (i) to the Department
11    of Healthcare and Family Services or the Department of
12    Human Services, (ii) pursuant to Article V of the Illinois
13    Public Aid Code, the Covering ALL KIDS Health Insurance
14    Act, or the Children's Health Insurance Program Act, and
15    (iii) made (A) by pharmacies for prescriptive services or
16    (B) by any federally qualified health center for
17    prescriptive services or any other services.    
18    (Source: P.A. 96-555, eff. 8-18-09; 96-802, eff. 1-1-10;
1996-959, eff. 7-1-10; 96-1000, eff. 7-2-10; 96-1501, eff.
201-25-11; 96-1530, eff. 2-16-11; 97-72, eff. 7-1-11; 97-74, eff.
216-30-11; 97-348, eff. 8-12-11; 97-813, eff. 7-13-12; 97-932,
22eff. 8-10-12.)
 
23    Section 15. The Governmental Account Audit Act is amended
24by changing Sections 2, 3, and 4 as follows:
 

 

 

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1    (50 ILCS 310/2)  (from Ch. 85, par. 702)
2    Sec. 2. Except as otherwise provided in Section 3, the
3governing body of each governmental unit shall cause an audit
4of the accounts of the unit to be made by a licensed public
5accountant. Such audit shall be made annually and shall cover
6the immediately preceding fiscal year of the governmental unit.
7The audit shall include all the accounts and funds of the
8governmental unit, including the accounts of any officer of the
9governmental unit who receives fees or handles funds of the
10unit or who spends money of the unit. The audit shall begin as
11soon as possible after the close of the last fiscal year to
12which it pertains, and shall be completed and the audit report
13filed with the Comptroller within 6 months after the close of
14such fiscal year unless an extension of time is granted by the
15Comptroller in writing. An audit report which fails to meet the
16requirements of this Act shall be rejected by the Comptroller
17and returned to the governing body of the governmental unit for
18corrective action. The licensed public accountant making the
19audit shall submit not less than 3 copies of the audit report
20to the governing body of the governmental unit being audited.
21    All audits to be filed with the Comptroller under this
22Section must be submitted electronically and the Comptroller
23must post the audit reports on the Internet no later than 45
24days after they are received. If the governmental unit provides
25the Comptroller's Office with sufficient evidence that the
26audit report cannot be filed electronically, the Comptroller

 

 

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1may waive this requirement. The Comptroller must also post a
2list of governmental units that are not in compliance with the
3reporting requirements set forth in the Section.
4    Any financial report under this Section shall include the
5name of the purchasing agent who oversees all competitively bid
6contracts. If there is no purchasing agent, the name of the
7person responsible for oversight of all competitively bid
8contracts shall be listed.
9(Source: P.A. 97-932, eff. 8-10-12.)
 
10    (50 ILCS 310/3)  (from Ch. 85, par. 703)
11    Sec. 3. Any governmental unit receiving revenue of less
12than $850,000 for any fiscal year shall, in lieu of complying
13with the requirements of Section 2 for audits and audit
14reports, file with the Comptroller a financial report
15containing information required by the Comptroller. In
16addition, a governmental unit receiving revenue of less than
17$850,000 may file with the Comptroller any audit reports which
18may have been prepared under any other law. Any governmental
19unit receiving revenue of $850,000 or more for any fiscal year
20shall, in addition to complying with the requirements of
21Section 2 for audits and audit reports, file with the
22Comptroller the financial report required by this Section. Such
23financial reports shall be on forms so designed by the
24Comptroller as not to require professional accounting services
25for its preparation. All reports to be filed with the

 

 

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1Comptroller under this Section must be submitted
2electronically and the Comptroller must post the reports on the
3Internet no later than 45 days after they are received. If the
4governmental unit provides the Comptroller's Office with
5sufficient evidence that the report cannot be filed
6electronically, the Comptroller may waive this requirement.
7The Comptroller must also post a list of governmental units
8municipalities that are not in compliance with the reporting
9requirements set forth in this Section.
10    Any financial report under this Section shall include the
11name of the purchasing agent who oversees all competitively bid
12contracts. If there is no purchasing agent, the name of the
13person responsible for oversight of all competitively bid
14contracts shall be listed.
15(Source: P.A. 97-890, eff. 8-2-12.)
 
16    (50 ILCS 310/4)  (from Ch. 85, par. 704)
17    Sec. 4. Overdue report.
18    (a) If the required report for a governmental unit is not
19filed with the Comptroller in accordance with Section 2 or
20Section 3, whichever is applicable, within 6 months after the
21close of the fiscal year of the governmental unit, the
22Comptroller shall notify the governing body of that unit in
23writing that the report is due and may also grant a 60 day
24extension for the filing of the audit report. If the required
25report is not filed within the time specified in such written

 

 

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1notice, the Comptroller shall cause an audit to be made by a
2licensed public accountant, and the governmental unit shall pay
3to the Comptroller actual compensation and expenses to
4reimburse him for the cost of preparing or completing such
5report.
6    (b) The Comptroller may decline to order an audit and the
7preparation of an audit report (i) if an initial examination of
8the books and records of the governmental unit indicates that
9the books and records of the governmental unit are inadequate
10or unavailable due to the passage of time or the occurrence of
11a natural disaster or (ii) if the Comptroller determines that
12the cost of an audit would impose an unreasonable financial
13burden on the governmental unit.
14    (c) The State Comptroller may grant extensions for
15delinquent audits or reports. The Comptroller may charge a
16governmental unit a fee for a delinquent audit or report of $5
17per day for the first 15 days past due, $10 per day for 16
18through 30 days past due, $15 per day for 31 through 45 days
19past due, and $20 per day for the 46th day and every day
20thereafter. All fees collected under this subsection (c) shall
21be deposited into the Comptroller's Administrative Fund.
22(Source: P.A. 97-890, eff. 8-2-12.)
 
23    Section 20. The Counties Code is amended by changing
24Sections 6-31003 and 6-31004 as follows:
 

 

 

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1    (55 ILCS 5/6-31003)  (from Ch. 34, par. 6-31003)
2    Sec. 6-31003. Annual audits and reports. The county board
3of each county shall cause an audit of all of the funds and
4accounts of the county to be made annually by an accountant or
5accountants chosen by the county board or by an accountant or
6accountants retained by the Comptroller, as hereinafter
7provided. In addition, each county shall file with the
8Comptroller a financial report containing information required
9by the Comptroller. Such financial report shall be on a form so
10designed by the Comptroller as not to require professional
11accounting services for its preparation. All audits and reports
12to be filed with the Comptroller under this Section must be
13submitted electronically and the Comptroller must post the
14audits and reports on the Internet no later than 45 days after
15they are received. If the county provides the Comptroller's
16Office with sufficient evidence that the audit or report cannot
17be filed electronically, the Comptroller may waive this
18requirement. The Comptroller must also post a list of counties
19that are not in compliance with the reporting requirements set
20forth in this Section.
21    Any financial report under this Section shall include the
22name of the purchasing agent who oversees all competitively bid
23contracts. If there is no purchasing agent, the name of the
24person responsible for oversight of all competitively bid
25contracts shall be listed.
26    The audit shall commence as soon as possible after the

 

 

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1close of each fiscal year and shall be completed within 6
2months after the close of such fiscal year, unless an extension
3of time is granted by the Comptroller in writing. Such
4extension of time shall not exceed 60 days. When the accountant
5or accountants have completed the audit a full report thereof
6shall be made and not less than 2 copies of each audit report
7shall be submitted to the county board. Each audit report shall
8be signed by the accountant making the audit and shall include
9only financial information, findings and conclusions that are
10adequately supported by evidence in the auditor's working
11papers to demonstrate or prove, when called upon, the basis for
12the matters reported and their correctness and reasonableness.
13In connection with this, each county board shall retain the
14right of inspection of the auditor's working papers and shall
15make them available to the Comptroller, or his designee, upon
16request.
17    Within 60 days of receipt of an audit report, each county
18board shall file one copy of each audit report and each
19financial report with the Comptroller and any comment or
20explanation that the county board may desire to make concerning
21such audit report may be attached thereto. An audit report
22which fails to meet the requirements of this Division shall be
23rejected by the Comptroller and returned to the county board
24for corrective action. One copy of each such report shall be
25filed with the county clerk of the county so audited.
26    This Section is a limitation under subsection (i) of

 

 

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1Section 6 of Article VII of the Illinois Constitution on the
2concurrent exercise by home rule counties of powers and
3functions exercised by the State.
4(Source: P.A. 97-890, eff. 8-2-12; 97-932, eff. 8-10-12;
5revised 8-23-12.)
 
6    (55 ILCS 5/6-31004)  (from Ch. 34, par. 6-31004)
7    Sec. 6-31004. Overdue reports.
8    (a) In the event the required reports for a county are not
9filed with the Comptroller in accordance with Section 6-31003
10within 6 months after the close of the fiscal year of the
11county, the Comptroller shall notify the county board in
12writing that the reports are due, and may also grant an
13extension of time of up to 60 days for the filing of the
14reports. In the event the required reports are not filed within
15the time specified in such written notice, the Comptroller
16shall cause the audit to be made and the audit report prepared
17by an accountant or accountants.
18    (b) The Comptroller may decline to order an audit and the
19preparation of an audit report if an initial examination of the
20books and records of the governmental unit indicates that the
21books and records of the governmental unit are inadequate or
22unavailable due to the passage of time or the occurrence of a
23natural disaster.
24    (c) The State Comptroller may grant extensions for
25delinquent audits or reports. The Comptroller may charge a

 

 

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1county a fee for a delinquent audit or report of $5 per day for
2the first 15 days past due, $10 per day for 16 through 30 days
3past due, $15 per day for 31 through 45 days past due, and $20
4per day for the 46th day and every day thereafter. All fees
5collected under this subsection (c) shall be deposited into the
6Comptroller's Administrative Fund.
7(Source: P.A. 97-890, eff. 8-2-12.)
 
8    Section 25. The Illinois Municipal Code is amended by
9changing Sections 8-8-3 and 8-8-4 as follows:
 
10    (65 ILCS 5/8-8-3)  (from Ch. 24, par. 8-8-3)
11    Sec. 8-8-3. Audit requirements.
12    (a) The corporate authorities of each municipality coming
13under the provisions of this Division 8 shall cause an audit of
14the funds and accounts of the municipality to be made by an
15accountant or accountants employed by such municipality or by
16an accountant or accountants retained by the Comptroller, as
17hereinafter provided.
18    (b) The accounts and funds of each municipality having a
19population of 800 or more or having a bonded debt or owning or
20operating any type of public utility shall be audited annually.
21The audit herein required shall include all of the accounts and
22funds of the municipality. Such audit shall be begun as soon as
23possible after the close of the fiscal year, and shall be
24completed and the report submitted within 6 months after the

 

 

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1close of such fiscal year, unless an extension of time shall be
2granted by the Comptroller in writing. The accountant or
3accountants making the audit shall submit not less than 2
4copies of the audit report to the corporate authorities of the
5municipality being audited. Municipalities not operating
6utilities may cause audits of the accounts of municipalities to
7be made more often than herein provided, by an accountant or
8accountants. The audit report of such audit when filed with the
9Comptroller together with an audit report covering the
10remainder of the period for which an audit is required to be
11filed hereunder shall satisfy the requirements of this section.
12    (c) Municipalities of less than 800 population which do not
13own or operate public utilities and do not have bonded debt,
14shall file annually with the Comptroller a financial report
15containing information required by the Comptroller. Such
16annual financial report shall be on forms devised by the
17Comptroller in such manner as to not require professional
18accounting services for its preparation.
19    (d) In addition to any audit report required, all
20municipalities, except municipalities of less than 800
21population which do not own or operate public utilities and do
22not have bonded debt, shall file annually with the Comptroller
23a supplemental report on forms devised and approved by the
24Comptroller.
25    (e) Notwithstanding any provision of law to the contrary,
26if a municipality (i) has a population of less than 200, (ii)

 

 

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1has bonded debt in the amount of $50,000 or less, and (iii)
2owns or operates a public utility, then the municipality shall
3cause an audit of the funds and accounts of the municipality to
4be made by an accountant employed by the municipality or
5retained by the Comptroller for fiscal year 2011 and every
6fourth fiscal year thereafter or until the municipality has a
7population of 200 or more, has bonded debt in excess of
8$50,000, or no longer owns or operates a public utility.
9Nothing in this subsection shall be construed as limiting the
10municipality's duty to file an annual financial report with the
11Comptroller or to comply with the filing requirements
12concerning the county clerk.
13    (f) All audits and reports to be filed with the Comptroller
14under this Section must be submitted electronically and the
15Comptroller must post the audits and reports on the Internet no
16later than 45 days after they are received. If the municipality
17provides the Comptroller's Office with sufficient evidence
18that the audit or report cannot be filed electronically, the
19Comptroller may waive this requirement. The Comptroller must
20also post a list of municipalities that are not in compliance
21with the reporting requirements set forth in this Section.
22    (g) Subsection (f) of this Section is a limitation under
23subsection (i) of Section 6 of Article VII of the Illinois
24Constitution on the concurrent exercise by home rule
25municipalities of powers and functions exercised by the State.
26    (h) (f) Any financial report under this Section shall

 

 

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1include the name of the purchasing agent who oversees all
2competitively bid contracts. If there is no purchasing agent,
3the name of the person responsible for oversight of all
4competitively bid contracts shall be listed.
5(Source: P.A. 96-1309, eff. 7-27-10; 97-890, eff. 8-2-12;
697-932, eff. 8-10-12; revised 8-23-12.)
 
7    (65 ILCS 5/8-8-4)  (from Ch. 24, par. 8-8-4)
8    Sec. 8-8-4. Overdue reports.
9    (a) In the event the required audit report for a
10municipality is not filed with the Comptroller in accordance
11with Section 8-8-7 within 6 months after the close of the
12fiscal year of the municipality, the Comptroller shall notify
13the corporate authorities of that municipality in writing that
14the audit report is due, and may also grant an extension of
15time of 60 days, for the filing of the audit report. In the
16event the required audit report is not filed within the time
17specified in such written notice, the Comptroller shall cause
18such audit to be made by an accountant or accountants. In the
19event the required annual or supplemental report for a
20municipality is not filed within 6 months after the close of
21the fiscal year of the municipality, the Comptroller shall
22notify the corporate authorities of that municipality in
23writing that the annual or supplemental report is due and may
24grant an extension in time of 60 days for the filing of such
25annual or supplemental report.

 

 

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1    (b) In the event the annual or supplemental report is not
2filed within the time extended by the Comptroller, the
3Comptroller shall cause such annual or supplemental report to
4be prepared or completed and the municipality shall pay to the
5Comptroller reasonable compensation and expenses to reimburse
6him for the cost of preparing or completing such annual or
7supplemental report. Moneys paid to the Comptroller pursuant to
8the preceding sentence shall be deposited into the
9Comptroller's Audit Expense Revolving Fund.
10    (c) The Comptroller may decline to order an audit or the
11completion of the supplemental report if an initial examination
12of the books and records of the municipality indicates that
13books and records of the municipality are inadequate or
14unavailable to support the preparation of the audit report or
15the supplemental report due to the passage of time or the
16occurrence of a natural disaster.
17    (d) The State Comptroller may grant extensions for
18delinquent audits or reports. The Comptroller may charge a
19municipality a fee for a delinquent audit or report of $5 per
20day for the first 15 days past due, $10 per day for 16 through
2130 days past due, $15 per day for 31 through 45 days past due,
22and $20 per day for the 46th day and every day thereafter. All
23fees collected under this subsection (d) shall be deposited
24into the Comptroller's Administrative Fund.
25(Source: P.A. 97-890, eff. 8-2-12.)".
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.".