[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ Senate Amendment 001 ] |
91_SB0840enr SB840 Enrolled LRB9105899NTsb 1 AN ACT relating to school construction projects, amending 2 named Acts. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The School Code is amended by changing 6 Section 19-1 as follows: 7 (105 ILCS 5/19-1) (from Ch. 122, par. 19-1) 8 Sec. 19-1. Debt limitations of school districts. 9 (a) School districts shall not be subject to the 10 provisions limiting their indebtedness prescribed in "An Act 11 to limit the indebtedness of counties having a population of 12 less than 500,000 and townships, school districts and other 13 municipal corporations having a population of less than 14 300,000", approved February 15, 1928, as amended. 15 No school districts maintaining grades K through 8 or 9 16 through 12 shall become indebted in any manner or for any 17 purpose to an amount, including existing indebtedness, in the 18 aggregate exceeding 6.9% on the value of the taxable property 19 therein to be ascertained by the last assessment for State 20 and county taxes or, until January 1, 1983, if greater, the 21 sum that is produced by multiplying the school district's 22 1978 equalized assessed valuation by the debt limitation 23 percentage in effect on January 1, 1979, previous to the 24 incurring of such indebtedness. 25 No school districts maintaining grades K through 12 shall 26 become indebted in any manner or for any purpose to an 27 amount, including existing indebtedness, in the aggregate 28 exceeding 13.8% on the value of the taxable property therein 29 to be ascertained by the last assessment for State and county 30 taxes or, until January 1, 1983, if greater, the sum that is 31 produced by multiplying the school district's 1978 equalized SB840 Enrolled -2- LRB9105899NTsb 1 assessed valuation by the debt limitation percentage in 2 effect on January 1, 1979, previous to the incurring of such 3 indebtedness. 4 Notwithstanding the provisions of any other law to the 5 contrary, in any case in which the voters of a school 6 district have approved a proposition for the issuance of 7 bonds of such school district at an election held prior to 8 January 1, 1979, and all of the bonds approved at such 9 election have not been issued, the debt limitation applicable 10 to such school district during the calendar year 1979 shall 11 be computed by multiplying the value of taxable property 12 therein, including personal property, as ascertained by the 13 last assessment for State and county taxes, previous to the 14 incurring of such indebtedness, by the percentage limitation 15 applicable to such school district under the provisions of 16 this subsection (a). 17 (b) Notwithstanding the debt limitation prescribed in 18 subsection (a) of this Section, additional indebtedness may 19 be incurred in an amount not to exceed the estimated cost of 20 acquiring or improving school sites or constructing and 21 equipping additional building facilities under the following 22 conditions: 23 (1) Whenever the enrollment of students for the 24 next school year is estimated by the board of education 25 to increase over the actual present enrollment by not 26 less than 35% or by not less than 200 students or the 27 actual present enrollment of students has increased over 28 the previous school year by not less than 35% or by not 29 less than 200 students and the board of education 30 determines that additional school sites or building 31 facilities are required as a result of such increase in 32 enrollment; and 33 (2) When the Regional Superintendent of Schools 34 having jurisdiction over the school district and the SB840 Enrolled -3- LRB9105899NTsb 1 State Superintendent of Education concur in such 2 enrollment projection or increase and approve the need 3 for such additional school sites or building facilities 4 and the estimated cost thereof; and 5 (3) When the voters in the school district approve 6 a proposition for the issuance of bonds for the purpose 7 of acquiring or improving such needed school sites or 8 constructing and equipping such needed additional 9 building facilities at an election called and held for 10 that purpose. Notice of such an election shall state that 11 the amount of indebtedness proposed to be incurred would 12 exceed the debt limitation otherwise applicable to the 13 school district. The ballot for such proposition shall 14 state what percentage of the equalized assessed valuation 15 will be outstanding in bonds if the proposed issuance of 16 bonds is approved by the voters; or 17 (4) Notwithstanding the provisions of paragraphs 18 (1) through (3) of this subsection (b), if the school 19 board determines that additional facilities are needed to 20 provide a quality educational program and not less than 21 2/3 of those voting in an election called by the school 22 board on the question approve the issuance of bonds for 23 the construction of such facilities, the school district 24 may issue bonds for this purpose; or 25 (5) Notwithstanding the provisions of paragraphs 26 (1) through (3) of this subsection (b), if (i) the school 27 district has previously availed itself of the provisions 28 of paragraph (4) of this subsection (b) to enable it to 29 issue bonds, (ii) the voters of the school district have 30 not defeated a proposition for the issuance of bonds 31 since the referendum described in paragraph (4) of this 32 subsection (b) was held, (iii) the school board 33 determines that additional facilities are needed to 34 provide a quality educational program, and (iv) a SB840 Enrolled -4- LRB9105899NTsb 1 majority of those voting in an election called by the 2 school board on the question approve the issuance of 3 bonds for the construction of such facilities, the school 4 district may issue bonds for this purpose. 5 In no event shall the indebtedness incurred pursuant to 6 this subsection (b) and the existing indebtedness of the 7 school district exceed 15% of the value of the taxable 8 property therein to be ascertained by the last assessment for 9 State and county taxes, previous to the incurring of such 10 indebtedness or, until January 1, 1983, if greater, the sum 11 that is produced by multiplying the school district's 1978 12 equalized assessed valuation by the debt limitation 13 percentage in effect on January 1, 1979. 14 The indebtedness provided for by this subsection (b) 15 shall be in addition to and in excess of any other debt 16 limitation. 17 (c) Notwithstanding the debt limitation prescribed in 18 subsection (a) of this Section, in any case in which a public 19 question for the issuance of bonds of a proposed school 20 district maintaining grades kindergarten through 12 received 21 at least 60% of the valid ballots cast on the question at an 22 election held on or prior to November 8, 1994, and in which 23 the bonds approved at such election have not been issued, the 24 school district pursuant to the requirements of Section 25 11A-10 may issue the total amount of bonds approved at such 26 election for the purpose stated in the question. 27 (d) Notwithstanding the debt limitation prescribed in 28 subsection (a) of this Section, a school district that meets 29 all the criteria set forth in paragraphs (1) and (2) of this 30 subsection (d) may incur an additional indebtedness in an 31 amount not to exceed $4,500,000, even though the amount of 32 the additional indebtedness authorized by this subsection 33 (d), when incurred and added to the aggregate amount of 34 indebtedness of the district existing immediately prior to SB840 Enrolled -5- LRB9105899NTsb 1 the district incurring the additional indebtedness authorized 2 by this subsection (d), causes the aggregate indebtedness of 3 the district to exceed the debt limitation otherwise 4 applicable to that district under subsection (a): 5 (1) The additional indebtedness authorized by this 6 subsection (d) is incurred by the school district through 7 the issuance of bonds under and in accordance with 8 Section 17-2.11a for the purpose of replacing a school 9 building which, because of mine subsidence damage, has 10 been closed as provided in paragraph (2) of this 11 subsection (d) or through the issuance of bonds under and 12 in accordance with Section 19-3 for the purpose of 13 increasing the size of, or providing for additional 14 functions in, such replacement school buildings, or both 15 such purposes. 16 (2) The bonds issued by the school district as 17 provided in paragraph (1) above are issued for the 18 purposes of construction by the school district of a new 19 school building pursuant to Section 17-2.11, to replace 20 an existing school building that, because of mine 21 subsidence damage, is closed as of the end of the 1992-93 22 school year pursuant to action of the regional 23 superintendent of schools of the educational service 24 region in which the district is located under Section 25 3-14.22 or are issued for the purpose of increasing the 26 size of, or providing for additional functions in, the 27 new school building being constructed to replace a school 28 building closed as the result of mine subsidence damage, 29 or both such purposes. 30 (e) Notwithstanding the debt limitation prescribed in 31 subsection (a) of this Section, a school district that meets 32 all the criteria set forth in paragraphs (1) through (5) of 33 this subsection (e) may, without referendum, incur an 34 additional indebtedness in an amount not to exceed the lesser SB840 Enrolled -6- LRB9105899NTsb 1 of $5,000,000 or 1.5% of the value of the taxable property 2 within the district even though the amount of the additional 3 indebtedness authorized by this subsection (e), when incurred 4 and added to the aggregate amount of indebtedness of the 5 district existing immediately prior to the district incurring 6 that additional indebtedness, causes the aggregate 7 indebtedness of the district to exceed or increases the 8 amount by which the aggregate indebtedness of the district 9 already exceeds the debt limitation otherwise applicable to 10 that district under subsection (a): 11 (1) The State Board of Education certifies the 12 school district under Section 19-1.5 as a financially 13 distressed district. 14 (2) The additional indebtedness authorized by this 15 subsection (e) is incurred by the financially distressed 16 district during the school year or school years in which 17 the certification of the district as a financially 18 distressed district continues in effect through the 19 issuance of bonds for the lawful school purposes of the 20 district, pursuant to resolution of the school board and 21 without referendum, as provided in paragraph (5) of this 22 subsection. 23 (3) The aggregate amount of bonds issued by the 24 financially distressed district during a fiscal year in 25 which it is authorized to issue bonds under this 26 subsection does not exceed the amount by which the 27 aggregate expenditures of the district for operational 28 purposes during the immediately preceding fiscal year 29 exceeds the amount appropriated for the operational 30 purposes of the district in the annual school budget 31 adopted by the school board of the district for the 32 fiscal year in which the bonds are issued. 33 (4) Throughout each fiscal year in which 34 certification of the district as a financially distressed SB840 Enrolled -7- LRB9105899NTsb 1 district continues in effect, the district maintains in 2 effect a gross salary expense and gross wage expense 3 freeze policy under which the district expenditures for 4 total employee salaries and wages do not exceed such 5 expenditures for the immediately preceding fiscal year. 6 Nothing in this paragraph, however, shall be deemed to 7 impair or to require impairment of the contractual 8 obligations, including collective bargaining agreements, 9 of the district or to impair or require the impairment of 10 the vested rights of any employee of the district under 11 the terms of any contract or agreement in effect on the 12 effective date of this amendatory Act of 1994. 13 (5) Bonds issued by the financially distressed 14 district under this subsection shall bear interest at a 15 rate not to exceed the maximum rate authorized by law at 16 the time of the making of the contract, shall mature 17 within 40 years from their date of issue, and shall be 18 signed by the president of the school board and treasurer 19 of the school district. In order to issue bonds under 20 this subsection, the school board shall adopt a 21 resolution fixing the amount of the bonds, the date of 22 the bonds, the maturities of the bonds, the rates of 23 interest of the bonds, and their place of payment and 24 denomination, and shall provide for the levy and 25 collection of a direct annual tax upon all the taxable 26 property in the district sufficient to pay the principal 27 and interest on the bonds to maturity. Upon the filing 28 in the office of the county clerk of the county in which 29 the financially distressed district is located of a 30 certified copy of the resolution, it is the duty of the 31 county clerk to extend the tax therefor in addition to 32 and in excess of all other taxes at any time authorized 33 to be levied by the district. If bond proceeds from the 34 sale of bonds include a premium or if the proceeds of the SB840 Enrolled -8- LRB9105899NTsb 1 bonds are invested as authorized by law, the school board 2 shall determine by resolution whether the interest earned 3 on the investment of bond proceeds or the premium 4 realized on the sale of the bonds is to be used for any 5 of the lawful school purposes for which the bonds were 6 issued or for the payment of the principal indebtedness 7 and interest on the bonds. The proceeds of the bond sale 8 shall be deposited in the educational purposes fund of 9 the district and shall be used to pay operational 10 expenses of the district. This subsection is cumulative 11 and constitutes complete authority for the issuance of 12 bonds as provided in this subsection, notwithstanding any 13 other law to the contrary. 14 (f) Notwithstanding the provisions of subsection (a) of 15 this Section or of any other law, bonds in not to exceed the 16 aggregate amount of $5,500,000 and issued by a school 17 district meeting the following criteria shall not be 18 considered indebtedness for purposes of any statutory 19 limitation and may be issued in an amount or amounts, 20 including existing indebtedness, in excess of any heretofore 21 or hereafter imposed statutory limitation as to indebtedness: 22 (1) At the time of the sale of such bonds, the 23 board of education of the district shall have determined 24 by resolution that the enrollment of students in the 25 district is projected to increase by not less than 7% 26 during each of the next succeeding 2 school years. 27 (2) The board of education shall also determine by 28 resolution that the improvements to be financed with the 29 proceeds of the bonds are needed because of the projected 30 enrollment increases. 31 (3) The board of education shall also determine by 32 resolution that the projected increases in enrollment are 33 the result of improvements made or expected to be made to 34 passenger rail facilities located in the school district. SB840 Enrolled -9- LRB9105899NTsb 1 (g) Notwithstanding the provisions of subsection (a) of 2 this Section or any other law, bonds in not to exceed an 3 aggregate amount of 25% of the equalized assessed value of 4 the taxable property of a school district and issued by a 5 school district meeting the criteria in paragraphs (i) 6 through (iv) of this subsection shall not be considered 7 indebtedness for purposes of any statutory limitation and may 8 be issued pursuant to resolution of the school board in an 9 amount or amounts, including existing indebtedness, in excess 10 of any statutory limitation of indebtedness heretofore or 11 hereafter imposed: 12 (i) The bonds are issued for the purpose of 13 constructing a new high school building to replace two 14 adjacent existing buildings which together house a single 15 high school, each of which is more than 65 years old, and 16 which together are located on more than 10 acres and less 17 than 11 acres of property. 18 (ii) At the time the resolution authorizing the 19 issuance of the bonds is adopted, the cost of 20 constructing a new school building to replace the 21 existing school building is less than 60% of the cost of 22 repairing the existing school building. 23 (iii) The sale of the bonds occurs before July 1, 24 1997. 25 (iv) The school district issuing the bonds is a 26 unit school district located in a county of less than 27 70,000 and more than 50,000 inhabitants, which has an 28 average daily attendance of less than 1,500 and an 29 equalized assessed valuation of less than $29,000,000. 30 (h) Notwithstanding any other provisions of this Section 31 or the provisions of any other law, until January 1, 1998, a 32 community unit school district maintaining grades K through 33 12 may issue bonds up to an amount, including existing 34 indebtedness, not exceeding 27.6% of the equalized assessed SB840 Enrolled -10- LRB9105899NTsb 1 value of the taxable property in the district, if all of the 2 following conditions are met: 3 (i) The school district has an equalized assessed 4 valuation for calendar year 1995 of less than 5 $24,000,000; 6 (ii) The bonds are issued for the capital 7 improvement, renovation, rehabilitation, or replacement 8 of existing school buildings of the district, all of 9 which buildings were originally constructed not less than 10 40 years ago; 11 (iii) The voters of the district approve a 12 proposition for the issuance of the bonds at a referendum 13 held after March 19, 1996; and 14 (iv) The bonds are issued pursuant to Sections 19-2 15 through 19-7 of this Code. 16 (i) Notwithstanding any other provisions of this Section 17 or the provisions of any other law, until January 1, 1998, a 18 community unit school district maintaining grades K through 19 12 may issue bonds up to an amount, including existing 20 indebtedness, not exceeding 27% of the equalized assessed 21 value of the taxable property in the district, if all of the 22 following conditions are met: 23 (i) The school district has an equalized assessed 24 valuation for calendar year 1995 of less than 25 $44,600,000; 26 (ii) The bonds are issued for the capital 27 improvement, renovation, rehabilitation, or replacement 28 of existing school buildings of the district, all of 29 which existing buildings were originally constructed not 30 less than 80 years ago; 31 (iii) The voters of the district approve a 32 proposition for the issuance of the bonds at a referendum 33 held after December 31, 1996; and 34 (iv) The bonds are issued pursuant to Sections 19-2 SB840 Enrolled -11- LRB9105899NTsb 1 through 19-7 of this Code. 2 (j) Notwithstanding any other provisions of this Section 3 or the provisions of any other law, until January 1, 1999, a 4 community unit school district maintaining grades K through 5 12 may issue bonds up to an amount, including existing 6 indebtedness, not exceeding 27% of the equalized assessed 7 value of the taxable property in the district if all of the 8 following conditions are met: 9 (i) The school district has an equalized assessed 10 valuation for calendar year 1995 of less than 11 $140,000,000 and a best 3 months average daily attendance 12 for the 1995-96 school year of at least 2,800; 13 (ii) The bonds are issued to purchase a site and 14 build and equip a new high school, and the school 15 district's existing high school was originally 16 constructed not less than 35 years prior to the sale of 17 the bonds; 18 (iii) At the time of the sale of the bonds, the 19 board of education determines by resolution that a new 20 high school is needed because of projected enrollment 21 increases; 22 (iv) At least 60% of those voting in an election 23 held after December 31, 1996 approve a proposition for 24 the issuance of the bonds; and 25 (v) The bonds are issued pursuant to Sections 19-2 26 through 19-7 of this Code. 27 (k) Notwithstanding the debt limitation prescribed in 28 subsection (a) of this Section, a school district that meets 29 all the criteria set forth in paragraphs (1) through (4) of 30 this subsection (k) may issue bonds to incur an additional 31 indebtedness in an amount not to exceed $4,000,000 even 32 though the amount of the additional indebtedness authorized 33 by this subsection (k), when incurred and added to the 34 aggregate amount of indebtedness of the school district SB840 Enrolled -12- LRB9105899NTsb 1 existing immediately prior to the school district incurring 2 such additional indebtedness, causes the aggregate 3 indebtedness of the school district to exceed or increases 4 the amount by which the aggregate indebtedness of the 5 district already exceeds the debt limitation otherwise 6 applicable to that school district under subsection (a): 7 (1) the school district is located in 2 counties, 8 and a referendum to authorize the additional indebtedness 9 was approved by a majority of the voters of the school 10 district voting on the proposition to authorize that 11 indebtedness; 12 (2) the additional indebtedness is for the purpose 13 of financing a multi-purpose room addition to the 14 existing high school; 15 (3) the additional indebtedness, together with the 16 existing indebtedness of the school district, shall not 17 exceed 17.4% of the value of the taxable property in the 18 school district, to be ascertained by the last assessment 19 for State and county taxes; and 20 (4) the bonds evidencing the additional 21 indebtedness are issued, if at all, within 120 days of 22 the effective date of this amendatory Act of 1998. 23 (l) Notwithstanding any other provisions of this Section 24 or the provisions of any other law, until January 1, 2000, a 25 school district maintaining grades kindergarten through 8 may 26 issue bonds up to an amount, including existing indebtedness, 27 not exceeding 15% of the equalized assessed value of the 28 taxable property in the district if all of the following 29 conditions are met: 30 (i) the district has an equalized assessed 31 valuation for calendar year 1996 of less than 32 $10,000,000; 33 (ii) the bonds are issued for capital improvement, 34 renovation, rehabilitation, or replacement of one or more SB840 Enrolled -13- LRB9105899NTsb 1 school buildings of the district, which buildings were 2 originally constructed not less than 70 years ago; 3 (iii) the voters of the district approve a 4 proposition for the issuance of the bonds at a referendum 5 held on or after March 17, 1998; and 6 (iv) the bonds are issued pursuant to Sections 19-2 7 through 19-7 of this Code. 8 (m) Notwithstanding any other provisions of this Section 9 or the provisions of any other law, until January 1, 1999, an 10 elementary school district maintaining grades K through 8 may 11 issue bonds up to an amount, excluding existing indebtedness, 12 not exceeding 18% of the equalized assessed value of the 13 taxable property in the district, if all of the following 14 conditions are met: 15 (i) The school district has an equalized assessed 16 valuation for calendar year 1995 or less than $7,700,000; 17 (ii) The school district operates 2 elementary 18 attendance centers that until 1976 were operated as the 19 attendance centers of 2 separate and distinct school 20 districts; 21 (iii) The bonds are issued for the construction of 22 a new elementary school building to replace an existing 23 multi-level elementary school building of the school 24 district that is not handicapped accessible at all levels 25 and parts of which were constructed more than 75 years 26 ago; 27 (iv) The voters of the school district approve a 28 proposition for the issuance of the bonds at a referendum 29 held after July 1, 1998; and 30 (v) The bonds are issued pursuant to Sections 19-2 31 through 19-7 of this Code. 32 (n) Notwithstanding the debt limitation prescribed in 33 subsection (a) of this Section or any other provisions of 34 this Section or of any other law, a school district that SB840 Enrolled -14- LRB9105899NTsb 1 meets all of the criteria set forth in paragraphs (i) through 2 (vi) of this subsection (n) may incur additional indebtedness 3 by the issuance of bonds in an amount not exceeding the 4 amount certified by the Capital Development Board to the 5 school district as provided in paragraph (iii) of this 6 subsection (n), even though the amount of the additional 7 indebtedness so authorized, when incurred and added to the 8 aggregate amount of indebtedness of the district existing 9 immediately prior to the district incurring the additional 10 indebtedness authorized by this subsection (n), causes the 11 aggregate indebtedness of the district to exceed the debt 12 limitation otherwise applicable by law to that district: 13 (i) The school district applies to the State Board 14 of Education for a school construction project grant and 15 submits a district facilities plan in support of its 16 application pursuant to Section 5-20 of the School 17 Construction Law. 18 (ii) The school district's application and 19 facilities plan are approved by, and the district 20 receives a grant entitlement for a school construction 21 project issued by, the State Board of Education under the 22 School Construction Law. 23 (iii) The school district has exhausted its bonding 24 capacity or the unused bonding capacity of the district 25 is less than the amount certified by the Capital 26 Development Board to the district under Section 5-15 of 27 the School Construction Law as the dollar amount of the 28 school construction project's cost that the district will 29 be required to finance with non-grant funds in order to 30 receive a school construction project grant under the 31 School Construction Law. 32 (iv) The bonds are issued for a "school 33 construction project", as that term is defined in Section 34 5-5 of the School Construction Law, in an amount that SB840 Enrolled -15- LRB9105899NTsb 1 does not exceed the dollar amount certified, as provided 2 in paragraph (iii) of this subsection (n), by the Capital 3 Development Board to the school district under Section 4 5-15 of the School Construction Law. 5 (v) The voters of the district approve a 6 proposition for the issuance of the bonds at a referendum 7 held after the criteria specified in paragraphs (i) and 8 (iii) of this subsection (n) are met. 9 (vi) The bonds are issued pursuant to Sections 19-2 10 through 19-7 of the School Code. 11 (Source: P.A. 89-47, eff. 7-1-95; 89-661, eff. 1-1-97; 12 89-698, eff. 1-14-97; 90-570, eff. 1-28-98; 90-757, eff. 13 8-14-98.) 14 Section 10. The School Construction Law is amended by 15 changing Sections 5-15 and 5-20 as follows: 16 (105 ILCS 230/5-15) 17 Sec. 5-15. Grant entitlements. The State Board of 18 Education is authorized to issue grant entitlements for 19 school construction projects and debt service and shall 20 determine the priority order for school construction project 21 grants to be made by the Capital Development Board. When 22 issuing a grant entitlement for a school construction 23 project, the Capital Development Board, as a part of that 24 entitlement, shall certify to the district receiving the 25 entitlement the dollar amount of the school construction 26 project's cost that the district will be required to finance 27 with non-grant funds in order to qualify to receive a school 28 construction project grant under this Article from the 29 Capital Development Board. 30 (Source: P.A. 90-548, eff. 1-1-98.) 31 (105 ILCS 230/5-20) SB840 Enrolled -16- LRB9105899NTsb 1 Sec. 5-20. Grant application; district facilities plan. 2 School districts shall apply to the State Board of Education 3 for school construction project grants and debt service 4 grants. Districts filing grant applications shall submit to 5 the State Board a district facilities plan that shall 6 include, but not be limited to, an assessment of present and 7 future district facility needs as required by present and 8 anticipated educational programming, the availability of 9 local financial resources including current revenues, fund 10 balances, and unused bonding capacity, a fiscal plan for 11 meeting present and anticipated debt service obligations, and 12 a maintenance plan and schedule that contain necessary 13 assurances that new, renovated, and existing facilities are 14 being or will be properly maintained. If a district that 15 applies for a school construction project grant has no unused 16 bonding capacity or if its unused bonding capacity may be 17 less than the portion of the cost of the proposed school 18 construction project that the district would be required to 19 finance with non-grant funds, the application and facilities 20 plan submitted by the district shall set forth the estimated 21 amount of the project's cost that the district proposes to 22 finance by the issuance of bonds under subsection (n) of 23 Section 19-1 of the School Code. The State Board of Education 24 shall review and approve district facilities plans prior to 25 issuing grant entitlements. Each district that receives a 26 grant entitlement shall annually update its district 27 facilities plan and submit the revised plan to the State 28 Board for approval. 29 (Source: P.A. 90-548, eff. 1-1-98.) 30 Section 99. Effective date. This Act takes effect upon 31 becoming law.