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92_HB2159
LRB9207072MWmgA
1 AN ACT concerning State budget stabilization.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Rainy Day Budget Stabilization Act.
6 Section 5. Budget Stabilization Fund. The Budget
7 Stabilization Fund is a special fund in the State treasury
8 established for the purpose of reducing the need for future
9 tax increases, maintaining the highest possible bond rating,
10 reducing the need for short term borrowing, and providing
11 available resources to meet State obligations whenever casual
12 deficits or failures in revenue occur. In authorizing
13 transfers from the Budget Stabilization Fund, priority
14 consideration must be given to meeting obligations for
15 secondary and elementary education, childcare, and other
16 programs that may provide a direct benefit to children.
17 Section 10. Transfers to Budget Stabilization Fund and
18 Early Debt Retirement Fund.
19 (a) For fiscal year 2002, if the Economic and Fiscal
20 Commission's estimates of the State's general funds revenues
21 exceed the prior year's estimated general funds revenues by
22 more than 4%, and for each fiscal year thereafter in which
23 the Revenue Estimating Council's report, as adopted by the
24 General Assembly under Section 50-5.5 of the State Budget Law
25 of the Civil Administrative Code of Illinois, estimates
26 revenues into the State's general funds to exceed the prior
27 year's estimated general funds revenues by more than 4%, the
28 Comptroller shall transfer from the General Revenue Fund as
29 provided by this Section a total amount equal to 1% of the
30 estimated general funds revenues to the Budget Stabilization
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1 Fund or the Early Debt Retirement Fund. Nothing in this Act
2 prohibits the General Assembly from appropriating additional
3 moneys into the Budget Stabilization Fund or the Early Debt
4 Retirement Fund.
5 (b) Except as provided in subsection (c), the
6 Comptroller shall transfer 1/12 of the total amount to be
7 transferred each fiscal year under subsection (a) into the
8 Budget Stabilization Fund on the first day of each month of
9 that fiscal year or as soon thereafter as possible.
10 (c) When the Revenue Estimating Council has estimated
11 that the balance of the Budget Stabilization Fund will exceed
12 4% of the Revenue Estimating Council's estimate of the total
13 general funds revenues, the Comptroller shall:
14 (1) Transfer 1/12 of the total amount identified
15 for transfer to the Budget Stabilization Fund into the
16 Budget Stabilization Fund on the first day of each month
17 of that fiscal year or as soon thereafter as possible;
18 and
19 (2) Transfer 1/12 of the total amount identified
20 for transfer to the Early Debt Retirement Fund into the
21 Early Debt Retirement Fund on the first day of each month
22 of that fiscal year or as soon thereafter as possible.
23 Section 15. Notifications.
24 (a) At any time when the Governor determines that there
25 are insufficient resources available within the general funds
26 of the State to meet the State's obligations, the Governor
27 may request the General Assembly to do one or more of the
28 following:
29 (1) enact legislation that it deems necessary to
30 appropriate or transfer funds or reduce appropriations of
31 the current State budget;
32 (2) enact legislation that it deems necessary to
33 transfer funds from the Budget Stabilization Fund to the
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1 general funds; or
2 (3) authorize the Governor, in a written document
3 certified by the President of the Senate and the Speaker
4 of the House of Representatives, to direct the
5 Comptroller to make transfers from the Budget
6 Stabilization Fund to the general funds in order to
7 address cash flow emergencies.
8 (b) If the General Assembly is not in regular session to
9 enact legislation as provided in subsection (a), the
10 President of the Senate and the Speaker of the House of
11 Representatives may certify that the Senate and the House of
12 Representatives are not in regular session and approve of the
13 Governor's request to transfer funds from the Budget
14 Stabilization Fund to the general funds in order to address
15 cash flow emergencies.
16 (c) The Comptroller must notify the Governor upon
17 determination that there is, or may be, a cash flow emergency
18 in meeting the obligations of the State.
19 Section 20. Use of the Budget Stabilization Fund.
20 (a) Upon receipt of the certification from the President
21 of the Senate and the Speaker of the House of Representatives
22 authorizing the transfer of funds from the Budget
23 Stabilization Fund, the Governor may direct the Comptroller
24 to transfer a specified amount from the Budget Stabilization
25 Fund to a general fund. The directive to the Comptroller must
26 state whether the transfer is in response to failures in
27 revenue when collections are not anticipated to meet
28 projections in the current fiscal year or in response to a
29 casual deficit in revenue where collections are expected to
30 meet projections in the current fiscal year.
31 (b) The Governor is authorized to direct the Comptroller
32 to transfer funds under this Act until any time that a quorum
33 of the General Assembly can convene in regular or special
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1 session in order to enact the appropriate legislative
2 actions.
3 (c) If transfers authorized in subsection (a) were
4 deemed necessary by the Governor for the purpose of
5 responding to casual deficits in projected revenue within the
6 same fiscal year, the Governor must direct the Comptroller to
7 transfer all amounts transferred for this purpose from the
8 appropriate general fund into the Budget Stabilization Fund
9 by the end of the same fiscal year or as soon thereafter as
10 possible.
11 Section 800. The State Budget Law of the Civil
12 Administrative Code of Illinois is amended by changing
13 Sections 50-5 and 50-10 and by adding Section 50-5.5 as
14 follows:
15 (15 ILCS 20/50-5) (was 15 ILCS 20/38)
16 Sec. 50-5. Governor to submit State budget. The Governor
17 shall, as soon as possible and not later than the third
18 Wednesday in February of each year beginning in 1998, submit
19 a State budget, embracing therein the amounts recommended by
20 the Governor to be appropriated to the respective
21 departments, offices, and institutions, and for all other
22 public purposes, the estimated revenues from taxation, the
23 estimated revenues from sources other than taxation, and an
24 estimate of the amount required to be raised by taxation.
25 The amounts recommended by the Governor for appropriation to
26 the respective departments, offices and institutions shall be
27 formulated according to the various functions and activities
28 for which the respective department, office or institution of
29 the State government (including the elective officers in the
30 executive department and including the University of Illinois
31 and the judicial department) is responsible. The amounts
32 relating to particular functions and activities shall be
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1 further formulated in accordance with the object
2 classification specified in Section 13 of the State Finance
3 Act.
4 The Governor shall not propose expenditures and the
5 General Assembly shall not enact appropriations that exceed
6 the resources estimated to be available, as provided in this
7 Section.
8 For the purposes of Article VIII, Section 2 of the 1970
9 Illinois Constitution, the State budget for and
10 appropriations from the following funds shall be prepared on
11 the basis of revenue and expenditure measurement concepts
12 that are in concert with generally accepted accounting
13 principles for governments:
14 (1) General Revenue Fund.
15 (2) Common School Fund.
16 (3) Educational Assistance Fund.
17 (4) Road Fund.
18 (5) Motor Fuel Tax Fund.
19 (6) Agricultural Premium Fund.
20 These funds shall be known as the "budgeted funds". The
21 revenue estimates used in the State budget for the budgeted
22 funds shall include the estimated beginning fund balance,
23 plus revenues estimated to be received during the budgeted
24 year, plus the estimated receipts due the State as of June 30
25 of the budgeted year that are expected to be collected during
26 the lapse period following the budgeted year, minus the
27 receipts collected during the first 2 months of the budgeted
28 year that became due to the State in the year before the
29 budgeted year. Revenues shall also include estimated federal
30 reimbursements associated with the recognition of Section 25
31 of the State Finance Act liabilities. For any budgeted fund
32 for which current year revenues are anticipated to exceed
33 expenditures, the surplus shall be considered to be a
34 resource available for expenditure in the budgeted fiscal
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1 year.
2 Expenditure estimates for the budgeted funds included in
3 the State budget shall include the costs to be incurred by
4 the State for the budgeted year that are, to be paid in the
5 next fiscal year, excluding costs paid in the budgeted year
6 which were carried over from the prior year, where the
7 payment is authorized by Section 25 of the State Finance Act.
8 For any budgeted fund for which expenditures are expected to
9 exceed revenues in the current fiscal year, the deficit shall
10 be considered as a use of funds in the budgeted fiscal year.
11 Revenues and expenditures shall also include transfers
12 between funds that are based on revenues received or costs
13 incurred during the budget year.
14 By March 15 of each year, the Economic and Fiscal
15 Commission shall prepare revenue and fund transfer estimates
16 in accordance with the requirements of this Section and
17 report those estimates to the General Assembly and the
18 Governor.
19 For all funds other than the budgeted funds, the proposed
20 expenditures shall not exceed funds estimated to be available
21 for the fiscal year as shown in the budget. Appropriation
22 for a fiscal year shall not exceed (i) funds estimated by the
23 General Assembly to be available during that year as
24 contained within the joint resolution adopted by the General
25 Assembly in accordance with Section 50-5.5 of this Act or
26 (ii) for fiscal year 2002, funds estimated to be available in
27 accordance with this Section prior to the effective date of
28 this amendatory Act of the 92nd General Assembly. The
29 General Assembly's appropriations from the general funds for
30 fiscal year 2002 and thereafter may not exceed 99% of the
31 estimated general funds revenues when the revenues exceed the
32 prior year's estimated general funds revenues by more than
33 4%. Appropriations for a fiscal year must include one or
34 more separate line items for payment of liabilities incurred
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1 in a prior fiscal year and authorized to be paid during the
2 budget year under Section 25 of the State Finance Act.
3 (Source: P.A. 90-479, eff. 8-17-97; 91-239, eff. 1-1-00.)
4 (15 ILCS 20/50-5.5 new)
5 Sec.50-5.5 Revenue Estimating Council.
6 (a) There is created a Revenue Estimating Council,
7 consisting of the Director of the Bureau of the Budget, the
8 State Comptroller, and the Director of the Illinois Economic
9 and Fiscal Commission, or their designees.
10 (b) By January 1, 2002 and by January 1 of each year
11 thereafter, the Revenue Estimating Council must prepare
12 revenue and fund transfer estimates in accordance with the
13 requirements of Section 50-5 and report those estimates to
14 the General Assembly. In addition to the revenue and
15 transfer estimates, the Revenue Estimating Council must
16 certify to the following:
17 (1) An estimate of all income of the State from all
18 applicable revenue sources for the next ensuing fiscal
19 year and of any other funds estimated to be available for
20 that fiscal year.
21 (2) When estimated general funds revenues exceed
22 the prior year's estimated general funds revenues by more
23 than 4%, the general funds available for appropriation in
24 an amount equal to 99% of the estimated general funds
25 revenues for the fiscal year.
26 (3) When estimated general funds revenues exceed
27 the prior year's estimated general funds revenues by more
28 than 4%, the general funds available for transfer into
29 the Budget Stabilization Fund or the Early Debt
30 Retirement Fund in a total amount equal to 1% of the
31 estimated general funds revenues for the fiscal year.
32 (4) The amount of transfers into the Budget
33 Stabilization Fund necessary for the balance of the
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1 Budget Stabilization Fund to equal 4% of general funds
2 revenues for the budgeted year; and
3 (5) When the Revenue Estimating Council estimates
4 that the balance of the Budget Stabilization Fund shall
5 exceed 4% of the general funds revenues for the budgeted
6 year, the portion of the 1% available for transfer under
7 paragraph (3) for transfer into the Early Debt Retirement
8 Fund.
9 Notwithstanding any other provision of this subsection, for
10 the purpose of determining the estimates under this Section
11 during fiscal year 2002, the Revenue Estimating Council must
12 use the prior year's estimated general funds revenues as
13 determined by the Economic and Fiscal Commission during
14 fiscal year 2002.
15 By April 15 of each year, the Revenue Estimating Council
16 must issue a report updating the estimates required under
17 this subsection as may be required based on more recent
18 information. Upon its issuance, the Revenue Estimating
19 Council must submit the revised report to the Governor and
20 the General Assembly. The House and Senate must adopt the
21 report by joint resolution. The joint resolution constitutes
22 the General Assembly's estimate, under paragraph (b) of
23 Section 2 of Article VIII of the Illinois Constitution, of
24 the funds estimated to be available during the next fiscal
25 year.
26 (c) Prior to the beginning of the fiscal year, the
27 Revenue Estimating Council must prepare a cash flow estimate
28 of the general funds, identifying estimated revenues and cash
29 expenditures for each quarter of the fiscal year. Each
30 quarter of the fiscal year, the Revenue Estimating Council
31 must review the revenue and cash expenditure estimates and
32 issue a report to the Governor and the General Assembly
33 containing updates of the estimates required under this
34 subsection and notification of potential budgetary
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1 shortfalls.
2 (15 ILCS 20/50-10) (was 15 ILCS 20/38.1)
3 Sec. 50-10. Budget contents. The budget shall be
4 submitted by the Governor with line item and program data.
5 The budget shall also contain performance data presenting an
6 estimate for the current fiscal year, projections for the
7 budget year, and information for the 3 prior fiscal years
8 comparing department objectives with actual accomplishments,
9 formulated according to the various functions and activities,
10 and, wherever the nature of the work admits, according to the
11 work units, for which the respective departments, offices,
12 and institutions of the State government (including the
13 elective officers in the executive department and including
14 the University of Illinois and the judicial department) are
15 responsible.
16 For the fiscal year beginning July 1, 1992 and for each
17 fiscal year thereafter, the budget shall include the
18 performance measures of each department's accountability
19 report.
20 For the fiscal year beginning July 1, 1997 and for each
21 fiscal year thereafter, the budget shall include one or more
22 line items appropriating moneys to the Department of Human
23 Services to fund participation in the Home-Based Support
24 Services Program for Mentally Disabled Adults under the
25 Developmental Disability and Mental Disability Services Act
26 by persons described in Section 2-17 of that Act.
27 For the fiscal year beginning July 1, 2002 and for each
28 fiscal year thereafter, the budget must contain one or more
29 line items appropriating moneys to fund all costs in the
30 budget year estimated for payment of liabilities incurred in
31 a prior fiscal year and authorized to be paid in the budget
32 year under Section 25 of the State Finance Act.
33 The budget shall contain a capital development Section in
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1 which the Governor will present (1) information on the
2 capital projects and capital programs for which
3 appropriations are requested, (2) the capital spending plans,
4 which shall document the first and subsequent years cash
5 requirements by fund for the proposed bonded program, and (3)
6 a statement that shall identify by year the principal and
7 interest costs until retirement of the State's general
8 obligation debt. In addition, the principal and interest
9 costs of the budget year program shall be presented
10 separately, to indicate the marginal cost of principal and
11 interest payments necessary to retire the additional bonds
12 needed to finance the budget year's capital program.
13 For the budget year, the current year, and 3 prior fiscal
14 years, the Governor shall also include in the budget
15 estimates of or actual values for the assets and liabilities
16 for General Assembly Retirement System, State Employees'
17 Retirement System of Illinois, State Universities Retirement
18 System, Teachers' Retirement System of the State of Illinois,
19 and Judges Retirement System of Illinois.
20 The budget submitted by the Governor shall contain, in
21 addition, in a separate book, a tabulation of all position
22 and employment titles in each such department, office, and
23 institution, the number of each, and the salaries for each,
24 formulated according to divisions, bureaus, sections,
25 offices, departments, boards, and similar subdivisions, which
26 shall correspond as nearly as practicable to the functions
27 and activities for which the department, office, or
28 institution is responsible.
29 Together with the budget, the Governor shall transmit the
30 estimates of receipts and expenditures, as received by the
31 director of the Bureau of the Budget, of the elective
32 officers in the executive and judicial departments and of the
33 University of Illinois.
34 (Source: P.A. 91-239, eff. 1-1-00.)
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1 Section 805. The Illinois Economic and Fiscal Commission
2 Act is amended by changing Section 4 as follows:
3 (25 ILCS 155/4) (from Ch. 63, par. 344)
4 Sec. 4. (a) The Commission shall publish, at the
5 convening of each regular session of the General Assembly, a
6 report on the estimated income of the State from all
7 applicable revenue sources for the next ensuing fiscal year
8 and of any other funds estimated to be available for such
9 fiscal year. On the third Wednesday in March after the
10 session convenes, the Commission shall issue a revised and
11 updated set of revenue figures reflecting the latest
12 available information. The House and Senate by joint
13 resolution shall adopt or modify such estimates as may be
14 appropriate. The joint resolution shall constitute the
15 General Assembly's estimate, under paragraph (b) of Section 2
16 of Article VIII of the Constitution, of the funds estimated
17 to be available during the next fiscal year.
18 (b) On the third Wednesday in March, the Commission
19 shall issue estimated:
20 (1) pension funding requirements under P.A. 86-273;
21 and
22 (2) liabilities of the State employee group health
23 insurance program.
24 These estimated costs shall be for the fiscal year
25 beginning the following July 1.
26 (c) The requirement for reporting to the General
27 Assembly shall be satisfied by filing copies of the report
28 with the Speaker, the Minority Leader and the Clerk of the
29 House of Representatives and the President, the Minority
30 Leader and the Secretary of the Senate and the Legislative
31 Research Unit, as required by Section 3.1 of "An Act to
32 revise the law in relation to the General Assembly", approved
33 February 25, 1874, as amended, and filing such additional
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1 copies with the State Government Report Distribution Center
2 for the General Assembly as is required under paragraph (t)
3 of Section 7 of the State Library Act.
4 (Source: P.A. 87-1142.)
5 Section 810. The State Finance Act is amended by
6 changing Section 25 and by adding Section 6z-44 as follows:
7 (30 ILCS 105/6z-44 new)
8 Sec. 6z-44. Early Debt Retirement Fund. The Early Debt
9 Retirement Fund is created in the State treasury. Moneys in
10 the Early Debt Retirement Fund may be expended, subject to
11 appropriation, for the payment of deferred liabilities under
12 Section 25 of this Act; the early retirement of unfunded
13 pension liabilities; the retirement of bonded indebtedness
14 when practical; and the funding of other long-term fiscal
15 needs of the State. The Early Debt Retirement Fund is exempt
16 from subsections (b) and (c) of Section 5 of this Act.
17 (30 ILCS 105/25) (from Ch. 127, par. 161)
18 Sec. 25. Fiscal year limitations.
19 (a) All appropriations shall be available for
20 expenditure for the fiscal year or for a lesser period if the
21 Act making that appropriation so specifies. A deficiency or
22 emergency appropriation shall be available for expenditure
23 only through June 30 of the year when the Act making that
24 appropriation is enacted unless that Act otherwise provides.
25 (b) Outstanding liabilities as of June 30, payable from
26 appropriations which have otherwise expired, may be paid out
27 of the expiring appropriations during the 2-month period
28 ending at the close of business on August 31. Any service
29 involving professional or artistic skills or any personal
30 services by an employee whose compensation is subject to
31 income tax withholding must be performed as of June 30 of the
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1 fiscal year in order to be considered an "outstanding
2 liability as of June 30" that is thereby eligible for payment
3 out of the expiring appropriation.
4 Notwithstanding the provisions of subsections (b-5) and
5 (c) of this Section, when a State agency receives and
6 approves a request for payment of an outstanding liability
7 prior to June 30 of a fiscal year, the payment must be made
8 from the appropriations for that purpose for the fiscal year
9 in which the State agency received and approved the request
10 for payment.
11 (b-5) However, Payment of tuition reimbursement claims
12 under Section 14-7.03 or 18-3 of the School Code may be made
13 by the State Board of Education from its appropriations for
14 those respective purposes for any fiscal year, even though
15 the claims reimbursed by the payment may be claims
16 attributable to a prior fiscal year, and payments may be made
17 at the direction of the State Superintendent of Education
18 from the fund from which the appropriation is made without
19 regard to any fiscal year limitations.
20 Medical payments may be made by the Department of
21 Veterans' Affairs from its appropriations for those purposes
22 for any fiscal year, without regard to the fact that the
23 medical services being compensated for by such payment may
24 have been rendered in a prior fiscal year.
25 Medical payments may be made by the Department of Public
26 Aid and child care payments may be made by the Department of
27 Human Services (as successor to the Department of Public Aid)
28 from appropriations for those purposes for any fiscal year,
29 without regard to the fact that the medical or child care
30 services being compensated for by such payment may have been
31 rendered in a prior fiscal year; and payments may be made at
32 the direction of the Department of Central Management
33 Services from the Health Insurance Reserve Fund and the Local
34 Government Health Insurance Reserve Fund without regard to
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1 any fiscal year limitations.
2 Additionally, payments may be made by the Department of
3 Human Services from its appropriations, or any other State
4 agency from its appropriations with the approval of the
5 Department of Human Services, from the Immigration Reform and
6 Control Fund for purposes authorized pursuant to the
7 Immigration Reform and Control Act of 1986, without regard to
8 any fiscal year limitations.
9 (c) Further, payments may be made by the Department of
10 Public Health and the Department of Human Services (acting as
11 successor to the Department of Public Health under the
12 Department of Human Services Act) from their respective
13 appropriations for grants for medical care to or on behalf of
14 persons suffering from chronic renal disease, persons
15 suffering from hemophilia, rape victims, and premature and
16 high-mortality risk infants and their mothers and for grants
17 for supplemental food supplies provided under the United
18 States Department of Agriculture Women, Infants and Children
19 Nutrition Program, for any fiscal year without regard to the
20 fact that the services being compensated for by such payment
21 may have been rendered in a prior fiscal year.
22 (d) The Department of Public Health and the Department
23 of Human Services (acting as successor to the Department of
24 Public Health under the Department of Human Services Act)
25 shall each annually submit to the State Comptroller, Senate
26 President, Senate Minority Leader, Speaker of the House,
27 House Minority Leader, and the respective Chairmen and
28 Minority Spokesmen of the Appropriations Committees of the
29 Senate and the House, on or before December 31, a report of
30 fiscal year funds used to pay for services provided in any
31 prior fiscal year. This report shall document by program or
32 service category those expenditures from the most recently
33 completed fiscal year used to pay for services provided in
34 prior fiscal years.
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1 (e) The Department of Public Aid and the Department of
2 Human Services (acting as successor to the Department of
3 Public Aid) shall each annually submit to the State
4 Comptroller, Senate President, Senate Minority Leader,
5 Speaker of the House, House Minority Leader, the respective
6 Chairmen and Minority Spokesmen of the Appropriations
7 Committees of the Senate and the House, on or before November
8 30, a report that shall document by program or service
9 category those expenditures from the most recently completed
10 fiscal year used to pay for (i) services provided in prior
11 fiscal years and (ii) services for which claims were received
12 in prior fiscal years.
13 (f) The Department of Human Services (as successor to
14 the Department of Public Aid) shall annually submit to the
15 State Comptroller, Senate President, Senate Minority Leader,
16 Speaker of the House, House Minority Leader, and the
17 respective Chairmen and Minority Spokesmen of the
18 Appropriations Committees of the Senate and the House, on or
19 before December 31, a report of fiscal year funds used to pay
20 for services (other than medical care) provided in any prior
21 fiscal year. This report shall document by program or
22 service category those expenditures from the most recently
23 completed fiscal year used to pay for services provided in
24 prior fiscal years.
25 (g) In addition, each annual report required to be
26 submitted by the Department of Public Aid under subsection
27 (e) shall include the following information with respect to
28 the State's Medicaid program:
29 (1) Explanations of the exact causes of the
30 variance between the previous year's estimated and actual
31 liabilities.
32 (2) Factors affecting the Department of Public
33 Aid's liabilities, including but not limited to numbers
34 of aid recipients, levels of medical service utilization
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1 by aid recipients, and inflation in the cost of medical
2 services.
3 (3) The results of the Department's efforts to
4 combat fraud and abuse.
5 (h) As provided in Section 4 of the General Assembly
6 Compensation Act, any utility bill for service provided to a
7 General Assembly member's district office for a period
8 including portions of 2 consecutive fiscal years may be paid
9 from funds appropriated for such expenditure in either fiscal
10 year.
11 (i) An agency which administers a fund classified by the
12 Comptroller as an internal service fund may issue rules for:
13 (1) billing user agencies in advance based on
14 estimated charges for goods or services;
15 (2) issuing credits during the subsequent fiscal
16 year for all user agency payments received during the
17 prior fiscal year which were in excess of the final
18 amounts owed by the user agency for that period; and
19 (3) issuing catch-up billings to user agencies
20 during the subsequent fiscal year for amounts remaining
21 due when payments received from the user agency during
22 the prior fiscal year were less than the total amount
23 owed for that period.
24 User agencies are authorized to reimburse internal service
25 funds for catch-up billings by vouchers drawn against their
26 respective appropriations for the fiscal year in which the
27 catch-up billing was issued.
28 (Source: P.A. 89-235, eff. 8-4-95; 89-507, eff. 7-1-97;
29 89-511, eff. 1-1-97; 90-14, eff. 7-1-97; 90-168, eff.
30 7-23-97.)
31 Section 900. Severability. The provisions of this Act
32 are severable under Section 1.31 of the Statute on Statutes.
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1 Section 999. Effective date. This Act takes effect upon
2 becoming law.