House Bill 1501e1

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                                      HB 1501, First Engrossed/ntc



  1                      A bill to be entitled

  2         An act relating to the City of Jacksonville and

  3         the Jacksonville Electric Authority; amending

  4         chapter 80-513, Laws of Florida, as amended, to

  5         change the name of Jacksonville Electric

  6         Authority to JEA; correcting references to

  7         other laws; repealing superfluous provisions;

  8         providing an effective date.

  9

10         WHEREAS, by exercise of home rule authority in

11  Ordinance 98-253-E, the Council of the City of Jacksonville

12  amended Article 21 of Chapter 92-341, Laws of Florida, as

13  amended, to change, among other things, the name of

14  Jacksonville Electric Authority to JEA, and

15         WHEREAS, similar amendments should be made to Chapter

16  80-513, Laws of Florida, as amended by Chapter 82-312, Laws of

17  Florida, for purposes of consistency and conformity, NOW,

18  THEREFORE,

19

20  Be It Enacted by the Legislature of the State of Florida:

21

22         Section 1.  Section 1 of chapter 80-513, Laws of

23  Florida, as amended by chapter 82-312, Laws of Florida, is

24  amended to read:

25         Section 1.  JEA The Jacksonville Electric Authority,

26  City of Jacksonville, Duval County, Florida (hereinafter

27  referred to as "Authority") is hereby authorized to acquire,

28  build, construct, erect, extend, enlarge, lease, improve,

29  furnish, equip, own and operate as a separate bulk power

30  supply utility or system, electric generating plants and

31  transmission lines and interconnections and substations for


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                                      HB 1501, First Engrossed/ntc



  1  the generation, transmission and exchanging of electric power

  2  and energy both within and without the boundaries of the

  3  consolidated City of Jacksonville and within and without the

  4  state (hereinafter called "system" or "project") for the

  5  purposes of providing wholesale or retail energy or power to

  6  customers within Duval County or counties adjacent thereto.

  7  Nothing herein shall prohibit the JEA Authority from (i)

  8  selling power and energy from a project to a joint participant

  9  in such project or to any electric utility located within or

10  without the state pursuant to a coordination or interchange

11  agreement with such utility or (ii) providing transmission

12  service to, or entering into coordination or interchange

13  agreements with, any electric utility located within or

14  without the state.  JEA The Authority may establish one or

15  more such separate systems or projects.

16         Section 2.  Subsection (b) of section 2 of chapter

17  80-513, Laws of Florida, as amended by chapter 82-312, Laws of

18  Florida, is amended to read:

19         Section 2.  JEA The Authority:

20         (b)  May contract for a period not exceeding 40 forty

21  (40) years for:

22         (i)  The purchase by take-or-pay contracts, or

23  otherwise, of capacity or energy, or both, in any quantity

24  from any project owned or operated directly or indirectly

25  under lease, by any person, trust, or corporation, including

26  contracts or other arrangements between or among the existing

27  electric system of JEA the Authority and one or more separate

28  systems of JEA the Authority for the allocation to said

29  existing electric system and/or any one or more of such

30  systems of the output, capacity, energy or services of

31  projects of JEA the Authority, and for the allocation of JEA's


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                                      HB 1501, First Engrossed/ntc



  1  the Authority's costs related to such projects, on a

  2  take-or-pay basis or otherwise;

  3         (ii)  The sale of capacity or energy, or both, in any

  4  quantity from any project in which JEA the Authority has an

  5  ownership or leasehold interest;

  6         Section 3.  Section 3 of chapter 80-513, Laws of

  7  Florida, as amended by chapter 82-312, Laws of Florida, is

  8  amended to read:

  9         Section 3.  (a)  JEA The Authority is authorized, by

10  resolution, to issue revenue bonds from time to time

11  (hereinafter referred to as "bonds") to pay all or part of the

12  cost of any project as above described or for the purpose of

13  refunding bonds issued for such purpose. Such bonds may be in

14  such denomination or denominations, may bear interest at such

15  rate or rates as are currently established by s. 215.84,

16  Florida Statutes, or according to said section as it may from

17  time to time be amended, and shall mature at such time or

18  times not exceeding 40 forty (40) years from their date or

19  dates, all as may be determined by JEA the Authority. The

20  bonds may be made redeemable before maturity, at the option of

21  JEA the Authority, at such price or prices and under such

22  terms and conditions as may be fixed by JEA the Authority

23  prior to their issuance.  JEA The Authority shall determine

24  the form of bonds, including any interest coupons to be

25  attached thereto, the manner of execution of the bonds, and

26  the place or places of payment of principal and interest,

27  which may be at any bank or trust company within or without

28  the State of Florida. The resolution authorizing the issuance

29  of the bonds shall contain such provisions relating to the use

30  of the proceeds from the sale of the bonds and for the

31  protection and security of holders of the bonds, including


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                                      HB 1501, First Engrossed/ntc



  1  their rights and remedies, and the rights, powers, privileges,

  2  duties, and obligations of JEA the Authority with respect to

  3  the same, as shall be determined by JEA the Authority. In case

  4  any officer whose signature or facsimile of whose signature

  5  shall appear on any bonds or coupons shall cease to be such

  6  officer before the delivery of such bonds, such signature or

  7  such facsimile shall nevertheless be valid and sufficient for

  8  all purposes the same as if he had remained in office until

  9  such delivery. All bonds issued under the provisions of this

10  act shall be and are hereby declared to have all the qualities

11  and incidents of negotiable instruments under the laws of the

12  State of Florida. The bonds may be issued in coupon or in

13  fully registered form, or both, as JEA the Authority may

14  determine, and provisions may be made for the registration of

15  any coupon bonds as to principal alone and also as to both

16  principal and interest and for the reconversion into coupon

17  bonds of any bonds registered as to both principal and

18  interest. The bonds shall be sold at public or private sale at

19  such price or prices as JEA the Authority shall determine to

20  be in its best interest; provided, however, that the issuance

21  of such bonds shall be subject to the limitations or

22  conditions contained in s. 215.84, Florida Statutes, and

23  provided, further, that any price less than 100 percent of par

24  value shall be subject to s. 215.84, Florida Statutes, but in

25  no event shall any such bonds be sold at less than 95 percent

26  of par value.

27         (b)  When bonds have been authorized by resolution of

28  JEA the Authority, bond anticipation notes may be authorized

29  and issued from time to time, to temporarily finance the

30  costs, or any part thereof, of the project for which the bonds

31  are to be issued, in anticipation of the issuance of said


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                                      HB 1501, First Engrossed/ntc



  1  bonds. Such bond anticipation notes (hereinafter called

  2  "notes") which shall include bond anticipation notes which may

  3  be issued as part of a tax exempt commercial paper program, or

  4  other short-term note financing program, shall be authorized

  5  by a resolution of JEA the Authority which resolution shall

  6  fix the maximum amount of notes to be issued, the maximum

  7  interest rate such notes may bear, subject to the provisions

  8  of s. 215.84, Florida Statutes, the denomination or

  9  denominations thereof, the redemption provisions thereof,

10  which may include provisions for payment on demand of the

11  purchaser or purchasers, and such other details, including the

12  form of such notes, provisions for the renewal thereof and the

13  security for payment thereof as shall be determined by JEA the

14  Authority. Such notes shall have such qualities and incidents

15  of negotiable instruments and shall be executed in the manner

16  provided herein for the bonds and shall be payable from the

17  proceeds of said bonds unless sooner paid from the revenues of

18  the project for which they are issued. Each such note,

19  including any renewals thereof, shall mature not later than 5

20  five (5) years from the initial date of issuance of such note

21  authorized by such resolution. When authorized by resolution

22  such notes, including renewals, may be sold by officers of JEA

23  the Authority at public or private sale and delivered by such

24  officers to the purchaser or purchasers thereof within the

25  limitations and restrictions contained in such resolution.

26         Section 4.  Section 4 of chapter 80-513, Laws of

27  Florida, is amended to read:

28         Section 4.  The principal of and interest on the bonds

29  issued under this act may be payable from the revenues derived

30  from the operation of the system, and from other funds legally

31  available for such purpose; provided, however, that neither


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                                      HB 1501, First Engrossed/ntc



  1  the bonds issued under this act, nor the interest thereon,

  2  shall have any lien upon any property of or in the City of

  3  Jacksonville or any property of JEA the Authority except the

  4  revenues and other legally available funds, if any, pledged

  5  for the payment thereof.

  6         Section 5.  Section 6 of chapter 80-513, Laws of

  7  Florida, is amended to read:

  8         Section 6.  The cost of the project may be deemed to

  9  also include (but not be limited to), the cost of acquisition

10  or lease of sites, rights-of-way, legal, engineering, fiscal,

11  architectural fees, and fees of any other experts or

12  consultants employed by JEA the Authority, engineering,

13  architectural, or environmental studies, surveys, plans, and

14  designs for the system; applications, licenses, permits, and

15  approvals required by governmental agencies, interest during

16  construction and for some reasonable period thereafter;

17  prepaid facilities charges, repayment of loans, notes, and

18  advances; provisions for debt service and other reserves; bond

19  discount; the expense of the issuance, authorization, and sale

20  of said bonds including advertisement, notices, and

21  proceedings in connection therewith; and such other expenses

22  as are necessary, incidental or appurtenant to the purposes

23  authorized hereunder. JEA The authority shall make payment to

24  any taxing unit other than Duval County in which it locates an

25  electric generating plant. The payment shall be in the amount

26  agreed to by JEA the authority and the taxing unit or in the

27  absence of such an agreement in an amount equal to the ad

28  valorem taxes which would be paid to the taxing unit on the

29  plant by a private utility. JEA The authority shall also be

30  subject to all county ordinances and regulations which would

31  apply to a private utility.


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                                      HB 1501, First Engrossed/ntc



  1         Section 6.  Section 8 of chapter 80-513, Laws of

  2  Florida, as amended by chapter 82-312, Laws of Florida, is

  3  amended to read:

  4         Section 8.  Bonds shall be issued under the provisions

  5  of this act only upon approval by two-thirds of the membership

  6  of the Council of the City of Jacksonville (hereinafter

  7  referred to as "council") except that no such approval shall

  8  be required for the issuance of bonds to complete the payment

  9  of the cost of a project for which bonds have previously been

10  issued with such approval of the council, to pay the cost of

11  capital improvements to such a project or to refund bonds

12  issued for such a project; and any agreements or contracts

13  entered into by JEA the Authority under section 2(a) of this

14  act shall be subject to the prior consent and approval by

15  two-thirds of the membership of the council except that no

16  such approval shall be required for the amendment of any such

17  agreement or contract. Notwithstanding the foregoing, JEA the

18  Authority may not execute any material amendment to such an

19  agreement or contract until it shall have been submitted to

20  the council and the mayor for their consideration; the council

21  and the mayor may consider the proposed material amendment for

22  a period of up to 30 thirty (30) days and may forward their

23  comments, if any, to JEA the Authority and JEA the Authority

24  may not formally execute such a proposed amendment until after

25  this 30-day thirty (30) day period shall have expired. Should

26  both the mayor and the council desire to waive this 30-day

27  thirty (30) day requirement with regard to any particular

28  amendment after having received it, then they may communicate

29  this desire to waive comment in writing to JEA the Authority

30  which may proceed to execute the amendment so long as such

31  waiver has been received from both the mayor and the council.


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                                      HB 1501, First Engrossed/ntc



  1  Any such agreement or contract approved by two-thirds of the

  2  membership of the council shall constitute a contract which

  3  shall not be impaired by subsequent legislative action of the

  4  council.

  5         Section 7.  Section 9 of chapter 80-513, Laws of

  6  Florida, is amended to read:

  7         Section 9.  This act shall not be deemed to repeal or

  8  supersede any other law or laws, including part I, chapter 163

  9  and part II, chapter 361, Chapter 163, Part I and 361, Part

10  II, Florida Statutes, but shall be supplemental and additional

11  authority to JEA the Authority to carry out and perform the

12  powers provided by this act, and shall be liberally

13  constructed to effect the purposes thereof. For the purposes

14  of this act, JEA the Authority shall be deemed to be a public

15  agency within the meaning of chapter 163, part I, Florida

16  Statutes.

17         Section 8.  Section 10 of chapter 80-513, Laws of

18  Florida, as amended by chapter 82-312, Laws of Florida, is

19  amended to read:

20         Section 10.  The provisions of this act are intended to

21  implement the provisions of s. 10, Article VII of the State

22  Constitution and in establishing a joint electric supply

23  project pursuant to this act, JEA the Authority may give, lend

24  or use its credit to aid any joint participant in such project

25  but the City of Jacksonville may not give, lend, or use its

26  taxing power, or its full faith and credit, to aid any joint

27  participant in such project. Any bonds issued pursuant to the

28  provisions of this act, and the interest thereon, shall be

29  exempt from any and all taxation by the State of Florida, any

30  law to the contrary notwithstanding; provided, however, that

31  any interest income or profits on debt obligations issued


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                                      HB 1501, First Engrossed/ntc



  1  hereunder shall not be exempt from the tax imposed by chapter

  2  220, Florida Statutes. The private interest portion of any

  3  such joint project shall be subject to all taxation in

  4  accordance with its proportionate interest in such project.

  5         Section 9.  Section 11 of chapter 80-513, Laws of

  6  Florida, as amended by chapter 82-312, Laws of Florida, is

  7  amended to read:

  8         Section 11.  The auditor of the Council of the City of

  9  Jacksonville shall conduct an annual audit of the fiscal

10  operations of each separate system of JEA the Authority;

11  provided, however, that notwithstanding anything contained in

12  the chapter 92-341, Laws of Florida, as amended, being the

13  Charter of the City of Jacksonville (the "Charter") or the

14  Ordinance Code of the City of Jacksonville to the contrary, no

15  audit by the auditor of the council shall be required with

16  respect to any system consisting of JEA's the Authority's

17  interest in any joint electric power project for which an

18  annual audit by an independent auditor is required by the

19  terms of an agreement entered into under section 2(a) of this

20  act. However, an audit may be performed by the council auditor

21  and if performed, the audit may examine all accounting

22  systems, accounts and other records of financial transactions

23  of the joint electric power project which are maintained by

24  JEA the Authority, or which are maintained by any committee

25  referred to in section 13 of chapter 80-513, Laws of Florida,

26  as created by this act. Notwithstanding anything contained or

27  implied in this act, the Charter or the Ordinance Code of the

28  City of Jacksonville to the contrary, no audit by the auditor

29  of the council shall be conducted with respect to any

30  accounting systems, accounts, or other records separately

31  maintained by any other participant in such a project, nor


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                                      HB 1501, First Engrossed/ntc



  1  shall such an audit extend to the interests of any other

  2  participant in such a project, except to the extent any

  3  agreement entered into pursuant to section 2 of this act

  4  expressly provides for audits by the council auditor. The

  5  auditor shall submit a printed and public report on such audit

  6  to the Council of the City of Jacksonville.

  7         Section 10.  Subsections (1), (2), and (4) of section

  8  12 of chapter 80-513, Laws of Florida, as created by section 8

  9  of chapter 82-312, Laws of Florida, are amended to read:

10         Section 12.  In order to enable JEA the Authority to

11  implement and accomplish any joint electric power project with

12  respect to which JEA the Authority has entered into an

13  agreement under section 2(a) of this act, JEA the Authority

14  shall have the following powers, in addition to powers

15  otherwise conferred:

16         (1)  To employ personnel whose duties shall relate

17  exclusively to any such joint electric power project. Such

18  employees shall not be employees of the City of Jacksonville,

19  or members of the Civil Service System of the City of

20  Jacksonville, nor shall they participate in the pension fund

21  of the city notwithstanding any provision of the Charter or

22  the Ordinance Code of the City of Jacksonville to the

23  contrary. JEA The Authority may fix and pay to such employees

24  such compensation and provide to them such other employee

25  rights and benefits as it shall determine. In addition, JEA

26  the Authority may allocate to the joint electric power project

27  the services of any of its other employees, whether appointed

28  or within the Civil Service System of the City, from time to

29  time on a temporary basis in order to provide necessary

30  support or assistance to the joint electric power project.

31  Such temporary assignment of any civil service employee to a


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                                      HB 1501, First Engrossed/ntc



  1  project shall not exceed 60 sixty (60) consecutive days in

  2  duration. In the event that an employee of JEA the Authority

  3  who is a member of the classified civil service system of the

  4  city and is participating in the 1937 Employees' Pension Fund

  5  of the city shall become a full-time employee of any such

  6  joint electric power project after the effective date of this

  7  act, then such employee shall no longer be a member of the

  8  city civil service system and shall relinquish all rights and

  9  privileges inuring to employees within said system and shall

10  thereafter be entitled only to those benefits as shall be

11  afforded other full-time employees of the joint electric power

12  project. However, any employee who shall leave the city civil

13  service system in order to become an employee of such a

14  project prior to January 1, 1990, may, at his or her option,

15  continue as a member of the 1937 Employees' Pension Fund and

16  upon continuation shall make the required employee

17  contribution thereto and the matching contribution which had

18  theretofore been paid into this fund by JEA the Authority on

19  behalf of such employee shall thereafter be assumed and paid

20  by the project. No person who is receiving time service

21  pension payments from any pension fund of the city may become

22  an employee of a joint electric power project and continue to

23  receive payments from the fund during such period of

24  employment. However, should any such person whose pension

25  benefits have been so terminated cease his employment with the

26  joint electric power project, he shall immediately become

27  qualified for and be entitled to receive those benefits he had

28  previously been entitled to.

29         (2)  To establish or approve, and to implement,

30  policies and procedures providing for the letting of contracts

31  for the procurement and disposal of property, work,


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                                      HB 1501, First Engrossed/ntc



  1  professional and nonprofessional services, products, supplies,

  2  equipment, and materials of any nature needed for the

  3  financing, construction, and operation of any such joint

  4  electric power project. Such policies and procedures shall

  5  govern exclusively JEA's the Authority's contracting and

  6  procurement and disposal practices in connection with the

  7  joint electric power project notwithstanding any provision of

  8  the Charter or the Ordinance Code of the City of Jacksonville

  9  to the contrary.

10         (4)  To provide for the establishment and revision of

11  construction and operating budgets for such joint electric

12  power project. JEA The Authority shall not be required to

13  submit to the council for approval any budgets relating to the

14  joint electric power project. All such budgets shall become

15  effective without approval of the council notwithstanding any

16  provision of the Charter or the Ordinance Code of the City of

17  Jacksonville to the contrary.

18         Section 11.  Paragraph (1) of subsection (a) and

19  subsection (b) of section 13 of chapter 80-513, Laws of

20  Florida, as created by section 9 of chapter 82-312, Laws of

21  Florida, are amended to read:

22         Section 13.  (a)  In order to enable JEA the Authority

23  and any other electric utility or group of electric utilities

24  which enter into an agreement for a joint electric power

25  project under section 2(a) to coordinate their joint

26  activities with respect to the construction and operation of

27  such joint electric power project in an efficient manner, JEA

28  the Authority shall have the following powers, in addition to

29  the powers otherwise conferred:

30         (1)  Subject to the provisions and limitations

31  contained in subsection (b), to provide in the agreement for


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                                      HB 1501, First Engrossed/ntc



  1  the management of the construction and operation of the joint

  2  electric power project by one or more committees composed of

  3  representatives of parties to the agreement, and to designate

  4  one or more representatives of JEA the Authority to serve on

  5  any such committee.

  6         (b)  JEA The Authority may delegate to any committees

  7  referred to in subsection (a), or to any party to the

  8  agreement designated as agent in accordance with subsection

  9  (a), or to any officer or employee of JEA the Authority, the

10  responsibility and authority to undertake activities in

11  furtherance of the construction and operation of the joint

12  electric power project to such extent as JEA the Authority, in

13  its discretion, may deem proper and appropriate or to such

14  extent as shall be provided in the agreement; provided,

15  however, that, to the extent such activities involve

16  discretionary authority, any such committee, or agent or

17  officer or employee of JEA the Authority, shall be authorized

18  to undertake such activities only in accordance with policies

19  and procedures approved by JEA the Authority and in a manner

20  consistent with prudent utility practice.

21         Section 12.  Section 14 of chapter 80-513, Laws of

22  Florida, as created by section 10 of chapter 82-312, Laws of

23  Florida, is amended to read:

24         Section 14.  The financing, construction, and operation

25  of any joint electric power project undertaken pursuant to

26  this act shall be governed and controlled exclusively by the

27  provisions of this act, the terms of the agreement with

28  respect to such joint electric power project entered into by

29  JEA the Authority pursuant to section 2(a) and the provisions

30  of the resolution or resolutions of JEA the Authority securing

31  the bonds issued by JEA the Authority to finance its share of


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                                      HB 1501, First Engrossed/ntc



  1  the cost of the project. No provision of the Charter or the

  2  Ordinance Code of the City of Jacksonville shall apply to or

  3  impose any requirement on JEA the Authority relative to the

  4  financing, construction, ownership, and operation of, or use

  5  or application of the revenues derived by JEA the Authority

  6  from, any joint electric supply project authorized pursuant to

  7  this act, including, but not limited to, sections 5.07 5.06,

  8  5.10, 5.11, 14.01 15.03, 14.02 15.04, 15.05, 21.04(1)

  9  30.04(10), 21.07(c) 30.07(3), 21.07(d) 30.07(4), 21.07(e)

10  30.07(5), 21.09 30.09 and Articles 18 and 19 of the Charter

11  and Chapter 126 130 of the Ordinance Code. The council shall

12  enact no law the provisions of which would conflict with, or

13  impair the rights of any party to, such agreement or would

14  conflict with any such bond resolution or impair the rights of

15  the holders of such bonds.

16         Section 13.  Section 15 of chapter 80-513, Laws of

17  Florida, as created by section 11 of chapter 82-312, Laws of

18  Florida, is amended to read:

19         Section 15.  The council shall enact no law which in

20  any manner would limit or impair JEA the Authority in the

21  exercise of the powers granted to it by this act. Any

22  provision of the Charter or the Ordinance Code of the City of

23  Jacksonville, or of any special act relating to the City of

24  Jacksonville or JEA the Authority, which is in conflict with

25  the provisions of this act is hereby superseded by the

26  provisions of this act, and is hereby repealed, but only to

27  the extent of such conflict.

28         Section 14.  Section 16 of chapter 80-513, Laws of

29  Florida, as created by section 12 of chapter 82-312, Laws of

30  Florida, is amended to read:

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                                      HB 1501, First Engrossed/ntc



  1         Section 16.  The council is hereby directed to, and it

  2  shall, make the annual appropriations necessary for JEA the

  3  Authority to fulfill its contractual obligations to make any

  4  and all payments required by the terms of any agreement

  5  entered into pursuant to section 2 of this act or by the

  6  provisions of any resolution of JEA the Authority securing

  7  bonds issued to finance its share of the cost of any project

  8  authorized by this act, but the council shall not be required

  9  to make such appropriations from the general fund or any other

10  funds or moneys of the City of Jacksonville other than

11  revenues and other available funds of JEA the Authority.

12         Section 15.  Section 17 of chapter 80-513, Laws of

13  Florida, as created by section 13 of chapter 82-312, Laws of

14  Florida, is repealed.

15         Section 16.  Section 18 of chapter 80-513, Laws of

16  Florida, as created by section 14 of chapter 82-312, Laws of

17  Florida, is renumbered as section 17.

18         Section 17.  Sections 19 and 20 of chapter 80-513, Laws

19  of Florida, renumbered by section 7 of chapter 82-312, Laws of

20  Florida, are renumbered as sections 18 and 19, respectively.

21         Section 18.  This act shall take effect upon becoming a

22  law.

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