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                                                      PRINTER'S NO. 1188

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1019 Session of 2007


        INTRODUCED BY GERGELY, BARRAR, BELFANTI, BENNINGHOFF, BIANCUCCI,
           CALTAGIRONE, CAPPELLI, COSTA, CREIGHTON, CURRY, CUTLER,
           DeLUCA, DePASQUALE, FABRIZIO, FREEMAN, GEIST, GEORGE,
           GIBBONS, GOODMAN, GRUCELA, HARHAI, HARPER, HARRIS, JAMES,
           JOSEPHS, M. KELLER, KING, KIRKLAND, KORTZ, KOTIK, MANN,
           MUNDY, MURT, PALLONE, PAYNE, PETRARCA, RAYMOND, READSHAW,
           SHAPIRO, McILVAINE SMITH, K. SMITH, SOLOBAY, SONNEY, SURRA,
           THOMAS, TRUE, WALKO, WANSACZ, WHEATLEY AND WOJNAROSKI,
           APRIL 3, 2007

        REFERRED TO COMMITTEE ON EDUCATION, APRIL 3, 2007

                                     AN ACT

     1  Establishing a nursing and nursing educator loan forgiveness and
     2     scholarship program.

     3                         TABLE OF CONTENTS
     4  Chapter 1.  Preliminary Provisions
     5  Section 101.  Short title.
     6  Section 102.  Purpose.
     7  Section 103.  Definitions.
     8  Chapter 3.  Pennsylvania Nurse and Nursing Educator Loan
     9                 Forgiveness Program
    10  Section 301.  Establishment.
    11  Section 302.  Repayment assistance.
    12  Section 303.  Eligibility.
    13  Section 304.  Amount of loan forgiveness.
    14  Section 305.  Administration.


     1  Chapter 5.  Scholarship Program
     2  Section 501.  Pennsylvania Nurse and Nursing Education
     3                 Scholarship Program.
     4  Section 502.  Nursing Postbaccalaureate Degree Scholarship.
     5  Section 503.  Nursing Baccalaureate Degree Scholarship.
     6  Section 504.  Nursing Program Scholarship.
     7  Section 505.  Administration.
     8  Chapter 49.  Miscellaneous Provisions
     9  Section 4901.  Annual report.
    10  Section 4902.  Minimum nursing data set.
    11  Section 4903.  Appeals.
    12  Section 4904.  Regulations.
    13  Section 4905.  Funding.
    14  Section 4906.  Effective date.
    15     The General Assembly of the Commonwealth of Pennsylvania
    16  hereby enacts as follows:
    17                             CHAPTER 1
    18                       PRELIMINARY PROVISIONS
    19  Section 101.  Short title.
    20     This act shall be known and may be cited as the Nursing and
    21  Nursing Educator Loan Forgiveness and Scholarship Act.
    22  Section 102.  Purpose.
    23     The purpose of this act is to provide an incentive to
    24  Pennsylvania students to pursue higher education and training in
    25  nursing and nursing education which are essential to the
    26  delivery of quality health care services in this Commonwealth.
    27  Section 103.  Definitions.
    28     The following words and phrases when used in this act shall
    29  have the meanings given to them in this section unless the
    30  context clearly indicates otherwise:
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     1     "Agency."  The Pennsylvania Higher Education Assistance
     2  Agency.
     3     "Approved course of study."  A program or curriculum offered
     4  by an approved educational institution that provides instruction
     5  in nursing and has been approved by the State Board of Nursing.
     6     "Approved educational institution."  A postsecondary
     7  educational institution located in this Commonwealth that is
     8  authorized to provide approved courses of study and diplomas or
     9  certificates approved by the Pennsylvania Higher Education
    10  Assistance Agency as an institution in which students may enroll
    11  to participate in the Pennsylvania Nurse and Nursing Education
    12  Scholarship Program.
    13     "Board."  The State Board of Nursing.
    14     "Licensed health care facility."  A health care facility that
    15  is enrolled in the Commonwealth's medical assistance program and
    16  is licensed pursuant to the act of July 19, 1979 (P.L.130,
    17  No.48), known as the Health Care Facilities Act, or Article X of
    18  the act of June 13, 1967 (P.L.31, No.21), known as the Public
    19  Welfare Code.
    20     "Licensed practical nurse."  An individual licensed under the
    21  laws of this Commonwealth to practice practical nursing.
    22     "Nurse."  A licensed practical or registered nurse.
    23     "Nursing educator."  An individual eligible under the laws of
    24  this Commonwealth to serve as a nurse faculty member.
    25     "Registered nurse."  An individual licensed under the laws of
    26  this Commonwealth to practice professional nursing.
    27     "Student."  An individual domiciled in this Commonwealth who
    28  attends or is about to attend a postsecondary educational
    29  institution located in this Commonwealth.
    30     "Work requirement."  Postgraduate, full-time employment in
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     1  this Commonwealth either in direct patient care with a licensed
     2  health care facility in an occupation related to an approved
     3  course of study under this act or as a nursing educator in an
     4  approved educational institution. The term does not include a
     5  paid student internship, a paid fellowship, volunteer service or
     6  employment before graduation.
     7                             CHAPTER 3
     8              PENNSYLVANIA NURSE AND NURSING EDUCATOR
     9                      LOAN FORGIVENESS PROGRAM
    10  Section 301.  Establishment.
    11     There is hereby established in this Commonwealth the
    12  Pennsylvania Nurse and Nursing Educator Loan Forgiveness
    13  Program. The Pennsylvania Nurse and Nursing Educator Loan
    14  Forgiveness Program shall be for repayment of student loans for
    15  nurses providing direct patient care in licensed health care
    16  facilities and nursing educators and shall be administered by
    17  the agency.
    18  Section 302.  Repayment assistance.
    19     The agency may provide assistance for the repayment of an
    20  agency-administered student loan for education at an institution
    21  of higher learning received by a nurse or nursing educator.
    22  Repayment assistance may not be made for a loan that is in
    23  default at the time of the application or for an agency-
    24  administered loan being repaid through any other loan repayment
    25  assistance program. Repayment shall be made by the agency to the
    26  lending institution on behalf of the loan recipient.
    27  Section 303.  Eligibility.
    28     Consideration for loan repayment assistance shall be as
    29  follows:
    30         (1)  The applicant must be an individual who:
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     1             (i)  has completed an approved course of study;
     2             (ii)  has been licensed by the board as a licensed
     3         practical nurse or a registered nurse;
     4             (iii)  is employed full time as a nurse in the
     5         provision of direct patient care in a licensed health
     6         care facility or nursing educator in an approved
     7         educational institution; and
     8             (iv)  is a resident of this Commonwealth.
     9         (2)  An applicant who is qualified under paragraph (1)
    10     must agree to practice in a licensed health care facility as
    11     a nurse or in an approved educational institution as a
    12     nursing educator for not less than three years.
    13  Section 304.  Amount of loan forgiveness.
    14     (a)  Licensed practical nurse.--A licensed practical nurse
    15  who is eligible under section 303 shall be eligible to receive
    16  up to $3,000 in loan repayments based on the following repayment
    17  schedule:
    18         (1)  Year one, 30%.
    19         (2)  Year two, 35%.
    20         (3)  Year three, 35%.
    21     (b)  Registered nurse.--A registered nurse who is eligible
    22  under section 303 shall be eligible to receive up to $20,000 in
    23  loan repayments based on the following repayment schedule:
    24         (1)  Year one, 25%.
    25         (2)  Year two, 25%.
    26         (3)  Year three, 25%.
    27         (4)  Year four, 25%.
    28     (c)  Nursing educator.--A nursing educator who is eligible
    29  under section 303 shall be eligible to receive up to $30,000 in
    30  loan repayments based on the following repayment schedule:
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     1         (1)  Year one, 25%.
     2         (2)  Year two, 25%.
     3         (3)  Year three, 25%.
     4         (4)  Year four, 25%.
     5  Section 305.  Administration.
     6     (a)  Contracts.--A recipient of loan repayment assistance
     7  shall enter into a contract with the agency which shall be
     8  considered a contract with the Commonwealth. The contract shall
     9  include, but not be limited to, the following terms and
    10  conditions:
    11         (1)  The applicant shall agree to practice not less than
    12     three full years in a licensed health care facility or
    13     approved educational institution at a repayment assistance
    14     schedule as provided in section 304.
    15         (2)  The applicant shall agree to practice on a full-time
    16     basis.
    17         (3)  The nurse or nursing educator shall permit the
    18     agency to monitor compliance with the work requirement.
    19         (4)  The agency shall certify compliance with the terms
    20     of the contract for purposes of receipt by the nurse or
    21     nursing educator of loan repayment awards for years
    22     subsequent to the initial year of the loan.
    23         (5)  The contract shall be renewable on an annual basis
    24     upon certification by the agency that the nurse or nursing
    25     educator has complied with the terms of the contract.
    26         (6)  Upon the recipient's death or total or permanent
    27     disability, the agency shall nullify the work requirement of
    28     the recipient.
    29         (7)  If the board has determined that the recipient has
    30     committed an act of gross negligence or has suspended or
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     1     revoked the license to practice, the agency shall have the
     2     authority to terminate the recipient's service in the program
     3     and demand repayment of the assistance rendered to date.
     4         (8)  Loan recipients who fail to begin or complete the
     5     obligations contracted for shall reimburse to the
     6     Commonwealth all amounts received under this chapter and
     7     interest thereon as determined by the agency. Falsification
     8     or misrepresentation on an application or in verification of
     9     service shall be construed to be a default. Determination as
    10     to the time of breach of contract shall be made by the
    11     agency. Both the recipient and the agency shall make every
    12     effort to resolve conflicts in order to prevent a breach of
    13     contract.
    14     (b)  Contract enforcement.--The agency shall have the
    15  authority to seek garnishment of wages for the collection of
    16  damages provided for in subsection (a)(8).
    17     (c)  Ineligibility.--The agency may deny loan forgiveness to
    18  a student who is convicted under section 8.2 of the act of
    19  January 25, 1966 (1965 P.L.1546, No.541), referred to as the
    20  Higher Education Scholarship Law.
    21     (d)  Fraud.--Any person who knowingly or intentionally
    22  procures, obtains or aids another to procure or obtain loan
    23  forgiveness under this chapter through fraudulent means shall be
    24  disqualified from participation and shall be liable to the
    25  agency for an amount equal to three times the amount obtained.
    26     (e)  Verification.--The agency shall monitor and verify a
    27  student's fulfillment of all requirements under this chapter.
    28     (f)  Tax.--Loan forgiveness repayments received by a student
    29  shall not be considered taxable income for purposes of Article
    30  III of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
    20070H1019B1188                  - 7 -     

     1  Reform Code of 1971.
     2                             CHAPTER 5
     3                        SCHOLARSHIP PROGRAM
     4  Section 501.  Pennsylvania Nurse and Nursing Education
     5                 Scholarship Program.
     6     (a)  Establishment.--There is hereby established the
     7  Pennsylvania Nurse and Nursing Education Scholarship Program
     8  within the agency, to consist of the Nursing Postbaccalaureate
     9  Degree Scholarship, the Nursing Baccalaureate Degree Scholarship
    10  and the Nursing Program Scholarship.
    11     (b)  Issuance of grants.--The agency may provide scholarship
    12  grants to an eligible student who is a resident of this
    13  Commonwealth upon confirmation from an approved educational
    14  institution that the student is enrolled in an approved course
    15  of study. Scholarship grants shall only be for the amount set
    16  forth in sections 502(a), 503(a) and 504(a) and shall only be
    17  used for educational costs as determined by the agency.
    18     (c)  Other funding.--Prior to making a grant under this act,
    19  the agency shall first apply Federal Pell Grant and State grants
    20  available for educational costs related to an approved program
    21  prior to determining the amount of the scholarship grant.
    22     (d)  Eligibility.--To receive a scholarship grant under this
    23  chapter, a student shall meet all of the following requirements:
    24         (1)  Graduation from a high school in this Commonwealth,
    25     or earned general educational development (GED) diploma or
    26     the equivalent thereof.
    27         (2)  Maintenance of domicile in Pennsylvania during the
    28     term of the scholarship grants.
    29         (3)  Compliance with any conditions placed on the
    30     scholarship grant by the agency.
    20070H1019B1188                  - 8 -     

     1         (4)  Maintenance of satisfactory progress as established
     2     by the approved educational institution's written policies.
     3         (5)  Entrance into a written agreement with the agency
     4     to:
     5             (i)  Complete an approved course of study.
     6             (ii)  Commence employment involving direct patient
     7         care with a licensed health care facility or in an
     8         approved educational institution in this Commonwealth
     9         within one year after completion of an approved course of
    10         study for a period of one year for each academic year the
    11         student received a scholarship grant under this chapter
    12         unless the agency determines that there are extenuating
    13         circumstances.
    14             (iii)  Reimburse the Commonwealth all amounts
    15         received under this chapter and interest thereon, as
    16         determined by the agency, if the student fails to comply
    17         with subparagraphs (i) and (ii).
    18     (e)  Application.--A student shall apply to the agency for a
    19  scholarship grant as prescribed by the agency, to include the
    20  provision of all information and documentation required by the
    21  agency. The application of a student under 18 years of age shall
    22  include the signature of a parent or guardian.
    23     (f)  Work requirement.--The work requirement under subsection
    24  (d)(5)(ii) shall begin after completion of the approved course
    25  of study.
    26     (g)  Termination.--If a student terminates enrollment in the
    27  approved educational institution during the academic year or
    28  prior to completion of the approved course of study, the
    29  approved educational institution shall notify the agency in
    30  writing and shall return all unused portions of the scholarship
    20070H1019B1188                  - 9 -     

     1  grant. Returned amounts shall be used to fund other scholarship
     2  grants under this chapter.
     3     (h)  Transfer.--A scholarship under this chapter is only
     4  transferrable to another educational institution if approved by
     5  the agency.
     6     (i)  Limitation.--Grants awarded under the Pennsylvania Nurse
     7  and Nursing Education Scholarship Program shall be limited to
     8  funds appropriated for that purpose. First priority for awarding
     9  grants shall be given to renewal applicants. Thereafter, grants
    10  shall be awarded on a first-come, first-served basis.
    11     (j)  Minors.--A person under 18 years of age who otherwise
    12  qualifies for scholarship grants under this section shall not be
    13  disqualified based upon age.
    14     (k)  Ineligibility.--The agency may deny a scholarship grant
    15  to a student who is convicted under section 8.2 of the act of
    16  January 25, 1966 (1965 P.L.1546, No.541), referred to as the
    17  Higher Education Scholarship Law.
    18     (l)  Fraud.--Any person who knowingly or intentionally
    19  procures, obtains or aids another to procure or obtain a grant
    20  under this chapter through fraudulent means shall be
    21  disqualified from participation in the Pennsylvania Nurse and
    22  Nursing Education Scholarship Program and shall be liable to the
    23  agency for an amount equal to three times the amount obtained.
    24  Section 502.  Nursing Postbaccalaureate Degree Scholarship.
    25     (a)  Amount of grants.--The agency shall award a Nursing
    26  Postbaccalaureate Degree Scholarship in the amount of $6,000 per
    27  academic year or a lesser amount following application of
    28  Federal and State grants under section 501(c) to a student
    29  enrolled full time in an approved educational institution
    30  pursuing a master's degree in nursing education. The student
    20070H1019B1188                 - 10 -     

     1  shall take at least 12 semester hours, or its equivalent, in an
     2  approved course of study.
     3     (b)  Term of grant.--The grant shall be for a maximum of two
     4  academic years.
     5  Section 503.  Nursing Baccalaureate Degree Scholarship.
     6     (a)  Amount of grants.--The agency shall award a Nursing
     7  Baccalaureate Degree Scholarship in the amount of $3,000 per
     8  academic year, or a lesser amount following application of
     9  Federal and State grants under section 501(c) to a student
    10  enrolled full time in an approved educational institution
    11  pursuing a bachelor's degree in nursing or nursing education.
    12  The student shall take at least 12 semester hours, or its
    13  equivalent, in an approved course of study.
    14     (b)  Term of grant.--The grant shall be for a maximum of four
    15  academic years.
    16  Section 504.  Nursing Program Scholarship.
    17     (a)  Amount of grants.--The agency shall award a Nursing
    18  Program Scholarship in the amount of $1,500 per academic year or
    19  a lesser amount following application of Federal or State grants
    20  under section 501(c) to a student enrolled full time in an
    21  approved educational institution pursuing an associate's degree,
    22  diploma or certificate. A student who is enrolled part time and
    23  is pursuing an associate's degree, diploma or certificate is
    24  eligible for a grant of 50% of educational costs as determined
    25  by the agency.
    26     (b)  Term of grant.--The grant shall be for a maximum of two
    27  academic years or for up to three academic years if the student
    28  is enrolled in an approved course of study that, according to
    29  the board, requires three academic years to complete. In order
    30  to qualify for a grant in a third academic year, the student
    20070H1019B1188                 - 11 -     

     1  must be in compliance with section 501(d) and the institution
     2  must determine that the student is making satisfactory progress
     3  toward completing an associate's degree or the requirements of
     4  the diploma or certificate program.
     5  Section 505.  Administration.
     6     (a)  Verification.--The agency shall monitor and verify a
     7  student's fulfillment of all work requirements under this
     8  chapter.
     9     (b)  Enforcement.--The agency shall enforce repayment of all
    10  scholarship grants for a student who does not comply with the
    11  provisions of this chapter, to include use of all lawful
    12  collection procedures and the use of private collection
    13  agencies.
    14     (c)  Tax.--Scholarship grants received by a student under
    15  this chapter shall not be considered taxable income for purposes
    16  of Article III of the act of March 4, 1971 (P.L.6, No.2), known
    17  as the Tax Reform Code of 1971.
    18     (d)  Financial assistance.--Scholarship grants received by a
    19  student under this chapter shall not be considered financial
    20  assistance or appropriations to the approved educational
    21  institution.
    22     (e)  Customized job training.--No funds under this chapter
    23  shall be granted to a person enrolled in a customized job
    24  training partnership program or continuing education course from
    25  a postsecondary educational institution for which an employer is
    26  providing over 50% of the financial support, directly or
    27  indirectly, and for which the student is not being charged
    28  tuition or fees.
    29                             CHAPTER 49
    30                      MISCELLANEOUS PROVISIONS
    20070H1019B1188                 - 12 -     

     1  Section 4901.  Annual report.
     2     (a)  Development of report.--The agency shall publish a
     3  report by September 1, 2007, and every year thereafter for the
     4  immediately preceding fiscal year. The report shall include
     5  information regarding the operation of the programs established
     6  under this act, including:
     7         (1)  The number of applications received for the Nursing
     8     Postbaccalaureate Degree Scholarship, the Nursing
     9     Baccalaureate Degree Scholarship, the Nursing Program
    10     Scholarship and the Pennsylvania Nurse and Nursing Educator
    11     Loan Forgiveness Program.
    12         (2)  The number, type and amount of Nursing
    13     Postbaccalaureate Degree Scholarships, Nursing Baccalaureate
    14     Degree Scholarships and Nursing Program Scholarships awarded.
    15         (3)  The number and amount of nursing and nursing
    16     educator loan forgiveness contracts executed and contracts
    17     renewed for licensed practical nurses, registered nurses and
    18     nursing educators.
    19         (4)  The number of scholarship grantees who withdraw from
    20     the scholarship programs, reported by cause.
    21         (5)  The number of defaulted loan forgiveness program
    22     contracts, reported by cause.
    23         (6)  The number of full-time and part-time students
    24     receiving scholarships, reported by type of institution
    25     attending, including four-year educational institutions,
    26     community colleges, independent two-year colleges, private
    27     licensed schools, hospital-based courses of study and
    28     certificate programs.
    29         (7)  The number of nurses and nursing educators
    30     participating in the loan forgiveness program, reported by
    20070H1019B1188                 - 13 -     

     1     type of institution attended, including four-year educational
     2     institutions, community colleges, independent two-year
     3     colleges, private licensed schools, hospital-based courses of
     4     study and certificate programs.
     5         (8)  The number and type of enforcement actions taken by
     6     the agency.
     7     (b)  Submission.--The annual report shall be submitted to the
     8  Governor, the chairman and minority chairman of the
     9  Appropriations Committee of the Senate, the chairman and
    10  minority chairman of the Appropriations Committee of the House
    11  of Representatives, the chairman and minority chairman of the
    12  Education Committee of the Senate, the chairman and minority
    13  chairman of the Public Health and Welfare Committee of the
    14  Senate and the chairman and minority chairman of the Health and
    15  Human Services Committee of the House of Representatives.
    16  Section 4902.  Minimum nursing data set.
    17     (a)  Duty of State Board of Nursing.--It shall be the duty of
    18  the State Board of Nursing to collect, store and make available
    19  nursing work force information regarding all of the categories
    20  of nurses and nursing educators.
    21     (b)  Information.--The information to be collected as part of
    22  the routine licensure renewal process on nurses and nursing
    23  educators shall include, but not be limited to:
    24         (1)  Demographics, including:
    25             (i)  Year of birth.
    26             (ii)  Ethnicity: Hispanic/Latino; Native Americans;
    27         Alaska Native; Asian; Pacific Islander; African American,
    28         not of Hispanic origin; White, not of Hispanic origin.
    29             (iii)  Zip code of residence.
    30         (2)  Basic education, including:
    20070H1019B1188                 - 14 -     

     1             (i)  Program type: LPN, hospital-based, ADN, BSN and
     2         MS.
     3             (ii)  Year graduated.
     4             (iii)  State in which basic program is located.
     5         (3)  Highest education attained, including:
     6             (i)  Program type: LPH, hospital-based, AA/AND,
     7         BS/BSN, MS/MSN and PhD/EdD.
     8             (ii)  Year graduated.
     9             (iii)  Preparation as advanced nurse practitioner,
    10         nurse practitioner, nurse-midwife, clinical nurse
    11         specialist and nurse anesthetist.
    12         (4)  Employment, including:
    13             (i)  Current employment.
    14             (ii)  Number of hours worked in typical week.
    15             (iii)  Setting of primary employer: hospital, long-
    16         term care, ambulatory care, physician office, public
    17         health, home health care, approved educational
    18         institution or other.
    19             (iv)  Setting of secondary employer: hospital, long-
    20         term care, ambulatory care, physician office, public
    21         health care, home health care, approved educational
    22         institution or other.
    23             (v)  Type of position: staff nurse, educator,
    24         management, utilization/case management, advanced
    25         practice or other.
    26             (vi)  Zip code of primary employer.
    27             (vii)  Whether currently unemployed in nursing or
    28         nursing education; a full-time or part-time student;
    29         seeking nursing or nursing education employment; seeking
    30         employment in another health-related field; seeking
    20070H1019B1188                 - 15 -     

     1         employment in another field; employed in another health-
     2         related field; employed in another field; not seeking
     3         nursing or nursing education employment; not seeking
     4         employment or retired.
     5             (viii)  Intention to remain employed in nursing, one
     6         to three years; three to five years; five to ten years;
     7         or greater than ten years.
     8         (5)  Licensure, including:
     9             (i)  State issuing first license.
    10             (ii)  Year first license issued.
    11             (iii)  States where current licensure is held.
    12             (iv)  Name under which license issued or number of
    13         license for each state in which nurse is licensed.
    14     (c)  Duty of Department of Labor and Industry.--It shall be
    15  the duty of the Department of Labor and Industry, through its
    16  Center for Workforce Information and Analysis, to regularly
    17  analyze and publish the information collected by the board in
    18  combination with information obtained from employers to better
    19  understand the supply and demand for nurses and nursing
    20  educators in this Commonwealth and to assist in work force
    21  planning and development.
    22  Section 4903.  Appeals.
    23     The provisions of this act shall be subject to 22 Pa. Code
    24  Ch. 121 (relating to student financial aid).
    25  Section 4904.  Regulations.
    26     The agency shall adopt regulations and procedures necessary
    27  to carry out the purposes of this act.
    28  Section 4905.  Funding.
    29     Loan forgiveness repayments and scholarship awards shall be
    30  made to the extent that funds are appropriated by the General
    20070H1019B1188                 - 16 -     

     1  Assembly for this act.
     2  Section 4906.  Effective date.
     3     This act shall take effect in 90 days.


















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