Illinois 2025-2026 Regular Session

Illinois House Bill HB2982 Compare Versions

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11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2982 Introduced , by Rep. Elizabeth "Lisa" Hernandez SYNOPSIS AS INTRODUCED: 820 ILCS 105/4 from Ch. 48, par. 1004820 ILCS 105/9 from Ch. 48, par. 1009820 ILCS 105/11 from Ch. 48, par. 1011820 ILCS 115/4.1 Amends the Minimum Wage Law. Provides that, on and after July 1, 2027, an employer shall not be entitled to an allowance for gratuities and shall pay each employee no less than the applicable minimum wage rate, including any minimum wage rate established by a municipality that is higher than the minimum wage rate provided in the Act. Provides for additional notice requirements that employers must provide to employees who receive gratuities. Provides that any employer or his agent, or the officer or agent of any private employer who violates that provision shall be liable to the Department of Labor for a penalty of up to $1,500 per day for each violation, payable to the Department's Wage Theft Enforcement Fund. Provides that every employer shall provide each employee who receives gratuities a notice containing specified information concerning the rate of pay. Amends the Illinois Wage Payment and Collection Act. Provides that no employer shall withhold from gratuities paid by credit card any credit card processing fees that the employer must pay in connection with the transaction. Provides that any service charge imposed by an employer on a customer shall be a gratuity and is the property of the employees. Effective July 1, 2025. LRB104 08468 SPS 18520 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2982 Introduced , by Rep. Elizabeth "Lisa" Hernandez SYNOPSIS AS INTRODUCED: 820 ILCS 105/4 from Ch. 48, par. 1004820 ILCS 105/9 from Ch. 48, par. 1009820 ILCS 105/11 from Ch. 48, par. 1011820 ILCS 115/4.1 820 ILCS 105/4 from Ch. 48, par. 1004 820 ILCS 105/9 from Ch. 48, par. 1009 820 ILCS 105/11 from Ch. 48, par. 1011 820 ILCS 115/4.1 Amends the Minimum Wage Law. Provides that, on and after July 1, 2027, an employer shall not be entitled to an allowance for gratuities and shall pay each employee no less than the applicable minimum wage rate, including any minimum wage rate established by a municipality that is higher than the minimum wage rate provided in the Act. Provides for additional notice requirements that employers must provide to employees who receive gratuities. Provides that any employer or his agent, or the officer or agent of any private employer who violates that provision shall be liable to the Department of Labor for a penalty of up to $1,500 per day for each violation, payable to the Department's Wage Theft Enforcement Fund. Provides that every employer shall provide each employee who receives gratuities a notice containing specified information concerning the rate of pay. Amends the Illinois Wage Payment and Collection Act. Provides that no employer shall withhold from gratuities paid by credit card any credit card processing fees that the employer must pay in connection with the transaction. Provides that any service charge imposed by an employer on a customer shall be a gratuity and is the property of the employees. Effective July 1, 2025. LRB104 08468 SPS 18520 b LRB104 08468 SPS 18520 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2982 Introduced , by Rep. Elizabeth "Lisa" Hernandez SYNOPSIS AS INTRODUCED:
33 820 ILCS 105/4 from Ch. 48, par. 1004820 ILCS 105/9 from Ch. 48, par. 1009820 ILCS 105/11 from Ch. 48, par. 1011820 ILCS 115/4.1 820 ILCS 105/4 from Ch. 48, par. 1004 820 ILCS 105/9 from Ch. 48, par. 1009 820 ILCS 105/11 from Ch. 48, par. 1011 820 ILCS 115/4.1
44 820 ILCS 105/4 from Ch. 48, par. 1004
55 820 ILCS 105/9 from Ch. 48, par. 1009
66 820 ILCS 105/11 from Ch. 48, par. 1011
77 820 ILCS 115/4.1
88 Amends the Minimum Wage Law. Provides that, on and after July 1, 2027, an employer shall not be entitled to an allowance for gratuities and shall pay each employee no less than the applicable minimum wage rate, including any minimum wage rate established by a municipality that is higher than the minimum wage rate provided in the Act. Provides for additional notice requirements that employers must provide to employees who receive gratuities. Provides that any employer or his agent, or the officer or agent of any private employer who violates that provision shall be liable to the Department of Labor for a penalty of up to $1,500 per day for each violation, payable to the Department's Wage Theft Enforcement Fund. Provides that every employer shall provide each employee who receives gratuities a notice containing specified information concerning the rate of pay. Amends the Illinois Wage Payment and Collection Act. Provides that no employer shall withhold from gratuities paid by credit card any credit card processing fees that the employer must pay in connection with the transaction. Provides that any service charge imposed by an employer on a customer shall be a gratuity and is the property of the employees. Effective July 1, 2025.
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1414 1 AN ACT concerning employment.
1515 2 Be it enacted by the People of the State of Illinois,
1616 3 represented in the General Assembly:
1717 4 Section 1. This Act may be referred to as the One Fair Wage
1818 5 with Tips on Top Act.
1919 6 Section 5. The Minimum Wage Law is amended by changing
2020 7 Sections 4, 9, and 11 as follows:
2121 8 (820 ILCS 105/4) (from Ch. 48, par. 1004)
2222 9 Sec. 4. (a)(1) Every employer shall pay to each of his
2323 10 employees in every occupation wages of not less than $2.30 per
2424 11 hour or in the case of employees under 18 years of age wages of
2525 12 not less than $1.95 per hour, except as provided in Sections 5
2626 13 and 6 of this Act, and on and after January 1, 1984, every
2727 14 employer shall pay to each of his employees in every
2828 15 occupation wages of not less than $2.65 per hour or in the case
2929 16 of employees under 18 years of age wages of not less than $2.25
3030 17 per hour, and on and after October 1, 1984 every employer shall
3131 18 pay to each of his employees in every occupation wages of not
3232 19 less than $3.00 per hour or in the case of employees under 18
3333 20 years of age wages of not less than $2.55 per hour, and on or
3434 21 after July 1, 1985 every employer shall pay to each of his
3535 22 employees in every occupation wages of not less than $3.35 per
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3939 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2982 Introduced , by Rep. Elizabeth "Lisa" Hernandez SYNOPSIS AS INTRODUCED:
4040 820 ILCS 105/4 from Ch. 48, par. 1004820 ILCS 105/9 from Ch. 48, par. 1009820 ILCS 105/11 from Ch. 48, par. 1011820 ILCS 115/4.1 820 ILCS 105/4 from Ch. 48, par. 1004 820 ILCS 105/9 from Ch. 48, par. 1009 820 ILCS 105/11 from Ch. 48, par. 1011 820 ILCS 115/4.1
4141 820 ILCS 105/4 from Ch. 48, par. 1004
4242 820 ILCS 105/9 from Ch. 48, par. 1009
4343 820 ILCS 105/11 from Ch. 48, par. 1011
4444 820 ILCS 115/4.1
4545 Amends the Minimum Wage Law. Provides that, on and after July 1, 2027, an employer shall not be entitled to an allowance for gratuities and shall pay each employee no less than the applicable minimum wage rate, including any minimum wage rate established by a municipality that is higher than the minimum wage rate provided in the Act. Provides for additional notice requirements that employers must provide to employees who receive gratuities. Provides that any employer or his agent, or the officer or agent of any private employer who violates that provision shall be liable to the Department of Labor for a penalty of up to $1,500 per day for each violation, payable to the Department's Wage Theft Enforcement Fund. Provides that every employer shall provide each employee who receives gratuities a notice containing specified information concerning the rate of pay. Amends the Illinois Wage Payment and Collection Act. Provides that no employer shall withhold from gratuities paid by credit card any credit card processing fees that the employer must pay in connection with the transaction. Provides that any service charge imposed by an employer on a customer shall be a gratuity and is the property of the employees. Effective July 1, 2025.
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7676 1 hour or in the case of employees under 18 years of age wages of
7777 2 not less than $2.85 per hour, and from January 1, 2004 through
7878 3 December 31, 2004 every employer shall pay to each of his or
7979 4 her employees who is 18 years of age or older in every
8080 5 occupation wages of not less than $5.50 per hour, and from
8181 6 January 1, 2005 through June 30, 2007 every employer shall pay
8282 7 to each of his or her employees who is 18 years of age or older
8383 8 in every occupation wages of not less than $6.50 per hour, and
8484 9 from July 1, 2007 through June 30, 2008 every employer shall
8585 10 pay to each of his or her employees who is 18 years of age or
8686 11 older in every occupation wages of not less than $7.50 per
8787 12 hour, and from July 1, 2008 through June 30, 2009 every
8888 13 employer shall pay to each of his or her employees who is 18
8989 14 years of age or older in every occupation wages of not less
9090 15 than $7.75 per hour, and from July 1, 2009 through June 30,
9191 16 2010 every employer shall pay to each of his or her employees
9292 17 who is 18 years of age or older in every occupation wages of
9393 18 not less than $8.00 per hour, and from July 1, 2010 through
9494 19 December 31, 2019 every employer shall pay to each of his or
9595 20 her employees who is 18 years of age or older in every
9696 21 occupation wages of not less than $8.25 per hour, and from
9797 22 January 1, 2020 through June 30, 2020, every employer shall
9898 23 pay to each of his or her employees who is 18 years of age or
9999 24 older in every occupation wages of not less than $9.25 per
100100 25 hour, and from July 1, 2020 through December 31, 2020 every
101101 26 employer shall pay to each of his or her employees who is 18
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112112 1 years of age or older in every occupation wages of not less
113113 2 than $10 per hour, and from January 1, 2021 through December
114114 3 31, 2021 every employer shall pay to each of his or her
115115 4 employees who is 18 years of age or older in every occupation
116116 5 wages of not less than $11 per hour, and from January 1, 2022
117117 6 through December 31, 2022 every employer shall pay to each of
118118 7 his or her employees who is 18 years of age or older in every
119119 8 occupation wages of not less than $12 per hour, and from
120120 9 January 1, 2023 through December 31, 2023 every employer shall
121121 10 pay to each of his or her employees who is 18 years of age or
122122 11 older in every occupation wages of not less than $13 per hour,
123123 12 and from January 1, 2024 through December 31, 2024, every
124124 13 employer shall pay to each of his or her employees who is 18
125125 14 years of age or older in every occupation wages of not less
126126 15 than $14 per hour; and on and after January 1, 2025, every
127127 16 employer shall pay to each of his or her employees who is 18
128128 17 years of age or older in every occupation wages of not less
129129 18 than $15 per hour.
130130 19 (2) Unless an employee's wages are reduced under Section
131131 20 6, then in lieu of the rate prescribed in item (1) of this
132132 21 subsection (a), an employer may pay an employee who is 18 years
133133 22 of age or older, during the first 90 consecutive calendar days
134134 23 after the employee is initially employed by the employer, a
135135 24 wage that is not more than 50 less than the wage prescribed in
136136 25 item (1) of this subsection (a); however, an employer shall
137137 26 pay not less than the rate prescribed in item (1) of this
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148148 1 subsection (a) to:
149149 2 (A) a day or temporary laborer, as defined in Section
150150 3 5 of the Day and Temporary Labor Services Act, who is 18
151151 4 years of age or older; and
152152 5 (B) an employee who is 18 years of age or older and
153153 6 whose employment is occasional or irregular and requires
154154 7 not more than 90 days to complete.
155155 8 (3) At no time on or before December 31, 2019 shall the
156156 9 wages paid to any employee under 18 years of age be more than
157157 10 50 less than the wage required to be paid to employees who are
158158 11 at least 18 years of age under item (1) of this subsection (a).
159159 12 Beginning on January 1, 2020, every employer shall pay to each
160160 13 of his or her employees who is under 18 years of age that has
161161 14 worked more than 650 hours for the employer during any
162162 15 calendar year a wage not less than the wage required for
163163 16 employees who are 18 years of age or older under paragraph (1)
164164 17 of subsection (a) of Section 4 of this Act. Every employer
165165 18 shall pay to each of his or her employees who is under 18 years
166166 19 of age that has not worked more than 650 hours for the employer
167167 20 during any calendar year: (1) $8 per hour from January 1, 2020
168168 21 through December 31, 2020; (2) $8.50 per hour from January 1,
169169 22 2021 through December 31, 2021; (3) $9.25 per hour from
170170 23 January 1, 2022 through December 31, 2022; (4) $10.50 per hour
171171 24 from January 1, 2023 through December 31, 2023; (5) $12 per
172172 25 hour from January 1, 2024 through December 31, 2024; and (6)
173173 26 $13 per hour on and after January 1, 2025.
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184184 1 (b) No employer shall discriminate between employees on
185185 2 the basis of sex or mental or physical disability, except as
186186 3 otherwise provided in this Act by paying wages to employees at
187187 4 a rate less than the rate at which he pays wages to employees
188188 5 for the same or substantially similar work on jobs the
189189 6 performance of which requires equal skill, effort, and
190190 7 responsibility, and which are performed under similar working
191191 8 conditions, except where such payment is made pursuant to (1)
192192 9 a seniority system; (2) a merit system; (3) a system which
193193 10 measures earnings by quantity or quality of production; or (4)
194194 11 a differential based on any other factor other than sex or
195195 12 mental or physical disability, except as otherwise provided in
196196 13 this Act.
197197 14 (c) Every employer of an employee engaged in an occupation
198198 15 in which gratuities have customarily and usually constituted
199199 16 and have been recognized as part of the remuneration for hire
200200 17 purposes is entitled to an allowance for gratuities as part of
201201 18 the hourly wage rate provided in Section 4, subsection (a) in
202202 19 an amount as follows: not to exceed 40% of the applicable
203203 20 minimum wage rate through June 30, 2025; not to exceed 20% of
204204 21 the applicable minimum wage rate from July 1, 2025 through
205205 22 June 30, 2026; and not to exceed 10% of the applicable minimum
206206 23 wage rate from July 1, 2026 through June 30, 2027. On and after
207207 24 July 1, 2027, an employer shall not be entitled to an allowance
208208 25 for gratuities and shall pay each employee no less than the
209209 26 applicable minimum wage rate, including any minimum wage rate
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220220 1 established by a municipality that is higher than the minimum
221221 2 wage rate provided in paragraph (1) of subsection (a). The
222222 3 Director shall require each employer desiring an allowance for
223223 4 gratuities to provide substantial evidence that the amount
224224 5 claimed, which may not exceed a percentage of 40% of the
225225 6 applicable minimum wage rate as provided in this Section, was
226226 7 received by the employee in the period for which the claim of
227227 8 exemption is made, and no part thereof was returned to the
228228 9 employer, and that the employer provides, at the time of
229229 10 payment, a written accounting of the hourly wages paid for
230230 11 each shift worked during the pay period. An employer shall not
231231 12 keep any gratuities received by an employee for any purpose or
232232 13 allow a manager or a supervisor to keep any portion of an
233233 14 employee's gratuities, regardless of whether or not the
234234 15 employer takes an allowance for gratuities. Nothing in this
235235 16 Section shall be construed to prohibit an otherwise valid
236236 17 pooling of gratuities among non-managerial and non-supervisory
237237 18 employees.
238238 19 (d) No camp counselor who resides on the premises of a
239239 20 seasonal camp of an organized not-for-profit corporation shall
240240 21 be subject to the adult minimum wage if the camp counselor (1)
241241 22 works 40 or more hours per week, and (2) receives a total
242242 23 weekly salary of not less than the adult minimum wage for a
243243 24 40-hour week. If the counselor works less than 40 hours per
244244 25 week, the counselor shall be paid the minimum hourly wage for
245245 26 each hour worked. Every employer of a camp counselor under
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256256 1 this subsection is entitled to an allowance for meals and
257257 2 lodging as part of the hourly wage rate provided in Section 4,
258258 3 subsection (a), in an amount not to exceed 25% of the minimum
259259 4 wage rate.
260260 5 (e) A camp counselor employed at a day camp is not subject
261261 6 to the adult minimum wage if the camp counselor is paid a
262262 7 stipend on a onetime or periodic basis and, if the camp
263263 8 counselor is a minor, the minor's parent, guardian or other
264264 9 custodian has consented in writing to the terms of payment
265265 10 before the commencement of such employment.
266266 11 (Source: P.A. 101-1, eff. 2-19-19.)
267267 12 (820 ILCS 105/9) (from Ch. 48, par. 1009)
268268 13 Sec. 9. (a) Every employer subject to any provision of
269269 14 this Act or of any regulations issued under this Act shall keep
270270 15 a summary of this Act approved by the Director, and copies of
271271 16 any applicable regulations issued under this Act or a summary
272272 17 of such regulations, posted in a conspicuous and accessible
273273 18 place in or about the premises wherever any person subject to
274274 19 this Act is employed. Every employer subject to any provision
275275 20 of this Act or any regulations issued under this Act with
276276 21 employees who do not regularly report to a physical workplace,
277277 22 such as employees who work remotely or travel for work, shall
278278 23 also provide the summaries and regulations by email to its
279279 24 employees or conspicuous posting on the employer's website or
280280 25 intranet site, if such site is regularly used by the employer
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291291 1 to communicate work-related information to employees and is
292292 2 able to be regularly accessed by all employees, freely and
293293 3 without interference. Employers shall be furnished copies of
294294 4 such summaries and regulations by the State on request without
295295 5 charge.
296296 6 (b) Every employer shall provide each employee who
297297 7 receives gratuities, in writing in English and in the language
298298 8 identified by each employee as the primary language of the
299299 9 employee, at the time of hiring and at any time the employee's
300300 10 compensation changes, a notice containing:
301301 11 (1) the rate or rates of pay and basis thereof,
302302 12 whether paid by the hour, shift, day, week, salary, or
303303 13 other method, including overtime compensation rates for
304304 14 non-exempt employees and allowances claimed as part of the
305305 15 minimum wage, including gratuities;
306306 16 (2) employees' rights to be compensated by their
307307 17 employer at the rate prescribed in subsection (a) of
308308 18 Section 4 when gratuities do not bring the employee to
309309 19 that rate at the end of each shift;
310310 20 (3) employee rights to retain gratuities as described
311311 21 in this Act; and
312312 22 (4) other relevant employee rights deemed necessary by
313313 23 the Director by rule.
314314 24 The Director shall prepare templates that comply with the
315315 25 notice requirements of this subsection. The template shall
316316 26 include the information required by this subsection in 2
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327327 1 languages, including English and one additional language
328328 2 determined by the Director based on the population of this
329329 3 State that speaks the language and any other factor that the
330330 4 Director deems relevant.
331331 5 (Source: P.A. 103-201, eff. 1-1-24.)
332332 6 (820 ILCS 105/11) (from Ch. 48, par. 1011)
333333 7 Sec. 11. (a) Any employer or his agent, or the officer or
334334 8 agent of any private employer who:
335335 9 (1) hinders or delays the Director or his authorized
336336 10 representative in the performance of his duties in the
337337 11 enforcement of this Act; or
338338 12 (2) refuses to admit the Director or his authorized
339339 13 representative to any place of employment; or
340340 14 (3) fails to keep the records required under this Act
341341 15 or to furnish such records required or any information to
342342 16 be furnished under this Act to the Director or his
343343 17 authorized representative upon request; or
344344 18 (4) fails to make and preserve any records as required
345345 19 hereunder; or
346346 20 (5) falsifies any such record; or
347347 21 (6) refuses to make such records available to the
348348 22 Director or his authorized representative; or
349349 23 (7) refuses to furnish a sworn statement of such
350350 24 records or any other information required for the proper
351351 25 enforcement of this Act; or
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362362 1 (8) fails to post a summary of this Act or a copy of
363363 2 any applicable regulation as required by Section 9 of this
364364 3 Act;
365365 4 shall be guilty of a Class B misdemeanor; and each day of such
366366 5 failure to keep the records required under this Act or to
367367 6 furnish such records or information to the Director or his
368368 7 authorized representative or to fail to post information as
369369 8 required herein constitutes a separate offense. Any such
370370 9 employer who fails to keep payroll records as required by this
371371 10 Act shall be liable to the Department for a penalty of $100 per
372372 11 impacted employee, payable to the Department's Wage Theft
373373 12 Enforcement Fund.
374374 13 (a-5) Any employer or his agent, or the officer or agent of
375375 14 any private employer who violates any part of subsection (c)
376376 15 of Section 4 shall be liable to the Department for a penalty of
377377 16 up to $1,500 per day for each violation.
378378 17 (b) Any employer or his agent, or the officer or agent of
379379 18 any private employer, who pays or agrees to pay to any employee
380380 19 wages at a rate less than the rate applicable under this Act or
381381 20 of any regulation issued under this Act is guilty of a Class B
382382 21 misdemeanor, and each week on any day of which such employee is
383383 22 paid less than the wage rate applicable under this Act
384384 23 constitutes a separate offense.
385385 24 (c) Any employer or his agent, or the officer or agent of
386386 25 any private employer, who discharges or in any other manner
387387 26 discriminates against any employee because that employee has
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398398 1 made a complaint to his employer, or to the Director or his
399399 2 authorized representative, that he has not been paid wages in
400400 3 accordance with the provisions of this Act, or because that
401401 4 employee has caused to be instituted or is about to cause to be
402402 5 instituted any proceeding under or related to this Act, or
403403 6 because that employee has testified or is about to testify in
404404 7 an investigation or proceeding under this Act, is guilty of a
405405 8 Class B misdemeanor.
406406 9 (d) It is the duty of the Department of Labor to inquire
407407 10 diligently for any violations of this Act, and to institute
408408 11 the action for penalties herein provided, and to enforce
409409 12 generally the provisions of this Act.
410410 13 (Source: P.A. 101-1, eff. 2-19-19.)
411411 14 Section 10. The Illinois Wage Payment and Collection Act
412412 15 is amended by changing Section 4.1 as follows:
413413 16 (820 ILCS 115/4.1)
414414 17 Sec. 4.1. Gratuities.
415415 18 (a) Gratuities to employees are the property of the
416416 19 employees, and employers shall not keep gratuities. Failure to
417417 20 pay gratuities owed to an employee more than 13 days after the
418418 21 end of the pay period in which such gratuities were earned
419419 22 constitutes a violation of this Act.
420420 23 (a-5) Any service charge imposed by an employer on a
421421 24 customer shall be a gratuity as described in subsection (a)
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432432 1 and is the property of the employees. An employer who imposes a
433433 2 bona fide service charge on a customer shall explicitly and
434434 3 conspicuously disclose to the consumer that all funds
435435 4 generated from the service charge are directly given to the
436436 5 employees in the form of a gratuity. Nothing in this
437437 6 subsection shall be construed to prohibit an otherwise valid
438438 7 pooling of gratuities.
439439 8 (b) No employer shall withhold This Section does not
440440 9 prohibit an employer from withholding from gratuities paid by
441441 10 credit card a proportionate amount of any credit card
442442 11 processing fees that the employer must pay in connection with
443443 12 the transaction, provided that the amount withheld does not
444444 13 exceed the proportion of the amount of the tip to the amount of
445445 14 the overall bill, regardless of whether the overall bill was
446446 15 paid using a credit card. This Section does not prohibit tip
447447 16 pooling as permitted by law. This Section does not affect an
448448 17 employer's entitlement to an allowance for gratuities to the
449449 18 extent permitted under subsection (c) of Section 4 of the
450450 19 Minimum Wage Law.
451451 20 (Source: P.A. 101-509, eff. 1-1-20.)
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