Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1188 Compare Versions

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11 RBH No. 11250
2-ENGR. H. A. to ENGR. S. B. NO. 1188 Page 1 1
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27-ENGROSSED HOUSE AMENDME NT
28- TO
29-ENGROSSED SENATE BILL NO . 1188 By: Taylor, Jett, Coleman,
29+HOUSE OF REPRESENTATIVES - FLOOR VERSION
30+
31+STATE OF OKLAHOMA
32+
33+2nd Session of the 58th Legislature (2022)
34+
35+COMMITTEE SUBSTITUTE
36+FOR ENGROSSED
37+SENATE BILL NO. 1188 By: Taylor, Jett, Coleman,
3038 Kidd, and Bergstrom of the
3139 Senate
3240
3341 and
3442
3543 Newton and Roberts (Dustin)
3644 of the House
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4048
41-An Act relating to state pensions; amending 11 O.S.
42-2021, Section 50-112, which relates to eligibility
43-for membership in system; allowing municipalities
44-under certain population to hire certain retired
45-police officers without reentering system; allowing
46-for retired persons to be hired as police officers
47-under certain circumstances without entrance into
48-system; providing for codification; and providing an
49-effective date.
5049
5150
51+COMMITTEE SUBSTITUTE
5252
53-AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill
54-and insert:
55-
56-
57-
58-
59-"An Act relating to state pensions; amending 11 O.S.
53+An Act relating to state pensions; amending 11 O.S.
6054 2021, Sections 50-111.3 and 50-112, which relate to
6155 the Oklahoma Police Pen sion and Retirement System ;
6256 modifying provision related to assumed rate of
6357 return; allowing municipalities u nder certain
6458 population to hire certain retired police officers
6559 without reentering system; allowing for retired
6660 persons to be hired as police officers under certain
67-circumstances without entrance into s ystem;
68-requiring payment of certain contribution amount;
69-providing for codification; providing an effective
70-date; and declaring an emergency .
61+circumstances without entrance into s ystem; providing
62+for codification; and providing an ef fective date.
7163
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73- RBH No. 11250
74-ENGR. H. A. to ENGR. S. B. NO. 1188 Page 2 1
65+
66+
67+BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
68+SECTION 1. AMENDATORY 11 O.S. 2021, Section 50 -111.3, is
69+amended to read as follows:
70+Section 50-111.3 A. In lieu of terminating emp loyment and
71+accepting a service retirement pension pursuant to Section 50 -114 of RBH No. 11250
72+
73+SB1188 HFLR Page 2
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99-BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
100-SECTION 1. AMENDATORY 11 O.S. 2021, Section 50 -111.3, is
101-amended to read as follows:
102-Section 50-111.3 A. In lieu of terminating emp loyment and
103-accepting a service retirement pension pursuant to Section 50 -114 of
10499 this title, any member of the Oklahoma Police Pension and Retirement
105100 System who has not less than twenty ( 20) years of creditable service
106101 and who is eligible to receive a serv ice retirement pension ma y make
107102 an irrevocable election to participate in the Oklahoma Police
108103 Deferred Option Plan and defer the receipts of benefits in
109104 accordance with the provisions of this section.
110105 B. For purposes of this section, creditable service sh all
111106 include service credi t reciprocally recognized pursuant to Section
112107 50-101 et seq. of this tit le but for eligibility purposes only.
113108 C. The duration of participation in the Oklahoma Po lice
114109 Deferred Option Plan for a member shall not exceed five (5) year s.
115110 Participation in the Oklahoma Police Deferred Option Plan must begin
116111 the first day of a month and end on the last day of a month. At the
117112 conclusion of a member's participation in the Oklahoma Police
118113 Deferred Option Plan, the member shall terminate emp loyment with all
119114 participating municipalities as an officer, and shall start
120115 receiving the member 's accrued monthly retirement benefit from the
121116 System. Such a member may receive in -service distributions of such
122-member's accrued monthly retirement benefit from the System if such RBH No. 11250
123-ENGR. H. A. to ENGR. S. B. NO. 1188 Page 3 1
117+member's accrued monthly retirement benefit from the System if such
118+member is reemployed by a participating municipality only if such
119+reemployment is as a police chief or in a position not covered under
120+the System.
121+D. When a member begins participation in the Oklahoma Police
122+Deferred Option Plan, t he contribution of the em ployee shall cease. RBH No. 11250
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148-member is reemployed by a participating municipality only if such
149-reemployment is as a police chief or in a position not covered under
150-the System.
151-D. When a member begins participation in the Oklahoma Police
152-Deferred Option Plan, t he contribution of the em ployee shall cease.
153150 The employer contributions shall continue to be pai d in accordance
154151 with Section 50-109 of this title. Municipal contributions for
155152 employees who elect the Oklahoma Police Deferred Option Plan shall
156153 be credited equally to the Oklahoma P olice Pension and Retirement
157154 System and to the Oklahoma Police Deferred Option Plan. The monthly
158155 retirement benefits that would have been payable had the member
159156 elected to cease employment and receive a service retirement shall
160157 be paid into the Oklahoma P olice Deferred Option Plan account.
161158 E. 1. A member who participates in this plan shall be eligible
162159 to receive cost of living increases.
163160 2. A member who partici pates in this plan shall earn interest
164161 at a rate of two percentage po ints below the rate of re turn of the
165162 investment portfolio of the System, but no less than the actuarial
166163 assumed interest rate as certified by the actuary in the yearly
167164 evaluation report of the actuary seven and one-half percent (7.5%)
168165 interest effective Ju ly 1, 2022. The interest shall be credited to
169166 the individual account balance of the member on an annual basis.
170167 F. A participant in the Oklahoma Police Deferred Option Plan
171-shall receive, at the option of the participant: RBH No. 11250
172-ENGR. H. A. to ENGR. S. B. NO. 1188 Page 4 1
168+shall receive, at the option of the participant:
169+1. A lump sum payment from th e account equal to the optio n
170+account balance of the participant, payable to the participant;
171+2. A lump sum payment from th e account equal to the option
172+account balance of the participant, payable to the annuity provider RBH No. 11250
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197-1. A lump sum payment from th e account equal to the optio n
198-account balance of the participant, payable to the participant;
199-2. A lump sum payment from th e account equal to the option
200-account balance of the participant, payable to the annuity provider
201200 which shall be selected by the par ticipant as a result of the
202201 research and investigation of the participant; or
203202 3. Any other method of payment if approved by the State Board.
204203 Notwithstanding any other provis ion contained herein to the
205204 contrary, commencement of distributions under the Okla homa Police
206205 Deferred Option Plan shall be no later than the time as set forth in
207206 subsection C of Section 50-114 of this title.
208207 G. If the participant dies during the period of participation
209208 in the Oklahoma Police Deferred Option Plan, a lump sum payment
210209 equal to the account balance o f the participant shall be paid to the
211210 recipients, which may include a t rust, properly designated in
212211 writing by the participant or, if none, to t he surviving spouse who
213212 was married to the participant for the thirty (30) continuo us months
214213 immediately preceding the death of the participant; provided, a
215214 surviving spouse of a part icipant who died in, and as a consequence
216215 of, the performance of the part icipant's duty for a participating
217216 municipality shall not be subject to the thirty -month marriage
218217 requirement for survivor benefits or, if no surviving spouse, to the
219-estate of the participant. RBH No. 11250
220-ENGR. H. A. to ENGR. S. B. NO. 1188 Page 5 1
218+estate of the participant.
219+H. In lieu of participating in the Oklahoma Police Deferred
220+Option Plan pursuant to subsections A, B, C, D, E , and F of this
221+section, a member ma y make an irrevocable elect ion to participate in
222+the Oklahoma Police Deferred Option Plan pursuant t o this subsection
223+as follows: RBH No. 11250
224+
225+SB1188 HFLR Page 5
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245-H. In lieu of participating in the Oklahoma Police Deferred
246-Option Plan pursuant to subsections A, B, C, D, E , and F of this
247-section, a member ma y make an irrevocable elect ion to participate in
248-the Oklahoma Police Deferred Option Plan pursuant t o this subsection
249-as follows:
250251 1. For purposes of this subsection, the following definitions
251252 shall apply:
252253 a. "back drop date" means the date selected by the
253254 member, which is up to fiv e (5) years before the
254255 member elects to participate in the Oklahoma Polic e
255256 Deferred Option Plan, but not before the date at which
256257 the member completes twenty (20) years of credited
257258 service,
258259 b. "termination date" means the date th e member elects to
259260 participate in the Oklahoma Police Deferred Option
260261 Plan pursuant to this subsecti on, and the date the
261262 member terminates employment with all participat ing
262263 municipalities as an active police officer, such
263264 termination has at all times inclu ded reemployment of
264265 a member by a participating municipality only if such
265266 reemployment is as a polic e chief or in a positio n not
266267 covered under the System,
267268 c. "earlier attained credited service" means the credited
268-service earned by a member as of the back d rop date, RBH No. 11250
269-ENGR. H. A. to ENGR. S. B. NO. 1188 Page 6 1
269+service earned by a member as of the back d rop date,
270+and earlier attained credited service cannot be
271+reduced to less than twenty (20) years of credited
272+service, and
273+d. "deferred benefit balance" means all month ly
274+retirement benefits that would have been payable had RBH No. 11250
275+
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294-and earlier attained credited service cannot be
295-reduced to less than twenty (20) years of credited
296-service, and
297-d. "deferred benefit balance" means all month ly
298-retirement benefits that would have been payable had
299302 the member elected to cease emplo yment on the back
300303 drop date and receive a service retirement from the
301304 back drop date to the terminat ion date, all of the
302305 member's contributions and one -half (1/2) of the
303306 employer contributions from the back drop date to the
304307 termination date, with interest based on how the
305308 benefit would have accumulated as if the member had
306309 participated in the Oklahoma Po lice Deferred Option
307-Plan pursuant to subsections A, B, C, D , and E of this
310+Plan pursuant to subsections A, B, C, D and E of this
308311 section from the back drop date to the termination
309312 date;
310313 2. At the termination d ate, the monthly pension be nefit shall
311314 be determined based on earlier attained credited service and on the
312315 final average salary as of the back drop date . The member's
313316 individual deferred option account shall be credited with an amount
314317 equal to the deferre d benefit balance; the memb er shall terminate
315318 employment with all participating municipalities as a police officer
316319 and shall start receiving the member's accrued mont hly retirement
317-benefit from the System . The provisions of subsections B, C, E, F , RBH No. 11250
318-ENGR. H. A. to ENGR. S. B. NO. 1188 Page 7 1
320+benefit from the System . The provisions of subsections B, C, E, F ,
321+and G of this section shall apply to this subsection. A member
322+shall not participate in the Oklahoma Police Deferred Option Plan
323+pursuant to this subsection if the member ha s elected to participate
324+in the Oklahoma Police Deferred Option Plan pursuant to subsectio ns
325+A, B, C, D, E, and F of this section; and RBH No. 11250
326+
327+SB1188 HFLR Page 7
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343-and G of this section shall apply to this subsection. A member
344-shall not participate in the Oklahoma Police Deferred Option Plan
345-pursuant to this subsection if the member ha s elected to participate
346-in the Oklahoma Police Deferred Option Plan pursuant to subsectio ns
347-A, B, C, D, E, and F of this section; and
348353 3. If a member who has not less than twenty (20) years of
349354 creditable service and who is eligible to receive a service
350355 retirement pension dies prior to terminating employment, the
351356 surviving spouse shall be eligib le to elect to receive a benefit
352357 determined as if the member had elected to participate in the
353358 Oklahoma Police Deferred O ption Plan in accordance with this
354359 subsection on the day immediately preceding the death . The
355360 surviving spouse must have been married to the member for the thi rty
356361 (30) continuous months preceding the member's death; provided, the
357362 surviving spouse of a mem ber who died while in, and as a consequence
358363 of, the performance of the member's duty for a participating
359364 municipality shall not be subj ect to the thirty-month marriage
360365 requirement for this election.
361366 SECTION 2. AMENDATORY 11 O.S. 2 021, Section 50-112, is
362367 amended to read as follows:
363368 Section 50-112. A. All persons employed as full-time duly
364369 appointed or elected of ficers who are paid for w orking more than
365370 twenty-five (25) hours per week or any person hired by a
366-participating municipa lity who is undergoing police training to RBH No. 11250
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392-become a permanent police officer of the municipality shall
393-participate in the System upon in itial employment with a p olice
394-department of a participating municipality. All such persons shall
395-submit to a physical -medical examination pertaining to sight,
396-hearing, agility and other conditions the requirements of which
397-shall be established by the Sta te Board. The person sha ll be
398-required to complete this physical-medical examination prior to the
399-beginning of actual em ployment. This examination shall identify any
400-preexisting conditions. Except as otherwise provided in this
401-section, a police officer shall be not less than tw enty-one (21) nor
402-more than forty-five (45) years of age when accepted for membership
403-in the System. However, if a municipality should be found to be in
404-noncompliance with the provisions of Article 50 of this title, as
405-determined by the State Board, then any current full-time active
406-police officer employed by a municipality as of July 1, 2001, shall
407-not be denied eligibility to participate in the Oklahoma Police
408-Pension and Retirement System solely due to age. The State Board
409-shall have authority to deny or revoke membership of any person
410-submitting false information in such person ’s membership
411-application. The State Board shall have final authority in
412-determining eligibility for membership in the System , pursuant to
413-the provisions of this article.
414-B. The police chief of any participating municipality may be
415-exempt from membership in the System or may become a member provided RBH No. 11250
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441-the member is not a retired member and the requirements of this
442-section are met at the time of employment.
443-C. A member of the Syst em who has attained his or her normal
444-retirement date may, if the member so elects, agree to ter minate
445-employment and retire as a member of the System and make an election
446-to receive distributions from th e System. If a retired mem ber is
447-reemployed by a participating municipality in the position of police
448-chief or in a position which is not covered b y the System,
449-retirement shall include receipt by such retired member of in-
450-service distributions from the S ystem.
451-D. A former member of the System who termina tes from covered
452-employment and who has neither retired from the System nor entered
453-the Oklahoma Police Deferred Option Plan and is later employed in a
454-covered position with a participating municipality s hall not be
455-denied eligibility to become a member of the System because he or
456-she is forty-five (45) years of age or older. If such member has
457-withdrawn his or her contributions prior to re-entering the System
458-and the member desires to receive credit for such prior service,
459-then the member shall pay back s uch contributions and interest
460-pursuant to Section 50 -111.1 of this title.
461-E. Notwithstanding a ny other provision of law to the contrary,
462-a municipality that employs two (2) or fewer full-time police
463-officers with a population of four thousand five hundre d (4,500) or
464-less, according to the latest Federal Decennial Cens us, may employ a RBH No. 11250
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490-police officer retired police officers who is are more than forty-
491-five (45) years of age and who has never have participated in the
492-Oklahoma Police Pension and Retiremen t System, but such police
493-officer and are receiving retirement benefits. Such officers shall
494-not be eligible to reenter and participate in the System. Such
495-police officer shall be counted in the limitation im posed by this
496-subsection. Notwithstanding any othe r provisions of law, the State
497-Board shall be granted access to information concerning a list of
498-actively working police o fficers within the municipalities and
499-agencies under the purview provided by the Co uncil on Law
500-Enforcement Education and Training.
501-SECTION 3. NEW LAW A new section of law to be codified
502-in the Oklahoma Statutes as Section 50-112.1 of Title 11, unless
503-there is created a duplication in numbering, reads as follows:
504-Notwithstanding any other provision of law, any person who is
505-receiving retirement benefits from a st ate pension system may be
506-hired by a municipality with a population of four thousand five
507-hundred (4,500) or less, according to the latest Federal Decennia l
508-Census, to fulfill the duties and obligations of a police officer.
509-Such persons shall not be subject to the requirements and
510-obligations of the Oklahoma Police Pension and Retirement System and
511-shall not be eligible to enter into the System. A municipality, as
512-described by the provisions of this section , shall be required to
513-pay the employee contribution of eight percent (8%) to the Oklahoma RBH No. 11250
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539-Police Pension and Retirement System , as prescribed by Section 50-
540-110 of Title 11 of the Oklahoma Statutes , with respect to the
541-compensation paid only to retirees who retired from the Okl ahoma
542-Police Pension and Retirement System.
543-SECTION 4. This act shall become effective July 1, 2022.
544-SECTION 5. It being immediately necessary for the preservation
545-of the public peace, health or safety, an emergency is her eby
546-declared to exist, by reason whereof this act shall take effect and
547-be in full force from and after its passage an d approval."
548-Passed the House of Representatives the 27th day of April, 2022.
549-
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551-
552-
553-
554-Presiding Officer of the House of
555- Representatives
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558-Passed the Senate the ____ day of _______ ___, 2022.
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564-Presiding Officer of the Senate
565- RBS No. 3619
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592-ENGROSSED SENATE
593-BILL NO. 1188 By: Taylor, Jett, Coleman,
594-Kidd, and Bergstrom of the
595-Senate
596-
597- and
598-
599- Newton and Roberts (Dustin)
600-of the House
601-
602-
603-
604-An Act relating to state pensions; amending 11 O.S.
605-2021, Section 50-112, which relates to eligibility
606-for membership in system; allowing municipalities
607-under certain population to hire certain retired
608-police officers without reentering system; allowing
609-for retired persons to be hired as police officers
610-under certain circumstances without entrance into
611-system; providing for codification; and providing an
612-effective date.
613-
614-
615-
616-BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
617-SECTION 6. AMENDATORY 1 1 O.S. 2021, Section 50 -112, is
618-amended to read as follows:
619-Section 50-112. A. All persons employed as full-time duly
620-appointed or elected officers who are paid for working more than
621-twenty-five (25) hours per week or any person hired by a
622371 participating municipa lity who is undergoing police training to
623372 become a permanent police officer of the municipality shall
624373 participate in the System upon in itial employment with a p olice
625374 department of a participating municipality. All such persons shall
626375 submit to a physical -medical examination pertaining to sight,
627-hearing, agility and other conditions the requirements of which RBS No. 3619
376+hearing, agility and other conditions the requirements of which RBH No. 11250
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654404 shall be established by the Sta te Board. The person sha ll be
655405 required to complete this physical -medical examination prior to the
656406 beginning of actual em ployment. This examination shall identify any
657407 preexisting conditions. Except as otherwise provided in this
658408 section, a police officer shall be not less than tw enty-one (21) nor
659409 more than forty-five (45) years of age when accepted for membership
660410 in the System. However, if a municipality should be found to be in
661411 noncompliance with the provisions of Article 50 of this title, as
662412 determined by the State Board, then any current full-time active
663413 police officer employed by a municipality as of July 1, 2001, shall
664414 not be denied eligibility to participate in the Oklahoma Police
665415 Pension and Retirement System solely due to age. The State Board
666416 shall have authority to deny or revoke membership of any person
667417 submitting false information in such person ’s membership
668418 application. The State Board shall have final authority in
669419 determining eligibility for membership in the System , pursuant to
670420 the provisions of this article.
671421 B. The police chief of any participating municipality may be
672422 exempt from membership in the System or may become a member provided
673423 the member is not a retired member and the requirements of this
674424 section are met at the time of employment.
675425 C. A member of the Syst em who has attained his or her normal
676426 retirement date may, if the member so elects, agree to ter minate
677-employment and retire as a member of the System and make an election RBS No. 3619
427+employment and retire as a member of the System and make an election RBH No. 11250
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429+SB1188 HFLR Page 9
430+BOLD FACE denotes Committee Amendments. 1
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704455 to receive distributions from th e System. If a retired mem ber is
705456 reemployed by a participating municipality in the position of police
706457 chief or in a position which is not covered b y the System,
707458 retirement shall include receipt by such retired member of in-
708459 service distributions from the S ystem.
709460 D. A former member of the System who termina tes from covered
710461 employment and who has neither retired from the System nor entered
711462 the Oklahoma Police Deferred Option Plan and is later employed in a
712463 covered position with a participating municipality s hall not be
713464 denied eligibility to become a member of the System because he or
714465 she is forty-five (45) years of age or older. If such member has
715466 withdrawn his or her contributions prior to re-entering the System
716467 and the member desires to receive credit for such prior service,
717468 then the member shall pay back s uch contributions and interest
718469 pursuant to Section 50 -111.1 of this title.
719470 E. Notwithstanding a ny other provision of law to the contrary,
720471 a municipality that employs two (2) or fewer full-time police
721472 officers with a population of four thousand five hundre d (4,500) or
722473 less, according to the latest Federal Decennial Cens us, may employ a
723474 police officer retired police officers who is are more than forty-
724475 five (45) years of age and who has never have participated in the
725-Oklahoma Police Pension and Retiremen t System, and are receiving
726-retirement benefits. but such police officer Such officers shall
727-not be eligible to reenter and participate in the System. Such RBS No. 3619
476+Oklahoma Police Pension and Retiremen t System, but such police
477+officer and are receiving retirement benefits. Such officers shall
478+not be eligible to reenter and participate in the System. Such RBH No. 11250
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480+SB1188 HFLR Page 10
481+BOLD FACE denotes Committee Amendments. 1
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754506 police officer shall be counted in the limitation im posed by this
755507 subsection. Notwithstanding any othe r provisions of law, the State
756508 Board shall be granted access to information concerning a list of
757509 actively working police o fficers within the municipalities and
758510 agencies under the purview provided by the Co uncil on Law
759511 Enforcement Education and Training.
760-SECTION 7. NEW LAW A new section of law to be codified
761-in the Oklahoma Statutes as Section 112.1 of Title 11, unless there
762-is created a duplication in numbering, reads as follows:
512+SECTION 3. NEW LAW A new section of law to be codified
513+in the Oklahoma Statutes as Section 50-112.1 of Title 11, unless
514+there is created a duplication in numbering, reads as follows:
763515 Notwithstanding any other provision of law, any person who is
764516 receiving retirement benefits from a st ate pension system may be
765517 hired by a municipality with a population of four thousand five
766518 hundred (4,500) or less, according to the latest Federal Decennia l
767519 Census, to fulfill the duties and obligations of a police officer.
768520 Such persons shall not be subject to the requirements and
769-obligations of the Oklahoma Police Pension Retirement System and
521+obligations of the Oklahoma Police Pension and Retirement System and
770522 shall not be eligible to enter into the System.
771-SECTION 8. This act shall become effective November 1, 2022. RBS No. 3619
523+SECTION 4. This act shall become effective No vember 1, 2022.
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798-Passed the Senate the 8th day of March, 2022.
799-
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801-
802- Presiding Officer of the Sen ate
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805-Passed the House of Representatives the ____ day of __________,
806-2022.
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808-
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810- Presiding Officer of the House
811- of Representatives
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525+COMMITTEE REPORT BY: COMMITTEE ON COUNTY AND MUNICIPAL GOVERNMENT,
526+dated 04/05/2022 - DO PASS, As Amended.