1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 SENATE BILL 1505 By: Paxton
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6 AS INTRODUCED
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7 An Act relating to rebate payments; amending Sections
7 2, 3, 4, and 5, Chapter 346, O.S.L. 2022 (68 O.S.
8 Supp. 2023, Sections 55007, 55008, 55009, and 55010),
8 which relate to the Oklahoma Emission Reduction
9 Technology Incentive Act; modifying intent; modifying
9 definitions; increasing rebate payment limit;
10 modifying name of revolving fund; modifying purpose
10 of fund; creating the Oklahoma Emission Reduction
11 Technology Downstream Incentive Revolving Fund;
11 stating sources of fund; providing for expenditures
12 from fund; providing for transfer of funds under
12 certain circumstance; making appropriations to the
13 Oklahoma Tax Commission; directing deposit in certain
13 funds; updating statutory language; updating
14 statutory references; providing an effective date;
14 and declaring an emergency.
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17 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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18 SECTION 1. AMENDATORY Section 2, Chapter 346, O.S.L.
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19 2022 (68 O.S. Supp. 2023, Section 55007), is amended to read as
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20 follows:
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21 Section 55007. The Legislature hereby finds that the reduction
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22 of emissions from upstream, and midstream, and downstream oil and
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23 gas production, exploration, completions, gatherings, storage,
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24 processing, refining, and transmission activities serves the
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1 interests of the citizens of Oklahoma and such emission reduction
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2 activities with new and innovative technologies should be encouraged
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3 and incentivized.
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4 SECTION 2. AMENDATORY Section 3, Chapter 346, O.S.L.
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5 2022 (68 O.S. Supp. 2023, Section 55008), is amended to read as
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6 follows:
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7 Section 55008. As used in the Oklahoma Emission Reduction
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8 Technology Incentive Act, “Emission Reduction Project” means and
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9 includes, but is not limited to:
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10 1. Existing and new technology projects that reduce on-site
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11 emissions of regulated pollutants or carbon oxides from stationary
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12 sources; and
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13 2. Existing and new technology projects that reduce emissions
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14 from upstream, and midstream, and downstream oil and gas
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15 exploration, production, completions, gathering gatherings, storage,
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16 processing, refining, and transmission activities through the
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17 following:
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18 a. the replacement, repair, or retrofit of stationary
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19 compressor engines,
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20 b. the installation of systems and/or equipment to reduce
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21 or eliminate the loss of gas, venting of gas, flaring
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22 of gas, or burning of gas using other combustion
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23 control devices, or
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1 c. the installation of systems and/or equipment to reduce
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2 the per barrel consumption of energy, or
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3 d. the installation of emissions monitoring equipment or
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4 devices.
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5 SECTION 3. AMENDATORY Section 4, Chapter 346, O.S.L.
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6 2022 (68 O.S. Supp. 2023, Section 55009), is amended to read as
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7 follows:
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8 Section 55009. A. Upon the effective date of this act July 1,
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9 2022, there is hereby created the Oklahoma Emission Reduction
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10 Technology Rebate Program. There is hereby created a rebate in the
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11 amount of up to twenty-five percent (25%) of documented expenditures
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12 made in this state directly attributable to the implementation of a
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13 qualified Emission Reduction Project.
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14 B. The rebate program shall be administered by the Department
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15 of Environmental Quality and the Oklahoma Tax Commission, as
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16 provided in the Oklahoma Emission Reduction Technology Incentive
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17 Act.
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18 C. To be eligible for a rebate payment:
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19 1. The applicant responsible for the implementation of a
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20 qualified Emission Reduction Project in this state shall submit
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21 documentation to the Department of Environmental Quality no later
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22 than six (6) months after the end of the fiscal year in which the
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23 expenditures were made stating the amount of expenditures made in
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1 this state directly related to the implementation of the qualified
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2 Emission Reduction Project;
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3 2. The applicant has filed all Oklahoma tax returns and tax
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4 documents which are required by the laws of this state; and
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5 3. The applicant shall provide evidence of a certificate of
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6 general liability insurance with a minimum coverage of One Million
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7 Dollars ($1,000,000.00) and a workers’ compensation policy pursuant
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8 to the laws of this state which shall include coverage of employer’s
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9 liability.
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10 D. The Department of Environmental Quality shall approve or
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11 disapprove all claims for a rebate payment and shall notify the
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12 Oklahoma Tax Commission. The Tax Commission shall, upon
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13 notification of approval from the Department of Environmental
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14 Quality, issue a rebate payment for all approved claims from funds
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15 in the Oklahoma Emission Reduction Technology Upstream and Midstream
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16 Incentive Revolving Fund created in Section 5 of this act Section
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17 55010 of this title and the Oklahoma Emission Reduction Technology
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18 Downstream Incentive Revolving Fund created in Section 55010 of this
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19 title. Rebate payments from the fund Oklahoma Emission Reduction
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20 Technology Upstream and Midstream Incentive Revolving Fund shall not
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21 exceed Ten Million Dollars ($10,000,000.00) One Hundred Million
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22 Dollars ($100,000,000.00) in any fiscal year, and rebate payments
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23 from the Oklahoma Emission Reduction Technology Downstream Incentive
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24 Revolving Fund shall not exceed Twenty-Five Million Dollars
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1 ($25,000,000.00) in any fiscal year. If the amount of approved
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2 claims exceeds the amount specified in this subsection, for either
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3 fund, in a fiscal year, payments shall be made proportionately to
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4 all of the parties making a claim prior to the deadline which is
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5 approved by the Department of Environmental Quality with the amount
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6 to be paid to each approved party being product of the individual
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7 claim amount times the percentage resulting from Ten Million Dollars
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8 ($10,000,000.00) Twenty-five Million Dollars ($25,000,000.00)
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9 divided by the total amount of approved claims for the period. If
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10 an approved claim is not paid in whole or in part, the unpaid claim
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11 or unpaid portion shall be paid in the following fiscal years in the
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12 order in which the claims are approved by the Department.
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13 E. Approved claims for rebate that exceed the balance of the
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14 Oklahoma Emission Reduction Technology Upstream and Midstream
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15 Incentive Revolving Fund created in Section 5 of this act Section
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16 55010 of this title and the Oklahoma Emission Reduction Technology
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17 Downstream Incentive Revolving Fund created in Section 55010 of this
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18 title may be paid in part and the unpaid portion shall be paid upon
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19 the applicable fund reaching a sufficient balance in the order in
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20 which the claims are approved by the Department.
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21 SECTION 4. AMENDATORY Section 5, Chapter 346, O.S.L.
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22 2022 (68 O.S. Supp. 2023, Section 55010), is amended to read as
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23 follows:
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1 Section 55010. A. There is hereby created in the State
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2 Treasury a revolving fund for the Oklahoma Tax Commission to be
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3 designated the “Oklahoma Emission Reduction Technology Upstream and
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4 Midstream Incentive Revolving Fund”. The fund shall be a continuing
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5 fund, not subject to fiscal year limitations, and shall consist of
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6 all monies received by the Tax Commission from any public or private
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7 donations, contributions, and gifts received for the benefit of the
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8 fund and any amounts appropriated by the Oklahoma Legislature
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9 designated for deposit in the fund. All monies accruing to the
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10 credit of the fund are hereby appropriated and may be budgeted and
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11 expended by the Tax Commission for the purpose of paying rebates for
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12 emission reduction projects, except for projects pertaining to
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13 refining activities, as provided in this act the Oklahoma Emission
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14 Reduction Technology Incentive Act. Expenditures from the fund
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15 shall be made upon warrants issued by the State Treasurer against
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16 claims filed as prescribed by law with the Director of the Office of
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17 Management and Enterprise Services for approval and payment. Any
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18 remaining unencumbered balance upon the cessation of the Oklahoma
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19 Emission Reduction Technology Rebate Program, as provided in Section
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20 7 of this act Section 55012 of this title, shall be transferred to
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21 the General Revenue Fund of the State of Oklahoma this state.
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22 B. There is hereby created in the State Treasury a revolving
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23 fund for the Oklahoma Tax Commission to be designated the “Oklahoma
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24 Emission Reduction Technology Downstream Incentive Revolving Fund”.
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1 The fund shall be a continuing fund, not subject to fiscal year
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2 limitations, and shall consist of all monies received by the Tax
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3 Commission from any public or private donations, contributions, and
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4 gifts received for the benefit of the fund and any amounts
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5 appropriated by the Legislature designated for deposit in the fund.
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6 All monies accruing to the credit of the fund are hereby
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7 appropriated and may be budgeted and expended by the Tax Commission
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8 for the purpose of paying rebates for emission reduction projects
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9 pertaining to refining activities as provided in this act.
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10 Expenditures from the fund shall be made upon warrants issued by the
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11 State Treasurer against claims filed as prescribed by law with the
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12 Director of the Office of Management and Enterprise Services for
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13 approval and payment. Any remaining unencumbered balance upon the
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14 cessation of the Oklahoma Emission Reduction Technology Rebate
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15 Program, as provided in Section 55012 of this title, shall be
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16 transferred to the General Revenue Fund of this state.
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17 SECTION 5. There is hereby appropriated to the Oklahoma Tax
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18 Commission for deposit in the Oklahoma Emission Reduction Technology
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19 Upstream and Midstream Incentive Revolving Fund from any monies not
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20 otherwise appropriated from the General Revenue Fund of the State
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21 Treasury for the fiscal year ending June 30, 2023, the sum of One
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22 Hundred Million Dollars ($100,000,000.00).
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23 SECTION 6. There is hereby appropriated to the Oklahoma Tax
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24 Commission for deposit in the Oklahoma Emission Reduction Technology
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1 Downstream Incentive Revolving Fund from any monies not otherwise
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2 appropriated from the General Revenue Fund of the State Treasury for
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3 the fiscal year ending June 30, 2023, the sum of Twenty-Five Million
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4 Dollars ($25,000,000.00).
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5 SECTION 7. This act shall become effective July 1, 2024.
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6 SECTION 8. It being immediately necessary for the preservation
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7 of the public peace, health or safety, an emergency is hereby
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8 declared to exist, by reason whereof this act shall take effect and
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9 be in full force from and after its passage and approval.
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11 59-2-2875 QD 12/15/2023 10:54:56 PM
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