senate Bill S5509A

2011-2012 Legislative Session

Relates to the public safety communications surcharge; repealer

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Apr 24, 2012 print number 5509b
amend and recommit to finance
Apr 18, 2012 reported and committed to finance
Jan 04, 2012 referred to investigations and government operations
Jun 10, 2011 print number 5509a
amend and recommit to investigations and government operations
May 26, 2011 referred to investigations and government operations

Votes

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Apr 18, 2012 - Investigations and Government Operations committee Vote

S5509A
5
0
committee
5
Aye
0
Nay
3
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Investigations and Government Operations committee vote details

Investigations and Government Operations Committee Vote: Apr 18, 2012

aye wr (3)

Bill Amendments

Original
A
B (Active)
Original
A
B (Active)

S5509 - Bill Details

See Assembly Version of this Bill:
A8489
Current Committee:
Law Section:
Tax Law
Laws Affected:
Rpld & add §186-f sub 6, Tax L

S5509 - Bill Texts

view summary

Relates to the public safety communications surcharge and amends the distributions of monies collected pursuant to such surcharge and provides for the repeal of certain provisions relating thereto.

view sponsor memo
BILL NUMBER:S5509

TITLE OF BILL:
An act
to amend the tax law, in relation to the public safety communications
surcharge and repealing
certain provisions of such law relating thereto

PURPOSE OR GENERAL IDEA OF BILL:
Specifies what percentage of the
public safety communications surcharge funds shall go to counties and
local governments, and what percentage shall go to the state.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Repeals Subdivision 6 of section 186-f of the tax law and a
new subdivision 6 is added.

New subdivision 6 specifies that:

58.3% of surcharge funds shall be used for the provision of grants or
reimbursements to counties for the development, consolidation, or
operation of public safety communications systems or networks
designed to support interoperable communications for first responders.

41.7% shall be jointly apportioned to the state police, the New York
State emergency services revolving loan fund, and other uses by the
state.

Section 2: provides the effective date.

JUSTIFICATION:
New York passed a law in 1991 that placed a 70 cent
surcharge on cell phone bills, and in 2002 raised the tax to $1.20
per cell phone. Funding was intended to be transferred from the state
police to local governments to pay for 911 call center services and
technology upgrades. For years, however, the state has been diverting
these funds for other purposes. A 2002 audit by then-Comptroller H.
Carl McCall identified and criticized the state police for spending
the funds on dry cleaning, conferences, pens, decals, garbage removal
and other miscellaneous items unrelated to 911 call center upgrades.
The law was changed in response, but failed to require that wireless
surcharge funds be diverted to local governments.

The New York State 911 Coordinators Association estimates that New
York State has collected over $1.2 billion in surcharges since 1994,
and of the $190 million collected last year the state transferred
only $9.3 million to county governments.

In 2004 Congress passed a law that limited 911 grants to states that
were improperly diverting wireless tax revenue and the U.S.
Government Accountability Office (GAO) has requested and received no
response from
New York state officials over the course of two investigations into
the collection and use of funds for the 50 States and District of
Columbia wireless Enhanced 911 Services.


County governments have been forced to raise sales and/or property
taxes to cover for Albany's improper diversion of these funds. In
addition to being irresponsible, such improper allocation of funds
may be illegal. For example, the Tennessee Attorney General recently
concluded that raiding of 911 funds in that state was illegal based
on the Federal Enhance 911 Act of 1994.

Removing discretion from the state in deciding how wireless surcharge
funds will be allocated will ensure local governments receive the
funds necessary to upgrade 911 call centers and ensure counties are
not forced to raise property and/or sales taxes or fees to cover for
Albany's improper withholding of public safety communications
surcharge funds.

PRIOR LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.

EFFECTIVE DATE:
This act shall take effect on the one hundred
twentieth day after it shall have become law.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5509

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              May 26, 2011
                               ___________

Introduced  by Sen. GRISANTI -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to the public  safety  communi-
  cations  surcharge and repealing certain provisions of such law relat-
  ing thereto

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision 6 of section 186-f of the tax law is REPEALED
and a new subdivision 6 is added to read as follows:
  6. DISTRIBUTION. THE MONIES COLLECTED FROM THE  SURCHARGE  IMPOSED  BY
THIS SECTION SHALL BE DISTRIBUTED IN THE FOLLOWING MANNER:
  (A)  FIFTY-EIGHT  AND  THREE-TENTHS  PERCENT  SHALL  BE  USED  FOR THE
PROVISION OF GRANTS OR REIMBURSEMENTS TO COUNTIES FOR  THE  DEVELOPMENT,
CONSOLIDATION,  OR  OPERATION OF PUBLIC SAFETY COMMUNICATIONS SYSTEMS OR
NETWORKS DESIGNED TO SUPPORT STATEWIDE INTEROPERABLE COMMUNICATIONS  FOR
FIRST RESPONDERS, TO BE DISTRIBUTED PURSUANT TO STANDARDS AND GUIDELINES
ISSUED BY THE STATE. ANNUAL GRANTS MAY CONSIDER COSTS BORNE BY A MUNICI-
PALITY  RELATED  TO  THE  ISSUANCE OF LOCAL PUBLIC SAFETY COMMUNICATIONS
BONDS PURSUANT TO SECTION TWENTY-FOUR HUNDRED THIRTY-TWO OF  THE  PUBLIC
AUTHORITIES  LAW,  WHEN  THE  MUNICIPALITY  HAS QUALIFIED AS AN APPROVED
PARTICIPANT IN A STATEWIDE INTEROPERABLE COMMUNICATIONS SYSTEM UNDER THE
STANDARDS AND GUIDELINES ISSUED BY THE STATE, AND  MAINTAINS  COMPLIANCE
WITH  SUCH STANDARDS AND GUIDELINES. THE GRANT AMOUNT WILL BE PRESCRIBED
PURSUANT TO AN AGREEMENT WITH THE MUNICIPALITY, AND MAY NOT EXCEED THIR-
TY PERCENT OF THE ANNUAL COST BORNE BY THE MUNICIPALITY IN  RELATION  TO
SUCH BONDS; AND
  (B)  FORTY-ONE  AND SEVEN-TENTHS PERCENT SHALL BE JOINTLY APPORTIONED,
PURSUANT TO RULES AND REGULATIONS PROMULGATED BY THE  COMMISSIONER,  TO:
(I) THE STATE POLICE, (II) THE NEW YORK STATE EMERGENCY SERVICES REVOLV-
ING LOAN FUND, (III) PROVIDE FOR THE COSTS OF DEBT SERVICE FOR BONDS AND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10600-02-1

S. 5509                             2

NOTES  ISSUED  TO  FINANCE  EXPEDITED DEPLOYMENT FUNDING PURSUANT TO THE
PROVISIONS OF SECTION THREE HUNDRED THIRTY-THREE OF THE COUNTY  LAW  AND
SECTION SIXTEEN HUNDRED EIGHTY-NINE-H OF THE PUBLIC AUTHORITIES LAW, AND
(IV)  PROVIDE  FOR SERVICES AND EXPENSES THAT SUPPORT THE OPERATIONS AND
MISSION OF THE DIVISION OF HOMELAND SECURITY AND EMERGENCY  SERVICES  AS
APPROPRIATED BY THE LEGISLATURE.
  S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law; provided, however, that effective immediate-
ly,  the  addition,  amendment  and/or  repeal of any rule or regulation
necessary for the implementation of this act on its  effective  date  is
authorized  and  directed  to  be  made  and completed on or before such
effective date.

Co-Sponsors

view additional co-sponsors

S5509A - Bill Details

See Assembly Version of this Bill:
A8489
Current Committee:
Law Section:
Tax Law
Laws Affected:
Rpld & add §186-f sub 6, Tax L

S5509A - Bill Texts

view summary

Relates to the public safety communications surcharge and amends the distributions of monies collected pursuant to such surcharge and provides for the repeal of certain provisions relating thereto.

view sponsor memo
BILL NUMBER:S5509A

TITLE OF BILL:
An act
to amend the tax law, in relation to the public safety communications
surcharge and repealing
certain provisions of such law relating thereto

PURPOSE:
Specifies what percentage of the public safety communications
surcharge funds shall go to counties and local governments, and what
percentage shall go to the state.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Repeals Subdivision 6 of
section 186-f of the tax law and a new subdivision 6 is added.

New subdivision 6 specifies that:

58.3% of surcharge funds shall be used for the provision of grants or
reimbursements to counties for the development, including next
generation 911, consolidation, or operation of public safety
communications systems or networks designed to support interoperable
communications for first responders.

41.7% shall be jointly apportioned to the state police, the New York
State emergency services revolving loan fund, and other uses by the
state.

Section 2: provides the effective date.

JUSTIFICATION:
New York passed a law in 1991 that placed a 70 cent
surcharge on cell phone bills, and in 2002 raised the tax to $1.20
per cell phone.
Funding was intended to be transferred from the state police to local
governments to pay for 911 call center services and technology
upgrades. For years, however, the state has been diverting these
funds for other purposes.
A 2002 audit by then-Comptroller H. Carl McCall identified and
criticized the state police for spending the funds on dry cleaning,
conferences, pens, decals, garbage removal and other miscellaneous
items unrelated to 911 call center upgrades. The law was changed in
response, but failed to require that wireless surcharge funds be
diverted to local governments.

The New York State 911 Coordinators Association estimates that New
York State has collected over $1.2 billion in surcharges since 1994,
and of the $190 million collected last year the state transferred
only $9.3 million to county governments.

In 2004 Congress passed a law that limited 911 grants to states that
were improperly diverting wireless tax revenue and the U.s.
Government Accountability Office (GAO) has requested and received no
response from New York state officials over the course of two
investigations into the


collection and use of funds for the 50 States and District of Columbia
wireless Enhanced 911 Services.

County governments have been forced to raise sales and/or property
taxes to cover for Albany's improper diversion of these funds. In
addition to being irresponsible, such improper allocation of funds
may be illegal. For example, the Tennessee Attorney General recently
concluded that raiding of 911 funds in that state was illegal based
on the Federal Enhance 911 Act of 1994.

Removing discretion from the state in deciding how wireless surcharge
funds will be allocated will ensure local governments receive the
funds necessary to upgrade 911 call centers and ensure counties are
not forced to raise property and/or sales taxes or fees to cover for
Albany's improper withholding of public safety communications
surcharge funds.

PRIOR LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect on the one hundred
twentieth day after it shall have become law.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5509--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              May 26, 2011
                               ___________

Introduced  by Sen. GRISANTI -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment  Operations  --  committee  discharged,  bill  amended,   ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to amend the tax law, in relation to the public safety communi-
  cations surcharge and repealing certain provisions of such law  relat-
  ing thereto

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 6 of section 186-f of the tax law  is  REPEALED
and a new subdivision 6 is added to read as follows:
  6.  DISTRIBUTION.  THE  MONIES COLLECTED FROM THE SURCHARGE IMPOSED BY
THIS SECTION SHALL BE DISTRIBUTED IN THE FOLLOWING MANNER:
  (A) FIFTY-EIGHT  AND  THREE-TENTHS  PERCENT  SHALL  BE  USED  FOR  THE
PROVISION  OF  GRANTS OR REIMBURSEMENTS TO COUNTIES FOR THE DEVELOPMENT,
CONSOLIDATION, OR OPERATION OF PUBLIC SAFETY COMMUNICATIONS  SYSTEMS  OR
NETWORKS  DESIGNED TO SUPPORT STATEWIDE INTEROPERABLE COMMUNICATIONS FOR
FIRST RESPONDERS, INCLUDING  NEXT  GENERATION  911,  TO  BE  DISTRIBUTED
PURSUANT  TO STANDARDS AND GUIDELINES ISSUED BY THE STATE. ANNUAL GRANTS
MAY CONSIDER COSTS BORNE BY A MUNICIPALITY RELATED TO  THE  ISSUANCE  OF
LOCAL PUBLIC SAFETY COMMUNICATIONS BONDS PURSUANT TO SECTION TWENTY-FOUR
HUNDRED  THIRTY-TWO OF THE PUBLIC AUTHORITIES LAW, WHEN THE MUNICIPALITY
HAS QUALIFIED AS AN APPROVED PARTICIPANT IN  A  STATEWIDE  INTEROPERABLE
COMMUNICATIONS  SYSTEM  UNDER THE STANDARDS AND GUIDELINES ISSUED BY THE
STATE, AND MAINTAINS COMPLIANCE WITH SUCH STANDARDS AND GUIDELINES.  THE
GRANT  AMOUNT WILL BE PRESCRIBED PURSUANT TO AN AGREEMENT WITH THE MUNI-
CIPALITY, AND MAY NOT EXCEED THIRTY PERCENT OF THE ANNUAL COST BORNE  BY
THE MUNICIPALITY IN RELATION TO SUCH BONDS; AND
  (B)  FORTY-ONE  AND SEVEN-TENTHS PERCENT SHALL BE JOINTLY APPORTIONED,
PURSUANT TO RULES AND REGULATIONS PROMULGATED BY THE  COMMISSIONER,  TO:
(I) THE STATE POLICE, (II) THE NEW YORK STATE EMERGENCY SERVICES REVOLV-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10600-03-1

S. 5509--A                          2

ING LOAN FUND, (III) PROVIDE FOR THE COSTS OF DEBT SERVICE FOR BONDS AND
NOTES  ISSUED  TO  FINANCE  EXPEDITED DEPLOYMENT FUNDING PURSUANT TO THE
PROVISIONS OF SECTION THREE HUNDRED THIRTY-THREE OF THE COUNTY  LAW  AND
SECTION SIXTEEN HUNDRED EIGHTY-NINE-H OF THE PUBLIC AUTHORITIES LAW, AND
(IV)  PROVIDE  FOR SERVICES AND EXPENSES THAT SUPPORT THE OPERATIONS AND
MISSION OF THE DIVISION OF HOMELAND SECURITY AND EMERGENCY  SERVICES  AS
APPROPRIATED BY THE LEGISLATURE.
  S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law; provided, however, that effective immediate-
ly,  the  addition,  amendment  and/or  repeal of any rule or regulation
necessary for the implementation of this act on its  effective  date  is
authorized  and  directed  to  be  made  and completed on or before such
effective date.

Co-Sponsors

view additional co-sponsors

S5509B (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A8489
Current Committee:
Law Section:
Tax Law
Laws Affected:
Rpld & add §186-f sub 6, Tax L

S5509B (ACTIVE) - Bill Texts

view summary

Relates to the public safety communications surcharge and amends the distributions of monies collected pursuant to such surcharge and provides for the repeal of certain provisions relating thereto.

view sponsor memo
BILL NUMBER:S5509B

TITLE OF BILL:
An act to amend the tax law, in relation to the public safety communi-
cations surcharge and repealing certain provisions of such law relating
thereto

PURPOSE:
Specifies what percentage of the public safety communications surcharge
funds shall go to counties and local governments, and what percentage
shall go to the state.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Repeals Subdivision 6 of section 186-f of the tax law and a
new subdivision 6 is added.

New subdivision 6 specifies that:

58.3% of surcharge funds shall be used for toe provision of grants or
reimbursements to counties for the development, including next gener-
ation 911, consolidation, or operation of public safety communications
systems or networks designed to support interoperable communications for
first responders.

41.7% shall be jointly apportioned to the state police, the New York
State emergency services revolving loan fund, and other uses by the
state.

Section 2: provides the effective date.

JUSTIFICATION:
New York passed a law in 1991 that placed a 70 cent surcharge on cell
phone bills, and in 2002 raised the tax to $1.20 per cell phone. Fund-
ing was intended to be transferred from the state police to local
governments to pay for 911 call center services and technology upgrades.
For years, however, the state has been diverting these funds for other
purposes. A 2002 audit, by then Comptroller H. Carl McCall, identified
and criticized the state police for spending the funds on dry cleaning,
conferences, pens, decals, garbage removal and other miscellaneous items
unrelated to 911 call center upgrades. The law was changed in response,
but failed to require that wireless surcharge funds be diverted to local
governments.

The New York State 911 Coordinators Association estimates that New York
State has collected over $1.2 billion in surcharges since 1994, and of
the $1.90 million collected last year the state transferred only $9.3
million to county governments.

In 2004 Congress passed a law that limited 911 grants to states that
were improperly diverting wireless tax revenue and the U.S. Government
Accountability Office (GAO) has requested and received no response from

New York state officials over the course of two investigations into the
collection and use of funds for the 50 States and District of Columbia
Wireless Enhanced 911 Services.

County governments have been forced to raise sales and/or property taxes
to cover for Albany's improper diversion of these funds. In addition to
being irresponsible, such improper allocation of funds may be illegal.
For example, the Tennessee Attorney General recently concluded that
raiding of 911 funds in that state was illegal based on the Federal
Enhance 911 Act of 1994.

Removing discretion from the state in deciding how wireless surcharge
funds will be allocated will ensure local governments receive the funds
necessary to upgrade 911 call centers and ensure counties are not forced
to raise property and/or sales taxes or fees to cover for Albany's
improper withholding of public safety communications surcharge funds.

PRIOR LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect on the first of April next succeeding the
date on which it shall have become law.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5509--B

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              May 26, 2011
                               ___________

Introduced  by  Sens.  GRISANTI,  DeFRANCISCO,  GOLDEN, GRIFFO, JOHNSON,
  LARKIN, MAZIARZ, O'MARA, RANZENHOFER, RITCHIE, SEWARD, YOUNG  --  read
  twice  and  ordered  printed,  and when printed to be committed to the
  Committee on Investigations and  Government  Operations  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to  said  committee  -- recommitted to the Committee on Investigations
  and Government Operations in accordance with Senate Rule 6, sec. 8  --
  reported  favorably from said committee and committed to the Committee
  on Finance -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

AN ACT to amend the tax law, in relation to the public  safety  communi-
  cations  surcharge and repealing certain provisions of such law relat-
  ing thereto

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision 6 of section 186-f of the tax law is REPEALED
and a new subdivision 6 is added to read as follows:
  6. DISTRIBUTION. THE MONIES COLLECTED FROM THE  SURCHARGE  IMPOSED  BY
THIS SECTION SHALL BE DISTRIBUTED IN THE FOLLOWING MANNER:
  (A)  FIFTY-EIGHT  AND  THREE-TENTHS  PERCENT  SHALL  BE  USED  FOR THE
PROVISION OF GRANTS OR REIMBURSEMENTS TO COUNTIES FOR  THE  DEVELOPMENT,
CONSOLIDATION,  OR  OPERATION OF PUBLIC SAFETY COMMUNICATIONS SYSTEMS OR
NETWORKS DESIGNED TO SUPPORT STATEWIDE INTEROPERABLE COMMUNICATIONS  FOR
FIRST  RESPONDERS,  INCLUDING  NEXT  GENERATION  911,  TO BE DISTRIBUTED
PURSUANT TO STANDARDS AND GUIDELINES ISSUED BY THE STATE. ANNUAL  GRANTS
MAY  CONSIDER  COSTS  BORNE BY A MUNICIPALITY RELATED TO THE ISSUANCE OF
LOCAL PUBLIC SAFETY COMMUNICATIONS BONDS PURSUANT TO SECTION TWENTY-FOUR
HUNDRED THIRTY-TWO OF THE PUBLIC AUTHORITIES LAW, WHEN THE  MUNICIPALITY
HAS  QUALIFIED  AS  AN APPROVED PARTICIPANT IN A STATEWIDE INTEROPERABLE
COMMUNICATIONS SYSTEM UNDER THE STANDARDS AND GUIDELINES ISSUED  BY  THE
STATE,  AND MAINTAINS COMPLIANCE WITH SUCH STANDARDS AND GUIDELINES. THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10600-07-2

S. 5509--B                          2

GRANT AMOUNT WILL BE PRESCRIBED PURSUANT TO AN AGREEMENT WITH THE  MUNI-
CIPALITY,  AND MAY NOT EXCEED THIRTY PERCENT OF THE ANNUAL COST BORNE BY
THE MUNICIPALITY IN RELATION TO SUCH BONDS; AND
  (B)  FORTY-ONE  AND SEVEN-TENTHS PERCENT SHALL BE JOINTLY APPORTIONED,
PURSUANT TO RULES AND REGULATIONS PROMULGATED BY THE  COMMISSIONER,  TO:
(I) THE STATE POLICE, (II) THE NEW YORK STATE EMERGENCY SERVICES REVOLV-
ING LOAN FUND, (III) PROVIDE FOR THE COSTS OF DEBT SERVICE FOR BONDS AND
NOTES  ISSUED  TO  FINANCE  EXPEDITED DEPLOYMENT FUNDING PURSUANT TO THE
PROVISIONS OF SECTION THREE HUNDRED THIRTY-THREE OF THE COUNTY  LAW  AND
SECTION SIXTEEN HUNDRED EIGHTY-NINE-H OF THE PUBLIC AUTHORITIES LAW, AND
(IV)  PROVIDE  FOR SERVICES AND EXPENSES THAT SUPPORT THE OPERATIONS AND
MISSION OF THE DIVISION OF HOMELAND SECURITY AND EMERGENCY  SERVICES  AS
APPROPRIATED BY THE LEGISLATURE.
  S  2. This act shall take effect on the first of April next succeeding
the date on which it shall have become a law;  provided,  however,  that
effective immediately, the addition, amendment and/or repeal of any rule
or regulation necessary for the implementation of this act on its effec-
tive  date  is  authorized  and  directed to be made and completed on or
before such effective date.

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