BILL NUMBER: AB 1668 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Wieckowski
FEBRUARY 12, 2014
An act to amend Sections 94110, 94140, 94143, 94144, 94146, and
94149 of, and to add Section 94145.5 to, the Education Code, relating
to educational facilities, and declaring the urgency thereof, to
take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 1668, as introduced, Wieckowski. Educational facilities:
California Educational Facilities Authority.
(1) Existing law, the California Educational Facilities Authority
Act, establishes the California Educational Facilities Authority for
purposes of, among other things, providing private institutions of
higher education within the state an additional means by which to
expand, enlarge, and establish certain educational facilities,
finance those facilities, and refinance existing facilities. Under
the act, existing law defines "bond" to mean bonds, notes,
debentures, or other securities of the authority issued pursuant to
the act.
This bill would instead define "bond" to mean bonds, notes,
debentures, securities, or other evidences of indebtedness of the
authority issued pursuant to the act.
(2) Existing law provides that the authority has the power to,
among other things, receive and accept, from any federal or other
public agency or governmental entity, grants or loans for or in aid
of the acquisition or construction of any project, and to receive and
accept aid or contributions from any other source, of either money,
property, labor, or other things of value, to be held, used, and
applied only for the purposes for which the grants, loans, and
contributions may be made.
This bill would instead provide that the authority has the power
to, among other things, receive and accept from any source, loans,
contributions, or grants for, or in aid of, the acquisition,
construction, financing, or refinancing of a project, or any portion
of a project, in money, property, labor, or other things of value.
(3) Existing law authorizes the authority, from time to time, to,
among other things, issue its negotiable notes and negotiable bonds
for any corporate purpose. Existing law also authorizes the authority
to issue negotiable bond anticipation notes in anticipation of the
sale of the negotiable bonds.
This bill would instead authorize the authority, from time to
time, to, among other things, issue notes and bonds for any corporate
purpose. The bill would authorize the authority to issue bond
anticipation notes in anticipation of the sale of the bonds.
(4) Existing law, in the discretion of the authority, authorizes
any bonds issued under the act to be secured by a trust agreement by
and between the authority and a corporate trustee or trustees, as
specified. Existing law authorizes the trust agreement or resolution
providing for the issuance of bonds to contain any provisions the
authority deems reasonable and proper for the security of the
bondholders, including any provisions for protecting and enforcing
the rights and remedies of the bondholders as may be reasonable and
proper.
This bill would provide that any provision the authority may
include in a trust agreement or resolution providing for the issuance
of bonds under the act may also be included in a bond and the
provision shall have the same effect.
(5) Existing law requires a bond issued under the provisions of
the act to contain on its face a statement to the effect that, among
other things, neither the state nor the authority shall be obligated
to pay the bond or the interest on the bond except from the revenues
of the project, or the portion of the project, for which the bond is
issued.
This bill would require the statement described above to be
included on the bond, but not necessarily on its face.
(6) Existing law requires all moneys received pursuant to the
authority of the act to be deemed to be trust funds to be held and
applied solely as provided in the act, whether as proceeds from the
sale or bonds or as revenues.
This bill would instead require all moneys received pursuant to
the authority of the act to be deemed to be trust funds to be held
and applied solely as provided for in the act, whether as proceeds
from selling or incurring bonds or as revenues. The bill would also
make numerous nonsubstantive changes to these provisions.
(7) This bill would declare that it is to take effect immediately
as an urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 94110 of the Education Code is amended to read:
94110. As used in this chapter, the following words and terms
have the following meanings, unless the context indicates or requires
another or different meaning or intent:
(a) "Authority" means the California Educational Facilities
Authority created by this chapter or any board, body, commission,
department, or officer succeeding to the principal functions of the
authority or to whom the power conferred upon the authority by this
chapter is given by law.
(b) "Bond" means bonds, notes, debentures, or other
securities , or other evidences of indebtedness
of the authority issued pursuant to this chapter.
(c) "Cost," as applied to a project or portion thereof
of a project financed under this chapter, means
all , or any part of , the cost of construction
and acquisition of lands, structures, real or personal property,
rights, rights-of-way, franchises, easements, and interests acquired
or used for a project, the cost of demolishing or removing buildings
or structures on acquired land, including the cost of acquiring lands
to which the buildings or structures may be moved, the cost of
machinery and equipment, financing charges, interest prior
to, before, during, and for a period after
completion of, the construction as determined by the authority,
provisions for working capital, reserves for principal and interest
and for extension, enlargements, additions, replacements, renovations
and improvements, the cost of engineering, financial and legal
services, plans, specifications, studies, surveys, estimates,
administrative expenses, and other expenses necessary or incidental
to determining the feasibility of constructing a project or incident
to the construction or acquisition or financing of a project.
(d) "Dormitory" means a housing unit with necessary and usual
attendant and related facilities and equipment.
(e) (1) "Educational facility" means a dormitory, dining hall,
student union, administration building, academic building, library,
laboratory, research facility, classroom, health care facility
(including for an institution of higher education that maintains and
operates a school of medicine, structures or facilities designed to
provide services as a hospital or clinic, whether the hospital or
clinic is operated directly by the institution of higher education or
by a separate nonprofit corporation, the members of which consist of
the educational institution or the members of its governing body),
faculty and staff housing, parking, maintenance, storage, or utility
facilities, and other related structures or facilities used for
student instruction, conducting research, or operating an institution
for higher education, and related facilities and equipment.
(2) "Educational facility" does not include a facility used ,
or to be used , for sectarian instruction or as a
place for religious worship, or a facility used , or to be
used , primarily in connection with a part of the program
of a school or department of divinity.
(f) "Faculty and staff housing" means a residential unit owned by
a participating college or participating nonprofit entity for use by
an individual holding a faculty appointment or a staff position at a
public university, public college, or participating college.
(g) "Participating nonprofit entity" means an entity within the
meaning of paragraph (3) of subsection (c) of Section 501 of Title 26
of the United States Code that, pursuant to this chapter for the
purpose of owning student, faculty, or staff housing, as approved by,
and for participation with, the authority, undertakes the financing
and construction or acquisition of student, faculty, or staff
housing, on real property owned or leased by the entity, for the
benefit of a public college, public university, or participating
private college. The authority may determine any additional
qualifications of a participating nonprofit entity through
regulations or guidelines.
(h) "Participating private college" or "participating college"
means a private college that participates with the authority in
undertaking the financing and construction or acquisition of a
project and does not restrict the admission of a student based on his
or her race or ethnicity, provided that the financing does not
violate Section 5 of Article XVI of the California Constitution or
the establishment clause of the First Amendment to the United States
Constitution.
(i) (1) "Private college" means an institution for higher
education other than a public college, situated within the state and
that, by virtue of law or charter, is a nonprofit private or
independent degree-granting educational institution that is
regionally accredited and empowered to provide a program of education
beyond the high school level.
(2) For purposes of obtaining financing under this chapter,
"private college" also includes either of the following:
(A) A nonprofit affiliate, established on or prior to
before January 1, 2005, of one or more private
colleges, as defined in paragraph (1), the sole or primary purpose of
which is to provide administrative or other support services to an
affiliated private college or private colleges, and that undertakes
the financing of a project for the exclusive use and benefit of one
or more of the affiliated private colleges.
(B) A private nonprofit research organization engaged in basic
research and advanced education at the predoctoral and postdoctoral
levels through personnel situated within the state, but only if the
organization previously has borrowed the proceeds of bonds or other
obligations previously issued by the authority.
(j) (1) "Project" means a dormitory or an educational facility,
faculty or staff housing, or any combination thereof, or any function
concerning student loans, or interests therein,
in student loans, as determined by the authority.
(2) For a participating nonprofit entity, "project" means the
construction or acquisition of student housing or faculty and staff
housing. The authority, in consultation with the top administrative
officials and the participating nonprofit entity, shall develop and
adopt regulations to ensure, to the greatest extent practicable, that
each project involving a participating nonprofit entity is used to
house students, faculty, or staff of the participating private
college, public college, or public university. The student, faculty,
or staff housing shall meet all of the following criteria:
(A) Upon completion or acquisition of the project, the project
will be owned by a participating nonprofit entity and located on real
property owned, or leased by, that entity.
(B) The top administrative official of the public university,
public college, or participating private college that the project is
intended to benefit, verifies the need for housing and financing
assistance in a specific area pursuant to subparagraph (D).
(C) The project is monitored on an annual basis by the authority
to ensure that it meets the requirements of subparagraph (E) and all
other regulatory agreements entered into by the authority.
(D) The project is located within a five-mile radius of the
boundary of a campus or satellite center of the public college,
public university, or participating private college that the project
is intended to benefit. The participating nonprofit entity may
request approval from the top official of the institution for a
project that is located outside the five-mile radius, provided that
all of the following criteria are met:
(i) There are no available and feasible sites within the five-mile
radius.
(ii) The project is near a mass transit destination.
(iii) The time required to commute from campus to the mass transit
destination, as estimated by the top administrative official,
typically does not exceed 30 minutes.
(E) (i) The project includes and maintains for 40 years a
restriction to the grant deed on the real property on which the
student or faculty and staff housing is to be located. The grant deed
shall accomplish all of the following:
(I) Give the public college, public university, or participating
private college that the project is intended to benefit the right,
but not the obligation, to purchase the property at fair market
value.
(II) Ensure that students, faculty, or staff of the affected
campus will have first right of refusal to all available units.
(III) Require that, to the greatest extent feasible, at least 50
percent of student residents will meet the criteria for need-based
financial assistance, as determined by the top administrative
official of the affected campus.
(IV) Require that all contracts for construction and renovation of
the proposed project shall be subject to, and comply with the
provisions referenced in, Section 10128 of the Public Contract Code.
(ii) For purposes of this subparagraph, the authority, through
regulation or rule, shall define "student" and "faculty," taking into
consideration enrollment status requirements and employment status
requirements. The definitions of "student" and "faculty" may be
different for each participating campus.
(k) "Public college" means a community college.
( l ) "Public university" means any campus of the
University of California, the California State University, or the
Hastings College of the Law.
(m) "Student housing" means a residential unit owned by a
participating nonprofit entity, and located on real property owned by
that entity, for use by an individual enrolled at a public college,
public university, or participating private college.
(n) "Student loan" means a loan having terms and conditions
acceptable to the authority that is made to finance or refinance the
costs of attendance at a private college or a public college and that
is approved by the authority, if the loan is originated pursuant to
a program that is approved by the authority.
(o) "Top administrative official" means the chancellor in the case
of a campus of the University of California, the dean in the case of
the Hastings College of the Law, the president in the case of a
campus of the California State University, the president in the case
of a campus of the California Community Colleges, or the president or
highest ranking official in the case of a participating private
college.
SEC. 2. Section 94140 of the Education Code is amended to read:
94140. The authority shall have power to do all of the following:
(a) Adopt bylaws for the regulation of its affairs and the conduct
of its business.
(b) Adopt and have an official common seal and alter it at
pleasure.
(c) Sue and be sued in its own name, and plead and be impleaded.
(d) Borrow money, issue bonds and notes and other obligations of
the authority, and provide for the rights of the holders thereof as
provided in this chapter.
(e) Acquire, lease as lessee, hold, and dispose of real and
personal property or any interest therein, in the exercise of its
powers and the performance of its duties under this chapter.
(f) Acquire, in the name of the authority by purchase or
otherwise, on the terms and conditions and in the manner as it deems
proper, any land or interest therein in land
and other property that it determines is reasonably necessary
for any a project, including any lands
held by any a county, municipality, or
other governmental subdivision of the state; and
state, to hold and use the same
property, and to sell, convey, lease, or otherwise dispose of
the acquired property so acquired,
that is no longer necessary for the authority's purposes.
(g) Receive and accept, from any federal or other public
agency or governmental entity, grants or loans for or in aid of the
acquisition or construction of any project, and to receive and accept
aid or contributions from any other source, of either
source , loans, contributions, or grants for, or in aid
of, the acquisition, construction, financing, or refinancing of a
project, or any portion of a project, in money, property,
labor, or other things of value , to be held, used, and
applied only for the purposes for which the grants, loans, and
contributions may be made .
(h) Prepare, or cause to be prepared, plans, specifications,
designs, and estimates of costs for the construction and equipment of
projects for participating colleges and participating nonprofit
entities under this chapter, and from time to time to modify those
plans, specifications, designs, or estimates.
(i) By contract or contracts , or by its own employees
, to construct, acquire, reconstruct, rehabilitate and
improve, and furnish and equip, projects for participating colleges
and participating nonprofit entities.
(j) Employ consulting engineers, architects, accountants,
construction and financial experts, superintendents, and other
employees and agents that may be necessary in its judgment and to fix
their compensation.
(k) Determine the location and character of any project to be
undertaken pursuant to this chapter, and construct, reconstruct,
repair, lease, as lessee or lessor, the same;
project, enter into contracts for any or all of those
purposes; purposes, and designate a
participating private college or participating nonprofit entity as
its agent to determine the location and character of a project
undertaken by the participating private college or participating
nonprofit entity under this chapter and, as the agent of the
authority, construct, reconstruct, maintain, repair, operate, lease,
as lessee or lessor, and regulate the same,
project and, as agent of the authority, to enter into contracts
for any and all of those purposes including contracts for the
management and operation of the project.
( l ) Establish rules and regulations for the use of a
project , or any portion thereof
of a project, and to designate a participating private college
or participating nonprofit entity as its agent to establish rules and
regulations for the use of a project undertaken by the participating
private college or participating nonprofit entity.
(m) Generally establish, revise from time to time, and charge and
collect, rates, rents, fees, and other charges for the use of and for
the services furnished or to be furnished by a project ,
or any portion thereof of a project,
and contract with holders of its bonds and with any other person,
party, association, corporation, or other body, public or private, in
respect thereof.
(n) Enter into any and all agreements or contracts, execute any
and all instruments, and do and perform any and all acts or things
necessary, convenient, or desirable for the purposes of the authority
or to carry out any power expressly given in this chapter.
(o) Invest any moneys held in reserve or sinking funds, or any
moneys not required for immediate use or disbursement, at the
discretion of the authority, in obligations that are authorized by
law for the investment of trust funds in the custody of the
Treasurer.
(p) Charge, and equitably apportion among participating private
colleges and participating nonprofit entities, its administrative
costs and expenses incurred in the exercise of the powers and duties
conferred by this chapter.
(q) Finance, directly or through an intermediary, or purchase or
take assignments of, or make commitments to finance, directly or
through an intermediary, or purchase or to take assignments of,
student loans, to contract in advance for those student loans, and to
contract in advance for that financing, purchase, or assignment, and
to pay any amounts payable in respect thereto. A student loan shall
be eligible for financing or purchase by the authority or for
assignment hereunder regardless of the repayment status of the loan.
Any A pledge made to secure authority
financing for student loan project purposes shall be valid and
binding from the time the pledge is made. The revenues and receipts
of property or interest in the property pledged and thereafter
received by the authority, a participating college or public
institution of higher education, a servicer, a trustee, or a
custodian shall immediately be subject to the lien of the pledge
without any physical delivery thereof or further act, and the lien of
any a pledge shall be valid and
binding against all parties having claims of any kind in tort,
contract, or otherwise against the authority, participating college
or public institution of higher education, servicer, trustee, or
custodian irrespective of whether the parties have notice thereof.
Neither the resolution nor any other instrument by which a pledge is
created need be recorded.
(r) Hold or invest in student loans, create pools of student
loans, and sell bonds bearing interest on a taxable or tax-exempt
basis or other interests backed by the pools of student loans.
(s) Contract or otherwise provide for the distribution,
processing, origination, purchase, sale, servicing, securing, and
collection of student loans, the payment of fees, charges, and
administrative expenses in connection therewith,
with student loans, and the funding of reserves required
or provided for in any resolution authorizing, or trust agreement
securing, authority financing for student loan purposes.
(t) Assist in providing support to participating colleges or
participating nonprofit entities to enhance the market acceptance of
potential bond issues by the authority, including securing probable
or actual credit ratings from nationally recognized bond rating
agencies, providing or obtaining liquidity or credit enhancement,
providing or securing bond reserve funds, performing any other action
deemed necessary by the authority, and incurring necessary expenses,
payable from available authority funds, for any of these purposes.
SEC. 3. Section 94143 of the Education Code is amended to read:
94143. The authority is authorized from time to time to issue its
negotiable notes for any corporate purpose and
renew from time to time any notes by the issuance of new notes,
whether the notes to be renewed have or have not matured. The
authority may issue notes partly to renew notes or to discharge other
obligations then outstanding and partly for any other purpose. The
notes may be authorized, sold, executed and delivered in the same
manner as bonds. Any A resolution or
resolutions authorizing notes of the authority or any issue
thereof of notes of the authority may contain
any provisions which that the authority
is authorized to include in any a
resolution or resolutions authorizing bonds of the authority or any
issue thereof, of bonds of the authority,
and the authority may include in any
the notes any terms, covenants or conditions which
that it is authorized to include in any
bonds. All such notes Notes issued
by the authority shall be payable from revenues of the
authority or other moneys available therefor
for payment of notes and not otherwise pledged, subject only to
any contractual rights of the holders of any of
its notes or other obligations then outstanding.
SEC. 4. Section 94144 of the Education Code is amended to read:
94144. (a) The authority is authorized from time to time to issue
its negotiable bonds for any corporate purpose.
In anticipation of the sale of those the
bonds, the authority may issue negotiable
bond anticipation notes and may renew the same
bond anticipation notes from time to time. The bond
anticipation notes shall be paid from any revenues of the
authority or other moneys available therefor
for payment of bond anticipation notes and not otherwise
pledged, or from the proceeds of sale of the bonds of the authority
in anticipation of which they the bond
anticipation notes were issued. The bond anticipation
notes shall be issued in the same manner as the bonds. The
bond anticipation notes and the resolution or resolutions
authorizing the same bond anticipation notes
may contain any provisions, conditions, or limitations which a
bond resolution of the authority may contain.
(b) Except as may otherwise be expressly provided by the
authority, every issue of its bonds or notes shall be general
obligations of the authority payable from any revenues or moneys of
the authority available therefor for payment
of the bonds or notes and not otherwise pledged, subject only
to any agreements with the holders of particular bonds or notes
pledging any particular revenues or moneys and subject to any
agreements with any participating institution.
Notwithstanding that those bonds or notes may be payable from a
special fund, they Negotiable bonds and notes
shall be and be deemed to be , for all purposes ,
negotiable instruments, notwithstanding the fact that the
negotiable bonds or notes may be payable fro m a special
fund, subject only to the provisions of those
the bonds or notes for registration.
(c) (1) The bonds may be issued as serial bonds or as term bonds,
or the authority, in its discretion, may issue bonds of both types.
The bonds shall be authorized by resolution of the authority, and
shall bear the date or dates, mature at a time or times, not
exceeding 50 years from their respective dates, bear interest at the
rate or rates, be payable at the time or times, be in denominations,
be in a form, either coupon or registered, carry registration
privileges, be executed in a manner, be payable in lawful money of
the United States of America at a place or places, and be subject to
the terms of redemption that the resolution or resolutions may
provide. The bonds or notes may be sold by the State
Treasurer at public sale, or the authority, after giving
due consideration to the recommendations of the participating
institution or participating nonprofit entity, may direct the
State Treasurer to sell the bonds or notes at
private sale.
(2) In the case of public sale, both of the following shall occur:
(A) The bonds specified in the resolution shall be sold by the
State Treasurer, at a time fixed by him or her,
and upon notice that he or she may deem advisable, or at the time to
which the sale shall have been continued, at public sale, upon sealed
bids, to the bidder whose bid will result in the lowest net interest
cost on account of the bonds.
(B) If no bids are received, or if the State
Treasurer determines that the bids are not satisfactory, the
State Treasurer may reject all bids received, if any, and
either readvertise or sell the bonds at private sale.
(3) Pending preparation of the definitive bonds, the authority may
issue interim receipts or certificates that shall be exchanged for
the definitive bonds.
(d) Any A resolution or resolutions
authorizing any bonds or any
an issue of bonds may contain provisions, which shall be a
part of the contract with the holders of the bonds to be authorized,
as to all of the following:
(1) Pledging the full faith and credit of the authority or
pledging all or any part of the revenues of a project or any
revenue-producing contract or contracts made by the authority with
any individual, partnership, corporation, or association or other
body, public or private, to secure the payment of the bonds or of any
particular issue of bonds, subject to those agreements with
bondholders that may then exist.
(2) The rentals, rents, fees, and
other charges to be charged, and the amounts to be raised in each
year thereby, by the rents, fees, and other
charges to be charged, and the use and disposition of the
revenues.
(3) The setting aside of reserves or sinking funds, and the
regulation and disposition thereof. of the
reserves or sinking funds.
(4) Limitations on the right of the authority or its agent to
restrict and regulate the use of the project.
(5) Limitations on the purpose to which the proceeds of sale of
any an issue of bonds then or
thereafter to be issued may be applied and pledging those
the proceeds of sale to secure the
payment of the bonds or any an issue of
the bonds.
(6) Limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured, and the
refunding of outstanding bonds.
(7) The procedure, if any, by which the terms of any
a contract with bondholders may be amended or
abrogated, the amount of bonds the holders of which must consent
thereto, and the manner in which that consent may be given.
(8) Limitations on the amount of moneys derived from the project
to be expended for operating, administrative, or other expenses of
the authority.
(9) Defining the acts or omissions to act that constitute a
default in the duties of the authority to holders of its obligations,
and providing the rights and remedies of the holders in the event of
a default.
(10) The mortgaging of a project and the site thereof
of the project for the purpose of securing the
bondholders.
(e) Neither the members Members of
the authority , nor any person and persons
executing the bonds or notes , shall
not be liable personally on the bonds or notes or be subject to
any personal liability or accountability by reason of the issuance
thereof. of the bonds or notes.
(f) The authority shall have power out of any funds
available therefor the power to purchase its
bonds or notes out of any funds available for purchasing its
bonds or notes . The authority may hold, pledge, cancel, or
resell the bonds, subject to and in accordance with agreements with
bondholders.
SEC. 5. Section 94145.5 is added to the Education Code, to read:
94145.5. Any provision the authority may include in a trust
agreement of or resolution providing for the issuance of bonds
pursuant to this chapter may also be included in a bond and the
provision shall have the same effect.
SEC. 6. Section 94146 of the Education Code is amended to read:
94146. (a) Bonds issued under the provisions of this chapter
shall not be deemed to constitute a debt or liability of the state or
of any political subdivision thereof of the
state, or a pledge of the faith and credit of the state or of
any political subdivision other than the authority, but shall be
payable solely from the funds herein provided. All bonds shall
contain on the face thereof a statement to the
effect that neither the State of California nor the authority shall
be obligated to pay the
same bond or the interest
thereon on the bond except from revenues of the
project , or the portion thereof
of the project, for which they the
bonds are issued and that neither the faith and credit nor the
taxing power of the State of California state
or of any political subdivision thereof
of the state is pledged to the payment of the principal of
, or the interest on , the bonds.
(b) The issuance of bonds under the provisions of this chapter
shall not directly or , indirectly
, or contingently obligate the state or any political
subdivision thereof of the state to
levy or to pledge any form of taxation whatever therefor or to make
any an appropriation for their
payment. No provision of this section payment of the
bonds. This section shall not prevent or be
construed to prevent the authority from pledging its full faith and
credit , or the full faith and credit of a participating
private college or participating nonprofit entity , to the
payment of bonds or issue of bonds authorized pursuant to this
chapter.
SEC. 7. Section 94149 of the Education Code is amended to read:
94149. All moneys received pursuant to the authority of this
chapter, whether as proceeds from the sale of
selling or incurring bonds , or as
revenues, revenue, shall be deemed to be trust
funds to be held and applied solely as provided in this chapter.
Until Notwithstanding any other law, until
the funds are applied as provided in this chapter, and
notwithstanding any other provision of law, the moneys may
be invested in any obligations or securities authorized by
resolutions of the authority authorizing the issuance of the bonds.
Any An officer with whom, or any bank
or trust company with which, the moneys are deposited shall act as
trustee of the moneys and shall hold and apply the moneys for the
purposes hereof, subject to any regulations adopted pursuant to this
chapter and the resolution authorizing the issuance of any bonds or
the trust agreement securing the bonds.
SEC. 8. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to prevent the loss of additional revenue, it is
necessary that this bill go into immediate effect.