SB2234 103RD GENERAL ASSEMBLY

LRB103 28770 BMS 55153 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2234

Introduced 2/10/2023, by Sen. Laura Ellman

SYNOPSIS AS INTRODUCED:

New Act
815 ILCS 505/2BBBB new

Creates the Small Business Truth in Lending Act. Sets forth provisions concerning disclosure requirements for sales-based financing, closed-end commercial financing, open-end commercial financing, factoring transactions, renewal financing, and other forms of financing. Provides that all commercial financing shall include a clear and conspicuous notice on how to file a complaint with the Department of Financial and Professional Regulation. Provides that the Department may adopt rules. Provides that upon a finding by the Secretary of Financial and Professional Regulation that a provider has violated the provisions or rules, the provider shall be ordered to pay the Department a civil penalty for each violation of the provisions or any rule not to exceed $10,000 for each violation, or if a violation is willful, $20,000 for each violation. Sets forth provisions concerning cease and desist orders, injunctions, investigation and examination, civil actions, violations, and registration. Provides that a violation of the provisions constitutes an unlawful practice in violation of the Consumer Fraud and Deceptive Business Practices Act. Defines terms. Makes a conforming change in the Consumer Fraud and Deceptive Business Practices Act. Effective immediately.

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Small Business Truth in Lending Act.

Section 3. Applicability. This Act applies to transactions occurring on or after January 1, 2024.

Section 5. Purpose and construction.

(a) The purpose of this Act is to protect business owners from predatory business loans.

(b) This Act shall be liberally construed to effectuate its purpose.

Section 10. Definitions. As used in this Act:

"Commercial financing" means open-end financing, closed-end financing, sales-based financing, factoring transaction, or another form of financing that the recipient does not intend to use the proceeds of primarily for personal, family, or household purposes. For purposes of determining whether a financing is a commercial financing, the provider may rely on any statement of intended purposes or on electronic signatures or consents by the recipient. The statement may be a separate statement signed by the recipient; may be contained in the financing application, financing agreement, or other document signed or consented to by the recipient; or may be provided orally by the recipient so long as it is documented in the recipient's application file by the provider. The provider shall not be required to ascertain that the proceeds of a commercial financing are used in accordance with the recipient's statement of intended purposes.

"Closed-end financing" means a closed-end extension of credit, secured or unsecured, recourse or nonrecourse, including equipment financing that does not meet the definition of a lease under Section 2A-103 of the Uniform Commercial Code, that the recipient does not intend to use the proceeds of primarily for personal, family, or household purposes. "Closed-end financing" includes financing with an established principal amount and duration.

"Department" means the Department of Financial and Professional Regulation.

"Factoring transaction" means an accounts receivable purchase transaction that includes an agreement to purchase, transfer, or sell a legally enforceable claim for payment held by a recipient for goods the recipient has supplied or services the recipient has rendered that have been ordered but for which payment has not yet been made.

"Finance charge" means the cost of financing as a dollar amount. "Finance charge" includes any charge payable directly or indirectly by the recipient and imposed directly or indirectly by the provider as an incident to or a condition of the extension of financing. "Finance charge" includes all charges that would be included under 12 CFR 1026.4 as if the transaction were subject to 12 CFR 1026.4. "Finance charge" includes any charges as determined by the Secretary. For the purposes of an open-end financing, "finance charge" means the maximum amount of credit available to the recipient, in each case, that is drawn and held for the duration of the term or draw period. For the purposes of a factoring transaction, "finance charge" includes the discount taken on the face value of the accounts receivable.

"Open-end financing" means an agreement for one or more extensions of open-end credit, secured or unsecured, that the recipient does not intend to use the proceeds of primarily for personal, family, or household purposes. "Open-end financing" includes credit extended by a provider under a plan in which: (i) the provider reasonably contemplates repeated transactions; (ii) the provider may impose a finance charge from time to time on an outstanding unpaid balance; and (iii) the amount of credit that may be extended to the recipient during the term of the plan is generally made available to the extent that any outstanding balance is repaid.

"Person" means an individual, entity, corporation, partnership, limited liability company, joint venture, association, joint stock company, trust, or unincorporated organization including, but not limited to, a sole proprietorship.

"Provider" means a person who extends a specific offer of commercial financing to a recipient. Unless otherwise exempt, "provider" includes a person who solicits and presents specific offers of commercial financing on behalf of a third party. For purposes of determining whether a financing is a commercial financing, the mere extension of a specific offer or provision of disclosures for a commercial financing is not sufficient to conclude that a provider is originating, making, funding, or providing commercial financing.

"Recipient" means a person who applies for commercial financing and is made a specific offer of commercial financing by a provider or an authorized representative of such person. "Recipient" does not include a person acting as a broker in a transaction they broker.

"Sales-based financing" means a transaction that is repaid by the recipient to the provider, over time, as a percentage of sales or revenue, in which the payment amount may increase or decrease according to the volume of sales made or revenue received by the recipient or a transaction that includes a true-up mechanism where the financing is repaid as a fixed payment but provides for a reconciliation process that adjusts the payment to an amount that is a percentage of sales or revenue.

"Secretary" means the Secretary of Financial and Professional Regulation or a person authorized by the Secretary.

"Specific offer" means the specific terms of commercial financing, including price or amount, that is quoted to a recipient based on information obtained from or about the recipient, that, if accepted by a recipient, shall be binding on the provider, as applicable, subject to any specific requirements stated in such terms.

Section 15. Exemptions. This Act does not apply to, and shall not place any additional requirements or obligations upon, any of the following:

(1) A bank, trust company, or industrial loan company doing business under the authority of, or in accordance with, a license, certificate, or charter issued by the United States, this State, or any other state, district, territory, or commonwealth of the United States that is authorized to transact business in this State.

(2) A federally chartered savings and loan association, federal savings bank, or federal credit union that is authorized to transact business in this State.

(3) A savings and loan association, savings bank, or credit union organized under the laws of this State or any other state that is authorized to transact business in this State.

(4) A person acting in its capacity as a technology services provider, such as licensing software and providing support services, to an entity exempt under this Section for use as part of the exempt entity's commercial financing program, if such person has no interest, arrangement, or agreement to purchase any interest in the commercial financing extended by the exempt entity in connection with such program.

(5) A lender regulated under the federal Farm Credit Act, 12 U.S.C. 2001 et seq.

(6) A commercial financing transaction secured by real property.

(7) A lease as defined in Section 2A-103 of the Uniform Commercial Code.

(8) Any person or provider who makes no more than 5 commercial financing transactions in this State in a 12-month period.

(9) An individual commercial financing transaction in an amount over $2,500,000.

(10) A commercial financing transaction in which the recipient is a vehicle dealer subject to Section 5-101 or 5-102 of the Illinois Vehicle Code, an affiliate of such a dealer, a rental vehicle company as defined in Section 10 of the Renter's Financial Responsibility and Protection Act, or an affiliate of such a company pursuant to a commercial financing agreement or commercial open-end credit plan of at least $50,000, including any commercial loan made pursuant to such a commercial financing transaction.

Section 20. Sales-based financing disclosure requirements. A provider subject to this Act shall provide the following disclosures to a recipient, according to formatting prescribed by the Secretary, if any, at the time of extending a specific offer of sales-based financing:

(1) The total amount of the commercial financing, and, if different from the financing amount, the disbursement amount after any amount deducted or withheld at disbursement.

(2) The finance charge.

(3) The estimated annual percentage rate, using the words annual percentage rate or the abbreviation "APR", expressed as a yearly rate, inclusive of any fees and finance charges, and calculated in accordance with the federal Truth in Lending Act, Regulation Z, 12 CFR 1026.22, based on the estimated term of repayment and the projected periodic payment amounts, regardless of whether such act or such rule would require such a calculation. The estimated term of repayment and the projected periodic payment amounts shall be calculated based on the projection of the recipient's sales, which may be referred to as the projected sales volume. The projected sales volume may be calculated using the historical method or the opt-in method. The provider shall provide notice to the Secretary on which method the provider intends to use across all instances of sales-based financing offered in calculating the estimated annual percentage rate pursuant to this Section, according to the following:

(i) A provider using the historical method shall use an average historical volume of sales or revenue by which the financing's payment amounts are based and the estimated annual percentage rate is calculated. The provider shall fix the historical time period used to calculate the average historical volume and use such period for all disclosure purposes for all sales-based financing products offered. The fixed historical time period shall either be the preceding time period from the specific offer or, alternatively, the provider may use average sales for the same number of months with the highest sales volume within the past 12 months. The fixed historical time period shall be no less than one month and shall not exceed 12 months.

(ii) A provider using the opt-in method shall determine the estimated annual percentage rate, the estimated term, and the projected payments, using a projected sales volume that the provider elects for each disclosure, if they participate in a review process prescribed by the Secretary. A provider shall, on an annual basis, report data to the Secretary of estimated annual percentage rates disclosed to the recipient and actual retrospective annual percentage rates of completed transactions. The report shall contain such information as the Department may adopt by rule as necessary or appropriate for the purpose of making a determination of whether the deviation between the estimated annual percentage rate and actual retrospective annual percentage rates of completed transactions was reasonable. The Secretary shall establish the method of reporting and may, upon a finding that the use of projected sales volume by the provider has resulted in an unacceptable deviation between estimated and actual annual percentage rate, require the provider to use the historical method. The Secretary may consider unusual and extraordinary circumstances impacting the provider's deviation between estimated and actual annual percentage rate in the determination of such finding.

(4) The total repayment amount, which is the disbursement amount plus the finance charge.

(5) The estimated term is the period of time required for the periodic payments, based on the projected sales volume, to equal the total amount required to be repaid.

(6) The payment amounts, based on the projected sales volume:

(i) for payment amounts that are fixed, the payment amounts and frequency (e.g., daily, weekly, monthly), and, if the payment frequency is other than monthly, the amount of the average projected payments per month; or

(ii) for payment amounts that are variable, a payment schedule or a description of the method used to calculate the amounts and frequency of payments and the amount of the average projected payments per month.

(7) A description of all other potential fees and charges not included in the finance charge, including, but not limited to, draw fees, late payment fees, and returned payment fees.

(8) If the recipient elects to pay off or refinance the commercial financing before full repayment, the provider must disclose:

(i) whether the recipient would be required to pay any finance charges other than interest accrued since their last payment; if so, disclosure of the percentage of any unpaid portion of the finance charge and maximum dollar amount the recipient could be required to pay; and

(ii) whether the recipient would be required to pay any additional fees not already included in the finance charge.

(9) A description of collateral requirements or security interests, if any.

Section 25. Closed-end commercial financing disclosure requirements. A provider subject to this Act shall provide the following disclosures to a recipient, according to formatting prescribed by the Secretary, if any, at the time of extending a specific offer for closed-end financing:

(1) The total amount of the commercial financing, and, if different from the financing amount, the disbursement amount after any amount deducted or withheld at disbursement.

(2) The finance charge.

(3) The annual percentage rate, using only the words annual percentage rate or the abbreviation "APR", expressed as a yearly rate, inclusive of any fees and finance charges that cannot be avoided by a recipient, and calculated in accordance with the federal Truth in Lending Act, Regulation Z, 12 CFR 1026.22, regardless of whether such act or such rule would require such a calculation.

(4) The total repayment amount, which is the disbursement amount plus the finance charge.

(5) The term of the financing.

(6) The payment amounts:

(i) for payment amounts that are fixed, the payment amounts and frequency (e.g., daily, weekly, monthly), and, if the term is longer than one month, the average monthly payment amount; or

(ii) for payment amounts that are variable, a full payment schedule or a description of the method used to calculate the amounts and frequency of payments, and, if the term is longer than one month, the estimated average monthly payment amount.

(7) A description of all other potential fees and charges that can be avoided by the recipient, including, but not limited to, late payment fees and returned payment fees.

(8) If the recipient elects to pay off or refinance the commercial financing before full repayment, the provider must disclose:

(i) whether the recipient would be required to pay any finance charges other than interest accrued since their last payment; if so, disclosure of the percentage of any unpaid portion of the finance charge and maximum dollar amount the recipient could be required to pay; and

(ii) whether the recipient would be required to pay any additional fees not already included in the finance charge.

(9) A description of collateral requirements or security interests, if any.

Section 30. Open-end commercial financing disclosure requirements. A provider subject to this Act shall provide the following disclosures to a recipient, according to formatting prescribed by the Secretary, if any, at the time of extending a specific offer for open-end financing:

(1) The maximum amount of credit available to the recipient (e.g., the credit line amount), and the amount scheduled to be drawn by the recipient at the time the offer is extended, if any, less any amount deducted or withheld at disbursement.

(2) The finance charge.

(3) The annual percentage rate, using only the words annual percentage rate or the abbreviation "APR", expressed as a nominal yearly rate, inclusive of any fees and finance charges that cannot be avoided by a recipient, and calculated in accordance with the federal Truth in Lending Act, Regulation Z, 12 CFR 1026.22, and based on the maximum amount of credit available to the recipient and the term resulting from making the minimum required payments term as disclosed, regardless of whether such act or such rule would require such a calculation.

(4) The total repayment amount, which is the draw amount, less any fees deducted or withheld at disbursement, plus the finance charge. The total repayment amount shall assume a draw amount equal to the maximum amount of credit available to the recipient if drawn and held for the duration of the term or draw period.

(5) The term of the plan, if applicable, or the period over which a draw is amortized.

(6) The payment frequency and amounts, based on the assumptions used in the calculation of the annual percentage rate, including a description of payment amount requirements such as a minimum payment amount, and if the payment frequency is other than monthly, the amount of the average projected payments per month. For payment amounts that are variable, the provider should include a payment schedule or a description of the method used to calculate the amounts and frequency of payments and the estimated average monthly payment amount.

(7) A description of all other potential fees and charges that can be avoided by the recipient, including, but not limited to, draw fees, late payment fees, and returned payment fees.

(8) Were the recipient to elect to pay off or refinance the commercial financing before full repayment, the provider must disclose:

(i) whether the recipient would be required to pay any finance charges other than interest accrued since their last payment; if so, disclosure of the percentage of any unpaid portion of the finance charge and maximum dollar amount the recipient could be required to pay; and

(ii) whether the recipient would be required to pay any additional fees not already included in the finance charge.

(9) A description of collateral requirements or security interests, if any.

Section 35. Factoring transaction disclosure requirements. A provider subject to this Act shall provide the following disclosures to a recipient, according to formatting prescribed by the Secretary, if any, at the time of extending a specific offer for a factoring transaction:

(1) The amount of the receivables purchase price paid to the recipient, and, if different from the purchase price, the disbursement amount after any amount deducted or withheld at disbursement.

(2) The finance charge.

(3) The estimated annual percentage rate, using that term, calculated according to the federal Truth in Lending Act, Regulation Z, 12 CFR 1026 Appendix J, as a "single advance, single payment transaction", regardless of whether such act or such rule would require such a calculation. To calculate the estimated annual percentage rate, the purchase amount is considered the financing amount, the purchase amount minus the finance charge is considered the payment amount, and the term is established by the payment due date of the receivables. As an alternate method of establishing the term, the provider may estimate the term for a factoring transaction as the average payment period based on its historical data over a period not to exceed the previous 12 months, concerning payment invoices paid by the party or parties owing the accounts receivable in question.

(4) The total payment amount, which is the purchase amount plus the finance charge.

(5) A description of all other potential fees and charges that can be avoided by the recipient.

(6) A description of the receivables purchased and any additional collateral requirements or security interests.

Section 40. Other forms of financing disclosure requirements. The Secretary may require disclosure by a provider extending a specific offer of commercial financing which is not an open-end financing, closed-end financing, sales-based financing, or factoring transaction but otherwise meets the definition of commercial financing. Subject to such rules by the Secretary, a provider subject to this Act shall provide the following disclosures to a recipient, according to formatting prescribed by the Secretary, if any, at the time of extending a specific offer of other forms of financing:

(1) The total amount of the commercial financing, and, if different from the financing amount, the disbursement amount after any fees deducted or withheld at disbursement.

(2) The finance charge.

(3) The annual percentage rate, using only the words annual percentage rate or the abbreviation "APR", expressed as a yearly rate, inclusive of any fees and finance charges, and calculated in accordance with the relevant sections of the federal Truth in Lending Act, Regulation Z, 12 CFR 1026.22, or this Act, regardless of whether such act or such rule would require such a calculation.

(4) The total repayment amount which is the disbursement amount plus the finance charge.

(5) The term of the financing.

(6) The payment amounts:

(i) for payment amounts that are fixed, the payment amounts and frequency (e.g., daily, weekly, monthly), and the average monthly payment amount; or

(ii) for payment amounts that are variable, a payment schedule or a description of the method used to calculate the amounts and frequency of payments, and the estimated average monthly payment amount.

(7) A description of all other potential fees and charges that can be avoided by the recipient, including, but not limited to, late payment fees and returned payment fees.

(8) If the recipient elects to pay off or refinance the commercial financing before full repayment, the provider must disclose:

(i) whether the recipient would be required to pay any finance charges other than interest accrued since their last payment; if so, disclosure of the percentage of any unpaid portion of the finance charge and maximum dollar amount the recipient could be required to pay; and

(ii) whether the recipient would be required to pay any additional fees not already included in the finance charge.

(9) A description of collateral requirements or security interests, if any.

Section 45. Complaint disclosure. All commercial financing shall include a clear and conspicuous notice on how to file a complaint with the Department.

Section 50. Disclosure requirements for renewal financing. If, as a condition of obtaining the commercial financing, the provider requires the recipient to pay off the balance of an existing commercial financing from the same provider, then the provider must disclose the following:

(1) The amount of the new commercial financing that is used to pay off the portion of the existing commercial financing that consists of prepayment charges required to be paid and any unpaid interest expense that was not forgiven at the time of renewal. For financing for which the total repayment amount is calculated as a fixed amount, the prepayment charge is equal to the original finance charge multiplied by the amount of the renewal used to pay off existing financing as a percentage of the total repayment amount, minus any portion of the total repayment amount forgiven by the provider at the time of prepayment. If the amount is more than zero, such amount shall be the answer to the following question: "Does the renewal financing include any amount that is used to pay unpaid finance charge or fees, also known as double dipping? Yes, [enter amount]. If the amount is zero, the answer would be No."

(2) If the disbursement amount will be reduced to pay down any unpaid portion of the outstanding balance, then the actual dollar amount by which the disbursement amount will be reduced.

Section 55. Required signature. The provider shall obtain the recipient's signature, which may be fulfilled by an electronic signature, on all disclosures required to be presented to the recipient by this Act before authorizing the recipient to proceed further with the commercial financing transaction application.

Section 60. Additional information. Nothing in this Act shall prevent a provider from providing or disclosing additional information on a commercial financing being offered to a recipient, however, such additional information shall not be disclosed as part of the disclosure required by this Act. If other metrics of financing cost are disclosed or used in the application process of a commercial financing, then these metrics shall not be presented as a "rate" if they are not the annual interest rate or the annual percentage rate. The term "interest", when used to describe a percentage rate, shall only be used to describe annualized percentage rates, such as the annual interest rate. When a provider states a rate of finance charge or a financing amount to a recipient during an application process for commercial financing, the provider shall also state the rate as an "annual percentage rate", using that term or the abbreviation "APR".

Section 65. Rules. The Department is hereby authorized and empowered to adopt such rules as may in the judgment of the Secretary be consistent with the purposes of this Act, or appropriate for the effective administration of this Act, including, but not limited to:

(1) Rules in connection with the calculation or determination of any metric required to be disclosed to a recipient.

(2) Rules as necessary to develop and prescribe disclosure formatting to be used by providers that allows for recipients to easily compare financing options in a clear and conspicuous manner; such rules may include the designation and method for disclosing the information required in this Act or approving adequate forms and methods already used by providers.

(3) Rules as may define the terms used in this Act and as may be necessary and appropriate to interpret and implement the provisions of this Act.

(4) Rules as may be necessary for the enforcement and administration of this Act.

(5) Rules appropriate for the protection of consumers in this State.

(6) Rules as may be necessary and appropriate to define improper or fraudulent business practices in connection with commercial financing.

(7) Rules as may be necessary to charge and collect fees necessary to cover the costs of administering this Act, including, but not limited to, registration, investigation, and examination fees.

The Department may adopt rules pursuant to this Act upon this Act becoming law with such rules not to take effect earlier than January 1, 2024.

Section 70. Penalties.

(a) Upon a finding by the Secretary that a provider has violated the provisions of this Act or the rules adopted pursuant to this Act, the provider shall be ordered to pay the Department a civil penalty for each violation of this Act or any rule a sum not to exceed $10,000 for each violation or, if such violation is willful, $20,000 for each violation.

(b) In addition to any penalty imposed pursuant to subsection (a), the Secretary may order additional relief, including, but not limited to:

(i) restitution;

(ii) refund of moneys or return of real property;

(iii) disgorgement or compensation for unjust enrichment, with any disgorged amounts returned to the affected businesses, to the extent practicable; and

(iv) limits on the activities or functions of the person, including, but not limited to, prohibiting a person from being a provider.

(c) The Secretary shall serve notice of the action, including, but not limited to, a statement of the reasons for the action, either personally or by certified mail. Service by certified mail shall be deemed completed when the notice is deposited in the U.S. mail.

(d) Within 10 days after service of the action, the person may request a hearing in writing. The Secretary shall schedule a hearing within 90 days after the request for a hearing unless otherwise agreed to by the parties.

Section 75. Cease and desist order.

(a) The Secretary may issue a cease and desist order if, in the opinion of the Secretary, a licensee or other person is violating or is about to violate any provision of this Act or any rule or requirement imposed in writing by the Department. The cease and desist order permitted by this Section may be issued before a hearing.

(b) The Secretary shall serve notice of his or her action, including, but not limited to, a statement of the reasons for the action, either personally or by certified mail. Service by certified mail shall be deemed completed when the notice is deposited in the U.S. mail.

(c) Within 10 days after service of the cease and desist order, the licensee or other person may request a hearing in writing. The Secretary shall schedule a hearing within 90 days after the request for a hearing unless otherwise agreed to by the parties.

(d) The Secretary may include in any cease and desist order such orders as may be reasonably necessary to correct, eliminate, or remedy the conduct.

(e) The powers vested in the Secretary by this Section are in addition to any and all other powers and remedies vested in the Secretary by law, and nothing in this Section shall be construed as requiring that the Secretary shall employ the power conferred in this subsection instead of or as a condition precedent to the exercise of any other power or remedy vested in the Secretary.

Section 80. Injunction. The Secretary may, through the Attorney General, bring an action in the circuit court to enjoin a person from violating this Act in the name of the people of the State of Illinois.

Section 85. Investigation and examination. The Department may investigate or examine providers and persons reasonably believed to be providers for compliance with this Act and its implementing rules.

Section 90. Civil action. A civil claim may be asserted against a provider for violation of this Act. Additionally, a prevailing person other than a provider may be awarded reasonable attorney's fees and court costs.

Section 95. Violations.

(a) Nothing in this Act shall be construed to restrict the exercise of powers or the performance of the duties that the Illinois Attorney General is authorized to exercise or perform by law.

(b) Any violation of this Act constitutes an unlawful practice in violation of the Consumer Fraud and Deceptive Business Practices Act.

(c) The Illinois Attorney General may enforce a violation of this Act as an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act.

Section 100. No evasion. An agreement, contract, or transaction that is structured to evade this Act shall be deemed to be covered by this Act.

Section 105. Registration.

(a) All providers shall be required to pay a registration fee of $1,000 to the Department and register with the Department in the manner and form directed by the Secretary within one year after the effective date of this Act and renew the registration each calendar year thereafter in the manner and form directed by the Secretary.

(b) Before December 1 of each year, a provider must pay to the Secretary, and the Department must receive, a registration fee of $1,000 for the following calendar year. A provider's registration shall automatically expire on January 1 of each year unless the registration fee has been paid prior thereto.

(c) Any commercial financing made or offered by a provider that violates this Section is null and void and no person or entity shall have any right to collect, attempt to collect, receive, or retain any funded amount or charges related to the commercial financing.

Section 110. Judicial review. All final administrative decisions of the Department under this Act are subject to judicial review under the Administrative Review Law and any rules adopted under the Administrative Review Law.

Section 900. The Consumer Fraud and Deceptive Business Practices Act is amended by adding Section 2BBBB as follows:

(815 ILCS 505/2BBBB new)

Sec. 2BBBB. Violations of the Small Business Truth in Lending Act. Any person who violates the Small Business Truth in Lending Act commits an unlawful practice within the meaning of this Act.

Section 997. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes. If any clause, sentence, provision, or part of this Act or its application to any person or circumstance is adjudged to be unconstitutional or invalid for any reason by any court of competent jurisdiction, that judgment shall not impair, affect, or invalidate other provisions or applications of this Act, which shall remain in full force and effect thereafter.

Section 999. Effective date. This Act takes effect upon becoming law.