Enrolled SB 272: Relating to certain monetary advances in which the deposit or other negotiation of checks to pay the advances is delayed until a later date; and providing for an effective date.
00Enrolled SB 272 01 Relating to certain monetary advances in which the deposit or other negotiation of checks to 02 pay the advances is delayed until a later date; and providing for an effective date. 03 _______________ 04 * Section 1. AS 06.01.020(a) is amended to read: 05 (a) Notwithstanding other provisions of this title, the department may by order 06 authorize state financial institutions, except licensees subject to AS 06.20, [OR] 07 AS 06.40, or AS 06.50, to exercise any of the powers conferred upon, or to be subject 08 to any of the limitations imposed upon, a federally chartered financial institution doing 09 business in this state with deposits insured by an agency of the federal government if 10 the department finds that the exercise of the power or imposition of the limitation both 11 (1) serves the public convenience and advantage; and 12 (2) equalizes and maintains the quality of competition between state 13 financial institutions and federally chartered financial institutions.
01 * Sec. 2. AS 06.01.050(3) is amended to read: 02 (3) "financial institution" means an institution subject to the regulation 03 of the department under this title; in this paragraph, "institution" includes a 04 commercial bank, savings bank, credit union, premium finance company, small loan 05 company, bank holding company, financial holding company, trust company, [AND] 06 savings and loan association, and deferred deposit advance licensee under 07 AS 06.50; 08 * Sec. 3. AS 06 is amended by adding a new chapter to read: 09 Chapter 50. Deferred Deposit Advances. 10 Article 1. Licensing. 11 Sec. 06.50.010. License required. A person, including a person doing 12 business from outside this state, may not engage in the business of making or offering 13 to make deferred deposit advances in this state without having a license under this 14 chapter. A separate license is required for each physical location or Internet website 15 from which the person conducts the business. 16 Sec. 06.50.020. Qualifications for license. (a) To qualify for a license, an 17 applicant shall 18 (1) have cash assets of at least $25,000, as determined under generally 19 accepted accounting principles, except that an applicant who wants to engage in the 20 business of making advances at more than one location in the state shall have cash 21 assets of at least $25,000 for each location; 22 (2) demonstrate the financial responsibility, financial condition, 23 business experience, character, and general fitness that reasonably warrant the 24 department's belief that the applicant's business will be conducted lawfully and fairly; 25 when determining whether this qualification has been met, and for the purpose of 26 investigating compliance with this chapter, the department may review 27 (A) the relevant business records of the applicant and the 28 adequacy of the capital of the applicant; 29 (B) the competence, experience, integrity, and financial ability 30 of the applicant, and, if the applicant is an entity, of any person who is a 31 member, partner, director, senior officer, or owner of 10 percent or more of the
01 equity of the applicant; and 02 (C) a record of conviction, on the part of the applicant or a 03 person described in (B) of this paragraph, of 04 (i) criminal activity, fraud, or other act of personal 05 dishonesty; 06 (ii) an act, an omission, or a practice that constitutes a 07 breach of a fiduciary duty; or 08 (iii) a suspension, a revocation, a removal, or an 09 administrative act by an agency or a department of the United States or 10 a state from participation in the conduct of a business; 11 (3) if the person has a physical business location in the state, have a 12 physical business location that is accessible by and convenient to the public; 13 (4) have a current business license issued under AS 43.70; and 14 (5) if applicable, have a certificate of incorporation under 15 AS 10.06.218, have a certificate of authority under AS 10.06.705, have a copy of 16 articles of organization that satisfies AS 10.50.090, be registered under AS 10.50.605, 17 have a statement of foreign qualification filed under AS 32.06.922, have a certificate 18 of limited partnership filed under AS 32.11.060, or be registered under AS 32.11.420. 19 (b) The requirements in (a) of this section are continuing in nature and may be 20 reviewed periodically by the department. 21 Sec. 06.50.030. Application. (a) An application for a license must be in 22 writing and under oath, in a form prescribed by the department by regulation, and 23 include at least 24 (1) the legal name, residence, and business address of the applicant 25 and, if the applicant is not a natural person, of each member, partner, director, senior 26 officer, or owner of 10 percent or more of the equity of the applicant; 27 (2) the address and physical location of the principal place of business 28 named in the application; and 29 (3) other information the department may require with respect to the 30 applicant and, if the applicant is not a natural person, about the applicant's members, 31 partners, directors, senior officers, or owners of 10 percent or more of the equity of the
01 applicant. 02 (b) The applicant shall submit with the application the bond required by 03 AS 06.50.040 and a nonrefundable application fee in an amount that is established by 04 the department by regulation and that does not exceed $3,000. The application fee for 05 the initial license may not be prorated. 06 Sec. 06.50.040. Bond. (a) An applicant for a license shall file with the 07 application a bond 08 (1) in a form to be approved by the department; 09 (2) in which the applicant is the obligor; and 10 (3) in the sum of $25,000 for a business with one location and $50,000 11 for a business with more than one location. 12 (b) Only one bond is required for an application for a business with more than 13 one location. 14 (c) The bond required by (a) of this section is for the use of the state and a 15 person who may have a cause of action against the obligor under this chapter. 16 (d) The bond must state that the obligor will 17 (1) faithfully conform to and abide by the provisions of this chapter 18 and regulations adopted by the department under this chapter; and 19 (2) pay to the state and to a person all money that may become due or 20 owing to the state or to the person from the applicant under this chapter. 21 (e) The bond must remain in effect for three years following the denial of a 22 renewal of a license or the expiration of a license. 23 (f) If, at any time, the department finds that a bond filed under (a) of this 24 section is unsatisfactory for any reason, the department may require the licensee to 25 file, within 10 days after the receipt of a written demand, an additional bond to comply 26 with this section. 27 (g) The licensee shall file a new bond that complies with this section each time 28 a license is renewed. 29 Sec. 06.50.050. Investigation by department. Within 60 days after an 30 applicant files a completed application, the bond, and an application fee, the 31 department shall investigate whether the applicant satisfies the qualifications of
01 AS 06.50.020(a). If the department finds that the applicant satisfies the qualifications, 02 it shall approve the application and issue the applicant a license to engage in the 03 business of making deferred deposit advances. 04 Sec. 06.50.060. Conditions precedent to license. The requirements of 05 AS 06.50.030 - 06.50.050 are conditions precedent to the issuance of a license under 06 this chapter. The license permits the applicant to make advances under this chapter at 07 the location specified in the application. 08 Sec. 06.50.070. Duration of license. A license issued under this chapter is 09 valid for two calendar years. Each license remains in force through the calendar year 10 after the calendar year in which the license was issued unless surrendered, suspended, 11 or revoked under this chapter. 12 Sec. 06.50.080. Renewal of license. A license issued under this chapter shall 13 be renewed on or before the date set by the department by submitting to the 14 department a completed renewal application on a form established by the department 15 and paying a nonrefundable renewal fee established by the department, which may not 16 exceed $3,000. 17 Sec. 06.50.090. Denial of license or renewal. (a) If the department 18 determines that an applicant is not qualified to receive a license or a license renewal, 19 the department shall notify the applicant in writing within 20 days that the application 20 has been denied and state the basis for the denial. 21 (b) The decision of the department to deny an application or a renewal may be 22 reviewed in the manner provided in AS 44.62.330 - 44.62.630 (Administrative 23 Procedure Act). 24 (c) If the denial of a renewal is upheld, the former licensee shall return the 25 license to the department within 10 days after the former licensee receives notice of 26 the denial. 27 (d) A license application shall be considered withdrawn within the meaning of 28 this section if the applicant fails to respond to a written notification of a deficiency in 29 the application within 60 days after the date of the notification. 30 (e) If a license renewal is denied or if a license is surrendered, suspended, or 31 revoked, all accounts of the licensee remain subject to this chapter until paid in full.
01 Article 2. Licensee Transfer, Assignment, Control, and Change. 02 Sec. 06.50.200. Transfer or assignment. Except for the transfer of a license 03 to a new location under AS 06.50.220, a licensee may not transfer or assign the 04 licensee's license. 05 Sec. 06.50.210. Change in control. The prior written approval of the 06 department is required for the continued operation of a licensee's deferred deposit 07 advance business when a change in control of the licensee is proposed. The 08 department may require the information it considers necessary to determine whether a 09 new application is required. The licensee requesting approval of the change in control 10 shall pay all reasonable expenses incurred by the department to investigate and 11 approve or deny the change in control. 12 Sec. 06.50.220. Change in location or name. A licensee shall notify the 13 department in writing at least 15 days before any proposed change in the licensee's 14 business location or name, and shall provide the department with the information 15 described in AS 06.50.030(a). 16 Sec. 06.50.230. Conduct of other business. A licensee may conduct other 17 business at a location where it engages in making advances unless it conducts the 18 other business for the purpose of evading or violating the provisions of this chapter. 19 Article 3. Department Supervision. 20 Sec. 06.50.300. Suspension or revocation of license. (a) The department 21 may suspend or revoke a license under AS 44.62 (Administrative Procedure Act) if the 22 department finds that 23 (1) the licensee has failed to pay the license fee, failed to maintain the 24 required bond in effect, or failed to comply with a demand, ruling, or requirement of 25 the department made under this chapter; 26 (2) the licensee has violated a provision of this chapter or a regulation 27 adopted by the department under this chapter; or 28 (3) a fact or condition exists that, if it had existed at the time of the 29 original application for the license, clearly would have constituted ground for denial of 30 the issuance of the license. 31 (b) If the reason for suspension or revocation of a licensee's license at one
01 location applies generally to all locations operated by the licensee, the department may 02 suspend or revoke all licenses issued to the licensee. 03 Sec. 06.50.310. Reports to department. (a) On or before March 15 of each 04 year, a licensee shall file with the department a composite annual report for the 05 preceding calendar year in the form prescribed by the department relating to all 06 advances made by the licensee. The department may require that the report be 07 submitted under oath or affirmation, or with notice that false statements made are 08 punishable as unsworn falsification under AS 11.56.210. 09 (b) The report must include 10 (1) the total number and dollar amount of advances made by the 11 licensee; 12 (2) the total number of individual customers who received advances; 13 (3) the minimum, maximum, and average amount of advances; 14 (4) the average annual percentage rate of the fee charged for advances; 15 (5) the average number of days of the advances; 16 (6) the total number and dollar amount of returned checks; 17 (7) the total number and dollar amount of checks paid by advance 18 recipients; 19 (8) the total number and dollar amount of checks charged off as a loss; 20 (9) the total dollar amount of outstanding advances as of the last day of 21 the calendar year; 22 (10) the total number of outstanding advances as of the last day of the 23 calendar year; and 24 (11) any other information the department determines is required to 25 conduct its review. 26 (c) Within 15 days after the occurrence of any of the following events, a 27 licensee shall file a written report with the department describing the event and its 28 expected effect on the activities of the licensee in the state: 29 (1) filing for bankruptcy or reorganization by the licensee; 30 (2) institution of suspension or revocation proceedings against the 31 licensee by a state or other governmental authority;
01 (3) a felony indictment or felony conviction of the licensee and, if the 02 licensee is not a natural person, of a member, partner, director, senior officer, or holder 03 of 10 percent or more of the licensee's equity; and 04 (4) other events that the department determines and identifies by 05 regulation that may impair the ability of the licensee to operate its business under this 06 chapter. 07 (d) In the discretion of the department, the occurrence of an event in (c) of this 08 section may constitute grounds for suspension or revocation of a license. 09 Sec. 06.50.320. Records. (a) A licensee shall maintain all records relating to 10 this chapter at the location for which the licensee has a license. The records must 11 conform to generally accepted accounting principles and practices in a manner that 12 will enable the department to determine whether the licensee is complying with the 13 provisions of this chapter. The department shall have unrestricted access to the 14 records of the licensee. 15 (b) A licensee shall retain records relating to an advance for at least two years 16 after the last entry on the advance, unless otherwise required by the department. 17 (c) A licensee shall retain records of an advance that is the subject of a court 18 action for at least two years after a judgment or settlement of the court action. 19 Sec. 06.50.330. Examinations and investigations. (a) The department shall 20 examine the business records of a licensee at intervals the department considers 21 appropriate. In addition, for the purpose of discovering violations of this chapter or 22 securing information lawfully required, the department may, at any time, investigate 23 the advances, business transactions, and records of a licensee. For these purposes, the 24 licensee shall provide the department with unrestricted access to the offices, places of 25 business, and records of the licensee. Within 30 days after the department requests 26 payment, the licensee shall pay the department the cost of examination at a rate of $75 27 an hour for each examiner. 28 (b) For the purposes of this section, the department may administer oaths or 29 affirmations and, upon its own motion or upon request of a party, may subpoena 30 witnesses, compel the attendance of witnesses, take evidence, and require the 31 production of material that is relevant to the investigation, including the existence,
01 description, nature, custody, condition, and location of books, documents, and other 02 tangible items, and the identity and location of persons having knowledge of relevant 03 facts, or other material reasonably calculated to lead to the discovery of admissible 04 evidence. 05 (c) Upon failure without lawful excuse to obey a subpoena or to give 06 testimony, and upon reasonable notice to all persons affected by the failure, the 07 department may apply to the superior court for an order compelling compliance. 08 Article 4. Licensee Practices and Recipient Rescission and Payment. 09 Sec. 06.50.400. Advance agreement. (a) An advance shall be documented in 10 a written agreement that is signed by the advance recipient and on a form approved by 11 the department. 12 (b) The agreement must clearly and conspicuously disclose 13 (1) the name of the licensee; 14 (2) the date of the advance; 15 (3) the principal amount of the advance; 16 (4) a statement of the total amount of fees that may be charged under 17 AS 06.50.460(a) as a condition of making the advance, expressed both as a dollar 18 amount and as an annual percentage rate; 19 (5) the repayment terms; 20 (6) the due date; 21 (7) an itemization of all disbursements, including disbursements to 22 third parties; 23 (8) the name and title of the employee who signs the agreement on 24 behalf of the licensee; and 25 (9) any other item required to be disclosed under state or federal law. 26 (c) The written agreement required by (a) of this section may not require an 27 advance recipient to waive any rights under 15 U.S.C. 1692 - 1692o (Fair Debt 28 Collection Practices Act) or other state or federal laws that regulate debt collection 29 practices. 30 Sec. 06.50.410. Maximum amount of advances. A licensee, including a 31 licensee with more than one location, may not make advances to an advance recipient
01 that exceed $500 outstanding in advances to the recipient at one time. 02 Sec. 06.50.420. Prohibition on dividing advance amount or increasing 03 number of advances. A licensee may not induce or permit an advance recipient to 04 divide the amount of an advance, or to become obligated, directly, contingently, or 05 both, for more than one advance at the same time, if the purpose or result is to obtain 06 additional origination fees under AS 06.50.460(a)(1). 07 Sec. 06.50.430. Prohibition on collateral and services. The licensee may 08 not accept collateral or services as security for or payment of an advance. 09 Sec. 06.50.440. Duration of advances. The minimum duration of an advance 10 is 14 days. 11 Sec. 06.50.450. Prohibition on advances on behalf of another. A licensee 12 may not make an advance to a person who purports to be acting on behalf of another 13 person. 14 Sec. 06.50.460. Fees. (a) Notwithstanding any other provision of law, except 15 for the fee allowed under AS 06.50.510(b)(3) and where federal law provides 16 otherwise, a licensee may only charge 17 (1) a nonrefundable origination fee in an amount not to exceed $5; and 18 (2) a fee that does not exceed $15 for each $100 of an advance, or 15 19 percent of the total amount of the advance, whichever is less. 20 (b) A licensee may not charge a fee other than the fees allowed under (a) of 21 this section. 22 (c) The fees allowed by (a) of this section are considered earned at the time of 23 the transaction and may not be prorated. 24 (d) A licensee may not charge the advance recipient an additional fee to access 25 the proceeds of an advance. 26 Sec. 06.50.470. Renewal of advance. (a) The minimum term of a renewal of 27 an advance is 14 days. 28 (b) A licensee may not renew an advance more than two consecutive times, 29 after which the licensee shall require the advance recipient to repay the advance in 30 full. 31 (c) A licensee may not renew an advance for fees greater than the fees under
01 AS 06.50.460(a). 02 Sec. 06.50.480. Rescission. A person who receives an advance may rescind 03 an advance without cause and without cost, except for the nonrefundable origination 04 fee, at any time before the close of business on the business day following the day on 05 which the advance was made by paying the principal amount of the advance to the 06 licensee in cash or other immediately available funds. 07 Sec. 06.50.490. Prohibited arbitration requirement. A licensee may not 08 require a recipient to agree to mandatory arbitration. 09 Sec. 06.50.500. Posted fee notice. A licensee shall post a notice in each 10 business location that discloses the fees that the licensee charges for advances. The 11 fees in the notice must be expressed as a dollar amount, as an annual percentage rate 12 for 14 days for each $100, and as an annual percentage rate for 30 days for each $100. 13 The notice must also contain any other reasonably necessary information required by 14 the department by regulation. The notice shall be posted so that it is conspicuous to an 15 advance recipient or a potential advance recipient. The lettering in the notice must be 16 legible and at least one inch in height. 17 Sec. 06.50.510. Required disclosures before disbursement. (a) Before 18 disbursing funds under an advance, a licensee shall provide a clearly written statement 19 that is separate from the written advance agreement required by AS 06.50.400(a). 20 This disclosure statement must be reviewed and signed by the advance recipient. The 21 licensee shall keep the signed original in the advance file for the recipient and give a 22 copy to the recipient. 23 (b) The disclosure statement required by (a) of this section must 24 (1) indicate the advance is intended to address short-term, not long- 25 term, financial needs; 26 (2) include an explanation of all fees for advances and renewals of 27 advances; 28 (3) state that the licensee may charge an advance recipient a bad check 29 fee for costs as allowed under AS 09.68.115(a)(2) if a payment is returned unpaid; 30 (4) state that, in the event of the advance recipient's default, the 31 licensee may sue the recipient and recover up to $700 over the amount of the payment
01 and, if the payment is a check, recover as permitted under AS 06.50.550(b); 02 (5) give the department's address and telephone number for receiving 03 calls regarding customer complaints and concerns; 04 (6) state that the licensee may not accept collateral or services for an 05 advance; 06 (7) state that the check given as security for the advance may be 07 negotiated as part of the advance; 08 (8) state that 09 (A) the advance recipient may rescind the advance without 10 cause at any time before the close of business on the business day following 11 the day on which the licensee makes the advance by paying the principal 12 amount of the advance to the licensee in cash or other immediately available 13 funds; 14 (B) if the advance recipient rescinds under this paragraph, the 15 origination fee is not refundable, but the licensee may not charge the recipient 16 another fee, except for a bad check fee for costs as allowed under 17 AS 09.68.115(a)(2) if the payment is returned unpaid; 18 (9) state that a criminal action may not be brought against the advance 19 recipient for failure to pay the advance; and 20 (10) include other information reasonably required by the department 21 to inform and protect advance recipients. 22 Sec. 06.50.520. Payment by licensee. (a) A licensee may give an advance 23 recipient the amount of the advance in cash, by the licensee's business check, by a 24 money order, or by a reasonable electronic payment mechanism, including an 25 electronic funds transfer to the advance recipient's account. 26 (b) A licensee may not use another form of payment than the form of payment 27 authorized in (a) of this section to make an advance to an advance recipient. In this 28 subsection, "another form of payment" includes coupons, merchandise, services, or 29 chattel of any kind. 30 Sec. 06.50.530. Payment by advance recipient. (a) An advance recipient 31 may repay an advance
01 (1) in cash; 02 (2) by negotiation of the recipient's check that secures the advance; or 03 (3) with the agreement of the licensee, a debit card, a cashier's check, 04 an electronic funds transfer from the recipient's bank account, or a reasonable 05 electronic payment mechanism to which the parties agree. 06 (b) An advance is paid in full when the advance recipient repays the advance 07 under (a) of this section, or when the advance recipient rescinds the advance under 08 AS 06.50.480. 09 (c) A licensee may not accept payment of an advance from the proceeds of 10 another advance provided by the same licensee. 11 Sec. 06.50.540. Default fees. If a payment received from an advance 12 recipient is returned unpaid to a licensee, the licensee may not collect the fees allowed 13 by this chapter unless the fees are disclosed in the agreement for the advance under 14 AS 06.50.400. 15 Sec. 06.50.550. Collection or court action after default. (a) If an advance 16 recipient defaults, before assigning the payment obligation to a third party for 17 collection and before initiating a court action against the recipient, a licensee 18 (1) shall attempt in good faith to contact the advance recipient at 19 reasonable times by telephone or mail to discuss the delinquency and to offer the 20 recipient a payment plan under (2) of this subsection; 21 (2) shall offer the recipient a payment plan under which 22 (A) the recipient may repay the delinquent advance over an 23 extended period of time, which may not exceed six months; 24 (B) at least five percent of the outstanding balance is due when 25 the payment plan is signed; 26 (C) an additional fee by the licensee is not allowed, except for a 27 bad check fee for costs as allowed under AS 09.68.115(a)(2); 28 (3) in addition to the contact required by (1) of this subsection, shall 29 send a certified letter to the recipient's last known address at least 15 days before the 30 action that makes the offer described in (2) of this subsection and that informs the 31 recipient of the licensee's intent to proceed with a court action.
01 (b) The licensee may initiate a court action against a defaulting recipient to 02 recover damages and costs allowed under AS 09.68.115 if the licensee has complied 03 with (a) of this section. Notwithstanding AS 09.68.115, the total of all damages and 04 costs, including damages recovered under AS 09.68.115(a), may not exceed the 05 amount of the payment by $700. 06 Sec. 06.50.560. Threat of criminal action prohibited. A licensee may not 07 threaten an advance recipient with criminal action as a result of the recipient's default. 08 Article 5. Miscellaneous Provisions. 09 Sec. 06.50.600. Regulations. The department may adopt regulations under 10 AS 44.62 (Administrative Procedure Act) to implement this chapter. 11 Sec. 06.50.610. Relationship to federal and other state law. (a) If a 12 provision of this chapter is preempted by or conflicts with federal law in a particular 13 situation, the provision does not apply to the extent of the preemption or conflict. 14 (b) If a provision of this chapter conflicts with another state law in a particular 15 situation, the provision in this chapter governs to the extent of the conflict. 16 Article 6. General Provisions. 17 Sec. 06.50.900. Definitions. In this chapter, unless the context requires 18 otherwise, 19 (1) "advance" means a deferred deposit advance; 20 (2) "advance recipient" means a borrower to whom an advance is 21 made; 22 (3) "control," in the case of a person who is not a natural person, 23 means direct or indirect ownership, the right to vote or otherwise control 10 percent or 24 more of the governance interests of the entity, or the ability of a person to elect a 25 majority of the directors; 26 (4) "deferred deposit advance" means a transaction in which a person 27 (A) accepts a dated check from a person seeking an advance; 28 (B) agrees to hold the check for a specified period of time 29 before depositing or otherwise negotiating the check; and 30 (C) pays to the advance recipient, credits to the account of the 31 advance recipient, or pays to another person on behalf of the advance recipient
01 the amount of the check less the charges allowed under this chapter; 02 (5) "department" means the Department of Community and Economic 03 Development; 04 (6) "license" means a license issued under this chapter; 05 (7) "licensee" means a person to whom a license has been issued under 06 this chapter. 07 * Sec. 4. AS 44.62.330(a) is amended by adding a new paragraph to read: 08 (61) Department of Community and Economic Development relating 09 to the licensing and regulation of persons making deferred deposit advances under 10 AS 06.50. 11 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 12 read: 13 TRANSITION: EXISTING ACTIVITIES. (a) Notwithstanding the licensing 14 requirements of AS 06.50.010 - 06.50.090, enacted by sec. 3 of this Act, a person who, on the 15 day before the effective date of secs. 1 - 5 of this Act, is engaged in the business of making 16 deferred deposit advances may continue to make deferred deposit advances for 60 days after 17 the effective date of secs. 1 - 5 of this Act without being licensed under AS 06.50, enacted by 18 sec. 3 of this Act. Beginning on the 61st day after the effective date of secs. 1 - 5 of this Act, 19 a person described in this subsection shall be licensed under AS 06.50.010 in order to 20 continue making deferred deposit advances. 21 (b) In this section, "deferred deposit advance" has the meaning given in 22 AS 06.50.900, enacted by sec. 3 of this Act. 23 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 TRANSITIONAL PROVISIONS: REGULATIONS. The Department of Community 26 and Economic Development may proceed to adopt regulations necessary to implement this 27 Act. The regulations take effect under AS 44.62 (Administrative Procedure Act), but not 28 before the effective date of secs. 1 - 5 of this Act. 29 * Sec. 7. Section 6 of this Act takes effect immediately under AS 01.10.070(c). 30 * Sec. 8. Sections 1 - 5 of this Act take effect January 1, 2005.