NY State Assembly Bill 2023-A5202B

Assembly Bill A5202B

2023-2024 Legislative Session

Provides for the pension benefits for first grade police officers of the city of New York who have served for 25 or 30 years

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Current Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 22, 2024	print number 5202b
Jan 22, 2024	amend and recommit to governmental employees
Jan 03, 2024	referred to governmental employees
Apr 27, 2023	print number 5202a
Apr 27, 2023	amend (t) and recommit to governmental employees
Mar 06, 2023	referred to governmental employees

Bill Amendments

Original

B (Active)

2023-A5202 - Details

See Senate Version of this Bill:: S2148
Current Committee:: Assembly Governmental Employees
Law Section:: New York City Administrative Code
Laws Affected:: Amd §14-111, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2017-2018: A7900
2019-2020: A7875
2021-2022: A10373, S9125

2023-A5202 - Summary

Provides for the pension benefits for first grade police officers of the city of New York who have served for 25 or 30 years.

2023-A5202 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5202
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 6, 2023
                                ___________
 
 Introduced  by  M.  of A. PHEFFER AMATO -- read once and referred to the
   Committee on Governmental Employees
 
 AN ACT to amend the general municipal law, in relation to the  pensiona-
   ble earnings of first grade police officers
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The general municipal law is   amended by  adding    a  new
 section 209-ffff to read as follows:
   § 209-FFFF. PENSIONABLE EARNINGS; FIRST GRADE POLICE OFFICERS. 1. WHEN
 A  FIRST  GRADE  POLICE  OFFICER SHALL HAVE SERVED IN THE RANK OF POLICE
 OFFICER FOR A PERIOD OF TWENTY-FIVE YEARS, HE OR SHE SHALL HAVE THE SAME
 RIGHTS IN RESPECT TO THE NEW  YORK  STATE  AND  LOCAL  POLICE  AND  FIRE
 RETIREMENT  SYSTEM AS A POLICE OFFICER DESIGNATED TO ACT AS DETECTIVE OF
 THE THIRD GRADE WHO SHALL HAVE SERVED AS  SUCH  FOR  A  PERIOD  OF  TIME
 AGGREGATING  TWO YEARS AT THE HIGHEST SALARY RATE FOR A DETECTIVE OF THE
 THIRD GRADE.
   2. WHEN A FIRST GRADE POLICE OFFICER SHALL HAVE SERVED IN THE RANK  OF
 POLICE  OFFICER  FOR  A PERIOD OF THIRTY YEARS, HE OR SHE SHALL HAVE THE
 SAME RIGHTS IN RESPECT TO THE NEW YORK STATE AND LOCAL POLICE  AND  FIRE
 RETIREMENT  SYSTEM  AS  A  SERGEANT  WHO SHALL HAVE SERVED AS SUCH FOR A
 PERIOD OF TIME AGGREGATING TWO YEARS AT THE HIGHEST SALARY  RATE  FOR  A
 SERGEANT.
   § 2. This act shall take effect immediately.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04845-01-3

co-Sponsors

2023-A5202A - Details

See Senate Version of this Bill:: S2148
Current Committee:: Assembly Governmental Employees
Law Section:: New York City Administrative Code
Laws Affected:: Amd §14-111, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2017-2018: A7900
2019-2020: A7875
2021-2022: A10373, S9125

2023-A5202A - Summary

Provides for the pension benefits for first grade police officers of the city of New York who have served for 25 or 30 years.

2023-A5202A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5202--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 6, 2023
                                ___________
 
 Introduced  by  M.  of A. PHEFFER AMATO -- read once and referred to the
   Committee on Governmental  Employees  --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee
 
 AN ACT to amend the administrative code of the  city  of  New  York,  in
   relation to the pensionable earnings of first grade police officers
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings and declaration. The legislature here-
 by finds and declares that an  adjustment  to  pensionable  earnings  of
 first  grade  police  officers is necessary to enhance public safety and
 prevent the loss of vital public services in this state. The legislature
 hereby finds and declares that such adjustment is necessary to  address,
 inter  alia,  the  historic  police  officer  recruitment  and retention
 crisis, the increase in police overtime, and the rise in crime impacting
 New Yorkers.  Therefore, the legislature declares the necessity for  the
 enactment  of  this  act  to  enhance  public safety and protect against
 disruption of vital public services in this state.
   § 2. Section 14-111 of the administrative code of the city of New York
 is amended by adding two new subdivisions c and d to read as follows:
   C.  WHEN A FIRST GRADE POLICE OFFICER OF  THE  NEW  YORK  CITY  POLICE
 DEPARTMENT  SHALL HAVE SERVED IN THE RANK OF POLICE OFFICER FOR A PERIOD
 OF TWENTY-FIVE YEARS, HE OR SHE SHALL HAVE THE SAME RIGHTS IN RESPECT TO
 THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT  SYSTEM  OR  THE
 NEW  YORK CITY POLICE PENSION FUND AS A POLICE OFFICER DESIGNATED TO ACT
 AS DETECTIVE OF THE THIRD GRADE WHO SHALL HAVE  SERVED  AS  SUCH  FOR  A
 PERIOD  OF  TIME  AGGREGATING TWO YEARS AT THE HIGHEST SALARY RATE FOR A
 DETECTIVE OF THE THIRD GRADE.
   D. WHEN A FIRST GRADE POLICE OFFICER  OF  THE  NEW  YORK  CITY  POLICE
 DEPARTMENT  SHALL HAVE SERVED IN THE RANK OF POLICE OFFICER FOR A PERIOD
 OF THIRTY YEARS, HE OR SHE SHALL HAVE THE SAME RIGHTS IN RESPECT TO  THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04845-04-3

 A. 5202--A                          2
 
 NEW  YORK  STATE  AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM OR THE NEW
 YORK CITY POLICE PENSION FUND AS A SERGEANT WHO  SHALL  HAVE  SERVED  AS
 SUCH  FOR  A  PERIOD OF TIME AGGREGATING TWO YEARS AT THE HIGHEST SALARY
 RATE FOR A SERGEANT.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY  OF BILL: This proposed legislation would amend Section 14-111
 of the Administrative Code of the City of New York (ACCNY) to allow  for
 a  Police  Officer  1st  Grade  of  the  New York City Police Department
 (NYPD), who has been a Police Officer for at least 25 years, to have the
 same rights in respect to the New York City Police Pension Fund (POLICE)
 as a Police Officer designated to  act  as  a  Detective  3rd  Grade  by
 including,  for  pension purposes, the highest salary for such Detective
 aggregating for two years. This proposed legislation will also allow for
 a Police Officer 1st Grade of the NYPD, who has been  a  Police  Officer
 for at least 30 years, to have the same rights in respect to POLICE as a
 Sergeant by including, for pension purposes, the highest salary for such
 Sergeants aggregating for two years.
   Effective Date: Upon enactment.
   IMPACT  ON  BENEFITS:  The  proposed legislation would permit a Police
 Officer 1st Grade, who have met certain service  requirements,  to  have
 their pension calculations based on a higher salary.
   A  Police  Officer  1st Grade with at least 25 years of service would,
 under this proposed legislation, if  enacted,  receive  an  increase  in
 their  annual pension benefit of approximately $5,400 per year. A Police
 Officer 1st Grade with at least 30 years of service  would,  under  this
 proposed  legislation,  if  enacted, receive an increase in their annual
 pension benefit of approximately $15,700 per year. This is  due  to  the
 assumed  higher  salary  and  overtime  and assumes a service retirement
 benefit with 25 years and 30 years of service, respectively.
   Based on this increase and an estimate of the number of POLICE members
 that are expected to be impacted by this change, it is estimated that if
 this proposed legislation is enacted,  the  annual  increase  in  POLICE
 pension benefits paid will be approximately $0.8 million per year.
   With  respect  to  an individual member, the impact on benefits due to
 this proposed legislation could vary greatly depending on  the  member's
 age, years of service, retirement cause, and Tier.
   FINANCIAL  IMPACT - PRESENT VALUES: Based on the actuarial assumptions
 and methods described herein, the enactment of this proposed legislation
 would increase the Present Value of Future Benefits (PVFB)  by  approxi-
 mately $10.0 million every year.
   FINANCIAL  IMPACT  -  ANNUAL EMPLOYER CONTRIBUTIONS: Enactment of this
 proposed legislation would increase employer contributions,  where  such
 amount  would  depend on the number of members affected as well as other
 characteristics including the age, years of service, and salary  history
 of  the  member. Future years' costs would depend on the number of reti-
 rees who benefit under the legislation amongst other factors.
   The estimate of the increase  in  annual  employer  contributions  for
 Fiscal  Years  2025  through 2029, assuming a homogeneous population and
 consistent retirement pattern, is shown in the table below.
 
                     Fiscal            Increase in
                      Year        Employer Contributions
                                       ($ Millions)
                      2025                $ 1.2
                      2026                $ 2.4
 A. 5202--A                          3
 
                      2027                $ 3.6
                      2028                $ 4.8
                      2029                $ 6.0
 
   Since  the  number  of Police Officers impacted by the proposed legis-
 lation cannot be known in advance with credibility, the increase in PVFB
 due to this legislation has been treated as an actuarial  loss  and  was
 amortized  over  a closed 15-year period (14 payments under the One-Year
 Lag Methodology) using level dollar payments.
   CENSUS DATA: The estimates presented herein are based  on  the  census
 data  used  in the June 30, 2022 actuarial valuation of POLICE to deter-
 mine the Preliminary Fiscal Year 2024 employer contribution. To estimate
 the number of retirees who could potentially benefit from this  proposed
 legislation,  data  from  the  prior actuarial valuations for POLICE was
 used. Below is a summary of the data from the prior valuations:
   * Police Officer 1st Grade who retired with 25-29 years in rank -  908
 retired over the past 10 years.
   *  Police  Officer  1st Grade who retired with 30+ years in rank - 202
 retired over the past 10 years.
   ACTUARIAL ASSUMPTIONS AND METHODS: The estimates presented herein have
 been calculated based on the actuarial assumptions and methods used  for
 the Preliminary Fiscal Year 2024 employer contributions of POLICE.
   For  the  purposes of this Fiscal Note, it is assumed that the changes
 would be reflected for the first time in the  June  30,  2023  actuarial
 valuation  of POLICE used to determine employer contributions for Fiscal
 Year 2025.
   The salaries used in this analysis have been adjusted consistent  with
 the salary adjustments used in the June 30, 2022 actuarial valuation.
   RISK  AND  UNCERTAINTY: The costs presented in this Fiscal Note depend
 highly on the realization of the actuarial assumptions used,  demograph-
 ics  of  the  impacted  population and other factors such as investment,
 contribution, and other risks. If actual experience deviates from  actu-
 arial  assumptions,  the  actual costs could differ from those presented
 herein.
   Costs are also dependent on the actuarial methods used, and  therefore
 different actuarial methods could produce different results. Quantifying
 these risks is beyond the scope of this Fiscal Note.
   Not measured in this Fiscal Note are the following:
   *  The  initial  additional  administrative  costs  to  implement  the
 proposed legislation.
   STATEMENT OF ACTUARIAL OPINION: I, Marek  Tyszkiewicz,  am  the  Chief
 Actuary  for,  and  independent of, the New York City Retirement Systems
 and Pension Funds. I am an Associate of the Society of Actuaries  and  a
 Member of the American Academy of Actuaries. I am a member of NYCERS but
 do  not  believe  it impairs my objectivity and I meet the Qualification
 Standards of the American Academy of Actuaries to render  the  actuarial
 opinion  contained  herein.  To  the  best  of my knowledge, the results
 contained  herein  have  been  prepared  in  accordance  with  generally
 accepted  actuarial  principles  and  procedures  and with the Actuarial
 Standards of Practice issued by the Actuarial Standards Board.
   FISCAL NOTE IDENTIFICATION: This Fiscal Note 2023-19 dated  March  31,
 2023  was  prepared  by  the  Chief Actuary for the New York City Police
 Pension Fund. This estimate is intended for use  only  during  the  2023
 Legislative Session.

co-Sponsors

View additional co-sponsors

2023-A5202B (ACTIVE) - Details

See Senate Version of this Bill:: S2148
Current Committee:: Assembly Governmental Employees
Law Section:: New York City Administrative Code
Laws Affected:: Amd §14-111, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2017-2018: A7900
2019-2020: A7875
2021-2022: A10373, S9125

2023-A5202B (ACTIVE) - Summary

Provides for the pension benefits for first grade police officers of the city of New York who have served for 25 or 30 years.

2023-A5202B (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5202--B
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 6, 2023
                                ___________
 
 Introduced  by M. of A. PHEFFER AMATO, FALL -- read once and referred to
   the Committee on Governmental Employees -- committee discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee -- recommitted to  the  Committee  on  Governmental  Employees  in
   accordance  with Assembly Rule 3, sec. 2 -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee
 
 AN  ACT  to  amend  the  administrative code of the city of New York, in
   relation to the pensionable earnings of first grade police officers
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings and declaration. The legislature here-
 by  finds  and  declares  that  an adjustment to pensionable earnings of
 first grade police officers is necessary to enhance  public  safety  and
 prevent the loss of vital public services in this state. The legislature
 hereby  finds and declares that such adjustment is necessary to address,
 inter alia,  the  historic  police  officer  recruitment  and  retention
 crisis, the increase in police overtime, and the rise in crime impacting
 New  Yorkers.  Therefore, the legislature declares the necessity for the
 enactment of this act to  enhance  public  safety  and  protect  against
 disruption of vital public services in this state.
   § 2. Section 14-111 of the administrative code of the city of New York
 is amended by adding two new subdivisions c and d to read as follows:
   C.    WHEN  A  FIRST  GRADE POLICE OFFICER OF THE NEW YORK CITY POLICE
 DEPARTMENT SHALL HAVE SERVED IN THE RANK OF POLICE OFFICER FOR A  PERIOD
 OF TWENTY-FIVE YEARS, HE OR SHE SHALL HAVE THE SAME RIGHTS IN RESPECT TO
 THE  NEW  YORK  STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM OR THE
 NEW YORK CITY POLICE PENSION FUND AS A POLICE OFFICER DESIGNATED TO  ACT
 AS  DETECTIVE  OF  THE  THIRD  GRADE WHO SHALL HAVE SERVED AS SUCH FOR A
 PERIOD OF TIME AGGREGATING TWO YEARS AT THE HIGHEST SALARY  RATE  FOR  A
 DETECTIVE OF THE THIRD GRADE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04845-05-4

 A. 5202--B                          2
 
   D.  WHEN  A  FIRST  GRADE  POLICE  OFFICER OF THE NEW YORK CITY POLICE
 DEPARTMENT SHALL HAVE SERVED IN THE RANK OF POLICE OFFICER FOR A  PERIOD
 OF  THIRTY YEARS, HE OR SHE SHALL HAVE THE SAME RIGHTS IN RESPECT TO THE
 NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM  OR  THE  NEW
 YORK  CITY  POLICE  PENSION  FUND AS A SERGEANT WHO SHALL HAVE SERVED AS
 SUCH FOR A PERIOD OF TIME AGGREGATING TWO YEARS AT  THE  HIGHEST  SALARY
 RATE FOR A SERGEANT.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY: This proposed legislation, as it relates to the New York City
 Police  Pension Fund (POLICE), would increase the salary used for deter-
 mining pension benefits for first grade NYPD officers who have served in
 such rank for 25 or 30 years, to salaries equivalent  to  detective  3rd
 grade or sergeant, respectively.
 
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
           by Fiscal Year for the first 25 years ($ in Millions)
 
                      Year      POLICE
 
                      2025      0.0
                      2026      1.0
                      2027      2.0
                      2028      3.0
                      2029      4.0
                      2030      5.1
                      2031      6.2
                      2032      7.4
                      2033      8.6
                      2034      9.7
                      2035      10.9
                      2036      12.0
                      2037      13.1
                      2038      14.1
                      2039      15.1
                      2040      14.9
                      2041      14.7
                      2042      14.4
                      2043      14.0
                      2044      13.5
                      2045      13.1
                      2046      12.6
                      2047      12.1
                      2048      11.6
                      2049      11.1
 
   Projected  contributions are based on historical experience for Tier 2
 members. Future retirement patterns may differ due to a  larger  Tier  3
 population  (e.g.,  Tier 2 is expected to retire at 20 years of service,
 and Tier 3 is expected to retire at 25 years of service).
   The entire increase in employer contributions will be allocated to New
 York City.
            EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
   The enactment of this proposed legislation is expected to increase the
 Present Value of Future Benefits (PVFB) by approximately $8.2 million in
 the first year and every year thereafter. Each year's PVFB increase will
 A. 5202--B                          3
 
 depend on the actual experience  of  benefiting  retirees  and  will  be
 recognized in the year benefits are first payable.
                 AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
 
       Recognized as Ongoing Gain/Loss         POLICE
 
       Number of Payments:                     14
       Fiscal Year of Last Payment:            N/A
       First-year Amortization Payment:        $ 1.0 M
 
   CENSUS  DATA:  The estimates presented herein are based on preliminary
 census data collected as of June 30, 2023. The census  data  for  POLICE
 active members is summarized below.
 
                                          POLICE
            Active Members
            - Number Count:               33,800
            - Average Age:                37.6
            - Average Service:            11.3
            - Average Salary:             128,600
 
   The salaries used in this analysis were provided by the Police Benevo-
 lent Association of the City of New York and reflect the latest contract
 negotiations. Below is a summary of the salary data provided:
   * Police Officer 1st Grade - $105,146
   * Detective 3rd Grade - $111,999
   * Sergeant - $125,852
   Data  from  prior actuarial valuations was used to estimate the number
 of retirees who could potentially benefit from this proposed legislation
 and is summarized below.
   * Police Officer 1st Grade who retired with 25-29 years in rank -  930
 retired over the past 10 years.
   *  Police  Officer  1st Grade who retired with 30+ years in rank - 218
 retired over the past 10 years.
   IMPACT ON MEMBER BENEFITS: The proposed legislation would permit first
 grade police officers, who have met  certain  service  requirements,  to
 have their pension calculations based on a higher assumed salary.
   For  example,  under this proposed legislation a Tier 2 Police Officer
 1st Grade who holds such position for at least 25, or  30,  years  would
 receive  an  increase  in  their annual pension benefit of approximately
 $4,300 or $12,200 per year, respectively,  due  to  the  higher  assumed
 pensionable salary.
   Based  on an estimate of the number of POLICE members who are expected
 to be impacted by the increased pensionable salary, it is estimated that
 if this proposed legislation is enacted, the annual increase  in  POLICE
 pension  benefits  paid  will be approximately $0.7 million in the first
 year and increase in every year thereafter.
   With respect to an individual member, the impact on  benefits  due  to
 this  proposed  legislation could vary greatly depending on the member's
 age, years of service, retirement cause, and Tier.
   ASSUMPTIONS AND METHODS: The  estimates  presented  herein  have  been
 calculated based on the actuarial assumptions and methods to be used for
 the  Preliminary Fiscal Year 2025 employer contributions of the impacted
 retirement systems. In addition:
   * New entrants were assumed to replace exiting members so  that  total
 payroll increases by 3% each year for impacted groups. New entrant demo-
 A. 5202--B                          4
 
 graphics were developed based on data for recent new hires and actuarial
 judgement.
   * Future contribution impacts have been developed assuming a homogene-
 ous population and consistent retirement pattern.
   RISK  AND  UNCERTAINTY: The costs presented in this Fiscal Note depend
 highly on the actuarial assumptions, methods,  and  models  used,  demo-
 graphics  of  the  impacted population and other factors such as invest-
 ment, contribution, and other risks. If actual experience deviates  from
 actuarial   assumptions,  the  actual  costs  could  differ  from  those
 presented herein. Quantifying these risks is beyond the  scope  of  this
 Fiscal Note.
   This  Fiscal  Note  is intended to measure pension-related impacts and
 does not include other potential costs (e.g., administrative  and  Other
 Postemployment Benefits).
   STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov-
 sky  are members of the Society of Actuaries and the American Academy of
 Actuaries. We are members of NYCERS but do not believe  it  impairs  our
 objectivity  and  we  meet  the  Qualification Standards of the American
 Academy of Actuaries to render the actuarial opinion  contained  herein.
 To  the  best  of  our knowledge, the results contained herein have been
 prepared in accordance with generally accepted actuarial principles  and
 procedures  and  with  the Actuarial Standards of Practice issued by the
 Actuarial Standards Board.
   FISCAL NOTE IDENTIFICATION: This Fiscal Note 2024-02 dated January 16,
 2024 was prepared by the Chief Actuary for the New York City  Retirement
 Systems and Pension Funds. This estimate is intended for use only during
 the 2024 Legislative Session.

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Assembly Bill A5202B

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Sponsored By

PHEFFER AMATO

Current Bill Status - In Assembly Committee

Bill Amendments

2023-A5202 - Details

2023-A5202 - Summary

2023-A5202 - Bill Text download pdf

co-Sponsors

Charles Fall

2023-A5202A - Details

2023-A5202A - Summary

2023-A5202A - Bill Text download pdf

co-Sponsors

Charles Fall

Sam Berger

Edward Braunstein

Charles Lavine

2023-A5202B (ACTIVE) - Details

2023-A5202B (ACTIVE) - Summary

2023-A5202B (ACTIVE) - Bill Text download pdf

Comments