72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 3686
 
                         House Bill 3647
 
Sponsored by COMMITTEE ON RULES AND PUBLIC AFFAIRS
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Creates Oregon Wine Board as semi-independent state agency.
Abolishes Wine Advisory Board.
  Declares emergency, effective on passage.
 
                        A BILL FOR AN ACT
Relating to wine boards; creating new provisions; amending ORS
  182.454, 473.030, 473.045, 473.047, 576.750 and 576.763;
  repealing ORS 576.755, 576.760 and 576.765 and section 120,
  chapter 158, Oregon Laws 1987; appropriating money; and
  declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Sections 2 to 11 of this 2003 Act are added to
and made a part of ORS 576.750 to 576.765. + }
 
                               { +
FINDINGS + }
 
  SECTION 2.  { + The Legislative Assembly finds and declares
that:
  (1) The development of world-class wine grape growing and wine
making industries is important to Oregon as a whole. The health
of the wine grape growing and wine making industries affects the
well-being of Oregonians and Oregon rural economies and
environments.
  (2) It is in the public interest to encourage the orderly
growth and development of sustainable, labor-intensive,
value-added agricultural industries, such as the wine grape
growing and wine making industries.
  (3) State involvement in the wine grape growing and wine making
industries must be coordinated to respond to state interests and
to encourage appropriate partnership and cooperation between the
public and private sectors in ensuring orderly growth and
realizing statewide objectives for world-class wine grape growing
and wine making industries. + }
 
                               { +
OREGON WINE BOARD + }
 
  SECTION 3.  { + (1) The Oregon Wine Board is established as a
semi-independent state agency subject to ORS 182.456 to 182.472.
 
  (2) The board shall consist of nine members appointed by the
Governor. In making appointments, the Governor shall consider
nominations or recommendations made by organizations with
nominating committees representative of all major wine industry
regions of the state.
  (3) The term of office for a member is three years, but a
member serves at the pleasure of the Governor. Before the
expiration of a term, the Governor shall appoint a successor
whose term begins on January 1 next following. A member is
eligible for reappointment.
  (4) If a vacancy occurs on the board, the Governor shall
appoint a qualified person to serve the unexpired term.
  (5) A person appointed to the board must have:
  (a) Expertise and experience in the Oregon wine grape growing
or wine making industries; and
  (b) A demonstrated ability and disposition to serve the state's
interests regarding all aspects of the Oregon wine grape growing
and wine making industries, including but not limited to the
various types and sizes of wine grape growing and wine making
operations, grape varieties and growing regions within the state.
  (6) A member of the board must maintain the following
qualifications during the term of office:
  (a) Be a bona fide resident of the state or an officer or
principal owner of an entity organized or registered to do
business in this state.
  (b) Have a demonstrated interest in the positive development of
the Oregon wine industry.
  (c) Be actively engaged in wine grape growing or wine making.
  (7) The members of the board shall elect a chairperson and
vice-chairperson with duties and powers as determined by the
board. + }
  SECTION 4.  { + Notwithstanding the term of office specified in
section 3 of this 2003 Act, of the members initially appointed to
the Oregon Wine Board on or after the effective date of this
section:
  (1) Three shall serve for terms ending January 1, 2007.
  (2) Three shall serve for terms ending January 1, 2006.
  (3) Three shall serve for terms ending January 1, 2005. + }
  SECTION 5.  { + To carry out the purposes specified in ORS
576.750 to 576.765, the Oregon Wine Board may:
  (1) Appoint officers and enter into agreements with
consultants, agents and advisers, and prescribe their duties;
  (2) Appear on the board's own behalf before boards,
commissions, departments or other agencies of municipal or county
governments, the state government or the federal government;
  (3) Procure insurance against any losses in connection with
properties of the board in such amounts and from such insurers as
may be necessary or desirable;
  (4) Accept donations, grants, bequests and devises, conditional
or otherwise, of money, property, services or other things of
value, including the interest or earnings thereon but excluding
corporate stock, that may be received from a government agency or
a public or private institution or person, to be held, used or
applied for any or all of the purposes specified in ORS 576.750
to 576.765 in accordance with the terms and conditions of the
donation, grant, bequest or devise;
  (5) Organize, conduct, sponsor, cooperate with and assist the
private sector and other state agencies in the conduct of
conferences and tours relating to the wine grape growing and wine
making industries;
  (6) Provide and pay for advisory services and technical
assistance that the board finds necessary or desirable; and
  (7) Exercise any other powers necessary for the operation and
functioning of the board under ORS 576.750 to 576.765. + }
 
 
  SECTION 6.  { + (1) In accordance with applicable provisions of
ORS 183.310 to 183.550, the Oregon Wine Board may adopt rules
necessary for the administration of ORS 576.750 to 576.765.
  (2) Notwithstanding section 3 (1) of this 2003 Act and ORS
182.460, employees of the Oregon Wine Board are not eligible for
inclusion within the Public Employees Retirement System. + }
  SECTION 7.  { + The Oregon Wine Board shall operate for the
purpose of supporting enological, viticultural and economic
research to develop sustainable business practices for wine grape
growing and wine making within Oregon and supporting the
promotion of Oregon's wine grape growing and wine making
industries. The board shall create and maintain a long term
strategic plan and use that plan to guide the granting and
funding decisions of the board. To the extent practicable, the
board shall allocate funds and award grants in a manner that
encourages coordinated, cost-effective projects that are
integrated to implement the board's strategic statewide
objectives for the development of world-class wine grape growing
and wine making within Oregon. + }
  SECTION 8.  { + (1) If a person selling or providing grape
product to a winery performs part of the processing function of a
winery, the person shall report the sale or provision of the
grape product and pay the tax imposed under ORS 473.045 (5).
  (2) A person or winery required to pay a tax under ORS 473.045
(5) shall keep accurate records sufficient to enable the Oregon
Liquor Control Commission to determine by inspection and audit
the accuracy of the taxes paid or due the Oregon Wine Board and
of reports made or due to the commission.
  (3) The commission or a designee of the commission may inspect
and audit the records referred to in subsection (2) of this
section for the purpose referred to in subsection (2) of this
section.
  (4) A person or winery may not refuse to permit an inspection
and audit under subsection (3) of this section during business
hours.
  (5) In addition to the penalties prescribed in section 9 of
this 2003 Act, a person or winery that delays transmittal of tax
payments under ORS 473.045 (5) beyond the due date specified in
ORS 473.045 shall pay five percent of the overdue amount for the
first full or partial month of delay and one percent of the
overdue amount for each full or partial month of delay
thereafter.
  (6) If a winery willfully refuses to turn over tax moneys
withheld under ORS 473.045 (5), the winery shall pay an
additional amount equal to twice the amount of the tax moneys not
turned over. + }
  SECTION 9.  { + Failure to pay a tax under ORS 473.045 (5) is
punishable, upon conviction, by a fine of not more than $500, or
by imprisonment in the county jail for not more than 90 days, or
both. + }
  SECTION 10. { +  Moneys received on behalf of the Oregon Wine
Board pursuant to ORS 473.030 (4) and 473.045 shall be deposited
into the account created by the board under ORS 182.470 and are
continuously appropriated exclusively for use by the board in
carrying out the provisions of ORS 576.750 to 576.765. The board
shall allocate a portion of the moneys received from sources
other than fees toward research in enology and viticulture and
toward promotion of the Oregon wine grape growing and wine making
industries, including administrative costs associated with either
category. + }
  SECTION 11.  { + (1) The report submitted by the Oregon Wine
Board under ORS 182.472 must include a description of the long
term strategic plan created by the board and a description of the
progress made in implementing the statewide strategic objectives
of the board during the most recent biennium.
  (2) Notwithstanding ORS 182.462:
  (a) The board shall prepare and submit annual plans and a
budget recommended by the board for promotion and for research
during the next fiscal year.
  (b) The board shall adopt rules specifying the procedures,
criteria and timelines for the preparation and approval of the
annual plans and budget for promotion and for research.
  (c) The Director of the Economic and Community Development
Department shall review the budget and plans submitted under this
section. In reviewing the annual plans and budget, the director
shall consider whether the information supplied by the board is
factual and consistent with ORS 576.750 to 576.765 and the
positive development of the Oregon wine grape growing and wine
making industries. The director shall either approve the budget
and plans prior to the commencement of the next fiscal year or
disapprove and return the budget and plans to the board with
conditions necessary for approval prior to the commencement of
the next fiscal year. In reviewing the budget and plans, the
director may consult with and receive coordinated support from:
  (A) The State Department of Agriculture;
  (B) The Oregon Tourism Commission;
  (C) The Department of Higher Education;
  (D) The Department of Community Colleges and Workforce
Development; and
  (E) The Oregon Liquor Control Commission. + }
 
                               { +
ABOLISH AND TRANSFER + }
 
  SECTION 12.  { + (1) The Wine Advisory Board is abolished. On
the operative date of this section, the tenure of office of the
members of the Wine Advisory Board ceases.
  (2) All of the duties, functions and powers of the Wine
Advisory Board are imposed upon, transferred to and vested in the
Oregon Wine Board. + }
 
                               { +
RECORDS, PROPERTY, EMPLOYEES + }
 
  SECTION 13.  { + (1) The Director of Agriculture shall:
  (a) Deliver to the temporary administrator appointed under
section 21 of this 2003 Act for the Oregon Wine Board all records
and property within the jurisdiction of the director that relate
to the duties, functions and powers transferred by section 12 of
this 2003 Act; and
  (b) Transfer to the temporary administrator all employees, if
any, engaged primarily in the exercise of the duties, functions
and powers transferred by section 12 of this 2003 Act. Section 6
(2) of this 2003 Act does not apply to an employee transferred
under this section.
  (2) The temporary administrator shall take possession of the
records and property, and shall take charge of the employees and
employ them in the exercise of the duties, functions and powers
transferred by section 12 of this 2003 Act, without reduction of
compensation but subject to change or termination of employment
or compensation as provided by law and subject to section 6 (2)
of this 2003 Act.
  (3) The Governor shall resolve any dispute between the director
and the temporary administrator relating to transfers of records,
property and employees under this section, and the Governor's
decision is final. + }
 
                               { +
UNEXPENDED REVENUES + }
 
  SECTION 14.  { + The unexpended balances of amounts authorized
to be expended by the Wine Advisory Board for the biennium
beginning July 1, 2003, from revenues dedicated, continuously
appropriated, appropriated or otherwise made available for the
purpose of administering and enforcing the duties, functions and
powers of the Wine Advisory Board transferred by section 12 of
this 2003 Act, all moneys in the Wine Advisory Board Account on
the operative date of the repeal of ORS 576.765 by section 28 of
this 2003 Act and all moneys received by the Wine Advisory Board
or placed to the credit of the board and remaining unobligated
and unexpended on the operative date of the repeal of ORS
576.765, shall be deposited in the account established by the
Oregon Wine Board pursuant to ORS 182.470. + }
 
                               { +
ACTION, PROCEEDING, PROSECUTION + }
 
  SECTION 15.  { + The transfer of duties, functions and powers
to the Oregon Wine Board by section 12 of this 2003 Act does not
affect any action, proceeding or prosecution involving or with
respect to such duties, functions and powers begun before and
pending at the time of the transfer, except that the Oregon Wine
Board is substituted for the Wine Advisory Board in the action,
proceeding or prosecution. + }
 
                               { +
LIABILITY, DUTY, OBLIGATION + }
 
  SECTION 16.  { + (1) Nothing in sections 2 to 21 of this 2003
Act relieves a person of a liability, duty or obligation accruing
under or with respect to the duties, functions and powers
transferred by section 12 of this 2003 Act. The Oregon Wine Board
may undertake the collection or enforcement of any such
liability, duty or obligation.
  (2) The rights and obligations of the Wine Advisory Board
legally incurred under contracts, leases and business
transactions executed, entered into or begun before the operative
date of section 12 of this 2003 Act are transferred to the Oregon
Wine Board. For the purpose of succession to these rights and
obligations, the Oregon Wine Board is a continuation of the Wine
Advisory Board and not a new authority. + }
 
                               { +
RULES + }
 
  SECTION 17.  { + Notwithstanding the transfer of duties,
functions and powers by section 12 of this 2003 Act, the rules of
the Wine Advisory Board in effect on the operative date of
section 12 of this 2003 Act continue in effect as rules of the
Oregon Wine Board until superseded or repealed by rules of the
Oregon Wine Board.  References in rules of the Wine Advisory
Board to the Wine Advisory Board or an officer or employee of the
Wine Advisory Board are considered to be references to the Oregon
Wine Board or an officer or employee of the Oregon Wine
Board. + }
  SECTION 18.  { + Whenever, in any uncodified law or resolution
of the Legislative Assembly or in any rule, document, record or
proceeding authorized by the Legislative Assembly, reference is
made to the Wine Advisory Board or an officer or employee of the
Wine Advisory Board, the reference is considered to be a
reference to the Oregon Wine Board or an officer or employee of
the Oregon Wine Board. + }
 
                               { +
AGENCY NAME CHANGE + }
 
  SECTION 19.  { + For the purpose of harmonizing and clarifying
statute sections published in Oregon Revised Statutes, the
Legislative Counsel may substitute for words designating the '
Wine Advisory Board' or its officers, wherever they occur in
Oregon Revised Statutes, words designating the 'Oregon Wine
Board' or its officers. + }
 
                               { +
ACCOUNT NAME CHANGE + }
 
  SECTION 20.  { + For the purpose of harmonizing and clarifying
statute sections published in Oregon Revised Statutes, the
Legislative Counsel may substitute for words designating the Wine
Advisory Board Account, wherever they occur in Oregon Revised
Statutes, words designating the account established by the Oregon
Wine Board under ORS 182.470. + }
 
                               { +
TEMPORARY ADMINISTRATOR + }
 
  SECTION 21.  { + The Governor may appoint a temporary
administrator for the Oregon Wine Board. The temporary
administrator may take any action prior to the operative date of
sections 1 to 20 of this 2003 Act necessary to enable the members
of the Oregon Wine Board to exercise, on and after the operative
date of sections 1 to 20 of this 2003 Act, the duties, functions
and powers of the board. The temporary administrator may
establish a bank account of the type described in ORS 182.470 in
the name of the Oregon Wine Board. The office of the temporary
administrator shall cease 30 days after the appointment of a
majority of the members of the Oregon Wine Board, unless
otherwise provided by the board. + }
 
                               { +
AMENDMENTS TO OREGON REVISED STATUTES + }
 
  SECTION 22. ORS 473.030 is amended to read:
  473.030. (1) A tax is imposed upon the privilege of engaging in
business as a manufacturer or as an importing distributor of malt
beverages at the rate of $2.60 per barrel of 31 gallons on all
such beverages.
  (2) A tax is imposed upon the privilege of engaging in business
as a manufacturer or as an importing distributor of wines at the
rate of 65 cents per gallon on all such beverages.
  (3) In addition to the tax imposed by subsection (2) of this
section, a manufacturer or an importing distributor of wines
containing more than 14 percent alcohol by volume shall be taxed
at the rate of 10 cents per gallon.
  (4) In addition to the taxes imposed by subsections (2) and (3)
of this section, a manufacturer or an importing distributor of
wines shall be taxed at the rate of two cents per gallon.
Notwithstanding any other provision of law, all moneys collected
by the Oregon Liquor Control Commission pursuant to this
subsection shall be paid into the   { - Wine Advisory Board
Account established under ORS 576.765 - }  { +  account
established by the Oregon Wine Board under ORS 182.470 + }.
  (5) The rates of tax imposed by this section upon malt
beverages apply proportionately to quantities in containers of
less capacity than those quantities specified in this section.
  (6) The taxes imposed by this section shall be measured by the
volume of wine or malt beverages produced, purchased or received
by any manufacturer. If the wine or malt beverage remains unsold
and in the possession of the producer at the plant where it was
produced, no tax imposed or levied by this section is required to
be paid until the wine or malt beverage has become sufficiently
aged for marketing at retail, but this subsection shall not be
construed so as to alter or affect any provision of this chapter
relating to tax liens or the filing of statements.
  SECTION 23. ORS 473.045 is amended to read:
  473.045. (1) A tax is hereby imposed upon the sale or use of
all agricultural products used in a winery for making wine.
  (2) The amount of the tax shall be $25 per ton of grapes of the
vinifera varieties, whether true or hybrid.
  (3) An equivalent tax is imposed upon the sale or use of
vinifera or hybrid grape products imported for use in a winery
licensed under ORS chapter 471 for making wine. Such tax shall be
$25 per ton of grapes used to produce the imported grape product.
The tax shall be determined on the basis of one ton of grapes for
each 150 gallons of wine made from such vinifera or hybrid grape
products.
  (4) A tax on the sale or use of products that are not subject
to subsection (2) or (3) of this section that are used to make
wine in this state shall be imposed at a rate of $.021 per gallon
of wine made from those products.
  (5) In the case of vinifera or hybrid grape products harvested
in this state, $12.50 of such tax shall be levied and assessed
against the person selling or providing such grape products to
the winery. If the purchasing winery is licensed under ORS
chapter 471, that winery shall deduct the tax levied under this
subsection from the price paid to the seller. If the purchasing
winery is not licensed under ORS chapter 471, the seller shall
report all sales on forms provided by the   { - State Department
of Agriculture - }  { +  Oregon Liquor Control Commission + } and
pay $12.50 per ton as a tax directly to the   { - department - }
 { +  commission + }.
   { +  (6) Taxes paid by sellers under subsection (5) of this
section shall be collected by the Oregon Liquor Control
Commission on behalf of the Oregon Wine Board. The commission may
retain an amount sufficient to cover the cost of collecting the
taxes paid under subsection (5) of this section and shall
transfer the remainder of those taxes to the board for deposit as
provided in section 10 of this 2003 Act. Failure to pay a tax
imposed under subsection (5) of this section subjects the
violator to the penalty provided in section 9 of this 2003
Act. + }
    { - (6) - }  { +  (7) + } Except for the tax specified in
subsection (4) of this section the taxes specified under this
section shall be levied and assessed to the licensed winery at
the time of purchase of the product by the winery or of
importation of the product, whichever is later. The tax specified
in subsection (4) of this section shall be levied and assessed to
the licensed winery at the time the wine is made.
    { - (7) - }  { +  (8) + }   { - Except for taxes to be paid
to the State Department of Agriculture pursuant to subsection (5)
of this section, - }  The taxes imposed by this section shall be
paid by the licensed winery and collected by the   { - Oregon
Liquor Control - } commission subject to the same powers as taxes
imposed and collected under ORS chapter 473.   { - Taxes to be
paid by sellers under subsection (5) of this section shall be
collected by the State Department of Agriculture in the manner
provided in ORS 576.345 to 576.365. Failure to pay the tax
subjects the violator to the same penalty as provided in ORS
576.991 (2) for failure to pay assessments to the department as
required by ORS 576.345 to 576.365. - }  The tax obligation for a
calendar year shall be paid in two installments. Half shall be
due on December 31 of the current calendar year. The remaining
half shall be due the following June 30.
  SECTION 24. ORS 473.047 is amended to read:
  473.047. (1) As used in this section, 'qualified marketing
activity' means marketing activity:
  (a) That promotes the sale of wine or wine products;
  (b) That does not promote specific brands of wine or wine
products or exclusively promote the products of any particular
winery; and
  (c) That has been approved by the   { - Wine Advisory - }
 { + Oregon Wine + } Board.
  (2) A credit against the privilege tax otherwise due under ORS
473.030 (2) is allowed to a manufacturer or importing distributor
of wine for the qualified marketing activity expenditures made by
the manufacturer or importing distributor in the calendar year
prior to the year for which the credit is claimed.
  (3) The credit allowed under this section shall be 28 percent
of the sum of the following:
  (a) One hundred percent of the cost of qualified marketing
activity to the extent that the cost of the activity does not
exceed the amount of taxes the manufacturer or importing
distributor of wine owed under ORS 473.030 (2) on the first
40,000 gallons, or 151,000 liters, of wine sold annually in
Oregon; and
  (b) Twenty-five percent of the tax owed under ORS 473.030 (2)
for qualified marketing activity on wine sales above 40,000
gallons, or 151,000 liters, of wine sold annually in Oregon.
  (4) The credit allowed under this section may not exceed the
tax liability of the manufacturer or importing distributor of
wine under ORS 473.030 (2) for the calendar year following the
year in which qualified marketing activity occurred.
  (5) A manufacturer or importing distributor of wine that wishes
to claim the credit allowed under this section shall submit with
the manufacturer's or importing distributor's tax return form a
certificate issued by the   { - Wine Advisory - }  board
verifying that the marketing activity was a qualified marketing
activity. The credit shall be claimed on the form and include the
information required by the Oregon Liquor Control Commission by
rule.
  (6) The credit shall be claimed against the taxes reported on
the return filed under ORS 473.060 for each month in the calendar
year following the year in which the qualified marketing activity
occurred, until the credit is completely used or the year ends,
whichever occurs first.
  (7) The   { - Wine Advisory - }  board shall by rule further
define, consistent with the definition in subsection (1) of this
section, the marketing activities that constitute qualified
marketing activity.
  SECTION 25. ORS 576.750 is amended to read:
  576.750. As used in ORS 576.750 to 576.765, unless the context
requires otherwise:
    { - (1) 'Board' means the Wine Advisory Board. - }
    { - (2) - }   { + (1) + } 'Grape product' means any juice,
must, concentrate or extract made from vinifera grapes, true or
hybrid, whether or not partially fermented. It does not include
alcoholic liquor as defined in ORS 471.001.
    { - (3) - }  { +  (2) + } 'Wine'   { - means any wine
containing not more than 21 percent alcohol by volume and
produced in all respects in conformity with the laws of the
United States and the regulations of the Bureau of Alcohol,
Tobacco and Firearms, Department of the Treasury - }  { +  has
the meaning given that term in ORS 471.001 + }.
    { - (4) - }   { + (3) + } 'Wine  { + grape + } growing' means
the cultivation in commercial quantities of vinifera grapes in
this state.
    { - (5) - }   { + (4) + } 'Wine making' means the ownership
and control of or the management of a licensed winery in this
state.
  SECTION 26. ORS 576.763 is amended to read:
  576.763. The   { - Wine Advisory - }  { +  Oregon Wine + }
Board shall establish a state wine cellar by purchasing or
receiving donations of wines made in this state from fruit or
grapes grown in this state. Wines collected in the state wine
cellar may be:
 
  (1) Held as standards to compare against other wines to develop
and improve Oregon viticultural and enological practices.
  (2) Sold to state governmental agencies for service at official
governmental entertainment functions.
  (3) Sold to the Governor and to the administrative heads of
state agencies on official government business to present as
gifts when required by protocol or social custom.
  (4) Displayed and offered for tasting in connection with
promotional campaigns to encourage the purchase of Oregon wines.
  SECTION 27. ORS 182.454 is amended to read:
  182.454.   { - On October 31, 1999, - }  The following
semi-independent state agencies are   { - made - }  subject to
ORS 182.456 to 182.472:
  (1) The State Board of Architect Examiners.
  (2) The State Landscape Architect Board.
  (3) The State Board of Examiners for Engineering and Land
Surveying.
  (4) The State Board of Geologist Examiners.
  (5) The Oregon Board of Optometry.
   { +  (6) The Oregon Wine Board. + }
  SECTION 28.  { + ORS 576.755, 576.760 and 576.765 and section
120, chapter 158, Oregon Laws 1987, are repealed. + }
 
                               { +
OPERATIVE DATE + }
 
  SECTION 29.  { + Sections 1 to 21 of this 2003 Act, the
amendments to ORS 182.454, 473.030, 473.045, 473.047, 576.750 and
576.763 by sections 22 to 27 of this 2003 Act and the repeal of
ORS 576.755, 576.760 and 576.765 and section 120, chapter 158,
Oregon Laws 1987, by section 28 of this 2003 Act become operative
20 days after the effective date of this 2003 Act. + }
 
                               { +
UNIT CAPTIONS + }
 
  SECTION 30.  { + The unit captions used in this 2003 Act are
provided only for the convenience of the reader and do not become
part of the statutory law of this state or express any
legislative intent in the enactment of this 2003 Act. + }
 
                               { +
EMERGENCY CLAUSE + }
 
  SECTION 31.  { + This 2003 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2003 Act takes effect on
its passage. + }
                         ----------