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AN ACT
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relating to the Texas Economic Development Act, including the |
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continuation of that Act and tax credits claimed under that Act, and |
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to the duties of the comptroller of public accounts and the Texas |
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Education Agency under that Act. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 313.007, Tax Code, is amended to read as |
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follows: |
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Sec. 313.007. EXPIRATION. Subchapters B, C, and D expire |
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December 31, 2011 [2007]. |
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SECTION 2. Section 313.025, Tax Code, is amended by amending |
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Subsections (b) and (d) and adding Subsection (b-1) to read as |
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follows: |
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(b) The governing body of a school district is not required |
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to consider an application for a limitation on appraised value that |
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is filed with the governing body under Subsection (a). If the |
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governing body of the school district does elect to consider an |
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application, the governing body shall deliver three copies of the |
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application to the comptroller and request that the comptroller |
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provide [engage a third person to conduct] an economic impact |
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evaluation of the application to [on behalf of] the school |
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district. Except as provided by Subsection (b-1), the comptroller |
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shall conduct or contract with a third person to conduct the |
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evaluation, which shall be completed and provided to the governing |
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body of the school district as soon as practicable. The governing |
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body shall provide to the comptroller or third person any requested |
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information. A methodology to allow comparisons of economic impact |
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for different schedules of the addition of qualified investment or |
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qualified property may be developed as part of the economic impact |
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evaluation. The governing body shall provide a copy of the |
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evaluation to the applicant on request. The comptroller may charge |
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and collect a fee sufficient to cover the costs of providing the |
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economic impact evaluation. The governing body of a school |
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district shall [and] approve or disapprove an application before |
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the 121st day after the date the application is filed, unless the |
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economic impact evaluation has not been received or an extension is |
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agreed to by the governing body and the applicant. |
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(b-1) The comptroller shall indicate on one copy of the |
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application the date the comptroller received the application and |
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deliver that copy to the Texas Education Agency. The Texas |
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Education Agency shall determine the effect that the applicant's |
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proposal will have on the number or size of the school district's |
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instructional facilities, as required to be included in the |
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economic impact evaluation by Section 313.026(a)(9), and submit a |
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written report containing the agency's determination to the |
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comptroller. The governing body of the school district shall |
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provide any requested information to the Texas Education Agency. |
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Not later than the 45th day after the date the application indicates |
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that the comptroller received the application, the Texas Education |
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Agency shall make the required determination and submit the |
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agency's written report to the comptroller. A third person |
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contracted by the comptroller to conduct an economic impact |
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evaluation of an application is not required to make a |
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determination that the Texas Education Agency is required to make |
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and report to the comptroller under this subsection. |
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(d) [On receipt of an application under this section that
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the governing body elects to consider, the school district shall
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deliver one copy of the application to the comptroller.] Before the |
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61st day after the date the comptroller receives the copy of the |
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application [is received], the comptroller[, using the criteria
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listed in Section 313.026,] shall submit a recommendation to the |
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governing body of the school district as to whether the application |
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should be approved or disapproved. |
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SECTION 3. Section 313.025, Tax Code, is amended by adding |
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Subsection (f-1) to read as follows: |
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(f-1) Notwithstanding any other provision of this chapter |
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to the contrary, including Section 313.003(2) or 313.004(3)(A) or |
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(B)(iii), the governing body of a school district may waive the new |
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jobs creation requirement in Section 313.021(2)(A)(iv)(b) or |
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313.051(b) and approve an application if the governing body makes a |
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finding that the jobs creation requirement exceeds the industry |
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standard for the number of employees reasonably necessary for the |
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operation of the facility of the property owner that is described in |
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the application. |
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SECTION 4. Section 313.026, Tax Code, is amended to read as |
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follows: |
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Sec. 313.026. ECONOMIC IMPACT EVALUATION. (a) The |
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economic impact evaluation of the application must include the |
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following: |
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(1) the recommendations of the comptroller; |
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(2) the relationship between the applicant's industry |
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and the types of qualifying jobs to be created by the applicant to |
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the long-term economic growth plans of this state as described in |
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the strategic plan for economic development submitted by the Texas |
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Strategic Economic Development Planning Commission under Section |
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481.033, Government Code, as that section existed before February |
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1, 1999; |
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(3) the relative level of the applicant's investment |
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per qualifying job to be created by the applicant; |
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(4) the wages, salaries, and benefits to be offered by |
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the applicant to qualifying job holders; |
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(5) the ability of the applicant to locate or relocate |
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in another state or another region of this state; |
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(6) the impact the added infrastructure will have on |
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the region, including: |
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(A) revenue gains that would be realized by the |
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school district; and |
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(B) subsequent economic effects on the local and |
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regional tax bases; |
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(7) the economic condition of the region of the state |
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at the time the person's application is being considered; |
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(8) the number of new facilities built or expanded in |
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the region during the two years preceding the date of the |
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application that were eligible to apply for a limitation on |
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appraised value under this subchapter; and |
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(9) the effect of the applicant's proposal, if |
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approved, on the number or size of the school district's |
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instructional facilities, as defined by Section 46.001, Education |
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Code. |
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(b) The comptroller's recommendations shall be based on the |
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criteria listed in Subsections (a)(2)-(9) and on any other |
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information available to the comptroller, including information |
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provided by the governing body of the school district under Section |
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313.025(b). |
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(c) Subsection (b) does not apply to the comptroller's |
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recommendations made before December 31, 2007. This subsection |
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expires December 31, 2008. |
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SECTION 5. Section 313.104, Tax Code, is amended to read as |
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follows: |
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Sec. 313.104. ACTION ON APPLICATION; GRANT OF CREDIT. |
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Before the 90th day after the date the application for a tax credit |
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is filed, the governing body of the school district shall: |
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(1) determine the person's eligibility for a tax |
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credit under this subchapter; and |
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(2) if the person's application is approved, by order |
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or resolution direct the collector of taxes for the school |
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district: |
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(A) in the second and subsequent six tax years |
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that begin after the date the application is approved, to credit |
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against the taxes imposed on the qualified property by the district |
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in that year an amount equal to one-seventh of the total amount of |
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tax credit to which the person is entitled under Section 313.102, |
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except that the amount of a credit granted in any of those tax years |
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may not exceed 50 percent of the total amount of ad valorem school |
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taxes imposed on the qualified property by the school district in |
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that tax year; and |
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(B) in the first three tax years [year] that |
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begin [begins] on or after the date the person's eligibility for the |
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limitation under Subchapter B or C expires, to credit against the |
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taxes imposed on the qualified property by the district an amount |
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equal to the portion of the total amount of tax credit to which the |
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person is entitled under Section 313.102 that was not credited |
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against the person's taxes under Paragraph (A) in a tax year covered |
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by Paragraph (A), except that the amount of a tax credit granted |
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under this paragraph in any tax year may not exceed the total amount |
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of ad valorem school taxes imposed on the qualified property by the |
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school district in that tax year. |
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SECTION 6. Sections 16(a) and (d), Chapter 1, Acts of the |
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79th Legislature, 3rd Called Session, 2006, are repealed. |
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SECTION 7. (a) Except as provided by Subsection (b) of this |
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section, Sections 313.025 and 313.026, Tax Code, as amended by this |
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Act, apply only to an application for a limitation on appraised |
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value under Chapter 313 of that code in connection with which the |
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governing body of a school district, before December 31, 2007, has |
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not engaged a third person to conduct an economic impact |
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evaluation. An application for a limitation on appraised value in |
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connection with which the governing body of a school district, |
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before December 31, 2007, has engaged a third person to conduct an |
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economic impact evaluation is governed by the law in effect |
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immediately before December 31, 2007, and the former law is |
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continued in effect for that purpose. |
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(b) Subsection (a) of this section does not apply to Section |
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313.025(f-1), Tax Code, as added by this Act. |
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(c) The changes in law made by this Act to Section 313.104, |
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Tax Code, apply only to an application for a school tax credit under |
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Subchapter D, Chapter 313, Tax Code, that is filed on or after the |
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effective date provided by Section 8(a) of this Act. An application |
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for a school tax credit under Subchapter D, Chapter 313, Tax Code, |
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that was filed before that date is governed by the law in effect |
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when the application was filed, and the former law is continued in |
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effect for that purpose. |
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SECTION 8. (a) Except as otherwise provided by Subsection |
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(b) of this section, this Act takes effect immediately if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, this Act takes effect September 1, 2007. |
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(b) Section 2 of this Act takes effect December 31, 2007. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 1470 was passed by the House on April |
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26, 2007, by the following vote: Yeas 138, Nays 3, 2 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 1470 on May 24, 2007, by the following vote: Yeas 141, Nays 0, |
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2 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 1470 was passed by the Senate, with |
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amendments, on May 22, 2007, by the following vote: Yeas 30, Nays |
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0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |