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A BILL TO BE ENTITLED
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AN ACT
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relating to the allocation of certain housing funds by the Texas |
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Department of Housing and Community Affairs and to the information |
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used to determine the allocation of those funds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2306.111(c), Government Code, as amended |
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by Chapters 1367 and 1448, Acts of the 77th Legislature, Regular |
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Session, 2001, is reenacted and amended to read as follows: |
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(c) In administering federal housing funds provided to the |
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state under the Cranston-Gonzalez National Affordable Housing Act |
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(42 U.S.C. Section 12701 et seq.), the department shall expend: |
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(1) [at least] 95 percent of these funds for the |
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benefit of non-participating small cities and rural areas that do |
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not qualify to receive funds under the Cranston-Gonzalez National |
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Affordable Housing Act directly from the United States Department |
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of Housing and Urban Development; and |
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(2) five percent of these[. All] funds [not set aside
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under this subsection shall be used] for the benefit of persons with |
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disabilities who live in any area of this state [areas other than
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non-participating areas]. |
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SECTION 2. Section 2306.111, Government Code, is amended by |
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amending Subsections (d), (d-1), (e), (f), and (g) and adding |
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Subsections (d-2) and (d-3) to read as follows: |
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(d) The department shall allocate housing funds provided to |
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the state under the Cranston-Gonzalez National Affordable Housing |
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Act (42 U.S.C. Section 12701 et seq.), housing trust funds |
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administered by the department under Sections 2306.201-2306.206, |
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and commitments issued under the federal low income housing tax |
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credit program administered by the department under Subchapter DD |
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to all urban [urban/exurban] areas and rural areas of each uniform |
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state service region based on a formula developed by the department |
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under Section 2306.1115 [that is based on the need for housing
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assistance and the availability of housing resources in those
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urban/exurban areas and rural areas, provided that the allocations
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are consistent with applicable federal and state requirements and
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limitations. The department shall use the information contained in
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its annual state low income housing plan and shall use other
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appropriate data to develop the formula]. If the department |
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determines under the formula that an insufficient number of |
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eligible applications for assistance out of funds or credits |
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allocable under this subsection are submitted to the department |
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from a particular uniform state service region, the department |
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shall use the unused funds or credits allocated to that region for |
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all urban [urban/exurban] areas and rural areas in other uniform |
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state service regions based on identified need and financial |
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feasibility. |
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(d-1) In allocating low income housing tax credit |
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commitments under Subchapter DD, the department shall, before |
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applying the regional allocation formula prescribed by Section |
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2306.1115, set aside for at-risk developments, as defined by |
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Section 2306.6702, not less than the minimum amount of housing tax |
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credits required under Section 2306.6714. Other funds [Funds] or |
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credits are not required to be allocated according to the regional |
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allocation formula under Subsection (d) if: |
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(1) the funds or credits are reserved for |
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contract-for-deed conversions or for set-asides mandated by state |
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or federal law[;] and |
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[(2)] each contract-for-deed allocation or set-aside |
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allocation equals not more than 10 percent of the total allocation |
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of funds or credits for the applicable program; |
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(2) the funds or credits are allocated by the |
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department primarily to serve persons with disabilities; or |
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(3) the funds are housing trust funds administered by |
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the department under Sections 2306.201-2306.206 that are not |
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otherwise required to be set aside under state or federal law and do |
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not exceed $3 million during each application cycle. |
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(d-2) In allocating low income housing tax credit |
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commitments under Subchapter DD, the department shall allocate five |
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percent of the housing tax credits in each application cycle to |
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developments that receive federal financial assistance through the |
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Texas Rural Development Office of the United States Department of |
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Agriculture. Any funds allocated to developments under this |
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subsection that involve rehabilitation must come from the funds set |
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aside for at-risk developments under Section 2306.6714 and any |
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additional funds set aside for those developments under Subsection |
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(d-1). This subsection does not apply to a development financed |
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wholly or partly under Section 538 of the Housing Act of 1949 (42 |
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U.S.C. Section 1490p-2). |
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(d-3) In allocating low income tax credit commitments under |
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Subchapter DD, the department shall allocate to developments in |
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rural areas 20 percent or more of the housing tax credits in the |
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application cycle, with $500,000 or more in housing tax credits |
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being reserved for each uniform state service region under this |
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subsection. Any amount of housing tax credits set aside for |
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developments in rural areas under this subsection that remains |
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after the initial allocation of housing tax credits is available |
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for allocation to developments in urban areas of each uniform state |
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service region, except that if the credits were set aside under this |
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subsection for developments in rural areas in a specific uniform |
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state service region and if qualified applications are submitted |
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with respect to developments in urban areas in that region, the |
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department shall allocate the funds to those developments. |
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(e) The department shall include in its annual low income |
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housing plan under Section 2306.0721: |
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(1) the formula developed by the department under |
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Section 2306.1115 [Subsection (d)]; and |
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(2) the allocation targets established under the |
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formula for the urban [urban/exurban] areas and rural areas of each |
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uniform state service region. |
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(f) The department shall include in its annual low income |
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housing report under Section 2306.072 the amounts of funds and |
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credits allocated to the urban [urban/exurban] areas and rural |
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areas of each uniform state service region in the preceding year for |
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each federal and state program affected by the requirements of |
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Subsection (d). |
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(g) For all urban [urban/exurban] areas and rural areas of |
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each uniform state service region, the department shall establish |
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funding priorities to ensure that: |
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(1) funds are awarded to project applicants who are |
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best able to meet recognized needs for affordable housing, as |
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determined by department rule; |
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(2) when practicable and when authorized under Section |
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42, Internal Revenue Code of 1986 (26 U.S.C. Section 42), the least |
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restrictive funding sources are used to serve the lowest income |
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residents; and |
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(3) funds are awarded based on a project applicant's |
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ability, when consistent with Section 42, Internal Revenue Code of |
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1986 (26 U.S.C. Section 42), practicable, and economically |
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feasible, to: |
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(A) provide the greatest number of quality |
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residential units; |
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(B) serve persons with the lowest percent area |
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median family income; |
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(C) extend the duration of the project to serve a |
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continuing public need; |
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(D) use other local funding sources to minimize |
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the amount of state subsidy needed to complete the project; and |
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(E) provide integrated, affordable housing for |
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individuals and families with different levels of income. |
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SECTION 3. Subchapter F, Chapter 2306, Government Code, is |
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amended by adding Section 2306.1115 to read as follows: |
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Sec. 2306.1115. REGIONAL ALLOCATION FORMULA. (a) To |
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allocate housing funds under Section 2306.111(d), the department |
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shall develop a formula that: |
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(1) includes as a factor the need for housing |
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assistance and the availability of housing resources in an urban |
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area or rural area; |
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(2) provides for allocations that are consistent with |
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applicable federal and state requirements and limitations; and |
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(3) includes other factors determined by the |
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department to be relevant to the equitable distribution of housing |
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funds under Section 2306.111(d). |
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(b) The department shall use information contained in its |
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annual state low income housing plan and other appropriate data to |
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develop the formula under this section. |
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SECTION 4. Section 2306.127, Government Code, is amended to |
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read as follows: |
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Sec. 2306.127. PRIORITY FOR CERTAIN COMMUNITIES. In a |
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manner consistent with the regional allocation formula described |
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under Section 2306.1115 [2306.111(d)], the department shall give |
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priority through its housing program scoring criteria to |
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communities that, at the time complete applications are submitted |
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under a housing program in relation to those communities, are |
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located wholly or partly in: |
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(1) a federally designated urban enterprise |
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community; |
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(2) an urban enhanced enterprise community; or |
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(3) an economically distressed area or colonia. |
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SECTION 5. It is the intent of the legislature that the |
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passage by the 80th Legislature, Regular Session, 2007, of another |
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bill that amends Chapter 2306, Government Code, and the amendments |
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made by this Act shall be harmonized, if possible, as provided by |
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Section 311.025(b), Government Code, so that effect may be given to |
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each. If the amendments made by this Act to Chapter 2306, |
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Government Code, and the amendments made to Chapter 2306, |
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Government Code, by any other bill are irreconcilable, it is the |
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intent of the legislature that this Act prevail, regardless of the |
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relative dates of enactment of this Act and the other bill or bills, |
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but only to the extent that any differences are irreconcilable. |
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SECTION 6. The changes in law made by this Act relating to |
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the evaluation of applications for financial assistance |
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administered by the Texas Department of Housing and Community |
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Affairs apply only to an application submitted on or after the |
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effective date of this Act. An application submitted before the |
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effective date of this Act is governed by the law in effect when the |
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application was submitted, and the former law is continued in |
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effect for that purpose. |
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SECTION 7. This Act takes effect September 1, 2007. |