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AN ACT
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relating to the operation of property owners' associations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 551.0015(a), Government Code, is amended |
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to read as follows: |
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(a) A property owners' association is subject to this |
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chapter in the same manner as a governmental body: |
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(1) if: |
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(A) [(1)] membership in the property owners' |
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association is mandatory for owners or for a defined class of owners |
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of private real property in a defined geographic area in a county |
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with a population of 2.8 million or more or in a county adjacent to a |
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county with a population of 2.8 million or more; |
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(B) [(2)] the property owners' association has |
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the power to make mandatory special assessments for capital |
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improvements or mandatory regular assessments; and |
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(C) [(3)] the amount of the mandatory special or |
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regular assessments is or has ever been based in whole or in part on |
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the value at which the state or a local governmental body assesses |
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the property for purposes of ad valorem taxation under Section 20, |
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Article VIII, Texas Constitution; or |
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(2) if the property owners' association: |
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(A) provides maintenance, preservation, and |
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architectural control of residential and commercial property |
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within a defined geographic area in a county with a population of |
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2.8 million or more or in a county adjacent to a county with a |
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population of 2.8 million or more; and |
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(B) is a corporation that: |
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(i) is governed by a board of trustees who |
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may employ a general manager to execute the association's bylaws |
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and administer the business of the corporation; |
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(ii) does not require membership in the |
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corporation by the owners of the property within the defined area; |
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and |
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(iii) was incorporated before January 1, |
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2006. |
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SECTION 2. Section 552.0036, Government Code, is amended to |
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read as follows: |
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Sec. 552.0036. CERTAIN PROPERTY OWNERS' ASSOCIATIONS |
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SUBJECT TO LAW. A property owners' association is subject to this |
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chapter in the same manner as a governmental body: |
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(1) if: |
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(A) [(1)] membership in the property owners' |
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association is mandatory for owners or for a defined class of owners |
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of private real property in a defined geographic area in a county |
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with a population of 2.8 million or more or in a county adjacent to a |
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county with a population of 2.8 million or more; |
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(B) [(2)] the property owners' association has |
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the power to make mandatory special assessments for capital |
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improvements or mandatory regular assessments; and |
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(C) [(3)] the amount of the mandatory special or |
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regular assessments is or has ever been based in whole or in part on |
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the value at which the state or a local governmental body assesses |
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the property for purposes of ad valorem taxation under Section 20, |
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Article VIII, Texas Constitution; or |
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(2) if the property owners' association: |
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(A) provides maintenance, preservation, and |
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architectural control of residential and commercial property |
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within a defined geographic area in a county with a population of |
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2.8 million or more or in a county adjacent to a county with a |
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population of 2.8 million or more; and |
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(B) is a corporation that: |
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(i) is governed by a board of trustees who |
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may employ a general manager to execute the association's bylaws |
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and administer the business of the corporation; |
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(ii) does not require membership in the |
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corporation by the owners of the property within the defined area; |
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and |
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(iii) was incorporated before January 1, |
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2006. |
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SECTION 3. Section 201.001(b), Property Code, is amended to |
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read as follows: |
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(b) The provisions of this chapter relating to extension of |
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the term of, renewal of, or creation of restrictions do not apply to |
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a subdivision if, by the express terms of the instrument creating |
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existing restrictions, some or all of the restrictions affecting |
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the real property within the subdivision provide: |
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(1) for automatic extensions of the term of the |
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restrictions for an indefinite number of successive specified |
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periods of at least 10 years subject to a right of waiver or |
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termination, in whole or in part, by a specified percentage of less |
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than 50 percent plus one of the owners of real property interests in |
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the subdivision, as set forth in the instrument creating the |
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restrictions; or |
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(2) for an indefinite number of successive extensions |
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of at least 10 years of the term of the restrictions by written and |
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filed agreement of a specified percentage of less than 50 percent |
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plus one of the owners of real property interests in the |
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subdivision, as authorized by the instrument creating the |
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restrictions. |
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SECTION 4. Section 201.004(a), Property Code, is amended to |
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read as follows: |
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(a) A petition may be filed under this chapter to: |
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(1) extend or renew an unexpired restriction; |
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(2) [, to] create a restriction; |
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(3) [, or to] add to or modify an existing restriction; |
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or |
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(4) modify an existing provision in an instrument |
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creating a restriction that provides for extension of those |
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restrictions. |
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SECTION 5. Section 204.003, Property Code, is amended to |
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read as follows: |
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Sec. 204.003. APPLICATION OF PROVISIONS OF RESTRICTIVE |
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COVENANTS [PREVAIL] IN CERTAIN CIRCUMSTANCES. (a) An express |
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designation in a document creating restrictions applicable to a |
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residential real estate subdivision that provides for the extension |
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of, addition to, or modification of existing restrictions by a |
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designated number of owners of real property in the subdivision |
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prevails over the provisions of this chapter. |
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(b) A document creating restrictions that provides for the |
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extension or renewal of restrictions and does not provide for |
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modification or amendment of restrictions may be modified under |
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this chapter, including modifying the provision that provides for |
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extension or renewal of the restrictions. |
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SECTION 6. Section 209.005, Property Code, is amended by |
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adding Subsection (a-1) to read as follows: |
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(a-1) A property owners' association described by Section |
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552.0036(2), Government Code, shall make the books and records of |
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the association, including financial records, reasonably available |
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to any person requesting access to the books or records in |
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accordance with Chapter 552, Government Code. Subsection (a) does |
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not apply to a property owners' association to which this |
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subsection applies. |
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SECTION 7. Section 209.003(b), Property Code, is amended to |
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read as follows: |
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(b) Except as otherwise provided by this chapter, this |
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[This] chapter applies only to a property owners' association that |
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requires mandatory membership in the association for all or a |
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majority of the owners of residential property within the |
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subdivision subject to the association's dedicatory instruments. |
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SECTION 8. Chapter 209, Property Code, is amended by adding |
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Section 209.0055 to read as follows: |
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Sec. 209.0055. VOTING. (a) This section applies only to a |
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property owners' association that: |
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(1) provides maintenance, preservation, and |
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architectural control of residential and commercial property |
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within a defined geographic area in a county with a population of |
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2.8 million or more or in a county adjacent to a county with a |
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population of 2.8 million or more; and |
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(2) is a corporation that: |
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(A) is governed by a board of trustees who may |
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employ a general manager to execute the association's bylaws and |
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administer the business of the corporation; |
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(B) does not require membership in the |
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corporation by the owners of the property within the defined area; |
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and |
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(C) was incorporated before January 1, 2006. |
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(b) A property owners' association described by Subsection |
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(a) may not bar a property owner from voting in an association |
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election solely based on the fact that: |
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(1) there is a pending enforcement action against the |
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property owner; or |
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(2) the property owner owes the association any |
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delinquent assessments, fees, or fines. |
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SECTION 9. (a) Section 551.0015, Government Code, as |
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amended by this Act, applies only to a property owners' association |
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meeting that is held on or after September 1, 2007. A property |
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owners' association meeting that is held before September 1, 2007, |
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is governed by the law in effect at the time the meeting was held, |
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and that law is continued in effect for that purpose. |
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(b) Section 552.0036, Government Code, as amended by this |
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Act, applies only to a request for records or information made to a |
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property owners' association on or after September 1, 2007. A |
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request for records or information that is made before September 1, |
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2007, is governed by the law in effect at the time the request was |
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made, and that law is continued in effect for that purpose. |
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(c) Section 209.005, Property Code, as amended by this Act, |
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applies only to a request for access to records or information made |
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to a property owners' association on or after September 1, 2007. A |
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request for access to records or information that is made before |
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September 1, 2007, is governed by the law in effect at the time the |
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request was made, and that law is continued in effect for that |
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purpose. |
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SECTION 10. This Act takes effect September 1, 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. 3674 was passed by the House on May 4, |
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2007, by the following vote: Yeas 144, Nays 0, 2 present, not |
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voting; that the House refused to concur in Senate amendments to |
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H.B. No. 3674 on May 25, 2007, and requested the appointment of a |
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conference committee to consider the differences between the two |
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houses; and that the House adopted the conference committee report |
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on H.B. No. 3674 on May 27, 2007, by the following vote: Yeas 142, |
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Nays 1, 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. 3674 was passed by the Senate, with |
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amendments, on May 23, 2007, by the following vote: Yeas 31, Nays |
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0; at the request of the House, the Senate appointed a conference |
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committee to consider the differences between the two houses; and |
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that the Senate adopted the conference committee report on H.B. No. |
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3674 on May 27, 2007, by the following vote: Yeas 30, Nays 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 |