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A BILL TO BE ENTITLED
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AN ACT
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relating to the rendition and issuance of an administrative |
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qualified domestic relations order to enforce child support |
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obligations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle D, Title 5, Family Code, is amended by |
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adding Chapter 237 to read as follows: |
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CHAPTER 237. ADMINISTRATIVE DOMESTIC RELATIONS ORDER |
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Sec. 237.001. RENDITION OF ADMINISTRATIVE DOMESTIC |
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RELATIONS ORDER. (a) The director of the Title IV-D agency or an |
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assistant attorney general designated by the director may render an |
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administrative domestic relations order to be delivered to a |
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retirement plan subject to the federal Employee Retirement Income |
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Security Act of 1974 (29 U.S.C. Section 1001 et seq.) or the law of |
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this state to enforce a child support obligation against an obligor |
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who has or will have vested retirement benefits under the plan. |
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(b) The Title IV-D agency may render an administrative |
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domestic relations order under this chapter until all current child |
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support and arrearages owed by the obligor, including money due for |
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medical support, have been paid. |
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(c) A domestic relations order under this chapter must: |
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(1) be signed by the director of the Title IV-D agency |
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or the director's designee; and |
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(2) include a statement that the assignment of |
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benefits under the order is effective on the date the order is |
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received by the retirement plan but that the retirement plan shall |
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delay any distribution to the alternate payee until the first |
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regularly scheduled distribution that occurs at least 30 days after |
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that date in order to permit the obligor an opportunity to contest |
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the order under Section 237.006. |
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Sec. 237.002. EFFECT OF DOMESTIC RELATIONS ORDER BY COURT. |
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(a) The Title IV-D agency may not render a domestic relations |
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order under this chapter for a suit affecting the parent-child |
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relationship in which: |
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(1) a judge or an associate judge of a court of |
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continuing jurisdiction renders a domestic relations order in the |
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suit with respect to a retirement plan in which a child support |
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obligor has or will have vested retirement benefits; and |
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(2) the court's order provides for the enforcement of |
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the obligor's child support obligation. |
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(b) A domestic relations order rendered by the Title IV-D |
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agency before the court's order remains in effect to the extent that |
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the provisions of the order under this chapter are not superseded by |
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the court's order. |
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(c) Notwithstanding Subsection (a), the Title IV-D agency |
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may render a domestic relations order reflecting that child support |
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arrearages have been paid in full. |
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Sec. 237.003. PLAN DISTRIBUTIONS AS TAXABLE INCOME. (a) A |
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domestic relations order rendered under this chapter must provide |
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that all plan distributions from tax-deferred benefits for the |
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payment of child support shall be reported by the plan as income of |
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the plan participant for federal income tax purposes. |
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(b) If a plan administrator refuses to accept the domestic |
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relations order as qualified because of the provision required by |
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Subsection (a), the Title IV-D agency may file a motion in the court |
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of continuing jurisdiction to have the payment credit for plan |
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distributions for which the obligee incurs a tax liability reduced |
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by the amount of the obligee's marginal tax rate. After notice and |
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hearing under Chapter 157, the court shall grant the agency's |
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motion on sufficient proof of the obligee's marginal tax rate. |
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Sec. 237.004. FILING ADMINISTRATIVE DOMESTIC RELATIONS |
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ORDER. The Title IV-D agency shall file a copy of an administrative |
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domestic relations order with the court of continuing jurisdiction |
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not later than the third business day after the date the order is |
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sent to the retirement plan. |
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Sec. 237.005. NOTICE OF ORDER. (a) Not later than the 12th |
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business day after the date the administrative domestic relations |
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order is sent to the retirement plan, the Title IV-D agency shall |
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send to the obligor, the obligee, and any other party: |
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(1) notice that a domestic relations order has been |
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rendered by the agency and transmitted to the retirement plan |
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together with a statement of the procedures by which a party may |
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contest the order with regard to the identity of the obligor or the |
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existence or amount of a current child support obligation or |
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arrearages; and |
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(2) a copy of the order. |
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(b) The notice required under this section may be delivered |
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to a party by: |
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(1) personal delivery by a person designated by the |
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Title IV-D agency; or |
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(2) service of citation as in civil cases generally. |
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Sec. 237.006. CONTEST OF ADMINISTRATIVE DOMESTIC RELATIONS |
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ORDER. (a) A party who receives a notice under Section 237.005 may |
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request a review by the Title IV-D agency to resolve any issue in |
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dispute regarding the identity of the obligor or the existence or |
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amount of a current child support obligation or arrearages. |
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(b) The Title IV-D agency shall promptly provide an |
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opportunity for a review either by a telephone conference or in |
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person as appropriate to the circumstances. If the agency receives |
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a request for review under this section not later than the 15th day |
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after the date the agency sent notice under Section 237.005 to the |
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party requesting the review, and the agency is not able to complete |
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the review within 24 days after the date the agency sent the order |
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to the retirement plan, the agency shall render a temporary order |
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directing the plan to delay distribution to the alternate payee |
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until receiving further order from the agency. |
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(c) After a review under this section, the Title IV-D agency |
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may render a new administrative domestic relations order that |
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modifies or terminates the previous order. |
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(d) If a review under this section fails to resolve any |
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issue in dispute, the party may file with the court a motion under |
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Chapter 157 to withdraw or modify the administrative domestic |
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relations order or to replace the order with an alternative payment |
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arrangement. In determining whether to withdraw, modify, or |
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replace the agency's order, the court may consider the subsistence |
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needs of the obligor and the obligor's family against the right of |
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the obligee to have child support arrearages paid as quickly as |
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possible. |
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SECTION 2. Subsection (a), Section 9.101, Family Code, is |
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amended to read as follows: |
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(a) Notwithstanding any other provision of this chapter, |
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the court that rendered a final decree of divorce or annulment or |
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another final order dividing property under this title retains |
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continuing, exclusive jurisdiction to render an enforceable |
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qualified domestic relations order or similar order permitting |
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payment of pension, retirement plan, or other employee benefits |
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divisible under the law of this state or of the United States to an |
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alternate payee or other lawful payee, except that a court with |
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jurisdiction under Title 5 may render an enforceable qualified |
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domestic relations order to enforce support for a child. |
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SECTION 3. Subsection (e), Section 201.104, Family Code, is |
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amended to read as follows: |
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(e) Notwithstanding Subsection (d) and subject to Section |
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201.1042(g), an associate judge may hear and render an order on: |
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(1) a suit to modify or clarify an existing child |
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support order; |
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(2) a motion to enforce a child support order, |
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including a motion for the rendition of a qualified domestic |
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relations order for child support, or revoke a respondent's |
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community supervision and suspension of commitment; or |
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(3) a respondent's compliance with the conditions |
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provided in the associate judge's report for suspension of the |
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respondent's commitment. |
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SECTION 4. Subsection (e), Section 231.002, Family Code, is |
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amended to read as follows: |
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(e) The Title IV-D agency may take the following |
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administrative actions with respect to the location of a parent, |
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the determination of parentage, and the establishment, |
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modification, and enforcement of child support and medical support |
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orders required by 42 U.S.C. Section 666(c), without obtaining an |
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order from any other judicial or administrative tribunal: |
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(1) issue an administrative subpoena, as provided by |
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Section 231.303, to obtain financial or other information; |
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(2) order genetic testing for parentage |
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determination, as provided by Chapter 233; |
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(3) order income withholding, as provided by Chapter |
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233, and issue an administrative writ of withholding, as provided |
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by Chapter 158; [and] |
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(4) take any action with respect to execution, |
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collection, and release of a judgment or lien for child support |
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necessary to satisfy the judgment or lien, as provided by Chapter |
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157; and |
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(5) render an administrative domestic relations order |
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under Chapter 237. |
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SECTION 5. Subsection (b), Section 804.003, Government |
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Code, is amended to read as follows: |
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(b) Except as provided in Subsection (d), the |
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administrative head of a public retirement system to which this |
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chapter applies and to which a domestic relations order is |
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submitted or his designee has exclusive authority to determine |
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whether a domestic relations order, or an administrative domestic |
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relations order rendered by the Title IV-D agency under Chapter |
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237, Family Code, is a qualified domestic relations order. A |
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determination by the administrative head or his designee under this |
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section may be appealed only to the board of trustees of the public |
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retirement system. An appeal to the board of trustees of a |
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statewide retirement system is a contested case under Chapter 2001. |
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However, the board of a statewide retirement system by rule may |
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waive the requirement of an appeal to the board. On appeal of a |
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decision made by the board of trustees or by the administrative head |
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if there is no appeal to the board under this section, the standard |
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of review is by substantial evidence. |
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SECTION 6. This Act takes effect September 1, 2007. |