INTRODUCED
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HOUSE COMMITTEE
SUBSTITUTE
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SECTION 1. Section 176.001,
Local Government Code, is amended by amending Subdivisions (1), (2), (2-a),
(2-b), (3), and (4) and adding Subdivisions (2-c), (2-d), and (7) to read
as follows:
(1) "Agent" means
a third party who undertakes to transact some business or manage some
affair for another person by the authority or on account of the other
person. The term includes an employee.
(2) "Family
member" means a person related to another person within the first
degree by consanguinity or affinity, as described by Subchapter B, Chapter
573, Government Code[, except that the term does not include a person
who is considered to be related to another person by affinity only as
described by Section 573.024(b), Government Code].
(2-a) "Family
relationship" means a relationship between a person and another person
within the third degree by consanguinity or the second degree by affinity,
as those terms are defined by Subchapter B, Chapter 573, Government Code.
(2-b) "Gift"
means a benefit offered by a person, including food, lodging,
transportation, and entertainment accepted as a guest.
(2-c)
"Goods" means personal property.
(2-d) [(2-b)]
"Investment income" means dividends, capital gains, or interest
income generated from:
(A) a personal or business:
(i) checking or savings
account;
(ii) share draft or share
account; or
(iii) other similar account;
(B) a personal or business
investment; or
(C) a personal or business
loan.
(3) "Local governmental
entity" means a county, municipality, school district, charter school,
junior college district, water district created under Subchapter B,
Chapter 49, Water Code, or other political subdivision of this state or
a local government corporation, board, commission, district, or authority
to which a member is appointed by the commissioners court of a county, the
mayor of a municipality, or the governing body of a municipality. The term
does not include an association, corporation, or organization of
governmental entities organized to provide to its members education,
assistance, products, or services or to represent its members before the
legislative, administrative, or judicial branches of the state or federal
government.
(4) "Local government
officer" means:
(A) a member of the
governing body of a local governmental entity;
(B) a director,
superintendent, administrator, president, or other person designated as the
executive officer of a [the] local governmental entity; or
(C) an agent [employee]
of a local governmental entity who is
involved in the planning, advertising,
selecting, or contracting of a vendor [with respect to whom the
local governmental entity has, in accordance with Section 176.005, extended
the requirements of Sections 176.003 and 176.004].
(7) "Vendor"
means a person who enters or seeks to enter into a contract with a local
governmental entity, seeks to influence the contract award made by a local
governmental entity, or is an agent of a vendor. The term includes an
officer or employee of a state agency when that individual is acting in a
private capacity to enter into a contract. The term does not include a
state agency except for Texas Correctional Industries.
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SECTION 1. Section 176.001,
Local Government Code, is amended by amending Subdivisions (1), (2), (2-a),
(2-b), (3), and (4) and adding Subdivisions (2-c), (2-d), and (7) to read
as follows:
(1) "Agent" means
a third party who undertakes to transact some business or manage some
affair for another person by the authority or on account of the other
person. The term includes an employee.
(2) "Family
member" means a person related to another person within the first
degree by consanguinity or affinity, as described by Subchapter B, Chapter
573, Government Code[, except that the term does not include a person
who is considered to be related to another person by affinity only as
described by Section 573.024(b), Government Code].
(2-a) "Family
relationship" means a relationship between a person and another person
within the third degree by consanguinity or the second degree by affinity,
as those terms are defined by Subchapter B, Chapter 573, Government Code.
(2-b) "Gift"
means a benefit offered by a person, including food, lodging,
transportation, and entertainment accepted as a guest. The term does not include a benefit offered on
account of kinship or a personal, professional, or business relationship
independent of the official status of the recipient by:
(A) a local government officer or a family member of the officer
to another local government officer of the same local governmental entity
or a family member of that officer; or
(B) a vendor or a family member of the vendor to another vendor of
the same local governmental entity or a family member of that vendor.
(2-c)
"Goods" means personal property.
(2-d) [(2-b)]
"Investment income" means dividends, capital gains, or interest
income generated from:
(A) a personal or business:
(i) checking or savings
account;
(ii) share draft or share
account; or
(iii) other similar account;
(B) a personal or business
investment; or
(C) a personal or business
loan.
(3) "Local governmental
entity" means a county, municipality, school district, charter school,
junior college district, water district created under Subchapter B,
Chapter 49, Water Code, or other political subdivision of this state or
a local government corporation, board, commission, district, or authority
to which a member is appointed by the commissioners court of a county, the
mayor of a municipality, or the governing body of a municipality. The term
does not include an association, corporation, or organization of
governmental entities organized to provide to its members education,
assistance, products, or services or to represent its members before the
legislative, administrative, or judicial branches of the state or federal
government.
(4) "Local government
officer" means:
(A) a member of the
governing body of a local governmental entity;
(B) a director,
superintendent, administrator, president, or other person designated as the
executive officer of a [the] local governmental entity; or
(C) an agent [employee]
of a local governmental entity who exercises
discretion in the planning, recommending,
selecting, or contracting of a vendor [with respect to whom the
local governmental entity has, in accordance with Section 176.005, extended
the requirements of Sections 176.003 and 176.004].
(7) "Vendor"
means a person who enters or seeks to enter into a contract with a local
governmental entity. The term includes a
person who seeks to influence, on
behalf of a vendor, the contract award made by a local governmental
entity, or is an agent of a vendor. The term includes an officer or
employee of a state agency when that individual is acting in a private
capacity to enter into a contract. The term does not include a state
agency except for Texas Correctional Industries.
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SECTION 2. The heading to
Section 176.002, Local Government Code, is amended.
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SECTION 2. Same as introduced
version.
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SECTION 3. Section
176.002(a), Local Government Code, is amended to read as follows:
(a) This chapter applies to
a person who is:
(1) a vendor [enters
or seeks to enter into a contract with a local governmental entity]; or
(2) a local government
officer [is an agent] of [a person described by Subdivision
(1) in the person's business with] a local governmental entity.
No
equivalent provision.
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SECTION 3. Sections
176.002(a) and (b), Local Government Code, are amended to read as follows:
(a) This chapter applies to
a person who is:
(1) a vendor [enters
or seeks to enter into a contract with a local governmental entity]; or
(2) a local government
officer [is an agent] of [a person described by Subdivision
(1) in the person's business with] a local governmental entity.
(b) A person is not subject
to the disclosure requirements of this chapter if the person is:
(1) a state, a political
subdivision of a state, the federal government, or a foreign government; or
(2) an employee or agent
of an entity described by Subdivision (1), acting in the employee's or
agent's official capacity.
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SECTION 4. Sections
176.003(a) and (a-1), Local Government Code, are amended to read as
follows:
(a) A local government
officer shall file a conflicts disclosure statement with respect to a vendor
[person described by Section 176.002(a)] if:
(1) the vendor [person]
enters into a contract with the local governmental entity or the local
governmental entity is considering entering into a contract with the vendor
[person]; and
(2) the vendor [person]:
(A) has an employment or
other business relationship with the local government officer or a family
member of the officer that results in the officer or family member
receiving taxable income, other than investment income, that exceeds $2,500
during the 12-month period preceding the date that the officer becomes
aware that:
(i) a contract between
the local governmental entity and vendor [described by Subdivision
(1)] has been executed; or
(ii) the local governmental
entity is considering entering into a contract with the vendor [person];
[or]
(B) has given to the local
government officer or a family member of the officer one or more gifts that
have an aggregate value of more than $100 [$250] in the
12-month period preceding the date the officer becomes aware that:
(i) a contract between
the local governmental entity and vendor [described by Subdivision
(1)] has been executed; or
(ii) the local governmental
entity is considering entering into a contract with the vendor; or
(C) has a family
relationship with the local government officer [person].
(a-1) A local government
officer is not required to file a conflicts disclosure statement in
relation to a gift accepted by the officer or a family member of the
officer if the gift is:
(1) [given by a family
member of the person accepting the gift;
[(2)] a political
contribution as defined by Title 15, Election Code; or
(2) [(3)]
food[, lodging, transportation, or entertainment] accepted as a
guest.
No
equivalent provision.
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SECTION 4. Section 176.003,
Local Government Code, is amended by amending Subsections (a) and (a-1) and
adding Subsection (a-2) to read as follows:
(a) A local government
officer shall file a conflicts disclosure statement with respect to a vendor
[person described by Section 176.002(a)] if:
(1) the vendor [person]
enters into a contract with the local governmental entity or the local
governmental entity is considering entering into a contract with the vendor
[person]; and
(2) the vendor [person]:
(A) has an employment or
other business relationship with the local government officer or a family
member of the officer that results in the officer or family member
receiving taxable income, other than investment income, that exceeds $2,500
during the 12-month period preceding the date that the officer becomes
aware that:
(i) a contract between
the local governmental entity and vendor [described by Subdivision
(1)] has been executed; or
(ii) the local governmental
entity is considering entering into a contract with the vendor [person];
[or]
(B) has given to the local
government officer or a family member of the officer one or more gifts that
have an aggregate value of more than $100 [$250] in the
12-month period preceding the date the officer becomes aware that:
(i) a contract between
the local governmental entity and vendor [described by Subdivision
(1)] has been executed; or
(ii) the local governmental
entity is considering entering into a contract with the vendor; or
(C) has a family
relationship with the local government officer [person].
(a-1) A local government
officer is not required to file a conflicts disclosure statement in
relation to a gift accepted by the officer or a family member of the
officer if the gift is:
(1) [given by a family
member of the person accepting the gift;
[(2)] a political
contribution as defined by Title 15, Election Code; or
(2) [(3)]
food[, lodging, transportation, or entertainment] accepted as a
guest.
(a-2) A local government
officer is not required to file a conflicts disclosure statement under
Subsection (a) if the local governmental entity or vendor described by that
subsection is an administrative agency created under Section 791.013,
Government Code.
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SECTION 5. Section 176.004,
Local Government Code, is transferred to Section 176.003, Local Government
Code, redesignated as Section 176.003(e), Local Government Code, and
amended to read as follows:
(e) [Sec.
176.004. CONTENTS OF DISCLOSURE STATEMENT.] The commission shall
adopt the conflicts disclosure statement for local government officers for
use under this section. The conflicts disclosure statement must
include:
(1) a requirement that each
local government officer disclose:
(A) an employment or other
business relationship described by Subsection (a)(2)(A) [Section
176.003(a)], including the nature and extent of the relationship; and
(B) gifts accepted by the
local government officer and any family member of the officer from a vendor
[person described by Section 176.002(a)] during the 12-month period
described by Subsection (a)(2)(B) [Section 176.003(a)(2)(B)]
if the aggregate value of the gifts, including
lodging, transportation, or entertainment [excluding gifts
described by Section 176.003(a-1)], accepted by the officer or a family
member from that vendor exceeds $100 [person exceed $250];
(2) an acknowledgment from
the local government officer that:
(A) the disclosure applies
to each family member of the officer; and
(B) the statement covers the
12-month period described by Subsection (a)(2)(B) [Section
176.003(a)]; and
(3) the signature of the
local government officer acknowledging that the statement is made under
oath under penalty of perjury.
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SECTION 5. Section 176.004,
Local Government Code, is transferred to Section 176.003, Local Government
Code, redesignated as Section 176.003(e), Local Government Code, and
amended to read as follows:
(e) [Sec.
176.004. CONTENTS OF DISCLOSURE STATEMENT.] The commission shall
adopt the conflicts disclosure statement for local government officers for
use under this section. The conflicts disclosure statement must
include:
(1) a requirement that each
local government officer disclose:
(A) an employment or other
business relationship described by Subsection (a)(2)(A) [Section
176.003(a)], including the nature and extent of the relationship; and
(B) gifts accepted by the
local government officer and any family member of the officer from a vendor
[person described by Section 176.002(a)] during the 12-month period
described by Subsection (a)(2)(B) [Section 176.003(a)(2)(B)]
if the aggregate value of the gifts[, excluding gifts described by
Section 176.003(a-1),] accepted by the officer or a family member from
that vendor exceeds $100 [person exceed $250];
(2) an acknowledgment from
the local government officer that:
(A) the disclosure applies
to each family member of the officer; and
(B) the statement covers the
12-month period described by Subsection (a)(2)(B) [Section
176.003(a)]; and
(3) the signature of the
local government officer acknowledging that the statement is made under
oath under penalty of perjury.
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SECTION 6. Sections
176.006(a), (a-1), (b), (c), (d), and (i), Local Government Code, are
amended to read as follows:
(a) A vendor [person
described by Section 176.002(a)] shall file a completed conflict of
interest questionnaire if the vendor [person] has a business
relationship with a local governmental entity and:
(1) has an employment or
other business relationship with a local government [an]
officer of that local governmental entity, or a family member of the
officer, described by Section 176.003(a)(2)(A); [or]
(2) has given a local
government [an] officer of that local governmental entity, or a
family member of the officer, one or more gifts with the aggregate value
specified by Section 176.003(a)(2)(B), excluding any gift described by
Section 176.003(a-1);
(3) has a family
relationship with a local government officer of that local governmental
entity; or
(4) the amount of a
contract that is either executed or under consideration between the vendor
and that local governmental entity exceeds $1 million.
(a-1) The completed conflict
of interest questionnaire must be filed with the appropriate records
administrator not later than the seventh business day after the later of:
(1) the date that the vendor
[person]:
(A) begins discussions or
negotiations to enter into a contract with the local governmental entity;
or
(B) submits to the local
governmental entity an application, response to a request for proposals or
bids, correspondence, or another writing related to a potential contract
with the local governmental entity; or
(2) the date the vendor
[person] becomes aware:
(A) of an employment or
other business relationship with a local government officer, or a family member
of the officer, described by Subsection (a); [or]
(B) that the vendor [person]
has given one or more gifts described by Subsection (a); or
(C) of a family
relationship with a local government officer.
(b) The commission shall
adopt a conflict of interest questionnaire for use under this section that
requires disclosure of a vendor's [person's] business and
family relationships with a local governmental entity.
(c) The questionnaire
adopted under Subsection (b) must require, for the local governmental
entity with respect to which the questionnaire is filed, that the vendor
[person] filing the questionnaire:
(1) describe each employment
or business and family relationship the vendor [person]
has with each local government officer of the local governmental entity;
(2) identify each employment
or business relationship described by Subdivision (1) with respect to which
the local government officer receives, or is likely to receive, taxable
income, other than investment income, from the vendor [person filing
the questionnaire];
(3) identify each employment
or business relationship described by Subdivision (1) with respect to which
the vendor [person filing the questionnaire] receives, or is
likely to receive, taxable income, other than investment income, that:
(A) is received from, or at
the direction of, a local government officer of the local governmental
entity; and
(B) is not received from the
local governmental entity; and
(4) describe each employment
or business relationship with a corporation or other business entity with
respect to which a local government officer of the local governmental
entity:
(A) serves as an officer or
director; or
(B) holds an ownership
interest of one [10] percent or more.
(d) A vendor [person
described by Subsection (a)] shall file an updated completed
questionnaire with the appropriate records administrator not later than
the seventh business day after the date of an event that would make a
statement in the questionnaire incomplete or inaccurate.
No
equivalent provision.
(i) The validity of a
contract between a vendor [person described by Section 176.002]
and a local governmental entity is not affected solely because the vendor
[person] fails to comply with this section.
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SECTION 6. Section 176.006,
Local Government Code, is amended by amending Subsections (a), (a-1), (b),
(c), (d), and (i) and adding Subsection (e) to read as follows:
(a) A vendor [person
described by Section 176.002(a)] shall file a completed conflict of
interest questionnaire if the vendor [person] has a business
relationship with a local governmental entity and:
(1) has an employment or
other business relationship with a local government [an]
officer of that local governmental entity, or a family member of the
officer, described by Section 176.003(a)(2)(A); [or]
(2) has given a local
government [an] officer of that local governmental entity, or a
family member of the officer, one or more gifts with the aggregate value
specified by Section 176.003(a)(2)(B), excluding any gift described by
Section 176.003(a-1);
(3) has a family
relationship with a local government officer of that local governmental
entity; or
(4) the amount of a
contract that is either executed or under consideration between the vendor
and that local governmental entity exceeds $1 million.
(a-1) The completed conflict
of interest questionnaire must be filed with the appropriate records
administrator not later than the seventh business day after the later of:
(1) the date that the vendor
[person]:
(A) begins discussions or
negotiations to enter into a contract with the local governmental entity;
or
(B) submits to the local
governmental entity an application, response to a request for proposals or
bids, correspondence, or another writing related to a potential contract
with the local governmental entity; or
(2) the date the vendor
[person] becomes aware:
(A) of an employment or
other business relationship with a local government officer, or a family
member of the officer, described by Subsection (a); [or]
(B) that the vendor [person]
has given one or more gifts described by Subsection (a); or
(C) of a family
relationship with a local government officer.
(b) The commission shall
adopt a conflict of interest questionnaire for use under this section that
requires disclosure of a vendor's [person's] business and
family relationships with a local governmental entity.
(c) The questionnaire
adopted under Subsection (b) must require, for the local governmental
entity with respect to which the questionnaire is filed, that the vendor
[person] filing the questionnaire:
(1) describe each employment
or business and family relationship the vendor [person]
has with each local government officer of the local governmental entity;
(2) identify each employment
or business relationship described by Subdivision (1) with respect to which
the local government officer receives, or is likely to receive, taxable
income, other than investment income, from the vendor [person
filing the questionnaire];
(3) identify each employment
or business relationship described by Subdivision (1) with respect to which
the vendor [person filing the questionnaire] receives, or is
likely to receive, taxable income, other than investment income, that:
(A) is received from, or at
the direction of, a local government officer of the local governmental
entity; and
(B) is not received from the
local governmental entity; and
(4) describe each employment
or business relationship with a corporation or other business entity with
respect to which a local government officer of the local governmental
entity:
(A) serves as an officer or
director; or
(B) holds an ownership
interest of one [10] percent or more.
(d) A vendor [person
described by Subsection (a)] shall file an updated completed
questionnaire with the appropriate records administrator not later than
the seventh business day after the date of an event that would make a
statement in the questionnaire incomplete or inaccurate.
(e) A person who is both
a local government officer and a vendor of a local governmental entity is
required to file the questionnaire required by Subsection (a)(1) only if
the person:
(1) enters or seeks to
enter into a contract with the local governmental entity; or
(2) is an agent of a
person who enters or seeks to enter into a contract with the local
governmental entity.
(i) The validity of a
contract between a vendor [person described by Section 176.002]
and a local governmental entity is not affected solely because the vendor
[person] fails to comply with this section.
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SECTION 7. Section 176.011,
Local Government Code, is redesignated as 176.0065, Local Government Code,
and amended.
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SECTION 7. Same as introduced
version.
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SECTION 8. Chapter 176,
Local Government Code, is amended by adding Section 176.013 to read as
follows:
Sec. 176.013.
ENFORCEMENT. (a) A local government officer commits an offense under this
chapter if the officer:
(1) is required to file a
conflicts disclosure statement under Section 176.003; and
(2) fails to file the
required conflicts disclosure statement with the appropriate records
administrator not later than 5 p.m. on the seventh business day after the
date on which the officer becomes aware of the facts that require the
filing of the statement.
(b) A vendor commits an
offense under this chapter if the vendor:
(1) is required to file a
conflict of interest questionnaire under Section 176.006; and
(2) either:
(A) fails to file the
required questionnaire with the appropriate records administrator not later
than 5 p.m. on the seventh business day after the date on which the vendor
becomes aware of the facts that require the filing of the questionnaire; or
(B) fails to file an
updated questionnaire with the appropriate records administrator not later
than 5 p.m. on the seventh business day after the date of an event that
would make a statement in a questionnaire previously filed by the vendor
incomplete or inaccurate.
(c) An offense under this
chapter is:
(1) a Class C misdemeanor
if the contract amount is less than $1 million;
(2) a Class B misdemeanor
if the contract amount is at least $1 million but less than $5 million; or
(3) a Class A misdemeanor
if the contract amount is at least $5 million.
(d) A local governmental
entity may reprimand, suspend, or terminate the employment of an employee
who knowingly fails to comply with a requirement adopted under this
chapter.
(e) The governing body of
a local governmental entity may, at its discretion, declare a contract void
if the governing body determines that a violation of this chapter has occurred.
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SECTION 8. Chapter 176,
Local Government Code, is amended by adding Section 176.013 to read as
follows:
Sec. 176.013.
ENFORCEMENT. (a) A local government officer commits an offense under this
chapter if the officer:
(1) is required to file a
conflicts disclosure statement under Section 176.003; and
(2) knowingly fails to file the required
conflicts disclosure statement with the appropriate records administrator
not later than 5 p.m. on the seventh business day after the date on which
the officer becomes aware of the facts that require the filing of the
statement.
(b) A vendor commits an
offense under this chapter if the vendor:
(1) is required to file a
conflict of interest questionnaire under Section 176.006; and
(2) either:
(A) knowingly fails to file the required
questionnaire with the appropriate records administrator not later than 5
p.m. on the seventh business day after the date on which the vendor becomes
aware of the facts that require the filing of the questionnaire; or
(B) knowingly fails to file an updated
questionnaire with the appropriate records administrator not later than 5
p.m. on the seventh business day after the date of an event that would make
a statement in a questionnaire previously filed by the vendor incomplete or
inaccurate.
(c) An offense under this
chapter is:
(1) a Class C misdemeanor
if the contract amount is less than $1 million or if there is no contract amount for the contract;
(2) a Class B misdemeanor
if the contract amount is at least $1 million but less than $5 million; or
(3) a Class A misdemeanor
if the contract amount is at least $5 million.
(d) A local governmental
entity may reprimand, suspend, or terminate the employment of an employee
who knowingly fails to comply with a requirement adopted under this
chapter.
(e) The governing body of
a local governmental entity may, at its discretion, declare a contract void
if the governing body determines that a violation of this chapter has
occurred.
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SECTION 9. The following
provisions of the Local Government Code are repealed:
(1) Sections 176.003(c) and
(d);
(2) Section 176.005;
(3) Sections 176.006(f),
(g), and (h); and
(4) Section 176.007.
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SECTION 9. Same as introduced
version.
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SECTION 10. As soon as
practicable after the effective date of this Act, the Texas Ethics
Commission shall adopt forms to implement this Act.
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SECTION 10. Same as
introduced version.
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SECTION 11. (a) Chapter
176, Local Government Code, as amended by this Act, applies only to an
event requiring disclosure that occurs on or after the effective date of
this Act. An event requiring disclosure that occurs before the effective
date of this Act is governed by the law applicable to the event immediately
before the effective date of this Act, and the former law is continued in
effect for that purpose.
(b) The repeal by this Act
of Sections 176.003(c), 176.005(c), and 176.006(f), Local Government Code,
does not apply to an offense committed under those sections before the
effective date of the repeal. An offense committed before the effective
date of the repeal is governed by those sections as they existed on the
date the offense was committed, and the former law is continued in effect
for that purpose. For purposes of this subsection, an offense was
committed before the effective date of the repeal if any element of the
offense occurred before that date.
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SECTION 11. Same as
introduced version.
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SECTION 12. This Act takes
effect September 1, 2015.
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SECTION 12. Same as
introduced version.
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