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AN ACT
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relating to the scoring criteria for an application for a low income |
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housing tax credit and the allocation of those credits to |
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developments reserved for elderly persons. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. |
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Sections 2306.6710(b) and (f), Government Code, |
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are amended to read as follows: |
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(b) If an application satisfies the threshold criteria, the |
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department shall score and rank the application using a point |
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system that: |
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(1) prioritizes in descending order criteria |
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regarding: |
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(A) financial feasibility of the development |
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based on the supporting financial data required in the application |
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that will include a project underwriting pro forma from the |
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permanent or construction lender; |
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(B) quantifiable community participation with |
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respect to the development, evaluated on the basis of a resolution |
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concerning the development that is voted on and adopted by the |
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following, as applicable: |
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(i) the governing body of a municipality in |
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which the proposed development site is to be located; |
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(ii) subject to Subparagraph (iii), the |
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commissioners court of a county in which the proposed development |
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site is to be located, if the proposed site is to be located in an |
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area of a county that is not part of a municipality; or |
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(iii) the commissioners court of a county |
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in which the proposed development site is to be located and the |
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governing body of the applicable municipality, if the proposed site |
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is to be located in the extraterritorial jurisdiction of a |
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municipality; |
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(C) the income levels of tenants of the |
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development; |
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(D) the size and quality of the units; |
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(E) [the commitment of development funding by
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local political subdivisions;
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[(F)] the rent levels of the units; |
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(F) [(G)] the cost of the development by square |
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foot; |
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(G) [(H)] the services to be provided to tenants |
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of the development; |
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(H) [(I)] whether, at the time the complete |
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application is submitted or at any time within the two-year period |
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preceding the date of submission, the proposed development site is |
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located in an area declared to be a disaster under Section 418.014; |
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(I) [(J)] quantifiable community participation |
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with respect to the development, evaluated on the basis of written |
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statements from any neighborhood organizations on record with the |
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state or county in which the development is to be located and whose |
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boundaries contain the proposed development site; and |
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(J) [(K)] the level of community support for the |
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application, evaluated on the basis of a written statement from the |
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state representative who represents the district containing the |
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proposed development site; |
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(2) uses criteria imposing penalties on applicants or |
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affiliates who have requested extensions of department deadlines |
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relating to developments supported by housing tax credit |
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allocations made in the application round preceding the current |
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round or a developer or principal of the applicant that has been |
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removed by the lender, equity provider, or limited partners for its |
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failure to perform its obligations under the loan documents or |
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limited partnership agreement; and |
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(3) encourages applicants to provide free notary |
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public service to the residents of the developments for which the |
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allocation of housing tax credits is requested. |
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(f) In evaluating the level of community support for an |
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application under Subsection (b)(1)(J) [(b)(1)(K)], the department |
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shall award: |
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(1) positive points for positive written statements |
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received; |
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(2) negative points for negative written statements |
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received; and |
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(3) zero points for neutral statements received. |
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SECTION 2. Section 2306.6711, Government Code, is amended |
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by adding Subsections (h) and (i) to read as follows: |
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(h) Notwithstanding Section 2306.6710(d), and except as |
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necessary to comply with the nonprofit set-aside required by |
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Section 42(h)(5), Internal Revenue Code of 1986 (26 U.S.C. Section |
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42(h)(5)), the board may not allocate to developments reserved for |
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elderly persons and located in an urban subregion of a uniform state |
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service region a percentage of the available housing tax credits |
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allocated to developments located in that subregion that is greater |
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than the percentage that results from the following formula, unless |
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there are no other qualified applicants in that region: |
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MP = [(LEH - ERU)/(TLH - TEU)] X 100 |
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where: |
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"MP" is the maximum percentage of the available housing tax |
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credits allocated to developments in the subregion that may be |
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allocated to developments reserved for elderly persons; |
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"LEH" is the number of low income elderly households in the |
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subregion; |
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"ERU" is the number of existing units reserved for elderly |
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persons in developments located in the subregion that already |
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receive housing tax credits; |
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"TLH" is the total number of low income households in the |
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subregion; and |
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"TEU" is the total number of existing units in developments |
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located in the subregion that already receive housing tax credits. |
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(i) Subsection (h) applies only to a uniform state service |
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region that contains a county with a population of more than one |
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million. |
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SECTION 3. Section 2306.6725, Government Code, is amended |
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by amending Subsections (a) and (d) and adding Subsections (e) and |
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(f) to read as follows: |
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(a) In allocating low income housing tax credits, the |
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department shall score each application using a point system based |
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on criteria adopted by the department that are consistent with the |
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department's housing goals, including criteria addressing the |
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ability of the proposed project to: |
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(1) provide quality social support services to |
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residents; |
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(2) demonstrate community and neighborhood support as |
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defined by the qualified allocation plan; |
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(3) consistent with sound underwriting practices and |
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when economically feasible, serve individuals and families of |
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extremely low income by leveraging private and state and federal |
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resources, including federal HOPE VI grants received through the |
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United States Department of Housing and Urban Development; |
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(4) serve traditionally underserved areas; |
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(5) demonstrate support from local political |
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subdivisions based on the subdivisions' commitment of development |
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funding; |
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(6) remain affordable to qualified tenants for an |
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extended, economically feasible period; and |
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(7) [(6)] comply with the accessibility standards |
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that are required under Section 504, Rehabilitation Act of 1973 (29 |
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U.S.C. Section 794), and specified under 24 C.F.R. Part 8, Subpart |
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C. |
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(d) For each scoring criterion, the department shall use a |
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range of points to evaluate the degree to which a proposed project |
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satisfies the criterion. The department may not award: |
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(1) a number of points for a scoring criterion that is |
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disproportionate to the degree to which a proposed project complies |
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with that criterion; or |
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(2) to a proposed project for the general population a |
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number of points for a scoring criterion that is different than the |
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number of points awarded for that criterion to a proposed project |
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reserved for elderly persons if the proposed projects comply with |
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the criterion to the same degree. |
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(e) In establishing for the 2016 and 2017 qualified |
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allocation plans the scoring criterion related to the commitment of |
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development funding by local political subdivisions, the |
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department shall significantly reduce for each place regardless of |
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population the amount in funding, per low income unit, that is |
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required for a proposed project to receive the applicable number of |
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points for that criterion. After the reduction, the amount of |
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required funding may be a de minimis amount. |
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(f) Subsection (e) and this subsection expire September 1, |
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2019. |
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SECTION 4. (a) The change in law made by this Act to |
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Section 2306.6711, Government Code, applies only to the allocation |
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of low income housing tax credits for an application cycle that |
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begins on or after the effective date of this Act. The allocation |
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of low income housing tax credits for an application cycle that |
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begins before the effective date of this Act is governed by the law |
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in effect on the date the application cycle began, and the former |
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law is continued in effect for that purpose. |
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(b) The change in law made by this Act to Sections 2306.6710 |
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and 2306.6725, Government Code, applies only to an application for |
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low income housing tax credits that is submitted to the Texas |
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Department of Housing and Community Affairs during an application |
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cycle that begins on or after the effective date of this Act. An |
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application that is submitted during an application cycle that |
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began before the effective date of this Act is governed by the law |
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in effect at the time the application cycle began, and the former |
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law is continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2015. |
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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. 3311 was passed by the House on May 8, |
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2015, by the following vote: Yeas 123, Nays 19, 2 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 3311 on May 28, 2015, by the following vote: Yeas 128, Nays 16, |
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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. 3311 was passed by the Senate, with |
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amendments, on May 26, 2015, by the following vote: Yeas 28, Nays |
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3. |
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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 |