|   | 
      
      
        |   | 
      
      
        | 
           		
			 | 
        
          A BILL TO BE ENTITLED
         | 
      
      
        | 
           
			 | 
        
          AN ACT
         | 
      
      
        | 
           
			 | 
        relating to improving the delivery and quality of Medicaid acute  | 
      
      
        | 
           
			 | 
        care services and long-term care services and supports. | 
      
      
        | 
           
			 | 
               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
      
        | 
           
			 | 
               SECTION 1.  Section 533.00251(g), Government Code, is  | 
      
      
        | 
           
			 | 
        amended to read as follows: | 
      
      
        | 
           
			 | 
               (g)  Subsection [Subsections (c),] (d)[, (e), and (f)] and  | 
      
      
        | 
           
			 | 
        this subsection expire September 1, 2019. | 
      
      
        | 
           
			 | 
               SECTION 2.  Section 534.053, Government Code, is amended by  | 
      
      
        | 
           
			 | 
        adding Subsection (e-1) and amending Subsection (g) to read as  | 
      
      
        | 
           
			 | 
        follows: | 
      
      
        | 
           
			 | 
               (e-1)  The advisory committee may establish work groups that  | 
      
      
        | 
           
			 | 
        meet at other times for purposes of studying and making  | 
      
      
        | 
           
			 | 
        recommendations on issues the committee considers appropriate. | 
      
      
        | 
           
			 | 
               (g)  On January 1, 2026 [2024]: | 
      
      
        | 
           
			 | 
                     (1)  the advisory committee is abolished; and | 
      
      
        | 
           
			 | 
                     (2)  this section expires. | 
      
      
        | 
           
			 | 
               SECTION 3.  Section 534.054, Government Code, as amended by  | 
      
      
        | 
           
			 | 
        S.B. No. 219, Acts of the 84th Legislature, Regular Session, 2015,  | 
      
      
        | 
           
			 | 
        is amended to read as follows: | 
      
      
        | 
           
			 | 
               Sec. 534.054.  ANNUAL REPORT ON IMPLEMENTATION.  (a)  Not  | 
      
      
        | 
           
			 | 
        later than September 30 of each year, the commission, in  | 
      
      
        | 
           
			 | 
        consultation and collaboration with the advisory committee, shall  | 
      
      
        | 
           
			 | 
        prepare and submit a report to the legislature that must include  | 
      
      
        | 
           
			 | 
        [regarding]: | 
      
      
        | 
           
			 | 
                     (1)  an assessment of the implementation of the system  | 
      
      
        | 
           
			 | 
        required by this chapter, including appropriate information  | 
      
      
        | 
           
			 | 
        regarding the provision of acute care services and long-term  | 
      
      
        | 
           
			 | 
        services and supports to individuals with an intellectual or  | 
      
      
        | 
           
			 | 
        developmental disability under Medicaid as described by this  | 
      
      
        | 
           
			 | 
        chapter; [and] | 
      
      
        | 
           
			 | 
                     (2)  recommendations regarding implementation of and  | 
      
      
        | 
           
			 | 
        improvements to the system redesign, including recommendations  | 
      
      
        | 
           
			 | 
        regarding appropriate statutory changes to facilitate the  | 
      
      
        | 
           
			 | 
        implementation; and | 
      
      
        | 
           
			 | 
                     (3)  an assessment of the effect of the system on the  | 
      
      
        | 
           
			 | 
        following: | 
      
      
        | 
           
			 | 
                           (A)  access to long-term services and supports; | 
      
      
        | 
           
			 | 
                           (B)  the quality of acute care services and  | 
      
      
        | 
           
			 | 
        long-term services and supports; | 
      
      
        | 
           
			 | 
                           (C)  meaningful outcomes for Medicaid recipients  | 
      
      
        | 
           
			 | 
        using person-centered planning, individualized budgeting, and  | 
      
      
        | 
           
			 | 
        self-determination, including a person's inclusion in the  | 
      
      
        | 
           
			 | 
        community; | 
      
      
        | 
           
			 | 
                           (D)  the integration of service coordination of  | 
      
      
        | 
           
			 | 
        acute care services and long-term services and supports; | 
      
      
        | 
           
			 | 
                           (E)  the placement of individuals in housing that  | 
      
      
        | 
           
			 | 
        is the least restrictive setting appropriate to an individual's  | 
      
      
        | 
           
			 | 
        needs; | 
      
      
        | 
           
			 | 
                           (F)  employment assistance and customized,  | 
      
      
        | 
           
			 | 
        integrated, competitive employment options; and | 
      
      
        | 
           
			 | 
                           (G)  the number and types of fair hearing and  | 
      
      
        | 
           
			 | 
        appeals processes in accordance with applicable federal law. | 
      
      
        | 
           
			 | 
               (b)  This section expires January 1, 2026 [2024]. | 
      
      
        | 
           
			 | 
               SECTION 4.  Section 534.104, Government Code, is amended by  | 
      
      
        | 
           
			 | 
        amending Subsection (a), as amended by S.B. No. 219, Acts of the  | 
      
      
        | 
           
			 | 
        84th Legislature, Regular Session, 2015, amending Subsections (c),  | 
      
      
        | 
           
			 | 
        (d), (e), and (g), and adding Subsection (h) to read as follows: | 
      
      
        | 
           
			 | 
               (a)  The department, in consultation and collaboration with  | 
      
      
        | 
           
			 | 
        the advisory committee, shall identify private services providers  | 
      
      
        | 
           
			 | 
        that are good candidates to develop a service delivery model  | 
      
      
        | 
           
			 | 
        involving a managed care strategy based on capitation and to test  | 
      
      
        | 
           
			 | 
        the model in the provision of long-term services and supports under  | 
      
      
        | 
           
			 | 
        Medicaid to individuals with an intellectual or developmental  | 
      
      
        | 
           
			 | 
        disability through a pilot program established under this  | 
      
      
        | 
           
			 | 
        subchapter. | 
      
      
        | 
           
			 | 
               (c)  A managed care strategy based on capitation developed  | 
      
      
        | 
           
			 | 
        for implementation through a pilot program under this subchapter  | 
      
      
        | 
           
			 | 
        must be designed to: | 
      
      
        | 
           
			 | 
                     (1)  increase access to long-term services and  | 
      
      
        | 
           
			 | 
        supports; | 
      
      
        | 
           
			 | 
                     (2)  improve quality of acute care services and  | 
      
      
        | 
           
			 | 
        long-term services and supports; | 
      
      
        | 
           
			 | 
                     (3)  promote meaningful outcomes by using  | 
      
      
        | 
           
			 | 
        person-centered planning, individualized budgeting, and  | 
      
      
        | 
           
			 | 
        self-determination, and promote community inclusion [and 
         | 
      
      
        | 
           
			 | 
        
          customized, integrated, competitive employment]; | 
      
      
        | 
           
			 | 
                     (4)  promote integrated service coordination of acute  | 
      
      
        | 
           
			 | 
        care services and long-term services and supports; | 
      
      
        | 
           
			 | 
                     (5)  promote [efficiency and the best use of funding;
         | 
      
      
        | 
           
			 | 
                     [(6)  promote] the placement of an individual in  | 
      
      
        | 
           
			 | 
        housing that is the least restrictive setting appropriate to the  | 
      
      
        | 
           
			 | 
        individual's needs; | 
      
      
        | 
           
			 | 
                     (6) [(7)]  promote employment assistance and  | 
      
      
        | 
           
			 | 
        customized, integrated, and competitive [supported] employment; | 
      
      
        | 
           
			 | 
                     (7) [(8)]  provide fair hearing and appeals processes  | 
      
      
        | 
           
			 | 
        in accordance with applicable federal law; and | 
      
      
        | 
           
			 | 
                     (8) [(9)]  promote sufficient flexibility to achieve  | 
      
      
        | 
           
			 | 
        the goals listed in this section through the pilot program. | 
      
      
        | 
           
			 | 
               (d)  The department, in consultation and collaboration with  | 
      
      
        | 
           
			 | 
        the advisory committee, shall evaluate each submitted managed care  | 
      
      
        | 
           
			 | 
        strategy proposal and determine whether: | 
      
      
        | 
           
			 | 
                     (1)  the proposed strategy satisfies the requirements  | 
      
      
        | 
           
			 | 
        of this section; and | 
      
      
        | 
           
			 | 
                     (2)  the private services provider that submitted the  | 
      
      
        | 
           
			 | 
        proposal has a demonstrated ability to provide the long-term  | 
      
      
        | 
           
			 | 
        services and supports appropriate to the individuals who will  | 
      
      
        | 
           
			 | 
        receive services through the pilot program based on the proposed  | 
      
      
        | 
           
			 | 
        strategy, if implemented. | 
      
      
        | 
           
			 | 
               (e)  Based on the evaluation performed under Subsection (d),  | 
      
      
        | 
           
			 | 
        the department may select as pilot program service providers one or  | 
      
      
        | 
           
			 | 
        more private services providers with whom the commission will  | 
      
      
        | 
           
			 | 
        contract. | 
      
      
        | 
           
			 | 
               (g)  The department, in consultation and collaboration with  | 
      
      
        | 
           
			 | 
        the advisory committee, shall analyze information provided by the  | 
      
      
        | 
           
			 | 
        pilot program service providers and any information collected by  | 
      
      
        | 
           
			 | 
        the department during the operation of the pilot programs for  | 
      
      
        | 
           
			 | 
        purposes of making a recommendation about a system of programs and  | 
      
      
        | 
           
			 | 
        services for implementation through future state legislation or  | 
      
      
        | 
           
			 | 
        rules. | 
      
      
        | 
           
			 | 
               (h)  The analysis under Subsection (g) must include an  | 
      
      
        | 
           
			 | 
        assessment of the effect of the managed care strategies implemented  | 
      
      
        | 
           
			 | 
        in the pilot programs on: | 
      
      
        | 
           
			 | 
                     (1)  access to long-term services and supports; | 
      
      
        | 
           
			 | 
                     (2)  the quality of acute care services and long-term  | 
      
      
        | 
           
			 | 
        services and supports; | 
      
      
        | 
           
			 | 
                     (3)  meaningful outcomes using person-centered  | 
      
      
        | 
           
			 | 
        planning, individualized budgeting, and self-determination,  | 
      
      
        | 
           
			 | 
        including a person's inclusion in the community; | 
      
      
        | 
           
			 | 
                     (4)  the integration of service coordination of acute  | 
      
      
        | 
           
			 | 
        care services and long-term services and supports; | 
      
      
        | 
           
			 | 
                     (5)  the placement of individuals in housing that is  | 
      
      
        | 
           
			 | 
        the least restrictive setting appropriate to an individual's needs; | 
      
      
        | 
           
			 | 
                     (6)  employment assistance and customized, integrated,  | 
      
      
        | 
           
			 | 
        competitive employment options; and | 
      
      
        | 
           
			 | 
                     (7)  the number and types of fair hearing and appeals  | 
      
      
        | 
           
			 | 
        processes in accordance with applicable federal law. | 
      
      
        | 
           
			 | 
               SECTION 5.  Sections 534.106(a) and (b), Government Code,  | 
      
      
        | 
           
			 | 
        are amended to read as follows: | 
      
      
        | 
           
			 | 
               (a)  The commission and the department shall implement any  | 
      
      
        | 
           
			 | 
        pilot programs established under this subchapter not later than  | 
      
      
        | 
           
			 | 
        September 1, 2017 [2016]. | 
      
      
        | 
           
			 | 
               (b)  A pilot program established under this subchapter may  | 
      
      
        | 
           
			 | 
        [must] operate for up to [not less than] 24 months. A[, except that 
         | 
      
      
        | 
           
			 | 
        
          a] pilot program may cease operation [before the expiration of 24 
         | 
      
      
        | 
           
			 | 
        
          months] if the pilot program service provider terminates the  | 
      
      
        | 
           
			 | 
        contract with the commission before the agreed-to termination date. | 
      
      
        | 
           
			 | 
               SECTION 6.  Section 534.108(d), Government Code, is amended  | 
      
      
        | 
           
			 | 
        to read as follows: | 
      
      
        | 
           
			 | 
               (d)  The [On or before December 1, 2016, and December 1, 
         | 
      
      
        | 
           
			 | 
        
          2017, the] commission and the department, in consultation and  | 
      
      
        | 
           
			 | 
        collaboration with the advisory committee, shall review and  | 
      
      
        | 
           
			 | 
        evaluate the progress and outcomes of each pilot program  | 
      
      
        | 
           
			 | 
        implemented under this subchapter and submit, as part of the annual  | 
      
      
        | 
           
			 | 
        report to the legislature required by Section 534.054, a report to  | 
      
      
        | 
           
			 | 
        the legislature during the operation of the pilot programs.  Each  | 
      
      
        | 
           
			 | 
        report must include recommendations for program improvement and  | 
      
      
        | 
           
			 | 
        continued implementation. | 
      
      
        | 
           
			 | 
               SECTION 7.  Section 534.110, Government Code, as amended by  | 
      
      
        | 
           
			 | 
        S.B. No. 219, Acts of the 84th Legislature, Regular Session, 2015,  | 
      
      
        | 
           
			 | 
        is amended to read as follows: | 
      
      
        | 
           
			 | 
               Sec. 534.110.  TRANSITION BETWEEN PROGRAMS. (a) The  | 
      
      
        | 
           
			 | 
        commission shall ensure that there is a comprehensive plan for  | 
      
      
        | 
           
			 | 
        transitioning the provision of Medicaid benefits between a Medicaid  | 
      
      
        | 
           
			 | 
        waiver program or an ICF-IID program and a pilot program under this  | 
      
      
        | 
           
			 | 
        subchapter to protect continuity of care. | 
      
      
        | 
           
			 | 
               (b)  The transition plan shall be developed in consultation  | 
      
      
        | 
           
			 | 
        and collaboration with the advisory committee and with stakeholder  | 
      
      
        | 
           
			 | 
        input as described by Section 534.103. | 
      
      
        | 
           
			 | 
               SECTION 8.  Section 534.151, Government Code, as amended by  | 
      
      
        | 
           
			 | 
        S.B. No. 219, Acts of the 84th Legislature, Regular Session, 2015,  | 
      
      
        | 
           
			 | 
        is amended to read as follows: | 
      
      
        | 
           
			 | 
               Sec. 534.151.  DELIVERY OF ACUTE CARE SERVICES FOR  | 
      
      
        | 
           
			 | 
        INDIVIDUALS WITH AN INTELLECTUAL OR DEVELOPMENTAL DISABILITY. (a)  | 
      
      
        | 
           
			 | 
        Subject to Section 533.0025, the commission shall provide acute  | 
      
      
        | 
           
			 | 
        care Medicaid benefits to individuals with an intellectual or  | 
      
      
        | 
           
			 | 
        developmental disability through the STAR + PLUS Medicaid managed  | 
      
      
        | 
           
			 | 
        care program or the most appropriate integrated capitated managed  | 
      
      
        | 
           
			 | 
        care program delivery model and monitor the provision of those  | 
      
      
        | 
           
			 | 
        benefits. | 
      
      
        | 
           
			 | 
               (b)  The commission and the department, in consultation and  | 
      
      
        | 
           
			 | 
        collaboration with the advisory committee, shall analyze the  | 
      
      
        | 
           
			 | 
        outcomes of providing acute care Medicaid benefits to individuals  | 
      
      
        | 
           
			 | 
        with an intellectual or developmental disability under a model  | 
      
      
        | 
           
			 | 
        specified in Subsection (a).  The analysis must: | 
      
      
        | 
           
			 | 
                     (1)  include an assessment of the effects on: | 
      
      
        | 
           
			 | 
                           (A)  access to and quality of acute care services;  | 
      
      
        | 
           
			 | 
        and | 
      
      
        | 
           
			 | 
                           (B)  the number and types of fair hearing and  | 
      
      
        | 
           
			 | 
        appeals processes in accordance with applicable federal law; | 
      
      
        | 
           
			 | 
                     (2)  be incorporated into the annual report to the  | 
      
      
        | 
           
			 | 
        legislature required under Section 534.054; and | 
      
      
        | 
           
			 | 
                     (3)  include recommendations for delivery model  | 
      
      
        | 
           
			 | 
        improvements and implementation for consideration by the  | 
      
      
        | 
           
			 | 
        legislature, including recommendations for needed statutory  | 
      
      
        | 
           
			 | 
        changes. | 
      
      
        | 
           
			 | 
               SECTION 9.  The heading to Section 534.152, Government Code,  | 
      
      
        | 
           
			 | 
        is amended to read as follows: | 
      
      
        | 
           
			 | 
               Sec. 534.152.  DELIVERY OF CERTAIN OTHER SERVICES UNDER STAR  | 
      
      
        | 
           
			 | 
        + PLUS MEDICAID MANAGED CARE PROGRAM AND BY WAIVER PROGRAM  | 
      
      
        | 
           
			 | 
        PROVIDERS. | 
      
      
        | 
           
			 | 
               SECTION 10.  Section 534.152, Government Code, is amended by  | 
      
      
        | 
           
			 | 
        adding Subsection (g) to read as follows: | 
      
      
        | 
           
			 | 
               (g)  The department may contract with providers  | 
      
      
        | 
           
			 | 
        participating in the home and community-based services (HCS) waiver  | 
      
      
        | 
           
			 | 
        program, the Texas home living (TxHmL) waiver program, the  | 
      
      
        | 
           
			 | 
        community living assistance and support services (CLASS) waiver  | 
      
      
        | 
           
			 | 
        program, or the deaf-blind with multiple disabilities (DBMD) waiver  | 
      
      
        | 
           
			 | 
        program for the delivery of basic attendant and habilitation  | 
      
      
        | 
           
			 | 
        services described in Subsection (a) for individuals to which that  | 
      
      
        | 
           
			 | 
        subsection applies. The department has regulatory and oversight  | 
      
      
        | 
           
			 | 
        authority over the providers with which the department contracts  | 
      
      
        | 
           
			 | 
        for the delivery of those services. | 
      
      
        | 
           
			 | 
               SECTION 11.  Section 534.201, Government Code, is amended by  | 
      
      
        | 
           
			 | 
        amending Subsections (b) and (e), as amended by S.B. No. 219, Acts  | 
      
      
        | 
           
			 | 
        of the 84th Legislature, Regular Session, 2015, amending Subsection  | 
      
      
        | 
           
			 | 
        (d), and adding Subsection (g) to read as follows: | 
      
      
        | 
           
			 | 
               (b)  On or after [Not later than] September 1, 2018 [2017],  | 
      
      
        | 
           
			 | 
        the commission may [shall] transition the provision of Medicaid  | 
      
      
        | 
           
			 | 
        benefits to individuals to whom this section applies to the STAR +  | 
      
      
        | 
           
			 | 
        PLUS Medicaid managed care program delivery model or the most  | 
      
      
        | 
           
			 | 
        appropriate integrated capitated managed care program delivery  | 
      
      
        | 
           
			 | 
        model, as determined by the commission based on cost-effectiveness  | 
      
      
        | 
           
			 | 
        and the experience of the STAR + PLUS Medicaid managed care program  | 
      
      
        | 
           
			 | 
        in providing basic attendant and habilitation services and of the  | 
      
      
        | 
           
			 | 
        pilot programs established under Subchapter C, subject to  | 
      
      
        | 
           
			 | 
        Subsection (c)(1). | 
      
      
        | 
           
			 | 
               (d)  In implementing the transition described by Subsection  | 
      
      
        | 
           
			 | 
        (b), the commission, in consultation and collaboration with the  | 
      
      
        | 
           
			 | 
        advisory committee, shall develop a process to receive and evaluate  | 
      
      
        | 
           
			 | 
        input from interested statewide stakeholders [that is in addition 
         | 
      
      
        | 
           
			 | 
        
          to the input provided by the advisory committee]. | 
      
      
        | 
           
			 | 
               (e)  The commission, in consultation and collaboration with  | 
      
      
        | 
           
			 | 
        the advisory committee, shall ensure that there is a comprehensive  | 
      
      
        | 
           
			 | 
        plan for transitioning the provision of Medicaid benefits under  | 
      
      
        | 
           
			 | 
        this section that protects the continuity of care provided to  | 
      
      
        | 
           
			 | 
        individuals to whom this section applies. | 
      
      
        | 
           
			 | 
               (g)  The commission, in consultation and collaboration with  | 
      
      
        | 
           
			 | 
        the advisory committee, shall analyze the outcomes of the  | 
      
      
        | 
           
			 | 
        transition of the long-term services and supports under the Texas  | 
      
      
        | 
           
			 | 
        home living (TxHmL) Medicaid waiver program to a managed care  | 
      
      
        | 
           
			 | 
        program delivery model.  The analysis must: | 
      
      
        | 
           
			 | 
                     (1)  include an assessment of the effect of the  | 
      
      
        | 
           
			 | 
        transition on: | 
      
      
        | 
           
			 | 
                           (A)  access to long-term services and supports; | 
      
      
        | 
           
			 | 
                           (B)  meaningful outcomes using person-centered  | 
      
      
        | 
           
			 | 
        planning, individualized budgeting, and self-determination,  | 
      
      
        | 
           
			 | 
        including a person's inclusion in the community; | 
      
      
        | 
           
			 | 
                           (C)  the integration of service coordination of  | 
      
      
        | 
           
			 | 
        acute care services and long-term services and supports; | 
      
      
        | 
           
			 | 
                           (D)  employment assistance and customized,  | 
      
      
        | 
           
			 | 
        integrated, competitive employment options; and | 
      
      
        | 
           
			 | 
                           (E)  the number and types of fair hearing and  | 
      
      
        | 
           
			 | 
        appeals processes in accordance with applicable federal law; | 
      
      
        | 
           
			 | 
                     (2)  be incorporated into the annual report to the  | 
      
      
        | 
           
			 | 
        legislature required under Section 534.054; and | 
      
      
        | 
           
			 | 
                     (3)  include recommendations for improvements to the  | 
      
      
        | 
           
			 | 
        transition implementation for consideration by the legislature,  | 
      
      
        | 
           
			 | 
        including recommendations for needed statutory changes. | 
      
      
        | 
           
			 | 
               SECTION 12.  Section 534.202(b), Government Code, as amended  | 
      
      
        | 
           
			 | 
        by S.B. No. 219, Acts of the 84th Legislature, Regular Session,  | 
      
      
        | 
           
			 | 
        2015, is amended to read as follows: | 
      
      
        | 
           
			 | 
               (b)  After implementing the transition required by Section  | 
      
      
        | 
           
			 | 
        534.201, if that transition is implemented [but not later than 
         | 
      
      
        | 
           
			 | 
        
          September 1, 2020], the commission may, on or after September 1,  | 
      
      
        | 
           
			 | 
        2021, [shall] transition the provision of Medicaid benefits to  | 
      
      
        | 
           
			 | 
        individuals to whom this section applies to the STAR + PLUS Medicaid  | 
      
      
        | 
           
			 | 
        managed care program delivery model or the most appropriate  | 
      
      
        | 
           
			 | 
        integrated capitated managed care program delivery model, as  | 
      
      
        | 
           
			 | 
        determined by the commission based on cost-effectiveness and the  | 
      
      
        | 
           
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        experience of the transition of Texas home living (TxHmL) waiver  | 
      
      
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        program recipients to a managed care program delivery model under  | 
      
      
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        Section 534.201, subject to Subsections (c)(1) and (g). | 
      
      
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               SECTION 13.  If before implementing any provision of this  | 
      
      
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        Act a state agency determines that a waiver or authorization from a  | 
      
      
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        federal agency is necessary for implementation of that provision,  | 
      
      
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        the agency affected by the provision shall request the waiver or  | 
      
      
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        authorization and may delay implementing that provision until the  | 
      
      
        | 
           
			 | 
        waiver or authorization is granted. | 
      
      
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               SECTION 14.  This Act takes effect immediately if it  | 
      
      
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        receives a vote of two-thirds of all the members elected to each  | 
      
      
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			 | 
        house, as provided by Section 39, Article III, Texas Constitution.   | 
      
      
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        If this Act does not receive the vote necessary for immediate  | 
      
      
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			 | 
        effect, this Act takes effect September 1, 2015. |