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A BILL TO BE ENTITLED
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AN ACT
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relating to the powers and duties of the Cleveland Municipal |
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Utility District No. 1 of Montgomery County, Texas; providing |
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authority to issue bonds; providing authority to impose a tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle F, Title 6, Special District Local Laws |
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Code, is amended by adding Chapter 8073 to read as follows: |
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CHAPTER 8073. CLEVELAND MUNICIPAL UTILITY DISTRICT NO. 1 OF |
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MONTGOMERY COUNTY, TEXAS |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 8073.0101. DEFINITIONS. In this chapter: |
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(1) "Board" means the district's board of directors. |
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(2) "District" means the Cleveland Municipal Utility |
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District No. 1 of Montgomery County, Texas. |
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Sec. 8073.0102. NATURE AND PURPOSES OF DISTRICT. (a) The |
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district is a municipal utility district created under Section 59, |
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Article XVI, Texas Constitution. |
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(b) The district is created to accomplish the purposes of: |
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(1) a municipal utility district as provided by |
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general law and Section 59, Article XVI, Texas Constitution; and |
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(2) Section 52, Article III, Texas Constitution, that |
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relate to the construction, acquisition, improvement, operation, |
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or maintenance of macadamized, graveled, or paved roads, or |
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improvements, including storm drainage, in aid of those roads. |
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Sec. 8073.0103. ELIGIBILITY FOR INCLUSION IN TAX INCREMENT |
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REINVESTMENT ZONE. (a) All or part of the district is eligible to |
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be included in a tax increment reinvestment zone created under |
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Chapter 311, Tax Code. |
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(b) If the City of Cleveland has created or creates a tax |
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increment reinvestment zone described by Subsection (a) that |
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includes all or part of the territory of the district, the City of |
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Cleveland and the board of directors of the zone, by contract with |
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the district, may grant money to the district from the tax increment |
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fund to be used for a permissible purpose of the district, including |
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the right to pledge the money as security for a bond or other |
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obligation issued by the district. |
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SUBCHAPTER B. POWERS AND DUTIES |
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Sec. 8073.0201. GENERAL POWERS AND DUTIES. The district |
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has the powers and duties necessary to accomplish the purposes for |
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which the district is created. |
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Sec. 8073.0202. MUNICIPAL UTILITY DISTRICT POWERS AND |
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DUTIES. The district has the powers and duties provided by the |
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general law of this state, including Chapters 49 and 54, Water Code, |
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applicable to municipal utility districts created under Section 59, |
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Article XVI, Texas Constitution. |
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Sec. 8073.0203. AUTHORITY FOR ROAD PROJECTS. Under Section |
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52, Article III, Texas Constitution, the district may design, |
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acquire, construct, finance, issue bonds for, improve, operate, |
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maintain, and convey to this state, a county, or a municipality for |
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operation and maintenance macadamized, graveled, or paved roads, or |
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improvements, including storm drainage, in aid of those roads. |
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Sec. 8073.0204. ROAD STANDARDS AND REQUIREMENTS. (a) A |
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road project must meet all applicable construction standards, |
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zoning and subdivision requirements, and regulations of each |
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municipality in whose corporate limits or extraterritorial |
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jurisdiction the road project is located. |
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(b) If a road project is not located in the corporate limits |
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or extraterritorial jurisdiction of a municipality, the road |
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project must meet all applicable construction standards, |
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subdivision requirements, and regulations of each county in which |
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the road project is located. |
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(c) If the state will maintain and operate the road, the |
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Texas Transportation Commission must approve the plans and |
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specifications of the road project. |
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Sec. 8073.0205. DIVISION OF DISTRICT. (a) The district may |
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be divided into two or more new districts only if the district: |
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(1) has no outstanding bonded debt; and |
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(2) is not imposing ad valorem taxes. |
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(b) This chapter applies to any new district created by the |
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division of the district, and a new district has all the powers and |
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duties of the district. |
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(c) Any new district created by the division of the district |
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may, at the time the new district is created, contain only: |
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(1) land within the initial boundaries of the |
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district; or |
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(2) land adjacent to the initial boundaries of the |
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district if that adjacent land is: |
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(A) not within the extraterritorial jurisdiction |
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of a city; or |
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(B) within the extraterritorial jurisdiction of |
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a city and that adjacent land has been approved for inclusion in the |
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district under a consent ordinance or resolution adopted by the |
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city. |
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(d) The board, on its own motion or on receipt of a petition |
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signed by the owner or owners of a majority of the assessed value of |
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the real property in the district, may adopt an order dividing the |
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district. |
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(e) An order dividing the district must: |
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(1) name each new district; |
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(2) include the metes and bounds description of the |
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territory of each new district; |
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(3) appoint temporary directors for each new district; |
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and |
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(4) provide for the division of assets and liabilities |
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between or among the new districts. |
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(f) On or before the 30th day after the date of adoption of |
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an order dividing the district, the district shall file the order |
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with the Texas Commission on Environmental Quality and record the |
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order in the real property records of each county in which the |
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district is located. |
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(g) Any new district created by the division of the district |
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shall hold a confirmation and directors' election as required by |
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Section 49.102, Water Code. |
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(h) Except as provided by Subsection (c), municipal consent |
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by a city is not required for the creation of any new district |
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created under this section. |
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(i) Any new district created by the division of the district |
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must hold an election as required by this chapter to obtain voter |
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approval before the district may impose a maintenance tax or issue |
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bonds payable wholly or partly from ad valorem taxes. |
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(j) If the voters of a new district do not confirm the |
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creation of the new district, the assets, obligations, territory, |
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and governance of the new district revert to that of the original |
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district. |
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SUBCHAPTER C. BONDS AND OTHER OBLIGATIONS |
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Sec. 8073.0301. AUTHORITY TO ISSUE BONDS AND OTHER |
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OBLIGATIONS FOR ROAD PROJECTS. (a) The district may issue bonds or |
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other obligations payable wholly or partly from ad valorem taxes, |
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impact fees, revenue, contract payments, grants, revenue from a tax |
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increment reinvestment zone created under Chapter 311, Tax Code, |
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other district money, or any combination of those sources to pay for |
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a road project authorized by Section 8073.0203. |
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(b) The district may not issue bonds payable from ad valorem |
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taxes to finance a road project unless the issuance is approved by a |
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vote of a two-thirds majority of the district voters voting at an |
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election held for that purpose. |
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(c) At the time of issuance, the total principal amount of |
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bonds or other obligations issued or incurred to finance road |
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projects and payable from ad valorem taxes may not exceed |
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one-fourth of the assessed value of the real property in the |
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district. |
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Sec. 8073.0302. TAXES FOR BONDS. At the time the district |
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issues bonds payable wholly or partly from ad valorem taxes, the |
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board shall provide for the annual imposition of a continuing |
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direct ad valorem tax, without limit as to rate or amount, while all |
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or part of the bonds are outstanding as required and in the manner |
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provided by Sections 54.601 and 54.602, Water Code. |
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SECTION 2. The Cleveland Municipal Utility District No. 1 |
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of Montgomery County, Texas, retains all the rights, powers, |
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privileges, authority, duties, and functions that it had before the |
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effective date of this Act. |
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SECTION 3. (a) The legislature validates and confirms all |
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governmental acts and proceedings of the Cleveland Municipal |
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Utility District No. 1 of Montgomery County, Texas, that were taken |
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before the effective date of this Act. |
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(b) This section does not apply to any matter that on the |
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effective date of this Act: |
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(1) is involved in litigation if the litigation |
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ultimately results in the matter being held invalid by a final court |
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judgment; or |
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(2) has been held invalid by a final court judgment. |
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SECTION 4. (a) The legal notice of the intention to |
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introduce this Act, setting forth the general substance of this |
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Act, has been published as provided by law, and the notice and a |
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copy of this Act have been furnished to all persons, agencies, |
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officials, or entities to which they are required to be furnished |
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under Section 59, Article XVI, Texas Constitution, and Chapter 313, |
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Government Code. |
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(b) The governor, one of the required recipients, has |
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submitted the notice and Act to the Texas Commission on |
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Environmental Quality. |
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(c) The Texas Commission on Environmental Quality has filed |
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its recommendations relating to this Act with the governor, the |
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lieutenant governor, and the speaker of the house of |
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representatives within the required time. |
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(d) All requirements of the constitution and laws of this |
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state and the rules and procedures of the legislature with respect |
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to the notice, introduction, and passage of this Act are fulfilled |
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and accomplished. |
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SECTION 5. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2019. |