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A BILL TO BE ENTITLED
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AN ACT
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relating to a student loan repayment assistance program for certain |
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full-time peace officers in this state. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 61, Education Code, is amended by adding |
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Subchapter NN to read as follows: |
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SUBCHAPTER NN. PEACE OFFICER LOAN REPAYMENT ASSISTANCE PROGRAM |
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Sec. 61.9951. DEFINITION. In this subchapter, "peace |
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officer" has the meaning assigned by Article 2.12, Code of Criminal |
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Procedure. |
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Sec. 61.9952. LOAN REPAYMENT ASSISTANCE AUTHORIZED; |
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PURPOSE. The board shall establish and administer a program to |
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provide, in accordance with this subchapter and board rules, loan |
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repayment assistance in the repayment of eligible loans for |
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eligible peace officers who agree to continued employment as |
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full-time peace officers in this state for a specified period. |
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Sec. 61.9953. INITIAL ELIGIBILITY; AGREEMENT REQUIREMENTS. |
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(a) To be eligible to receive loan repayment assistance under this |
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subchapter for the first year for which the person seeks loan |
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repayment assistance, a person must: |
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(1) submit to the board an initial application for the |
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loan repayment assistance, in the manner and on a form prescribed by |
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board rule, that requires: |
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(A) employer verification of the person's |
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employment as a full-time peace officer in this state for at least |
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four consecutive years and the person's current employment as a |
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peace officer in this state as of the date of the application; and |
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(B) a transcript of the person's postsecondary |
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course work; |
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(2) have completed an undergraduate or graduate |
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program at a general academic teaching institution or a private or |
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independent institution of higher education; |
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(3) be currently employed, and have completed at least |
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four consecutive years of employment, as a full-time peace officer |
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in this state; |
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(4) enter into an agreement with the board under |
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Subsection (b); and |
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(5) comply with any other requirement adopted by the |
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board under this subchapter. |
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(b) To receive loan repayment assistance under this |
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subchapter, a person must enter into an agreement with the board: |
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(1) under which the person: |
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(A) agrees to complete four additional |
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consecutive years of employment as a full-time peace officer in |
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this state in exchange for an amount of loan repayment assistance in |
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each of those years as provided by Section 61.9956; and |
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(B) acknowledges the conditional nature of the |
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loan repayment assistance; and |
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(2) that states the total amount of principal, accrued |
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interest, fees, and other charges due on all outstanding eligible |
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loans for which the person is applying for repayment assistance. |
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Sec. 61.9954. CONTINUING ELIGIBILITY. (a) Except as |
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provided by Subsection (b), after initially qualifying for loan |
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repayment assistance under Section 61.9953, a person may continue |
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to receive loan repayment assistance in a subsequent year only if |
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the person annually submits an application, in the manner and on a |
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form prescribed by board rule, that requires employer verification |
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of the person's continuous employment as a full-time peace officer |
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in this state for the year ending immediately before the date the |
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application is submitted under this section. |
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(b) A person may not receive loan repayment assistance under |
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this subchapter for more than four years. |
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Sec. 61.9955. EXCEPTION TO CONSECUTIVE YEARS OF FULL-TIME |
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EMPLOYMENT REQUIREMENT. The board shall excuse an otherwise |
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eligible person from a requirement imposed by Section 61.9953 or |
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61.9954 that the employment qualifying the person for loan |
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repayment assistance be performed in consecutive years if the break |
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in employment is a result of the person's: |
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(1) service on active duty as a member of the armed |
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forces of the United States, including as a member of a reserve or |
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National Guard unit called for active duty; |
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(2) temporary total disability for a period of not |
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more than 36 months, as established by the affidavit of a qualified |
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physician; |
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(3) inability to secure employment as required by |
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Section 61.9953 or 61.9954 for a period not to exceed 12 months |
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because of care required for a disabled spouse or child; |
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(4) inability, despite reasonable efforts, to secure |
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for a single period not to exceed 12 months employment as required |
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by Section 61.9953 or 61.9954; or |
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(5) satisfaction of the provisions of any other |
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exception adopted by the board for purposes of this section. |
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Sec. 61.9956. AWARD. (a) Except as provided by this |
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section, an eligible person is entitled to receive an annual amount |
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of loan repayment assistance payments under this subchapter payable |
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to the holders of the eligible person's eligible loans for each year |
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of eligibility approved by the board under Section 61.9953 or |
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61.9954 in the following amounts, subject to the amount of |
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available funding: |
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(1) the lesser of $3,000 or 10 percent of the amount |
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described in Section 61.9953(b)(2) for the first year of |
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eligibility; |
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(2) the lesser of $6,000 or 20 percent of the amount |
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described in Section 61.9953(b)(2) for the second year of |
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eligibility; |
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(3) the lesser of $9,000 or 30 percent of the amount |
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described in Section 61.9953(b)(2) for the third year of |
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eligibility; and |
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(4) the lesser of $12,000 or 40 percent of the amount |
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described in Section 61.9953(b)(2) for the fourth year of |
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eligibility. |
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(b) The total amount of repayment assistance provided under |
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this subchapter to an eligible person may not exceed $30,000. |
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(c) If in any year the amount of money available for loan |
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repayment assistance under this subchapter is insufficient to |
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provide loan repayment assistance to cover all the payments for the |
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year for all eligible loans of all eligible persons, the board shall |
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establish criteria to determine the amount of available money to |
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allocate to the holders of student loans of eligible persons as the |
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board determines appropriate to further the purpose of this |
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subchapter. |
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(d) An eligible person whose annual loan repayment |
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assistance under this section is less than the amount necessary to |
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cover the amount of principal and interest due on the person's |
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eligible loans for that year is responsible for the payment of the |
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remainder of the amount due and for otherwise preventing a default |
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on the loan. |
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Sec. 61.9957. ELIGIBLE LOANS. (a) The board may provide |
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loan repayment assistance under this subchapter for the repayment |
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of any student loan received by an eligible person through any |
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lender for the cost of attendance at an institution of higher |
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education or a private or independent institution of higher |
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education. |
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(b) If the loan is not a state or federal guaranteed student |
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loan, the promissory note or other loan agreement document |
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governing the terms of the loan must require all the loan proceeds |
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to be used for expenses incurred by a person in attending a |
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postsecondary educational institution. |
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(c) The board may not provide loan repayment assistance |
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under this subchapter for an eligible loan that is in default on the |
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date the person's application for loan repayment assistance is |
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submitted under Section 61.9953 or 61.9954. |
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Sec. 61.9958. PAYMENT OF LOAN REPAYMENT ASSISTANCE. |
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(a) The board shall pay any loan repayment assistance under this |
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subchapter in a lump sum delivered on the eligible person's behalf |
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directly to the holder of the loan. |
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(b) Loan repayment assistance provided under this |
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subchapter may be applied to any amount due on the loan. |
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(c) Each state fiscal biennium, the board shall attempt to |
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allocate all money available to the board for the purpose of |
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providing loan repayment assistance under this subchapter. |
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Sec. 61.9959. PEACE OFFICER LOAN REPAYMENT ASSISTANCE |
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PROGRAM INVESTMENT FUND. (a) In this section, "fund" means the |
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peace officer loan repayment assistance program investment fund. |
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(b) The fund is a dedicated account in the general revenue |
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fund and consists of: |
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(1) gifts, grants, and other donations received from |
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any public or private source for the fund; and |
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(2) interest and other earnings from the investment of |
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the fund. |
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(c) The fund may be used only to provide loan repayment |
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assistance for the repayment of loans eligible under Section |
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61.9957, including any related administrative costs. |
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(d) The fund is exempt from the application of Sections |
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403.095 and 404.071, Government Code. |
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(e) The board may accept grants, gifts, and other donations |
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from any public or private source for the purposes of this |
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subchapter. All money received under this subchapter shall be |
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deposited in the fund. |
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Sec. 61.9960. RULES. The board shall adopt rules necessary |
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for the administration of this subchapter, including rules |
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providing for: |
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(1) the manner in which a person may apply for loan |
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repayment assistance; and |
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(2) a method of awarding loan repayment assistance |
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under this subchapter that gives first priority to applicants who |
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are renewing their applications for loan repayment assistance |
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provided under this subchapter. |
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SECTION 2. The Texas Higher Education Coordinating Board |
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shall adopt rules for the peace officer loan repayment assistance |
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program under Subchapter NN, Chapter 61, Education Code, as added |
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by this Act, not later than December 1, 2019. |
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SECTION 3. This Act takes effect September 1, 2019. |
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