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A BILL TO BE ENTITLED
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AN ACT
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relating to insurance premium tax credits for the construction or |
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rehabilitation of a supportive housing property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle B, Title 3, Insurance Code, is amended |
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by adding Chapter 234 to read as follows: |
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CHAPTER 234. PREMIUM TAX CREDIT FOR CONSTRUCTION OR REHABILITATION |
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OF SUPPORTIVE HOUSING PROPERTY |
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Sec. 234.001. DEFINITIONS. In this chapter: |
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(1) "Corporation" means the Texas State Affordable |
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Housing Corporation established under Subchapter Y, Chapter 2306, |
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Government Code. |
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(2) "Eligible costs and expenses" means costs and |
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expenses incurred in the construction or rehabilitation of a |
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supportive housing property that the corporation determines are |
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reasonable and necessary to the construction or rehabilitation of |
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the property. |
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(3) "State premium tax liability" means any liability |
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incurred by an entity under Chapter 222. |
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(4) "Supportive housing property" means a residential |
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rental development: |
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(A) that is intended for occupancy by individuals |
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who need assistance to live independently; and |
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(B) at which individuals receive on-site case |
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management and other services designed to: |
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(i) aid the individual in addressing a |
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debilitating condition; or |
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(ii) assist the individual in securing the |
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skills, assets, and connections necessary to live independently. |
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Sec. 234.002. ELIGIBILITY FOR CREDIT. An entity is |
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eligible to apply for and claim a credit against state premium tax |
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liability in the amount and under the conditions and limitations |
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provided by this chapter. |
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Sec. 234.003. QUALIFICATION. (a) An entity is eligible for |
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a credit for eligible costs and expenses incurred in the |
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construction or rehabilitation of a supportive housing property as |
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provided by this chapter if: |
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(1) the supportive housing property is placed in |
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service on or after September 1, 2019; and |
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(2) the total amount of the eligible costs and |
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expenses incurred by the entity exceeds $5,000. |
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(b) An entity may receive a credit under this chapter |
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regardless of whether the entity incurs state premium tax |
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liability. |
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Sec. 234.004. CERTIFICATION OF ELIGIBILITY. (a) Before |
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applying for, claiming, selling, or assigning a credit under this |
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chapter, the entity that constructed or rehabilitated the |
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supportive housing property must request from the corporation a |
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certificate of eligibility on which the corporation certifies that |
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the costs and expenses incurred meet the definition of eligible |
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costs and expenses. The entity must include with the entity's |
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request information on the property that is sufficient for the |
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corporation to determine whether the property meets the definition |
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of a supportive housing property. |
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(b) The corporation shall issue a certificate of |
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eligibility to an entity that has incurred eligible costs and |
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expenses as provided by this chapter. The certificate must: |
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(1) confirm that the property to which the eligible |
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costs and expenses relate is supportive housing property; and |
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(2) estimate the date the supportive housing property |
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will be placed in service. |
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(c) The corporation by rule shall prescribe procedures by |
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which the corporation may allocate credits under this chapter. The |
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corporation may not certify eligible costs and expenses that exceed |
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the annual limit provided by Section 234.005(d). |
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(d) The entity must forward the certificate of eligibility |
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and the following documentation to the comptroller to apply for the |
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tax credit: |
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(1) an audited cost report issued by a certified |
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public accountant, as defined by Section 901.002, Occupations Code, |
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that itemizes the eligible costs and expenses incurred in the |
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construction or rehabilitation of the supportive housing property |
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by the entity; and |
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(2) an attestation of the total eligible costs and |
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expenses incurred by the entity in the construction or |
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rehabilitation of the supportive housing property. |
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(e) For purposes of approving the tax credit under |
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Subsection (d), the comptroller may rely on the audited cost report |
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provided by the entity that requested the tax credit. |
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(f) An entity that sells or assigns a credit under this |
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chapter to another entity shall provide a copy of the certificate of |
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eligibility, together with the audited cost report, to the |
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purchaser or assignee. |
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Sec. 234.005. AMOUNT OF CREDIT; LIMITATIONS. (a) The total |
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amount of the credit under this chapter with respect to the |
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construction or rehabilitation of a single supportive housing |
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property that may be claimed may not exceed 20 percent of the total |
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eligible costs and expenses incurred in the construction or |
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rehabilitation of the supportive housing property. |
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(b) The total credit that may be claimed on a report, |
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including the amount of any carryforward under Section 234.006, may |
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not exceed the amount of state premium tax liability due for the |
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report after any other applicable tax credits. |
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(c) Eligible costs and expenses may only be counted once in |
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determining the amount of the tax credit available, and more than |
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one entity may not claim a credit for the same eligible costs and |
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expenses. |
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(d) The total amount of tax credits that may be claimed by |
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all entities under this chapter may not exceed $5 million in a state |
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fiscal year. |
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Sec. 234.006. CARRYFORWARD. (a) If an entity is eligible |
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for a credit that exceeds the limitation under Section 234.005(b), |
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the entity may carry the unused credit forward for not more than |
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five consecutive reports. |
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(b) A carryforward is considered the remaining portion of a |
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credit that cannot be claimed in the current year because of the |
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limitation under Section 234.005(b). |
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Sec. 234.007. APPLICATION FOR CREDIT; CLAIMING CREDIT. (a) |
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An entity must apply for a credit under this chapter on a form |
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promulgated by the comptroller for that purpose. |
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(b) An entity shall include with the application a copy of |
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the certificate of eligibility issued by the corporation as |
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required by Section 234.004(d) and any other information required |
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by the comptroller to sufficiently demonstrate the entity is |
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eligible for the credit and to determine the amount of the credit. |
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(c) The burden of establishing eligibility for and the value |
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of the credit is on the entity. |
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(d) The comptroller shall issue a credit certificate to an |
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entity the comptroller determines is eligible for a credit under |
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this chapter indicating that the entity is the owner of the credit |
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and the amount of credit available to the entity. |
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(e) An entity may claim a credit under this chapter on or |
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with the report due under Section 222.005. The entity shall include |
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with each report on which a credit is claimed the certificate issued |
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by the comptroller under Subsection (d). |
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Sec. 234.008. SALE OR ASSIGNMENT OF CREDIT. (a) An entity |
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that incurs eligible costs and expenses may sell or assign all or |
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part of the credit that may be claimed for those costs and expenses |
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to one or more entities, and any entity to which all or part of the |
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credit is sold or assigned may sell or assign all or part of the |
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credit to another entity. There is no limit on the total number of |
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transactions for the sale or assignment of all or part of the total |
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credit authorized under this chapter; however, collectively all |
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transfers are subject to the maximum total limits provided by |
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Section 234.005. |
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(b) An entity that sells or assigns a credit under this |
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section and the entity to which the credit is sold or assigned shall |
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jointly submit written notice of the sale or assignment to the |
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comptroller on a form promulgated by the comptroller not later than |
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the 30th day after the date of the sale or assignment. The notice |
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must include: |
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(1) the date of the sale or assignment; |
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(2) the amount of the credit sold or assigned; |
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(3) the names and federal tax identification numbers |
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of the entity that sold or assigned the credit or part of the credit |
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and the entity to which the credit or part of the credit was sold or |
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assigned; and |
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(4) the amount of the credit owned by the selling or |
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assigning entity before the sale or assignment, and the amount the |
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selling or assigning entity retained, if any, after the sale or |
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assignment. |
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(c) The sale or assignment of a credit in accordance with |
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this section does not extend the period for which a credit may be |
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carried forward and does not increase the total amount of the credit |
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that may be claimed. After an entity claims a credit for eligible |
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costs and expenses, another entity may not use the same costs and |
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expenses as the basis for claiming a credit. |
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(d) Notwithstanding the requirements of this chapter, a |
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credit earned or purchased by, or assigned to, a partnership, |
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limited liability company, S corporation, or other pass-through |
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entity may be allocated to the partners, members, or shareholders |
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of that entity and claimed under this chapter in accordance with the |
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provisions of any agreement among the partners, members, or |
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shareholders and without regard to the ownership interest of the |
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partners, members, or shareholders in the supportive housing |
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property, provided that the entity that claims the credit must be |
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subject to the tax imposed under Chapter 222. |
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Sec. 234.009. RETALIATORY TAX. An entity that claims a |
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credit under this chapter is not required to pay any additional |
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retaliatory tax levied under Chapter 281 as a result of the credit. |
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Sec. 234.010. RULES. The corporation and the comptroller |
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shall adopt rules necessary to implement this chapter. |
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SECTION 2. This Act applies only to a report originally due |
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on or after the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2019. |