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AN ACT
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relating to the counties authorized to create a crime control and |
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prevention district and to the sales and use tax imposed by |
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municipal crime control and prevention districts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 363.051(a), Local Government Code, is |
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amended to read as follows: |
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(a) The creation of a crime control and prevention district |
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may be proposed under this chapter by a majority vote of the |
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governing body of a: |
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(1) county: |
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(A) with a population of more than 130,000; or |
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(B) that: |
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(i) does not border the United Mexican |
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States; |
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(ii) is adjacent to a county with a |
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population of 500,000 or more that borders the United Mexican |
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States; and |
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(iii) has a population of 5,000 or more; or |
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(2) municipality that is partially or wholly located |
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in a county with a population of more than 5,000. |
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SECTION 2. Sections 363.055(a) and (c), Local Government |
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Code, are amended to read as follows: |
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(a) The proposed rate for the district sales and use tax |
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imposed under Subchapter B, Chapter 321, Tax Code, or Subchapter B, |
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Chapter 323, Tax Code, may be only: |
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(1) one-eighth of one percent; |
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(2) one-fourth of one percent; |
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(3) three-eighths of one percent; or |
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(4) one-half of one percent. |
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(c) A municipality that creates a district shall adopt a |
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sales and use tax under Section 321.108 [323.105], Tax Code, for |
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financing the operation of the district [in the same manner as a
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county under that section]. |
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SECTION 3. Section 363.154(e), Local Government Code, is |
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amended to read as follows: |
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(e) In a district created by a municipality, the board may |
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spend the revenue derived from the sales and use tax distributed |
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under Section 321.108 [323.105], Tax Code, only for a purpose |
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authorized by Section 363.151. |
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SECTION 4. Section 363.302(c), Local Government Code, is |
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amended to read as follows: |
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(c) If on the date that the district is dissolved the |
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district has outstanding short-term or long-term liabilities, the |
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board shall, not later than the 30th day after the date of the |
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dissolution, adopt a resolution certifying each outstanding |
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short-term and long-term liability. The political subdivision that |
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created the district shall assume the outstanding short-term and |
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long-term liabilities. The political subdivision shall collect the |
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sales and use tax under Section 321.108 or 323.105, Tax Code, for |
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the remainder of the calendar year and may by resolution of its |
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governing body continue to collect the tax for an additional |
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calendar year if the revenue from the tax is needed to retire |
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liabilities of the district that were assumed by the political |
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subdivision. The governing body shall notify the comptroller of |
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this continuation not later than the 60th day before the date the |
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tax would otherwise expire. Any tax collected after the |
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liabilities have been retired shall be transferred or conveyed as |
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provided by Subsection (a). |
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SECTION 5. Subchapter B, Chapter 321, Tax Code, is amended |
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by adding Section 321.108 to read as follows: |
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Sec. 321.108. MUNICIPAL CRIME CONTROL AND PREVENTION |
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DISTRICT TAX. (a) Subject to an election held in accordance with |
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Chapter 363, Local Government Code, a municipality in which a crime |
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control and prevention district is established shall adopt a sales |
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and use tax in the area of the district for the purpose of financing |
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the operation of the crime control and prevention district. The |
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revenue from the tax may be used only for the purpose of financing |
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the operation of the crime control and prevention district. The |
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proposition for adopting a tax under this section and the |
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proposition for creation of a crime control and prevention district |
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shall be submitted at the same election. |
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(b) A tax adopted for a district under this section for |
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financing the operation of the district may be decreased in |
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increments of one-eighth of one percent by order of the board of |
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directors of the district. |
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(c) The governing body of the municipality that proposed the |
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creation of the crime control and prevention district may call an |
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election in the district on the question of decreasing the tax rate |
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in increments of one-eighth of one percent in the district. At the |
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election, the ballot shall be printed to provide for voting for or |
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against the following proposition: "The decrease of the |
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____________________ Crime Control and Prevention District sales |
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and use tax rate to ____________ percent." |
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(d) The rate of a tax adopted for a district under this |
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section may be increased in increments of one-eighth of one |
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percent, not to exceed a total tax rate of one-half percent for |
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financing the operation of the crime control and prevention |
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district, by order of the board of directors of the crime control |
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and prevention district if approved by a majority of the voters |
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voting at an election called by the board and held in the district |
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on the question of increasing the tax rate. At the election, the |
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ballot shall be printed to provide for voting for or against the |
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following proposition: "The increase of the ______________ Crime |
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Control and Prevention District sales and use tax rate to |
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____________ percent." If there is an increase or decrease under |
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this subsection in the rate of a tax imposed under this section, the |
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new rate takes effect on the first day of the next calendar quarter |
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after the expiration of one calendar quarter after the comptroller |
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receives notice of the increase or decrease. However, if the |
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comptroller notifies the president of the board of directors of the |
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district in writing within 10 days after receipt of the |
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notification that the comptroller requires more time to implement |
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reporting and collection procedures, the comptroller may delay |
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implementation of the rate change for another calendar quarter, and |
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the new rate takes effect on the first day of the next calendar |
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quarter following the elapsed quarter. |
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(e) The comptroller shall remit to the municipality amounts |
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collected at the rate imposed under this section as part of the |
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regular allocation of municipal tax revenue collected by the |
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comptroller if the district is composed of the entire municipality. |
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The comptroller shall, if the district is composed of an area less |
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than the entire municipality, remit that amount to the district. |
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Retailers may not be required to use allocation and reporting |
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procedures in the collection of taxes under this section that are |
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different from the procedures that retailers use in the collection |
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of other sales and use taxes under this chapter. An item, |
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transaction, or service that is taxable in a municipality under a |
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sales or use tax authorized by another section of this chapter is |
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taxable under this section. An item, transaction, or service that |
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is not taxable in a municipality under a sales or use tax authorized |
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by another section of this chapter is not taxable under this |
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section. |
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(f) If, in a municipality in which a crime control and |
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prevention district is composed of the whole municipality, a |
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municipal sales and use tax or a municipal sales and use tax rate |
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increase for the purpose of financing a crime control and |
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prevention district is approved, the municipality is responsible |
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for distributing to the district that portion of the municipal |
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sales and use tax revenue received from the comptroller that is to |
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be used for the purposes of financing the crime control and |
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prevention district. Not later than the 10th day after the date the |
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municipality receives money under this section from the |
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comptroller, the municipality shall make the distribution in the |
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proportion that the crime control and prevention portion of the tax |
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rate bears to the total sales and use tax rate of the municipality. |
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The amounts distributed to a crime control and prevention district |
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are not considered to be additional municipal sales and use tax |
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revenue for the purpose of property tax reduction and computation |
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of the municipal tax rate under Section 26.041. |
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(g) For purposes of the tax imposed under this section, a |
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reference in this chapter to the municipality as the territory in |
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which the tax or an incident of the tax applies means only the |
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territory located in the crime control and prevention district, if |
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that district is composed of an area less than an entire |
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municipality. |
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(h) The comptroller may adopt rules and the governing body |
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of the municipality may adopt orders to administer this section. |
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SECTION 6. (a) In a crime control and prevention district |
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created by a municipality before the effective date of this Act, an |
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item, transaction, or service that is taxable in the municipality |
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under a sales or use tax authorized by Chapter 321, Tax Code, is |
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taxable under Section 321.108, Tax Code, as added by this Act, for |
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the district, and an item, transaction, or service that is not |
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taxable in the municipality under a sales or use tax authorized by |
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Chapter 321, Tax Code, is not taxable under Section 321.108, Tax |
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Code, as added by this Act, for the district. |
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(b) The comptroller shall implement any change necessary as |
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a result of the change in law made by this Act on or before January |
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1, 2008. |
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SECTION 7. 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, 2007. |
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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. 3417 was passed by the House on May |
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11, 2007, by the following vote: Yeas 131, Nays 3, 2 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 3417 on May 25, 2007, by the following vote: Yeas 132, Nays 0, |
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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. 3417 was passed by the Senate, with |
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amendments, on May 22, 2007, by the following vote: Yeas 31, Nays |
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0. |
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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 |