S.B. No. 1056
 
 
 
 
AN ACT
  relating to conversion of a reciprocal or interinsurance exchange
  to a stock company through creation of a mutual holding company.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle B, Title 6, Insurance Code, is amended
  by adding Chapter 829 to read as follows:
  CHAPTER 829.  CONVERSION OF RECIPROCAL OR INTERINSURANCE EXCHANGE
  TO STOCK COMPANY THROUGH CREATION OF A MUTUAL HOLDING COMPANY
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 829.001.  DEFINITIONS. In this chapter:
               (1)  "Attorney in fact" has the meaning assigned by
  Section 942.001.
               (2)  "Board of directors" means, as to an exchange, the
  board of directors, board of trustees, subscriber advisory
  committee, or other governing body appointed or elected by the
  subscribers of an exchange.
               (3)  "Conversion plan" means a plan adopted under this
  chapter to convert an exchange to a stock insurance company and form
  a mutual holding company to hold, directly or indirectly, shares of
  the resulting company.
               (4)  "Converting exchange" means an exchange that is
  converting to a stock insurance company under this chapter.
               (5)  "Eligible member" means a member of a converting
  exchange whose policy is in force on the date that the converting
  exchange's board of directors adopts a conversion plan.
               (6)  "Effective date" means the effective date of a
  conversion plan in accordance with Section 829.108.
               (7)  "Exchange" has the meaning assigned by Section
  942.001.
               (8)  "Intermediate holding company" means a holding
  company organized under the laws of this or another state that:
                     (A)  is a subsidiary of a mutual holding company
  formed to reorganize an exchange; and
                     (B)  directly or through a subsidiary
  intermediate holding company, owns at least a majority of the
  voting shares of the capital stock of the resulting company.
               (9)  "Member" means, as to an exchange, a subscriber of
  an exchange.
               (10)  "Mutual holding company" means a holding company
  based on a mutual plan and formed in connection with the conversion
  of an exchange to a stock insurance company under this chapter.
               (11)  "Participating policy" means a policy issued by
  an exchange that grants the policyholder the right to receive
  policy dividends if declared by the exchange.
               (12)  "Resulting company" means a stock insurance
  company resulting from the conversion of an exchange under this
  chapter.
               (13)  "Subscriber" has the meaning assigned by Section
  942.001.
         Sec. 829.002.  AUTHORITY TO CONVERT THROUGH CREATION OF A
  MUTUAL HOLDING COMPANY.  (a)  An exchange may reorganize by
  converting to a stock insurance company and forming a mutual
  holding company to hold, directly or indirectly, shares of the
  resulting company or intermediate holding company in accordance
  with this chapter.
         (b)  A converting exchange may not engage in the business of
  insurance as a stock insurance company until it complies with the
  requirements of this chapter.
         Sec. 829.003.  RIGHTS AND PRIVILEGES OF RESULTING COMPANY;
  LAWS APPLICABLE.  Except as provided by this chapter, the resulting
  company:
               (1)  may exercise only the rights and privileges of a
  stock insurance company; and
               (2)  is subject to:
                     (A)  all of the requirements and rules imposed on
  stock insurance companies organized under this code; and
                     (B)  the laws of this state relating to the
  regulation or supervision of insurance companies.
         Sec. 829.004.  MUTUAL HOLDING COMPANY; LAWS APPLICABLE.  
  (a)  Except as provided by this chapter, a mutual holding company
  is considered an insurer subject to this chapter and Chapter 883.
         (b)  The commissioner has jurisdiction over a mutual holding
  company organized under this chapter to ensure that member
  interests are protected.
         (c)  The mutual holding company is automatically a party to a
  delinquency proceeding under Subtitle C, Title 4, involving an
  insurance company that, as a result of a reorganization under this
  chapter, is a direct or indirect subsidiary of the mutual holding
  company. In any proceeding described by this subsection involving
  the resulting company, the assets of the mutual holding company are
  considered assets of the resulting company for purposes of
  satisfying the claims of the resulting company's policyholders.
         (d)  A mutual holding company that results from a
  reorganization of an exchange must be organized under Sections
  883.051, 883.052, 883.054, and 883.056. The articles of
  incorporation of the mutual holding company, and any amendments to
  those articles, are subject to approval of the commissioner in the
  same manner as those of a mutual insurance company.
         (e)  The mutual holding company may not dissolve or liquidate
  without the approval of the commissioner.
         (f)  A mutual holding company formed under a conversion plan
  is not subject to:
               (1)  Article 2.11B, Texas Non-Profit Corporation Act
  (Article 1396-2.11B, Vernon's Texas Civil Statutes);
               (2)  Section B, Article 2.23, Texas Non-Profit
  Corporation Act (Article 1396-2.23, Vernon's Texas Civil
  Statutes);
               (3)  Section C, Article 2.23A, Texas Non-Profit
  Corporation Act (Article 1396-2.23A, Vernon's Texas Civil
  Statutes); or
               (4)  Sections 22.158, 22.351, and 22.353(b), Business
  Organizations Code.
         Sec. 829.005.  CONFLICT OF INTEREST.  (a)  Except as
  provided by a conversion plan approved by the commissioner or by
  this section, the following individuals may not receive a fee,
  commission, stock distribution, stock subscription rights, or
  other consideration, other than that individual's usual salary or
  compensation for aiding, promoting, assisting, or participating in
  a conversion under this chapter:
               (1)  a director, officer, agent, or employee of a
  converting exchange or the exchange's attorney in fact; or
               (2)  the attorney in fact if the attorney in fact is an
  individual.
         (b)  Subsection (a) does not apply to consideration received
  in the individual's capacity as a member.
         (c)  This section does not prohibit the payment of reasonable
  fees and compensation to an attorney, accountant, or actuary for
  professional services performed by that person, without regard to
  whether the person is also a director or officer of the converting
  exchange or its attorney in fact.
         Sec. 829.006.  LIMITATION ON ACTIONS.  (a)  Except as
  provided by Subsection (b), an action challenging the validity of
  or arising out of acts taken or proposed to be taken regarding a
  conversion plan under this chapter must be commenced not later than
  the 30th day after the date the conversion plan is approved by the
  commissioner.
         (b)  An action challenging the validity of or arising out of
  acts taken or proposed to be taken regarding a conversion plan that
  contemplates a public offering of debt or equity registered under
  the federal Securities Act of 1933 (15 U.S.C. Section 77a et seq.),
  or a similar law of a foreign jurisdiction, must be commenced not
  later than the 60th day after the date the conversion plan is
  approved by the commissioner.
         Sec. 829.007.  SALE OF SECURITIES.  (a)  A sale, issuance,
  or offering of securities under this chapter is exempt from the
  registration and licensing provisions of The Securities Act
  (Article 581-1 et seq., Vernon's Texas Civil Statutes).
         (b)  An officer, director, or employee of an exchange, an
  intermediate holding company, a mutual holding company, or a
  resulting company who participates in a conversion under this
  chapter is exempt from the registration and licensing provisions of
  The Securities Act (Article 581-1 et seq., Vernon's Texas Civil
  Statutes).  A person may not receive compensation, other than that
  person's usual salary or compensation, for services performed under
  the exemption provided by this subsection.
  [Sections 829.008-829.050 reserved for expansion]
  SUBCHAPTER B.  MUTUAL HOLDING COMPANY STRUCTURE
         Sec. 829.051.  CAPITAL STOCK HELD BY MUTUAL HOLDING COMPANY.  
  (a)  In this section, "majority of the voting shares of the capital
  stock" means shares of the capital stock of a company that carry the
  right to cast a majority of the votes entitled to be cast by all of
  the outstanding shares of the capital stock of the company on all
  matters submitted to a vote of the shareholders of the company.
         (b)  All of the initial shares of the capital stock of the
  resulting company shall be issued to the mutual holding company or
  to an intermediate holding company.
         (c)  The mutual holding company shall at all times own a
  majority of the voting shares of the capital stock of the resulting
  company or of an intermediate holding company. The requirements of
  this subsection may be satisfied by indirect ownership through one
  or more intermediate holding companies in a corporate structure
  approved by the commissioner.
         (d)  Except with the consent of the commissioner, the mutual
  holding company or intermediate holding company may not convey,
  transfer, assign, pledge, subject to a security interest or lien,
  encumber, or otherwise hypothecate or alienate the majority of the
  voting shares of the capital stock that is required to be owned
  under Subsection (c).
         (e)  An act of the mutual holding company or intermediate
  holding company that violates Subsection (d) is void in inverse
  chronological order from the date of the conveyance or activity as
  to the shares necessary to constitute a majority of the voting
  shares of the capital stock.
         (f)  The remaining minority portion of the voting shares of
  capital stock of the resulting company, or of an intermediate
  holding company, may not be assigned, transferred, or pledged to
  any officer, director or employee of the converting exchange, or
  persons acting in concert with such persons, without also offering
  a similar opportunity to participate to all eligible members as
  required by Section 829.053(g).
         Sec. 829.052.  LIMITATION ON ACQUISITION OF CAPITAL STOCK.  
  (a)  The conversion plan must provide that a person or group of
  persons acting in concert, other than the mutual holding company or
  an intermediate holding company, may not acquire, in a public or
  private offering or through an exercise of stock subscription
  rights, more than 10 percent of the capital stock of the resulting
  company unless the acquisition of the stock or stock subscription
  rights is approved in advance by the commissioner.
         (b)  Subsection (a) does not apply to an entity that
  purchases and retains at all times a majority of the voting shares
  of the capital stock of the resulting company as part of the
  conversion plan approved by the commissioner.
         Sec. 829.053.  DIRECTORS AND OFFICERS. (a)  Except as
  otherwise provided by this section, the conversion plan must
  provide that a director or officer of the converting exchange, or a
  person acting in concert with the director or officer, may not
  acquire, without the permission of the commissioner, any shares of
  the capital stock of the resulting company, or the shares of the
  capital stock of another corporation that is participating in the
  conversion plan, before the third anniversary of the effective date
  of the conversion.  This subsection does not prohibit the director
  or officer from:
               (1)  acquiring capital stock through a broker-dealer;
               (2)  making purchases through the exercise of stock
  subscription rights received under the conversion plan; or
               (3)  participating in a stock benefit plan permitted by
  Section 829.054 or approved by the eligible members under Section
  829.107.
         (b)  A conversion plan may provide that the directors and
  officers of the converting exchange may receive, without payment,
  nontransferable subscription rights to purchase shares of the
  capital stock of the resulting company or the shares of the capital
  stock of another corporation that is participating in the
  conversion plan.
         (c)  The aggregate number of shares that may be purchased by
  directors and officers under Subsection (b) may not exceed:
               (1)  35 percent of the total number of shares to be
  issued for the resulting company if the total assets of the
  converting exchange are less than $50 million;
               (2)  25 percent of the total number of shares to be
  issued for the resulting company if the total assets of the
  converting exchange are more than $500 million;
               (3)  five percent of the total number of shares to be
  issued for the resulting company if the total assets of the
  converting exchange are more than $1 billion; or
               (4)  one percent of the total number of shares to be
  issued for the resulting company if the total assets of the
  converting exchange are more than $10 billion.
         (d)  For a converting exchange with total assets between $50
  million and $500 million, inclusive, the maximum percentage of the
  total number of shares that may be purchased shall be interpolated
  from amounts provided under Subsection (c).
         (e)  A conversion plan must provide that a director or
  officer of the converting exchange may not sell stock purchased
  under the conversion plan before the first anniversary of the
  effective date of the conversion.
         (f)  Notwithstanding Subsection (e), a conversion plan may
  provide for the purchase or redemption of stock in the event that a
  director or officer no longer serves as a director or officer of, or
  no longer is associated with, the resulting company during the
  period described by Subsection (e).
         (g)  If, as part of the conversion, any director or officer
  of the converting exchange, the mutual holding company, or an
  intermediate holding company receives more than one percent of the
  shares of the capital stock of the resulting company, or other
  valuable consideration, which is paid from the surplus of the
  converting exchange, each eligible member also is entitled to
  receive an amount of the converting exchange's surplus on hand on
  the effective date of the conversion computed in the same manner as
  the amount received by the director or officer, or as otherwise
  provided in the conversion plan approved by the commissioner.
         Sec. 829.054.  SUBSCRIPTION RIGHTS; TAX-QUALIFIED EMPLOYEE
  BENEFIT PLAN.  The conversion plan may allocate to a tax-qualified
  employee benefit plan nontransferable subscription rights to
  purchase not more than 10 percent of the capital stock of the
  resulting company.
  [Sections 829.055-829.100 reserved for expansion]
  SUBCHAPTER C.  PLAN ADOPTION AND APPROVAL
         Sec. 829.101.  PLAN ADOPTION.  (a)  To convert under this
  chapter an exchange must adopt a conversion plan consistent with
  this chapter by the affirmative vote of at least two-thirds of the
  members of its board of directors or, if the exchange does not have
  a board of directors, by approval of the attorney in fact. The
  proposed articles of incorporation of the resulting company and the
  mutual holding company must be exhibits to the conversion plan.
         (b)  For a conversion plan to take effect:
               (1)  the commissioner must approve the conversion plan;
  and
               (2)  the eligible members must approve the conversion
  plan and adopt the articles of incorporation of the resulting
  company and the mutual holding company.
         Sec. 829.102.  AMENDMENTS; WITHDRAWAL OF PLAN.  Before a
  conversion plan takes effect, a converting exchange may amend or
  withdraw the plan by the affirmative vote of at least two-thirds of
  the members of its board of directors or, if the exchange does not
  have a board of directors, by approval of the attorney in fact. The
  written consent of the commissioner is required for any amendment
  to a conversion plan adopted after the commissioner has approved
  the plan under Section 829.106.
         Sec. 829.103.  FILING OF PLAN AND RELATED DOCUMENTS WITH
  COMMISSIONER; COMMISSIONER'S POWERS AND DUTIES.  (a)  Not later
  than the 90th day after the date on which a converting exchange's
  board of directors adopts a conversion plan, the converting
  exchange shall file with the commissioner:
               (1)  a copy of the conversion plan;
               (2)  the form of notices required by Section 829.104;
               (3)  the form of proxy to be solicited from eligible
  members under Section 829.107(a);
               (4)  the form of notice required by Section 829.153 to
  persons whose policies are issued after adoption of the conversion
  plan but before the effective date of the conversion plan; and
               (5)  the proposed articles of incorporation of the
  resulting company and the mutual holding company.
         (b)  The converting exchange shall promptly provide any
  other information requested by the commissioner that the
  commissioner considers necessary to consider the conversion plan.
         Sec. 829.104.  NOTICE TO ELIGIBLE MEMBERS; COMMENTS.  
  (a)  The converting exchange shall give eligible members at least
  30 days' written notice of the members' meeting to vote on the
  conversion plan and advising of the members' right to comment on the
  plan to the commissioner and the converting exchange, including a
  description of the procedure to be used in making comments. Notice
  to the members of the proposed vote on the conversion plan must
  provide clear and conspicuous language apart from other meeting
  materials and provide a disclosure statement of the distribution of
  surplus or stock to directors and officers of the converting
  exchange, if any.
         (b)  If the commissioner determines to hold a hearing on the
  plan, the commissioner must approve the notice of hearing and
  notify the converting exchange not later than the 45th day
  following the first day on which all the documents required under
  Section 829.103 are filed with the commissioner.  The converting
  exchange shall send to eligible members the commissioner's notice
  of the hearing at least 30 days before the date set for the hearing.
  The commissioner must approve the content and print layout of the
  hearing notice before the converting exchange sends notice of the
  hearing to eligible members. Notice of the hearing may be made
  through publication in the Texas Register.
         (c)  The notices required by Subsections (a) and (b) may be
  combined in a single mailing. The notice or notices must be sent to
  the member's last known address, as shown on the converting
  exchange's records. The notice of the members' meeting must:
               (1)  describe the proposed conversion plan; and
               (2)  inform the member of the member's right to vote on
  the conversion plan.
         (d)  If the notice of the meeting to vote on the conversion
  plan is combined with a notice of the converting exchange's annual
  meeting of members, the notice of the proposed vote on the
  conversion plan must be clear and conspicuous and set apart from
  other meeting materials.  A notice that is approved in advance by
  the commissioner is deemed to be in full compliance with the
  requirements of this subsection.
         Sec. 829.105.  SUBSTANTIAL COMPLIANCE WITH NOTICE
  REQUIREMENTS.  If the converting exchange in good faith
  substantially complies with the notice requirements of this
  chapter, the converting exchange's failure to send a member the
  required notice does not impair the validity of an action taken
  under this chapter.
         Sec. 829.106.  APPROVAL OF PLAN BY COMMISSIONER.  (a)  The
  commissioner shall approve a conversion plan if the commissioner
  determines that:
               (1)  the plan complies with this chapter;
               (2)  the plan's method of allocating stock subscription
  rights, stock transfers, or other value, if any, is fair and
  equitable; and
               (3)  the resulting company would satisfy the
  requirements applicable to a domestic stock insurance company for a
  certificate of authority on the date of the determination.
         (b)  Except as otherwise provided by this section, the
  commissioner shall approve or disapprove a conversion plan not
  later than the 90th day after the first day on which all the
  documents required under Section 829.103 are filed with the
  commissioner.
         (c)  The commissioner may extend the time for decision by an
  additional 30 days on written notice to the converting exchange.  
  Except as provided under Subsection (e) or (f), the commissioner
  may not extend the time for decision beyond that 30-day period.
         (d)  The commissioner shall immediately give written notice
  to the converting exchange of the commissioner's decision and, if
  the commissioner disapproves the plan, a detailed statement of the
  reasons for the disapproval.
         (e)  The commissioner may retain, at the converting
  exchange's expense, a qualified expert who is not a member of the
  commissioner's staff to assist the commissioner in reviewing
  whether the conversion plan meets the requirements for approval by
  the commissioner or the value of the distribution of surplus of the
  resulting company to the officers and directors of the converting
  exchange, if any.  If the commissioner retains a qualified expert
  under this subsection, the commissioner may extend the period for
  decision by an additional 90 days beyond the initial 90-day period
  specified in Subsection (b).
         (f)  If the conversion plan contemplates a public offering of
  debt or equity registered under the federal Securities Act of 1933
  (15 U.S.C. Section 77a et seq.), or a similar law of a foreign
  jurisdiction, the commissioner may extend the period of time to
  approve the conversion plan by an additional 180 days beyond the
  initial 90-day period specified in Subsection (b).
         (g)  After giving written notice to the converting exchange,
  the commissioner may hold a hearing on whether the conversion plan
  complies with this chapter. The converting exchange has the right
  to appear at the hearing. Other interested persons have the right
  to attend the hearing and comment on the conversion plan. Notice of
  the hearing may be made through publication in the Texas Register in
  accordance with Section 829.104(b).
         Sec. 829.107.  APPROVAL OF PLAN BY ELIGIBLE MEMBERS.  
  (a)  After notice that complies with this chapter, the converting
  exchange may convene a meeting to consider the conversion plan, and
  any eligible member entitled to vote on the proposed conversion
  plan may vote in person or by proxy at the meeting. Except as
  otherwise provided in the bylaws of the converting exchange, each
  eligible member may cast one vote.
         (b)  Adoption of the conversion plan requires the
  affirmative vote of at least two-thirds of the votes cast by
  eligible members.
         Sec. 829.108.  FILING OF MINUTES, ARTICLES OF INCORPORATION,
  AND BYLAWS; EFFECTIVE DATE OF CONVERSION.  (a)  The converting
  exchange shall file with the commissioner:
               (1)  the minutes of the meeting at which the plan was
  approved; and
               (2)  the articles of incorporation and bylaws of the
  resulting company and the mutual holding company.
         (b)  The converting exchange shall make the filing required
  by Subsection (a) not later than the 30th day after the later of:
               (1)  the date on which the eligible members approve the
  conversion plan; or
               (2)  the date on which the commissioner approves the
  conversion plan.
         (c)  The conversion plan approved by the commissioner takes
  effect on the date specified in the articles of incorporation of the
  resulting company and the mutual holding company.
  [Sections 829.109-829.150 reserved for expansion]
  SUBCHAPTER D. EFFECT OF PLAN; RIGHTS OF MEMBERS
         Sec. 829.151.  CORPORATE EXISTENCE.  (a)  On the effective
  date:
               (1)  the legal existence of the converting exchange
  continues in the resulting company;
               (2)  all assets, rights, franchises, and interests of
  the converting exchange in and to property and any accompanying
  thing in action are vested in the resulting company without a deed
  or transfer;
               (3)  the resulting company assumes all the obligations
  and liabilities of the converting exchange; and
               (4)  the power of attorney or other appropriate
  authorization granting the attorney in fact the authority to act
  for the subscribers of the converting exchange is terminated.
         (b)  Except as otherwise specified by the conversion plan:
               (1)  the directors and officers of the converting
  exchange serving on the effective date serve as directors and
  officers of the resulting company until new directors and officers
  are elected under the articles of incorporation and bylaws of the
  resulting company; and
               (2)  the directors of the converting exchange serving
  on the effective date serve as directors of the mutual holding
  company until new directors are elected under the articles of
  incorporation and bylaws of the mutual holding company.
         Sec. 829.152.  MEMBERSHIP INTERESTS.  (a)  The membership
  interests of the policyholders of the resulting company become
  membership interests in the mutual holding company. Members of the
  converting exchange become members of the mutual holding company in
  accordance with the articles of incorporation and bylaws of the
  mutual holding company.
         (b)  A membership interest in a mutual holding company does
  not constitute a security as defined by Section 4, The Securities
  Act (Article 581-4, Vernon's Texas Civil Statutes).
         Sec. 829.153.  RIGHTS OF MEMBERS WHOSE POLICIES ARE ISSUED
  AFTER ADOPTION OF CONVERSION PLAN BUT BEFORE EFFECTIVE DATE.
  (a)  On issuance of a policy after a conversion plan has been
  adopted by the board of directors but before the effective date of
  the conversion plan, the converting exchange shall send to each
  member to whom a policy is issued a written notice regarding the
  conversion plan.
         (b)  Except as provided by Subsection (c), each member
  insured under a property or casualty insurance policy is entitled
  to notice under Subsection (a) and shall be advised in a clear and
  conspicuous manner of the member's right to:
               (1)  cancel the policy; and
               (2)  receive a pro rata refund of unearned premiums.
         (c)  A member who has made or filed a claim under the
  insurance policy is not entitled to a refund under Subsection (b).
  A member who has exercised a right provided by Subsection (b) may
  not make or file a claim under the insurance policy.
         Sec. 829.154.  EFFECT OF CONVERSION ON POLICIES; SUBSCRIBER
  ACCOUNTS.  (a)  Each policy in effect on the effective date remains
  in effect under the terms of that policy, except that the following
  rights, to the extent they existed in the converting exchange in
  favor of policyholders or members, are extinguished on the
  effective date:
               (1)  any membership and voting rights;
               (2)  except as provided by Subsection (b) or in the
  conversion plan approved by the commissioner, a right to share in
  the surplus or profits of the converting exchange; and
               (3)  any assessment provisions.
         (b)  The holder of a participating policy in effect on the
  effective date of the conversion continues to have a right to
  receive dividends as provided by the participating policy.
         (c)  On the renewal date of a participating policy, the
  resulting company may issue to the insured a nonparticipating
  policy as a substitute for the participating policy.
         (d)  All the costs and expenses connected with a conversion
  plan shall be paid or reimbursed by the converting exchange or the
  resulting company.
         (e)  If a converting exchange maintains subscriber accounts
  as surplus, the subscriber accounts shall continue as surplus in
  the resulting company, unless otherwise provided in a conversion
  plan approved by the commissioner. Subject to Subsection (f), the
  balances of the subscriber accounts are payable to the members to
  the extent and in the manner as is provided in the conversion plan.
         (f)  The board of directors of the resulting company may
  reduce the balances of the subscriber accounts without payment to
  members of the mutual holding company who were members of the
  converting exchange if the board of directors of the resulting
  company determines in the board's discretion that the amounts are
  necessary to support the operations of the resulting company.  The
  board of directors of the resulting company may not, without the
  approval of the commissioner, reduce the balance of a subscriber
  account under this subsection before the third anniversary of the
  effective date.
         SECTION 2.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2007.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1056 passed the Senate on
  May 1, 2007, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1056 passed the House on
  May 17, 2007, by the following vote:  Yeas 143, Nays 0, two
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor