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AN ACT
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relating to funding for, and benefits provided under, the Teacher |
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Retirement System of Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 825.402, Government Code, is amended to |
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read as follows: |
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Sec. 825.402. RATE OF MEMBER CONTRIBUTIONS. (a) The rate |
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of contributions for each member of the retirement system is: |
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(1) five percent of the member's annual compensation |
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or $180, whichever is less, for service rendered after August 31, |
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1937, and before September 1, 1957; |
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(2) six percent of the first $8,400 of the member's |
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annual compensation for service rendered after August 31, 1957, and |
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before September 1, 1969; |
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(3) six percent of the member's annual compensation |
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for service rendered after August 31, 1969, and before the first day |
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of the 1977-78 school year; |
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(4) 6.65 percent of the member's annual compensation |
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for service rendered after the last day of the period described by |
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Subdivision (3) and before September 1, 1985; and |
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(5) 6.4 percent of the member's annual compensation |
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for service rendered after August 31, 1985, subject to Subsection |
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(b). |
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(b) Subject to Subsection (c), the board of trustees may by |
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order require that the rate of contributions for each member of the |
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retirement system under Subsection (a) is increased to not more |
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than 6.58 percent of the member's annual compensation for service |
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rendered after the date of the order if: |
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(1) the legislature by law requires or authorizes the |
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board of trustees to pay a supplemental payment to specified |
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annuitants; and |
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(2) the board of trustees finds, as of the time the |
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payment is to be made, that after the payment is made the |
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amortization period for the unfunded actuarial liabilities of the |
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retirement system would exceed 30 years by one or more years. |
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(c) Notwithstanding any other law, the board of trustees may |
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not make a supplemental payment required or authorized by the |
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legislature by law, and may not impose an increase in the rate of |
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contributions under Subsection (b), if the board of trustees finds |
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that after making the payment and imposing the increase the |
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amortization period for the unfunded actuarial liabilities of the |
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retirement system would exceed 30 years by one or more years. |
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(d) Notwithstanding any other law, the board of trustees may |
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delay making a supplemental payment required or authorized by the |
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legislature by law as necessary to make the determinations required |
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under Subsections (b) and (c). |
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SECTION 2. Section 825.404, Government Code, is amended by |
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amending Subsection (a) and adding Subsection (a-1) to read as |
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follows: |
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(a) During each fiscal year, the state shall contribute to |
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the retirement system an amount equal to at least six and not more |
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than 10 percent of the aggregate annual compensation of all members |
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of the retirement system during that fiscal year. The amount of the |
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state contribution made under this section may not be less than the |
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amount contributed by members during that fiscal year in accordance |
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with Section 825.402. |
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(a-1) During each fiscal year of the state fiscal biennium |
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beginning September 1, 2007, the state shall contribute to the |
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retirement system an amount equal to 6.58 of the aggregate annual |
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compensation of all members of the retirement system during that |
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fiscal year. This subsection expires September 1, 2009. |
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SECTION 3. Subsection (e), Section 825.4092, Government |
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Code, is amended to read as follows: |
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(e) The amounts required to be paid under Subsections (b) |
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and (c) are not required to be paid by a reporting employer for a |
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retiree who retired from [was reported under] the retirement system |
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[rules in effect for the report month of January 2005 by:
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[(1) that reporting employer; or
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[(2)
another employer, if both employers are school
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districts that consolidated into a consolidated school district on
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or] before September 1, 2005. |
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SECTION 4. Subsection (b), Section 1575.204, Insurance |
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Code, is amended to read as follows: |
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(b) Each state fiscal year, each employer who reports to the |
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retirement system under Section 824.6022, Government Code, the |
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employment of a retiree who is enrolled in the group program shall |
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contribute to the fund the difference, if any, between the |
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contribution amount that the reported retiree is required to pay |
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for the retiree and any enrolled dependents to participate in the |
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group program and the full cost of the retiree's and enrolled |
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dependents' participation in the group program, as determined by |
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the trustee. The amounts required to be paid under this subsection |
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are not required to be paid by a reporting employer for a retiree |
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who retired from the [was reported by that employer under] |
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retirement system before September 1, [rules in effect for the
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report month of January] 2005. |
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SECTION 5. (a) The Teacher Retirement System of Texas |
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shall make a one-time supplemental payment of a retirement or death |
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benefit, as provided by this section. |
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(b) The supplemental payment is payable not later than |
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September 2007 and, to the extent practicable, on a date or dates |
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that coincide with the regular annuity payment payable to each |
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eligible annuitant. |
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(c) The amount of the supplemental payment is equal to the |
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lesser of: |
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(1) the gross amount of the regular annuity payment to |
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which the eligible annuitant is otherwise entitled for the month of |
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August 2007; or |
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(2) $2,400. |
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(d) The supplemental payment is payable without regard to |
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any forfeiture of benefits under Section 824.601, Government Code. |
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The Teacher Retirement System of Texas shall make applicable tax |
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withholding and other legally required deductions before |
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disbursing the supplemental payment. A supplemental payment under |
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this section is in addition to and not in lieu of the regular |
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monthly annuity payment to which the eligible annuitant is |
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otherwise entitled. |
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(e) Subject to Subsection (f) of this section, to be |
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eligible for the supplemental payment, a person must be, for the |
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month of August 2007, and disregarding any forfeiture of benefits |
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under Section 824.601, Government Code, an annuitant eligible to |
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receive: |
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(1) a standard retirement annuity payment; |
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(2) an optional retirement annuity payment as either a |
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retiree or beneficiary; |
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(3) a life annuity payment under Subdivision (4), |
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Subsection (a), Section 824.402, Government Code; |
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(4) an annuity for a guaranteed period of 60 months |
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under Subdivision (3), Subsection (a), Section 824.402, Government |
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Code; or |
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(5) an alternate payee annuity payment under Section |
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804.005, Government Code. |
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(f) If the annuitant is a retiree or a beneficiary under an |
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optional retirement payment plan, to be eligible for the |
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supplemental payment, the effective date of the retirement of the |
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member of the Teacher Retirement System of Texas must have been on |
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or before December 31, 2006. If the annuitant is a beneficiary |
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under Subdivision (3) or (4), Subsection (a), Section 824.402, |
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Government Code, to be eligible for the supplemental payment, the |
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date of death of the member of the retirement system must have been |
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on or before December 31, 2006. The supplemental payment shall be |
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made to an alternate payee who is an annuitant under Section |
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804.005, Government Code, only if the annuity payment to the |
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alternate payee commenced on or before December 31, 2006. The |
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supplemental payment is in addition to the guaranteed number of |
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payments under Subdivision (3), Subsection (a), Section 824.402, |
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Government Code, Subdivision (3) or (4), Subsection (c), Section |
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824.204, Government Code, or Subdivision (3) or (4), Subsection |
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(c), Section 824.308, Government Code, and may not be counted as one |
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of the guaranteed monthly payments. |
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(g) The supplemental payment does not apply to payments |
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under: |
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(1) Subsection (a), Section 824.304, Government Code, |
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relating to disability retirees with less than 10 years of service |
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credit; |
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(2) Subsection (b), Section 824.804, Government Code, |
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relating to participants in the deferred retirement option plan |
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with regard to payments from their deferred retirement option plan |
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accounts; |
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(3) Subsection (a), Section 824.501, Government Code, |
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relating to retiree survivor beneficiaries who receive a survivor |
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annuity in an amount fixed by statute; or |
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(4) Subsection (a), Section 824.404, Government Code, |
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relating to active member survivor beneficiaries who receive a |
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survivor annuity in an amount fixed by statute. |
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(h) Except as provided by this section, the board of |
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trustees of the Teacher Retirement System of Texas shall determine |
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the eligibility for and the amount and timing of a supplemental |
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payment and the manner in which the payment is made. |
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SECTION 6. Subsection (a), Section 825.404, Government |
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Code, as amended by this Act, applies beginning with the fiscal year |
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that begins September 1, 2007. |
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SECTION 7. Section 825.4092, Government Code, as amended by |
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this Act, applies only to an employer contribution required to be |
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made under that section on or after September 1, 2007. An employer |
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contribution required to be made before September 1, 2007, is |
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governed by the law as it existed at the time the contribution was |
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required to be made, and that law is continued in effect for that |
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purpose. |
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SECTION 8. This 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 hereby certify that S.B. No. 1846 passed the Senate on |
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May 2, 2007, by the following vote: Yeas 22, Nays 8; |
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May 24, 2007, Senate refused to concur in House amendments and |
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requested appointment of Conference Committee; May 26, 2007, House |
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granted request of the Senate; May 27, 2007, Senate adopted |
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Conference Committee Report by the following vote: Yeas 29, |
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Nays 1. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1846 passed the House, with |
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amendments, on May 23, 2007, by the following vote: Yeas 146, |
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Nays 0, one present not voting; May 26, 2007, House granted request |
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of the Senate for appointment of Conference Committee; |
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May 27, 2007, House adopted Conference Committee Report by the |
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following vote: Yeas 147, Nays 0, two present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |