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A BILL TO BE ENTITLED
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AN ACT
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relating to shale transportation districts, authorizing the |
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issuance of bonds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle Z, Title 6, Transportation Code, is |
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amended by adding Chapter 473 to read as follows: |
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CHAPTER 473. SHALE TRANSPORTATION DISTRICTS |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 473.001. DEFINITIONS. In this chapter: |
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(1) "Board" means the board of directors of the |
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district. |
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(2) "Commission" means the Texas Transportation |
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Commission. |
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(3) "Department" means the Texas Department of |
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Transportation. |
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(4) "District" means a shale transportation district |
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created under this chapter. |
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Sec. 473.002. EXPIRATION OF AUTHORITY. The commission may |
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not authorize the creation of a district under this chapter on or |
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after September 1, 2023. |
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[Sections 473.003-473.050 reserved for expansion] |
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SUBCHAPTER B. CREATION OF DISTRICT |
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Sec. 473.051. CREATION OF DISTRICT. (a) Two or more |
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counties that contain a portion of a shale formation may form a |
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shale transportation district to plan, coordinate, and provide |
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financial assistance for road projects in the district if: |
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(1) the county or counties submit a comprehensive road |
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construction, maintenance, and improvement plan for the proposed |
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district, including a budget for the plan |
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(2) the commission approves the plan. |
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(b) A district may not be created without the approval of |
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the commission under Subsection (a) and the approval of the |
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commissioners court of each county that will be a part of the |
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district. |
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(c) a plan adopted under this section must ensure local |
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funding mechanisms are used to the extent possible. |
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Sec. 473.052. NATURE OF DISTRICT. (a) A district is a body |
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politic and corporate and a political subdivision of this state. |
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(b) A district is a governmental unit as that term is |
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defined in Section 101.001, Civil Practice and Remedies Code. |
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(c) The exercise by a district of the powers conferred by |
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this chapter is: |
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(1) in all respects for the benefit of the people of |
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the counties in which a district operates and of the people of this |
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state; and |
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(2) an essential governmental function of the state. |
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(d) The operations of a district are governmental, not |
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proprietary, functions. |
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[Sections 473.053-473.100 reserved for expansion] |
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SUBCHAPTER C. GOVERNANCE |
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Sec. 473.101. BOARD OF DIRECTORS. (a) The governing body of |
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a district is a board of directors consisting of: |
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(1) representatives of each county of the district; |
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(2) two members appointed by the governor who has |
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experience with oil and gas industry interests in the district; and |
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(3) one member appointed by the governor to serve as |
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the presiding officer of the board. |
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(b) The commissioners court of each county that forms the |
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district shall appoint at least two directors to the board. |
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Additional directors may be appointed to the board at the time of |
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initial formation by agreement of the counties creating the |
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district to ensure fair representation of political subdivisions in |
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the counties of the district, provided that the number of directors |
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must be an odd number. |
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(c) All appointments to the board shall be made without |
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regard to race, color, disability, sex, religion, age, or national |
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origin. |
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(d) The following individuals are ineligible to serve as a |
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director: |
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(1) an elected official; |
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(2) a person who is not a resident of a county within |
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the geographic area of the district; |
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(3) a department employee; |
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(4) an employee of a governmental entity any part of |
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which is located within the geographic boundaries of the district; |
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and |
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(5) a person owning an interest in real property that |
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will be acquired for a road project in the district, if it is known |
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at the time of the person's proposed appointment that the property |
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will be acquired for the road project. |
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(e) Each director has equal status and may vote. |
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(f) The vote of a majority attending a board meeting is |
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necessary for any action taken by the board. If a vacancy exists on |
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the board, the majority of directors serving on the board is a |
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quorum. |
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(g) The commission may refuse to authorize the creation of a |
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district if the commission determines that the proposed board will |
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not fairly represent political subdivisions in the counties of the |
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district that will be affected by the projects in the comprehensive |
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plan. |
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Sec. 473.102. TERMS. (a) Directors serve two-year terms, |
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with as near as possible to one-half of the directors' terms |
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expiring on February 1 of each year. |
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(b) One director appointed to the initial board of a |
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district by the commissioners court of a county shall be designated |
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by the court to serve a term of one year and one director designated |
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to serve a term of two years. If one or more directors are |
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subsequently appointed to the board, the directors other than the |
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subsequent appointees shall determine the length of the appointees' |
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terms, to comply with Subsection (a). |
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Sec. 473.103. VACANCY. If a vacancy occurs on the board, |
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the appointing authority shall promptly appoint a successor to |
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serve for the unexpired portion of the term. |
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[Sections 473.104-473.150 reserved for expansion] |
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SUBCHAPTER D. POWERS AND DUTIES |
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Sec. 473.151. GENERAL POWERS. (a) A district, through its |
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board, may: |
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(1) adopt rules for the regulation of its affairs and |
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the conduct of its business; |
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(2) adopt an official seal; and |
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(3) apply for and directly or indirectly receive and |
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spend loans, gifts, and grants. |
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(b) A district may sue and be sued and plead and be impleaded |
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in its own name. |
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Sec. 473.152. DISTRICT COMPREHENSIVE ROAD CONSTRUCTION, |
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MAINTENANCE, AND IMPROVEMENT PLAN; CONTRACTS FOR USE OF BOND |
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PROCEEDS. (a) A district may contract with the department or a local |
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government in the district for the use of district money, including |
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bond proceeds under Section 473.153, by the department or local |
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government for construction or improvement of road projects that |
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are part of the comprehensive road construction, maintenance, and |
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improvement plan submitted under Section 473.051. |
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(b) A district, with the approval of the commission, may |
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amend the comprehensive plan, including by adding or removing |
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projects from the plan. |
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(c) Unless otherwise authorized by the commission, all |
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projects proposed in a comprehensive road construction, |
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maintenance, and improvement plan must be proposed to be completed |
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not later than the 10th anniversary of the creation of the district. |
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Sec. 473.153. BONDS SECURED BY SEVERANCE TAX REVENUE. A |
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district, by bond resolution, may authorize the issuance of bonds |
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for which the principal of and interest on are payable solely from: |
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(1) money under Sections 49-g(d) and (e), Article III, |
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Texas Constitution, allocated to the district by the department; |
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and |
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(2) money derived from any other source available to |
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the district. |
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[Sections 473.154-473.200 reserved for expansion] |
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SUBCHAPTER E. DISSOLUTION OF DISTRICT |
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Sec. 473.201. VOLUNTARY DISSOLUTION. (a) A district may |
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not be dissolved unless the dissolution is approved by the |
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commission. |
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(b) A board may submit a request to the commission for |
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approval to dissolve. |
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(c) The commission may approve a request to dissolve only |
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if: |
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(1) all debts, obligations, and liabilities of the |
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district have been paid and discharged or adequate provision has |
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been made for the payment of all debts, obligations, and |
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liabilities; and |
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(2) there are no suits pending against the district, |
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or adequate provision has been made for the satisfaction of any |
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judgment, order, or decree that may be entered against it in any |
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pending suit. |
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Sec. 473.202. INVOLUNTARY DISSOLUTION FOR NONCOMPLIANCE |
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WITH RULE OR AGREEMENT. (a) The commission by order may require a |
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district to dissolve if the commission determines that the district |
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has not substantially complied with the requirements of a |
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commission rule or an agreement between the department and the |
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district. |
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(b) The commission may not require dissolution under |
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Subsection (a) unless: |
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(1) the conditions described in Section 473.201(c) |
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have been met; and |
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(2) the holders of any indebtedness have evidenced |
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their agreement to the dissolution. |
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Sec. 473.203. DISSOLUTION AFTER COMPLETION OF PROJECTS IN |
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PLAN. The commission shall dissolve a district if: |
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(1) all projects in the district's comprehensive road |
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construction, maintenance, and improvement plan have been |
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completed; |
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(2) all debts, obligations, and liabilities of the |
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district have been paid and discharged or adequate provision has |
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been made for the payment of all debts, obligations, and |
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liabilities; and |
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(3) there are no suits pending against the district, |
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or adequate provision has been made for the satisfaction of any |
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judgment, order, or decree that may be entered against it in any |
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pending suit. |
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SECTION 2. SECTION 2. This Act takes effect on the date on |
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which the constitutional amendment proposed by the 83rd |
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Legislature, Regular Session, 2013, to authorize the legislature If |
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that amendment is not approved by the voters, this Act has no |
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effect. |
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SECTION 3. This Act takes effect September 1, 2013. |