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A BILL TO BE ENTITLED
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AN ACT
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relating to programs in public schools designed to facilitate |
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planning and saving for higher education and facilitate personal |
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financial literacy instruction. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 28, Education Code, is |
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amended by adding Section 28.0024 to read as follows: |
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Sec. 28.0024. SCHOOL-BASED SAVINGS PROGRAM. (a) A school |
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district or open-enrollment charter school may establish a |
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school-based savings program to facilitate increased awareness of |
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the importance of saving for higher education and facilitate |
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personal financial literacy instruction. A district or school may |
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offer the program in conjunction with a personal financial literacy |
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course under Section 28.0021. |
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(b) A school-based savings program may, through |
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partnerships with appropriate institutions, promote: |
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(1) general savings, by offering savings accounts or |
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certificates of deposit through partner financial institutions; or |
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(2) savings dedicated for higher education, by |
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offering through partner institutions the following accounts or |
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bonds the primary purpose of which must be to pay expenses |
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associated with higher education: |
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(A) an account authorized under Section 529, |
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Internal Revenue Code of 1986; |
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(B) a Coverdell education savings account |
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established under 26 U.S.C. Section 530; |
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(C) a certificate of deposit; |
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(D) a savings account; and |
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(E) a Series I savings bond. |
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(c) A district or school establishing a program under this |
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section: |
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(1) shall seek to establish partnerships with |
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appropriate institutions that are able to offer an account or bond |
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under Subsection (b); and |
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(2) may seek to establish partnerships with public |
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sector partners, private businesses, nonprofit organizations, and |
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philanthropic organizations in the community. |
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(d) A partnership established under Subsection (c) between |
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a district or school and: |
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(1) an appropriate institution may allow a student in |
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the program or the student and an adult in the student's family |
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jointly to have an opportunity to establish an account or purchase a |
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bond under Subsection (b); and |
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(2) an appropriate institution, public sector |
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partner, private business, or nonprofit or philanthropic |
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organization may provide: |
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(A) a structure for the management of the |
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program; and |
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(B) incentives that encourage contribution to a |
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school-based account or purchase of a bond under Subsection (b), |
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including incentives that provide matching funds or seed funding. |
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SECTION 2. Section 56.007, Education Code, is amended to |
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read as follows: |
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Sec. 56.007. EXCLUSION OF ASSETS IN PREPAID TUITION |
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PROGRAMS AND HIGHER EDUCATION SAVINGS PLANS. (a) Notwithstanding |
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any other law, the right of a person to assets held in or the right |
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to receive payments or benefits under any fund or plan established |
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under Subchapter G, H, or I, Chapter 54, including an interest in a |
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savings trust account, prepaid tuition account, or related matching |
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account, or any school-based account or bond described by Section |
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28.0024(b)(2), may not be considered an asset of the person, or |
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otherwise included in the person's household income or other |
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financial resources, for purposes of determining the person's |
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eligibility for a TEXAS grant or any other state-funded student |
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financial assistance. |
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(b) The amount of exclusion under Subsection (a) of assets |
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held in or the right to receive payments or benefits under a |
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school-based account or bond described by Section 28.0024(b)(2), |
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except a fund or plan established under Subchapter G, H, or I, |
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Chapter 54, as a school-based account, is limited to the amount of |
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the cost of undergraduate resident tuition and required fees for |
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one academic year consisting of 30 semester credit hours charged by |
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the general academic teaching institution with the highest such |
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tuition and fee costs for the most recent academic year, as |
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determined by the Texas Higher Education Coordinating Board under |
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Section 54.753. |
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SECTION 3. Section 31.0039, Human Resources Code, as |
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amended by S.B. No. 219, Acts of the 84th Legislature, Regular |
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Session, 2015, is amended to read as follows: |
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Sec. 31.0039. EXCLUSION OF ASSETS IN PREPAID TUITION |
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PROGRAMS AND HIGHER EDUCATION SAVINGS PLANS. (a) For purposes of |
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determining the amount of financial assistance granted to an |
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individual under this chapter for the support of dependent children |
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or determining whether the family meets household income and |
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resource requirements for financial assistance under this chapter, |
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the commission may not consider the right to assets held in or the |
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right to receive payments or benefits under: |
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(1) any fund or plan established under Subchapter G, |
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H, or I, Chapter 54, Education Code, including an interest in a |
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savings trust account, prepaid tuition contract, or related |
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matching account; [or] |
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(2) any qualified tuition program of any state that |
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meets the requirements of Section 529, Internal Revenue Code of |
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1986; or |
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(3) any school-based account or bond described by |
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Section 28.0024(b)(2), Education Code. |
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(b) The amount of exclusion under Subsection (a)(3) of |
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assets held in or the right to receive payments or benefits under a |
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school-based account or bond described by Section |
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28.0024(b)(2)(C), (D), or (E), Education Code, is limited to the |
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amount of the cost of undergraduate resident tuition and required |
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fees for one academic year consisting of 30 semester credit hours |
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charged by the general academic teaching institution with the |
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highest such tuition and fee costs for the most recent academic |
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year, as determined by the Texas Higher Education Coordinating |
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Board under Section 54.753, Education Code. |
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SECTION 4. Section 32.02611, Human Resources Code, as |
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amended by S.B. No. 219, Acts of the 84th Legislature, Regular |
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Session, 2015, is amended to read as follows: |
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Sec. 32.02611. EXCLUSION OF ASSETS IN PREPAID TUITION |
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PROGRAMS AND HIGHER EDUCATION SAVINGS PLANS. (a) Except as |
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provided by Subsection (b), in determining eligibility and need for |
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medical assistance, the commission may not consider as assets or |
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resources, to the extent applicable under federal law, a right to |
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assets held in or a right to receive payments or benefits under: |
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(1) any fund or plan established under Subchapter G, |
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H, or I, Chapter 54, Education Code, including an interest in a |
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savings trust account, prepaid tuition contract, or related |
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matching account; [or] |
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(2) any qualified tuition program of any state that |
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meets the requirements of Section 529, Internal Revenue Code of |
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1986; or |
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(3) any school-based account or bond described by |
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Section 28.0024(b)(2), Education Code. |
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(a-1) The amount of exclusion under Subsection (a)(3) of |
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assets held in or the right to receive payments or benefits under a |
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school-based account or bond described by Section |
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28.0024(b)(2)(C), (D), or (E), Education Code, is limited to the |
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amount of the cost of undergraduate resident tuition and required |
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fees for one academic year consisting of 30 semester credit hours |
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charged by the general academic teaching institution with the |
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highest such tuition and fee costs for the most recent academic |
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year, as determined by the Texas Higher Education Coordinating |
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Board under Section 54.753, Education Code. |
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(b) In determining eligibility and need for medical |
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assistance for an applicant who may be eligible on the basis of the |
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applicant's eligibility for medical assistance for the aged, blind, |
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or disabled under 42 U.S.C. Section 1396a(a)(10), the commission |
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may consider as assets or resources, to the extent applicable under |
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federal law, a right to assets held in or a right to receive |
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payments or benefits under any fund, account, bond, plan, or |
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tuition program described by Subsection (a). |
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(c) Notwithstanding Subsection (b), the commission shall |
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seek a federal waiver authorizing the commission to exclude, for |
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purposes of determining the eligibility of an applicant described |
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by that subsection and to the extent included under federal law, the |
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right to assets held in or a right to receive payments or benefits |
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under any fund, account, bond, plan, or tuition program described |
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by Subsection (a) if the fund, account, bond, plan, or tuition |
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program was established before the 21st birthday of the beneficiary |
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of the fund, account, bond, plan, or tuition program. |
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SECTION 5. Subchapter A, Chapter 33, Human Resources Code, |
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is amended by adding Section 33.0291 to read as follows: |
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Sec. 33.0291. EXCLUSION OF SCHOOL-BASED ACCOUNTS AND |
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CERTAIN BONDS. (a) For purposes of determining whether a person |
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meets family income and resource requirements for eligibility for |
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the supplemental nutrition assistance program, the commission may |
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not consider as income or resources a right to assets held in or a |
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right to receive payments or benefits under a school-based account |
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or bond described by Section 28.0024(b)(2), Education Code. |
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(b) The amount of exclusion under Subsection (a) of assets |
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held in or the right to receive payments or benefits under a |
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school-based account or bond described by Section |
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28.0024(b)(2)(C), (D), or (E), Education Code, is limited to the |
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amount of the cost of undergraduate resident tuition and required |
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fees for one academic year consisting of 30 semester credit hours |
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charged by the general academic teaching institution with the |
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highest such tuition and fee costs for the most recent academic |
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year, as determined by the Texas Higher Education Coordinating |
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Board under Section 54.753, Education Code. |
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SECTION 6. If before implementing any provision of this Act |
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a state agency determines that a waiver or authorization from a |
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federal agency is necessary for implementation of that provision, |
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the agency affected by the provision shall request the waiver or |
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authorization and may delay implementing that provision until the |
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waiver or authorization is granted. |
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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, 2015. |