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AN ACT
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relating to the regulation of money services businesses; affecting |
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the prosecution of a criminal offense. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 151.003, Finance Code, is amended to |
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read as follows: |
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Sec. 151.003. EXCLUSIONS. The following persons are not |
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required to be licensed under this chapter: |
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(1) the United States or an instrumentality of the |
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United States, including the United States Post Office or a |
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contractor acting on behalf of the United States Post Office; |
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(2) a state or an agency, political subdivision, or |
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other instrumentality of a state; |
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(3) a federally insured financial institution, as that |
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term is defined by Section 201.101, that is organized under the laws |
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of this state, another state, or the United States; |
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(4) a foreign bank branch or agency in the United |
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States established under the federal International Banking Act of |
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1978 (12 U.S.C. Section 3101 et seq.); |
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(5) a person acting as an agent for an entity excluded |
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under Subdivision (3) or (4), to the extent of the person's actions |
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in that capacity, provided that: |
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(A) the entity is liable for satisfying the money |
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services obligation owed to the purchaser on the person's receipt |
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of the purchaser's money; and |
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(B) the entity and person enter into a written |
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contract that appoints the person as the entity's agent and the |
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person acts only within the scope of authority conferred by the |
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contract; |
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(6) a person that, on behalf of the United States or a |
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department, agency, or instrumentality of the United States, or a |
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state or county, city, or any other governmental agency or |
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political subdivision of a state, provides electronic funds |
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transfer services of governmental benefits for a federal, state, |
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county, or local governmental agency; |
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(7) a person that acts as an intermediary on behalf of |
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and at the direction of a license holder in the process by which the |
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license holder, after receiving money or monetary value from a |
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purchaser, either directly or through an authorized delegate, |
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transmits the money or monetary value to the purchaser's designated |
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recipient, provided that the license holder is liable for |
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satisfying the obligation owed to the purchaser; |
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(8) an attorney or title company that in connection |
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with a real property transaction receives and disburses domestic |
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currency or issues an escrow or trust fund check only on behalf of a |
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party to the transaction; |
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(9) a person engaged in the business of currency |
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transportation who is both a registered motor carrier under Chapter |
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643, Transportation Code, and a licensed armored car company or |
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courier company under Chapter 1702, Occupations Code, provided that |
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the person: |
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(A) only transports currency from a person to: |
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(i) the same person at another location; or |
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(ii) a financial institution to be |
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deposited in an account belonging to the same person; and |
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(B) does not otherwise engage in the money |
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transmission or currency exchange business without a license issued |
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under this chapter; and |
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(10) any other person, transaction, or class of |
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persons or transactions exempted by commission rule or any other |
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person or transaction exempted by the commissioner's order on a |
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finding that the licensing of the person is not necessary to achieve |
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the purposes of this chapter. |
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SECTION 2. Sections 151.302(a) and (b), Finance Code, are |
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amended to read as follows: |
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(a) A person may not engage in the business of money |
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transmission in this state or advertise, solicit, or represent |
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[hold itself out as a person] that the person engages in the |
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business of money transmission in this state unless the person: |
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(1) is licensed under this subchapter; |
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(2) is an authorized delegate of a person licensed |
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under this subchapter, appointed by the license holder in |
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accordance with Section 151.402; |
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(3) is excluded from licensure under Section 151.003; |
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or |
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(4) has been granted an exemption under Subsection |
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(c). |
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(b) For purposes of this chapter,[:
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[(1)] a person engages in the business of money |
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transmission if the person [conducts money transmission for persons
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located in this state and] receives compensation or expects to |
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receive compensation, directly or indirectly, for conducting money |
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transmission [the transmissions; and
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[(2)
a person solicits, advertises, or holds itself
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out as a person that engages in the business of money transmission
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if the person represents that the person will conduct money
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transmission for persons located in this state]. |
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SECTION 3. Section 151.504(b), Finance Code, is amended to |
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read as follows: |
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(b) At the time an application for a currency exchange |
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license is submitted, an applicant must file with the department: |
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(1) an application fee in the amount established by |
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commission rule; and |
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(2) security in the amount required under [of $2,500
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that meets the requirements of] Section 151.506. |
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SECTION 4. Section 151.506, Finance Code, is amended to |
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read as follows: |
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Sec. 151.506. SECURITY. (a) An applicant for a currency |
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exchange license must provide and a currency exchange license |
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holder must maintain at all times security in the amount applicable |
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to the applicant or license holder under this section. The security |
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must satisfy [of $2,500 that satisfies] the requirements of and is |
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subject to Sections 151.308(c)-(j). |
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(b) An applicant must provide and a license holder must |
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maintain security in the amount of $2,500 if the applicant will |
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conduct or the license holder conducts business with persons |
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located in this state exclusively at one or more physical locations |
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through in-person, contemporaneous transactions. |
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(c) Except as provided by Subsection (d), if Subsection (b) |
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does not apply to: |
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(1) the applicant, the applicant must provide security |
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in the amount that is the greater of: |
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(A) $2,500; or |
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(B) an amount equal to one percent of the |
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applicant's projected total dollar volume of currency exchange |
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business in this state for the first year of licensure; or |
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(2) the license holder, the license holder must |
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maintain security in the amount that is the greater of: |
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(A) $2,500; or |
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(B) an amount equal to one percent of the license |
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holder's total dollar volume of currency exchange business in this |
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state for the preceding year. |
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(d) The maximum amount of security that may be required |
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under Subsection (c) is $1 million. |
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SECTION 5. Section 151.605(g), Finance Code, is amended to |
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read as follows: |
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(g) The following persons are exempt from the requirements |
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of Subsection (a), but the license holder must notify the |
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commissioner not later than the 15th day after the date the change |
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of control becomes effective: |
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(1) a person that acts as proxy for the sole purpose of |
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voting at a designated meeting of the security holders or holders of |
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voting interests of a license holder or controlling person; |
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(2) a person that acquires control of a license holder |
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by devise or descent; |
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(3) [a person that acquires control as a personal
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representative, custodian, guardian, conservator, or trustee, or
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as an officer appointed by a court or by operation of law;
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[(4)] a person exempted in the public interest by rule |
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of the commission or by order of the commissioner; and |
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(4) [(5)] a person that has previously complied with |
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and received approval under this chapter or that was identified as a |
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person in control in a prior application filed with and approved by |
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the commissioner. |
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SECTION 6. Section 151.708(c), Finance Code, is amended to |
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read as follows: |
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(c) An offense under this section may be prosecuted in [If
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the commissioner has reason to believe that a person has committed
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an offense under this section or any other state or federal law, the
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commissioner may file a criminal referral with the district
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attorney of] Travis County or in [an appropriate prosecuting
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attorney of] the county in which the offense is alleged to have been |
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committed. |
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SECTION 7. Section 151.301(b)(7), Finance Code, is |
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repealed. |
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SECTION 8. Section 151.605, Finance Code, as amended by |
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this Act, applies only to a person that acquires control of a |
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license holder under that section as a personal representative, |
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custodian, guardian, conservator, or trustee or as an officer |
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appointed by a court or by operation of law on or after the |
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effective date of this Act. A person that acquired control of a |
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license holder as a personal representative, custodian, guardian, |
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conservator, or trustee or as an officer appointed by a court or by |
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operation of law before the effective date of this Act is governed |
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by the law in effect on the date the person acquired control, and |
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the former law is continued in effect for that purpose. |
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SECTION 9. Section 151.708(c), Finance Code, as amended by |
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this Act, applies only to an offense committed on or after the |
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effective date of this Act. An offense committed before the |
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effective date of this Act is governed by the law in effect when the |
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offense was committed, and the former law is continued in effect for |
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that purpose. For purposes of this section, an offense was |
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committed before the effective date of this Act if any element of |
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the offense occurred before that date. |
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SECTION 10. This Act takes effect September 1, 2015. |
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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. 899 passed the Senate on |
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April 9, 2015, by the following vote: Yeas 30, 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. 899 passed the House on |
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May 12, 2015, by the following vote: Yeas 128, Nays 16, two |
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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 |