0001| HOUSE BILL 12
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| LUCIANO "LUCKY" VARELA
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0005|
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0006|
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0007|
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0008| FOR THE REVENUE STABILIZATION AND TAX POLICY COMMITTEE
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0009|
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0010| AN ACT
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0011| RELATING TO PUBLIC MONEY; AUTHORIZING THE STATE TREASURER TO
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0012| MAKE CERTAIN INVESTMENTS.
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0013|
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0014| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0015| Section 1. Section 6-10-10 NMSA 1978 (being Laws 1933,
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0016| Chapter 175, Section 4, as amended) is amended to read:
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0017| "6-10-10. DEPOSIT AND INVESTMENT OF FUNDS.--
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0018| A. Upon the certification or designation of any
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0019| bank, savings and loan association or credit union whose
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0020| deposits are insured by an agency of the United States to
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0021| receive public money on deposit, the state treasurer and the
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0022| several county or municipal treasurers who have on hand any
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0023| public money by virtue of their several offices shall make
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0024| deposit of that money in banks and savings and loan
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0025| associations and may make deposit of that money in credit
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0001| unions whose deposits are insured by an agency of the United
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0002| States, designated by the authority authorized by law to so
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0003| designate to receive the deposits of all money thereafter
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0004| received or collected by the treasurers provided that no
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0005| deposit of public money shall be made in a credit union unless
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0006| the deposit is insured by an agency of the United States.
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0007| B. The several county or municipal treasurers may
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0008| deposit money in one or more accounts with any such bank,
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0009| savings and loan association or credit union located in their
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0010| respective counties, subject to limitation on credit union
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0011| accounts.
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0012| C. The state treasurer may deposit money in one or
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0013| more accounts with any such bank, savings and loan association
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0014| or credit union, subject to the limitation on credit union
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0015| accounts.
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0016| D. Duplicate receipts or deposit slips shall be
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0017| taken for each deposit made pursuant to Subsection A, B or C of
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0018| this section. When deposits are made by the state treasurer,
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0019| one copy of the receipt or deposit slip shall be retained by
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0020| the treasurer and the other copy shall be filed monthly on the
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0021| first day of each month with the financial control division of
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0022| the department of finance and administration. When the
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0023| deposits are made by the treasurer or any other authorized
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0024| person making the deposits for a board of finance of any public
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0025| or educational institution, one copy of the receipt or deposit
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0001| slip shall be retained by the treasurer or authorized person so
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0002| making the deposit and the other copy shall be filed monthly on
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0003| the first day of each month with that board of finance. When
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0004| the deposits are made by a county or municipal treasurer, one
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0005| of the duplicate receipts or deposit slips shall be retained by
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0006| the treasurer so making the deposit, and the other copy shall
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0007| be filed monthly on the first day of each month with the
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0008| secretary of the board of finance of the county or municipality
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0009| for which that treasurer is acting.
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0010| E. "Deposit", as used in this section, means either
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0011| investment or deposit and includes share, share certificate and
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0012| share draft.
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0013| F. County or municipal treasurers, by and with the
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0014| advice and consent of their respective boards of finance
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0015| charged with the supervision and control of the respective
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0016| funds, have the power to invest all sinking funds or money
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0017| remaining unexpended from the proceeds of any issue of bonds or
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0018| other negotiable securities of any county, municipality or
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0019| school district which are now or may hereafter by law be
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0020| entrusted to their care and custody and all money not
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0021| immediately necessary for the public uses of the counties,
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0022| municipalities or school districts not invested or deposited in
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0023| banks, savings and loan associations or credit unions in:
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0024| (1) bonds or negotiable securities of the
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0025| United States, the state or any county, municipality or school
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0001| district which has a taxable valuation of real property for the
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0002| last preceding year of at least one million dollars
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0003| ($1,000,000) and has not defaulted in the payment of any
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0004| interest or sinking fund obligation or failed to meet any bonds
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0005| at maturity at any time within five years last preceding; or
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0006| (2) securities that are issued by the United
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0007| States government or by its agencies or instrumentalities and
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0008| that are either direct obligations of the United States or are
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0009| backed by the full faith and credit of the United States
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0010| government or agencies guaranteed by the United States
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0011| government.
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0012| G. A local public body, with the advice and consent
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0013| of the body charged with the supervision and control of the
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0014| local public body's respective funds, has the power to invest
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0015| all sinking funds or money remaining unexpended from the
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0016| proceeds of any issue of bonds or other negotiable securities
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0017| of the investor that is entrusted to the local public body's
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0018| care and custody and all money not immediately necessary for
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0019| the public uses of the investor and not otherwise invested or
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0020| deposited in banks, savings and loan associations or credit
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0021| unions, in contracts with banks, savings and loan associations
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0022| or credit unions for the present purchase and resale at a
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0023| specified time in the future of specific securities at
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0024| specified prices at a price differential representing the
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0025| interest income to be earned by the investor. The contract
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0001| shall be fully secured by obligations of the United States or
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0002| other securities backed by the United States having a market
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0003| value of at least one hundred two percent of the contract. The
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0004| collateral required for investment in the contracts provided
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0005| for in this subsection shall be shown on the books of the
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0006| financial institution as being the property of the investor and
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0007| the designation shall be contemporaneous with the investment.
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0008| As used in this subsection, "local public body" includes all
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0009| political subdivisions of the state and agencies,
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0010| instrumentalities and institutions thereof; provided that home
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0011| rule municipalities who prior to July 1, 1994 had enacted
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0012| ordinances authorizing the investment of repurchase agreements
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0013| may continue investment in repurchase agreements pursuant to
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0014| those ordinances.
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0015| H. The state treasurer, with the advice and consent
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0016| of the state board of finance, has the power to invest money
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0017| held in demand deposits and not immediately needed for the
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0018| operation of state government and money held in the short-term
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0019| investment fund, except as provided in Section 6-10-10.1 NMSA
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0020| 1978. The investments shall be made only in securities which
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0021| are issued by the United States government or by its
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0022| departments or agencies and which are either direct obligations
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0023| of the United States or are backed by the full faith and credit
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0024| of the United States government or agencies sponsored by the
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0025| United States government.
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0001| I. The state treasurer may also invest in contracts
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0002| for the present purchase and resale at a specified time in the
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0003| future, not to exceed one year or in the case of bond proceeds
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0004| not to exceed three years, of specific securities at specified
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0005| prices at a price differential representing the interest income
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0006| to be earned by the state. No such contract shall be invested
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0007| in unless the contract is fully secured by obligations of the
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0008| United States, or other securities backed by the United States,
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0009| having a market value of at least one hundred two percent of
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0010| the amount of the contract.
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0011| J. The state treasurer may also invest in contracts
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0012| for the temporary exchange of state-owned securities for the
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0013| use of broker-dealers, banks or other recognized institutional
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0014| investors in securities, for periods not to exceed one year for
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0015| a specified fee rate. No such contract shall be invested in
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0016| unless the contract is fully secured by exchange of an
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0017| irrevocable letter of credit running to the state, cash or
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0018| equivalent collateral of at least one hundred two percent of
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0019| the market value of the securities plus accrued interest
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0020| temporarily exchanged.
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0021| K. The collateral required for either of the forms
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0022| of investment in Subsection I or J of this section shall be
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0023| delivered to the state fiscal agent or its designee
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0024| contemporaneously with the transfer of funds or delivery of the
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0025| securities, at the earliest time industry practice permits, but
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0001| in all cases settlement shall be on a same-day basis.
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0002| L. Neither of the contracts in Subsection I or J of
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0003| this section shall be invested in unless the contracting bank,
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0004| brokerage firm or recognized institutional investor has a net
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0005| worth in excess of five hundred million dollars ($500,000,000).
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0006| M. The state treasurer, with the advice and
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0007| consent of the state board of finance, may also invest in:
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0008| (1) commercial paper rated "prime" quality by
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0009| a national rating service, issued by corporations organized and
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0010| operating within the United States;
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0011| (2) medium term notes and corporate notes
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0012| with a maturity not exceeding five years that are rated A or
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0013| its equivalent or better by a nationally recognized rating
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0014| service and that are issued by a corporation organized and
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0015| operating in the United States; or
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0016| (3) any asset-backed obligation with a
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0017| maturity not exceeding five years that is rated AAA or its
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0018| equivalent by a nationally recognized rating service.
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0019| N. The state treasurer, with the advice and consent
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0020| of the state board of finance, may also invest in:
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0021| (1) shares of a diversified investment company
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0022| registered under the federal Investment Company Act of 1940
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0023| that invests primarily in United States fixed income securities
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0024| or debt instruments authorized pursuant to Subsections H, I and
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0025| M of this section, provided that the investment company has
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0001| total assets under management of at least one hundred million
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0002| dollars ($100,000,000); or
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0003| (2) individual, common or collective trust
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0004| funds of banks or trust companies that invest primarily in
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0005| United States fixed income securities or debt instruments
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0006| authorized pursuant to Subsections H, I and M of this section,
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0007| provided that the investment manager has assets under
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0008| management of at least one hundred million dollars
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0009| ($100,000,000).
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0010| [M.] O. No public funds to be invested in
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0011| negotiable securities or loans to financial institutions fully
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0012| secured by negotiable securities at current market value shall
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0013| be paid out unless there is a contemporaneous transfer of the
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0014| securities at the earliest time industry practice permits, but
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0015| in all cases settlement shall be on a same-day basis either by
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0016| physical delivery or, in the case of uncertificated securities,
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0017| by appropriate book entry on the books of the issuer, to the
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0018| purchaser or to a reputable third-party safekeeping financial
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0019| institution acting as agent or trustee for the purchaser, which
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0020| agent or trustee shall furnish timely confirmation to the
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0021| purchaser."
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0022|
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0023|
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0024|
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0025|
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0001| State of New Mexico
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0002| House of Representatives
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0003|
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0004| FORTY-THIRD LEGISLATURE
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0005| FIRST SESSION, 1997
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0006|
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0007|
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0008| February 26, 1997
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0009|
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0010|
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0011| Mr. Speaker:
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0012|
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0013| Your TAXATION AND REVENUE COMMITTEE, to whom has
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0014| been referred
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0015|
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0016| HOUSE BILL 12
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0017|
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0018| has had it under consideration and reports same with
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0019| recommendation that it DO PASS, amended as follows:
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0020|
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0021| 1. On page 7, line 7, before the colon insert "any of the
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0022| following investments in an amount not to exceed forty percent of
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0023| any fund that the state treasurer invests".
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0024|
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0025| 2. On page 8, line 4, strike "primarily".,
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0001|
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0002| and thence referred to the APPROPRIATIONS AND FINANCE
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0003| COMMITTEE.
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0004|
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0005| Respectfully submitted,
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0006|
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0007|
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0008|
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0009|
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0010|
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0011| Jerry W. Sandel, Chairman
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0012|
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0013|
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0014| Adopted Not Adopted
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0015|
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0016| (Chief Clerk) (Chief Clerk)
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0017|
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0018| Date
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0019|
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0020| The roll call vote was 9 For 0 Against
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0021| Yes: 9
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0022| Excused: Gubbels, Porter, Sandoval, Stell
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0023| Absent: None
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0024|
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0025|
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0001|
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0002| .115714.1
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0003| G:\BILLTEXT\BILLW_97\H0012 State of New Mexico
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0004| House of Representatives
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0005|
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0006| FORTY-THIRD LEGISLATURE
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0007| FIRST SESSION, 1997
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0008|
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0009|
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0010| March 3, 1997
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0011|
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0012|
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0013| Mr. Speaker:
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0014|
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0015| Your APPROPRIATIONS AND FINANCE COMMITTEE, to
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0016| whom has been referred
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0017|
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0018| HOUSE BILL 12, as amended
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0019|
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0020| has had it under consideration and reports same with
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0021| recommendation that it DO PASS, amended as follows:
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0022|
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0023| 1. On page 7, line 23, strike "primarily".
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0024|
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0025| Respectfully submitted,
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0001|
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0002|
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0003|
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0004|
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0005|
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0006| Max Coll, Chairman
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0007|
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0008|
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0009| Adopted Not Adopted
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0010|
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0011| (Chief Clerk) (Chief Clerk)
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0012|
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0013| Date
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0014|
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0015| The roll call vote was 10 For 0 Against
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0016| Yes: 10
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0017| Excused: Abeyta, Garcia, M.H., Knowles, Picraux, Townsend,
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0018| Saavedra, Wallace
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0019| Absent: None
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0020|
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0021|
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0022| .117988.1
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0023| G:\BILLTEXT\BILLW_97\H0012 State of New Mexico
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0024| House of Representatives
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0025|
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0001| FORTY-THIRD LEGISLATURE
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0002| FIRST SESSION, 1997
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0003|
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0004|
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0005| March 3, 1997
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0006|
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0007|
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0008| Mr. Speaker:
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0009|
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0010| Your APPROPRIATIONS AND FINANCE COMMITTEE, to
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0011| whom has been referred
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0012|
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0013| HOUSE BILL 12, as amended
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0014|
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0015| has had it under consideration and reports same with
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0016| recommendation that it DO PASS, amended as follows:
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0017|
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0018| 1. On page 7, line 23, strike "primarily".
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0019|
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0020| Respectfully submitted,
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0021|
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0022|
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0023|
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0024|
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0025|
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0001| Max Coll, Chairman
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0002|
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0003|
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0004| Adopted Not Adopted
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0005|
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0006| (Chief Clerk) (Chief Clerk)
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0007|
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0008| Date
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0009|
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0010| The roll call vote was 10 For 0 Against
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0011| Yes: 10
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0012| Excused: Abeyta, Garcia, M.H., Knowles, Picraux, Townsend,
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0013| Saavedra, Wallace
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0014| Absent: None
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0015|
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0016|
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0017| .117988.1
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0018| G:\BILLTEXT\BILLW_97\H0012
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0019|
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0020| FORTY-THIRD LEGISLATURE
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0021| FIRST SESSION, 1997
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0022|
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0023|
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0024| March 10, 1997
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0025|
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0001| Mr. President:
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0002|
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0003| Your WAYS AND MEANS COMMITTEE, to whom has been
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0004| referred
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0005|
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0006| HOUSE BILL 12, as amended
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0007|
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0008| has had it under consideration and reports same with
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0009| recommendation that it DO PASS, and thence referred to the
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0010| FINANCE COMMITTEE.
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0011|
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0012| Respectfully submitted,
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0013|
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0014|
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0015|
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0016|
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0017| __________________________________
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0018| Carlos R. Cisneros, Chairman
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0019|
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0020|
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0021|
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0022| Adopted_______________________ Not
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0023| Adopted_______________________
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0024| (Chief Clerk) (Chief Clerk)
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0025|
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0001|
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0002| Date ________________________
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0003|
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0004|
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0005| The roll call vote was 7 For 0 Against
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0006| Yes: 7
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0007| No: 0
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0008| Excused: Duran, Jennings
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0009| Absent: None
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0010|
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0011|
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0012| H0012WM1
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0013|
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0014|
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0015|
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0016| FORTY-THIRD LEGISLATURE
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0017| FIRST SESSION, 1997
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0018|
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0019|
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0020| March 12, 1997
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0021|
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0022| Mr. President:
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0023|
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0024| Your FINANCE COMMITTEE, to whom has been referred
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0025|
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0001| HOUSE BILL 12, as amended
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0002|
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0003| has had it under consideration and reports same with
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0004| recommendation that it DO PASS.
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0005|
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0006| Respectfully submitted,
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0007|
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0008|
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0009|
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0010|
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0011| __________________________________
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0012| Ben D. Altamirano, Chairman
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0013|
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0014|
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0015|
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0016| Adopted_______________________ Not
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0017| Adopted_______________________
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0018| (Chief Clerk) (Chief Clerk)
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0019|
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0020|
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0021|
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0022| Date ________________________
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0023|
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0024|
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0025| The roll call vote was 6 For 0 Against
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0001| Yes: 6
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0002| No: None
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0003| Excused: Carraro, Fidel, Ingle, Lyons, McKibben
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0004| Absent: None
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0005|
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0006|
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0007| H0012FC1
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