0001| HOUSE BILL 574
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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| G. X. MCSHERRY
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0005|
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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| AN ACT
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0011| RELATING TO WINEGROWERS; CONSOLIDATING LICENSES; AMENDING,
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0012| REPEALING AND ENACTING CERTAIN SECTIONS OF THE LIQUOR CONTROL
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0013| ACT.
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0014|
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0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016| Section 1. Section 60-3A-3 NMSA 1978 (being Laws 1981,
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0017| Chapter 39, Section 3, as amended) is amended to read:
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0018| "60-3A-3. DEFINITIONS.--As used in the Liquor Control
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0019| Act:
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0020| A. "alcoholic beverages" means distilled or
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0021| rectified spirits, potable alcohol, brandy, whiskey, rum, gin
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0022| and aromatic bitters bearing the federal internal revenue strip
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0023| stamps or any similar alcoholic beverage, including blended or
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0024| fermented beverages, dilutions or mixtures of one or more of
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0025| the foregoing containing more than one-half of one percent
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0001| alcohol, but excluding medicinal bitters;
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0002| B. "beer" means any alcoholic beverage obtained by
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0003| the fermentation of any infusion or decoction of barley, malt
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0004| and hops or other cereals in water, and includes porter, beer,
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0005| ale and stout;
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0006| C. "brewer" means any person who owns or operates a
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0007| business for the manufacture of beer;
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0008| D. "club" means:
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0009| (1) any nonprofit group, including an
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0010| auxiliary or subsidiary group, organized and operated under the
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0011| laws of this state with a membership of not less than fifty
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0012| members who pay membership dues at the rate of not less than
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0013| five dollars ($5.00) per year and who, under the constitution
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0014| and bylaws of the club, have all voting rights and full
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0015| membership privileges and which group is the owner, lessee or
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0016| occupant of premises used exclusively for club purposes and
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0017| which group the director finds:
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0018| (a) is operated solely for recreation,
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0019| social, patriotic, political, benevolent or athletic purposes;
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0020| and
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0021| (b) the proposed licensee has been
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0022| granted an exemption by the United States from the payment of
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0023| the federal income tax as a club under the provisions of
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0024| Section 501(a) of the Internal Revenue Code of 1954, as amended
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0025| or, if the applicant has not operated as a club for a
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0001| sufficient time to be eligible for the income tax exemption, it
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0002| must execute and file with the director a sworn letter of in-
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0003|
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0004| tent declaring that it will, in good faith, apply for such
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0005| exemption as soon as it is eligible; or
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0006| (2) an airline passenger membership club
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0007| operated by an air common carrier which maintains or operates a
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0008| clubroom at an international airport terminal. For the
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0009| purposes of this paragraph, "air common carrier" means a person
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0010| engaged in regularly scheduled air transportation between fixed
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0011| termini under a certificate of public convenience and necessity
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0012| issued by the civil aeronautics board;
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0013| E. "commission" means the secretary of public
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0014| safety when the term is used in reference to the enforcement
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0015| and investigatory provisions of the Liquor Control Act and
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0016| means the superintendent of regulation and licensing when the
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0017| term is used in reference to the licensing provisions of the
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0018| Liquor Control Act;
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0019| F. "department" means the special investigations
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0020| division of the department of public safety [department]
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0021| when the term is used in reference to the enforcement and
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0022| investigatory provisions of the Liquor Control Act and means
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0023| the superintendent of regulation and licensing when the term is
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0024| used in reference to the licensing provisions of the Liquor
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0025| Control Act;
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0001| G. "director" means the director of the special
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0002| investigations division of the department of public safety
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0003| [department] when the term is used in reference to the
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0004| enforcement and investigatory provisions of the Liquor Control
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0005| Act and means the superintendent of regulation and licensing
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0006| when the term is used in reference to the licensing provisions
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0007| of the Liquor Control Act;
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0008| H. "dispenser" means any person licensed under the
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0009| provisions of the Liquor Control Act selling, offering for sale
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0010| or having in his possession with the intent to sell alcoholic
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0011| beverages both by the drink for consumption on the licensed
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0012| premises and in unbroken packages for consumption and not for
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0013| resale off the licensed premises;
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0014| I. "distiller" means any person engaged in
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0015| manufacturing spirituous liquors;
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0016| J. "governing body" means the board of county
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0017| commissioners of a county or the city council or city
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0018| commissioners of a municipality;
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0019| K. "hotel" means any establishment or complex
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0020| having a resident of New Mexico as a proprietor or manager and
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0021| where, in consideration of payment, meals and lodging are
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0022| regularly furnished to the general public. The establishment
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0023| or complex must maintain for the use of its guests a minimum of
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0024| twenty-five sleeping rooms;
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0025| L. "licensed premises" means the contiguous areas
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0001| or areas connected by indoor passageways of a structure and the
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0002| outside dining, recreation and lounge areas of the structure
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0003| which are under the direct control of the licensee and from
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0004| which the licensee is authorized to sell, serve or allow the
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0005| consumption of alcoholic beverages under the provisions of its
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0006| license; provided that in the case of a restaurant, hotel or
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0007| racetrack, "licensed premises" includes all public and private
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0008| rooms, facilities and areas in which alcoholic beverages are
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0009| sold or served in the customary operating procedures of the
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0010| restaurant, hotel or racetrack;
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0011| M. "local option district" means any county which
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0012| has voted to approve the sale, serving or public consumption of
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0013| alcoholic beverages, or any incorporated municipality which
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0014| falls within a county which has voted to approve the sale,
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0015| serving or public consumption of alcoholic beverages, or any
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0016| incorporated municipality of over five thousand population
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0017| which has independently voted to approve the sale, serving or
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0018| public consumption of alcoholic beverages under the terms of
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0019| the Liquor Control Act or any former act;
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0020| N. "manufacturer" means a distiller, rectifier,
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0021| brewer or winer;
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0022| O. "minor" means any person under twenty-one years
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0023| of age;
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0024| P. "package" means any immediate container of
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0025| alcoholic beverages which is filled or packed by a manufacturer
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0001| or wine bottler for sale by the manufacturer or wine bottler to
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0002| wholesalers;
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0003| Q. "person" means an individual, corporation, firm,
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0004| partnership, copartnership, association or other legal entity;
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0005| R. "rectifier" means any person who blends, mixes
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0006| or distills alcohol with other liquids or substances for the
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0007| purpose of making an alcoholic beverage for the purpose of sale
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0008| other than to the consumer by the drink, and includes all
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0009| bottlers of spirituous liquors;
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0010| S. "restaurant" means any establishment having a
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0011| New Mexico resident as a proprietor or manager which is held
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0012| out to the public as a place where meals are prepared and
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0013| served primarily for on-premises consumption to the general
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0014| public in consideration of payment and which has a dining room,
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0015| a kitchen and the employees necessary for preparing, cooking
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0016| and serving meals; provided that "restaurant" does not include
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0017| establishments as defined in regulations promulgated by the
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0018| director serving only hamburgers, sandwiches, salads and other
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0019| fast foods;
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0020| T. "retailer" means any person licensed under the
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0021| provisions of the Liquor Control Act selling, offering for sale
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0022| or having in his possession with the intent to sell any
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0023| alcoholic beverages in unbroken packages for consumption and
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0024| not for resale off the licensed premises;
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0025| U. "spirituous liquors" means alcoholic beverages
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0001| as defined in Subsection A of this section except fermented
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0002| beverages such as wine, beer and ale;
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0003| V. "wholesaler" means any person whose place of
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0004| business is located in New Mexico and who sells, offers for
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0005| sale or possesses for the purpose of sale any alcoholic
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0006| beverages for resale by the purchaser;
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0007| W. "wine" includes the words "fruit juices" and
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0008| means alcoholic beverages obtained by the fermentation of the
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0009| natural sugar contained in fruit or other agricultural
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0010| products, with or without the addition of sugar or other
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0011| products, which do not contain less than one-half of one
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0012| percent nor more than twenty-one percent alcohol by volume;
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0013| X. "wine bottler" means any New Mexico wholesaler
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0014| who is licensed to sell wine at wholesale for resale only and
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0015| who buys wine in bulk and bottles it for wholesale resale;
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0016| [and]
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0017| Y. ["winer"] "winegrower" means any person who
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0018| owns or operates a business for the manufacture of wine and
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0019| has been issued a winegrower's license; and
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0020| Z. "winer" means a winegrower."
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0021| Section 2. Section 60-6A-11 NMSA 1978 (being Laws 1981,
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0022| Chapter 39, Section 28, as amended) is amended to read:
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0023| "60-6A-11. WINEGROWER'S LICENSE.--
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0024| A. Exempt from the procurement of any other license
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0025| [under] issued pursuant to the terms of the Liquor Control
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0001| Act, but not from the procurement of a winegrower's license, is
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0002| any person in this state who produces wine. Except during
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0003| periods of shortage or reduced availability, at least fifty
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0004| percent of a winegrower's overall annual production of wine
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0005| shall be produced from wine grapes or other agricultural
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0006| products grown in this state pursuant to regulations adopted by
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0007| the director.
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0008| B. [Any] A person issued a winegrower's license
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0009| pursuant to [Subsection A of] this section may do any of the
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0010| following:
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0011| (1) manufacture or produce wine, including
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0012| blending, mixing, flavoring, coloring, bottling and labeling,
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0013| whether the wine is manufactured or produced by or for the
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0014| winegrower;
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0015| (2) store, transport, import or export wines;
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0016| (3) sell wines to a holder of a New Mexico
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0017| winegrower's, [winer's] wine wholesaler's, wholesaler's or
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0018| wine exporter's license or to a winegrower's agent;
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0019| (4) deal in warehouse receipts for wine;
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0020| [(4)] (5) sell wines in other states or
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0021| foreign jurisdictions to the holders of any license issued
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0022| under the authority of that state or foreign jurisdiction
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0023| authorizing [such a] the purchase of wine;
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0024| [(5)] (6) buy wine or distilled wine
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0025| products from other persons, including licensees and permittees
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0001| under the Liquor Control Act, for use in blending, mixing or
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0002| bottling of wines;
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0003| [(6)] (7) conduct wine tastings and sell,
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0004| by the glass or the bottle or sell in unbroken packages
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0005| for consumption off premises but not for resale, wine of his
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0006| own production on the winegrower's premises; [and
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0007| (7)] (8) at no more than [two] three
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0008| off-premises locations, conduct wine tastings and sell in
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0009| unbroken packages for consumption off premises, but not for
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0010| resale, wine of his own production after the director has
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0011| determined that the off-premises locations meet the
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0012| requirements of the Liquor Control Act and the department
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0013| regulations for new liquor license locations;
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0014| (9) be deemed a manufacturer for purposes of
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0015| the Gross Receipts and Compensating Tax Act;
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0016| (10) at public celebrations on or off the
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0017| winegrower's premises, after the winegrower has paid the
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0018| applicable fees and been issued the appropriate permit, to
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0019| conduct wine tastings, sell by the glass or the bottle or sell
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0020| in unbroken packages for consumption off premises but not for
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0021| resale, wine produced by or for the winegrower; and
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0022| (11) apply to the department for a permit to
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0023| join with other licensed winegrowers to sell wine produced by
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0024| or for winegrowers at a common facility at which there may be
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0025| products of two or more licensed winegrowers offered for
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0001| tasting and sales by the glass or bottle or for sale in
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0002| unbroken packages for consumption off premises but not for
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0003| resale.
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0004| C. Except as limited by Subsection D of Section
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0005| 60-7A-1 NMSA 1978, sales of wine as provided for in
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0006| [Paragraphs (6) and (7) of Subsection B of] this section
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0007| shall be permitted between the hours of 7:00 a.m. and midnight
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0008| Monday through Saturday, and the holder of a winegrower's
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0009| license may conduct wine tastings and sell, by the glass or
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0010| bottle or in unbroken packages for consumption off premises
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0011| but not for resale, wine of his own production on the
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0012| winegrower's premises between the hours of 12:00 noon and
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0013| midnight on Sunday.
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0014| D. At public celebrations off the winegrower's
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0015| premises in any local option district permitting the sale of
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0016| alcoholic beverages, the holder of a winegrower's license
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0017| [upon the payment of] shall pay ten dollars ($10.00) to the
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0018| department for a "winegrower's public celebration permit", to
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0019| be issued under rules adopted by the director [may conduct
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0020| tastings, sell in unbroken packages for consumption at other
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0021| than the public celebration, but not for resale, and sell, for
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0022| consumption at a public celebration, wine of his own
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0023| production]. Upon request, the department may issue to a
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0024| holder of a winegrower's license a public celebration permit
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0025| for a location at the public celebration that is to be shared
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0001| with other permittees. As used in this subsection, "public
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0002| celebration" includes any state or county fair, community
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0003| fiesta, cultural or artistic event or sporting competition of a
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0004| seasonal nature or activities held on an intermittent basis.
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0005| E. Every application for the issuance or annual
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0006| renewal of a winegrower's license shall be on a form prescribed
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0007| by the director and accompanied by a license fee to be computed
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0008| as follows on the basis of total annual wine produced or
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0009| blended:
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0010| (1) less than five thousand gallons per year,
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0011| twenty-five dollars ($25.00) per year;
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0012| (2) between five thousand and one hundred
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0013| thousand gallons per year, one hundred dollars ($100) per year;
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0014| and
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0015| (3) over one hundred thousand gallons per
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0016| year, two hundred fifty dollars ($250) per year."
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0017| Section 3. Section 60-6A-22 NMSA 1978 (being Laws 1983,
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0018| Chapter 280, Section 3, as amended) is amended to read:
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0019| "60-6A-22. DEFINITIONS.--As used in the Domestic Winery
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0020| and Small Brewery Act:
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0021| A. "brandy" means an alcoholic liquor distilled
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0022| from wine or from fermented fruit juice;
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0023| B. "beer" means any fermented beverage containing
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0024| more than one-half percent alcohol obtained by the fermentation
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0025| of any infusion or decoction of barley, malt and hops or other
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0001| cereal in water, and includes porter, beer, ale and stout;
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0002| C. "small brewer" means any person who owns or
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0003| operates a business for the manufacture of beer but does not
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0004| manufacture more than two hundred thousand barrels of beer per
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0005| year;
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0006| D. "public celebration" means any state fair,
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0007| county fair, community fiesta, cultural or artistic
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0008| performance;
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0009| E. "wine" means the product obtained from normal
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0010| alcoholic fermentation of the juice of sound ripe grapes or
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0011| other agricultural products containing natural or added sugar,
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0012| or any such alcoholic beverage to which is added grape brandy,
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0013| fruit brandy or spirits of wine which is distilled from the
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0014| particular agricultural products of which the wine is made, and
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0015| other rectified wine products by whatever name which do not
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0016| contain more than fifteen percent added flavoring, coloring and
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0017| blending material and which contain not more than twenty-four
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0018| percent of alcohol by volume, and includes vermouth;
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0019| F. "wine blender" means a person authorized to
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0020| operate a bonded wine cellar pursuant to a permit issued for
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0021| that purpose under the internal revenue laws of the United
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0022| States but who does not have facilities or equipment for the
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0023| conversion of grapes, berries or other fruit into wine and does
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0024| not engage in the production of wine in commercial quantities;
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0025| provided that any person who produces or blends not to exceed
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0001| three hundred gallons of wine per year shall not, because of
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0002| such production or blending, be considered a wine blender; and
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0003| G. "winer" means [any person who has facilities
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0004| and equipment for the conversion in New Mexico of grapes,
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0005| berries or other fruit into wine and is engaged in the
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0006| commercial production of wine; provided that any person who
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0007| produces not to exceed two hundred gallons of wine per year for
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0008| his own consumption shall not, because of such production, be
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0009| considered a winer] a person licensed as a winegrower."
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0010| Section 4. Section 60-6A-24 NMSA 1978 (being Laws 1983,
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0011| Chapter 280, Section 5, as amended) is amended to read:
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0012| "60-6A-24. WINE BLENDER'S LICENSE.--
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0013| A. In any local option district, a person qualified
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0014| under the provisions of the Liquor Control Act, except as
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0015| otherwise provided in the Domestic Winery and Small Brewery
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0016| Act, may apply for and be issued a wine blender's license.
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0017| B. A wine blender's license authorizes the person
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0018| to whom it is issued to [exercise all the privileges of a
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0019| winer's license except]:
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0020| (1) package, rectify, blend, mix, flavor,
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0021| color, label and export wine, whether manufactured or produced
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0022| by him or any other person;
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0023| (2) sell only such wine as is packaged by or
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0024| for him to a person holding a New Mexico wine wholesaler's,
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0025| wholesaler's, winegrower's or wine exporter's license or to a
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0001| winegrower's agent;
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0002| (3) deal in warehouse receipts for wine; and
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0003| (4) be deemed a manufacturer for purposes of
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0004| the Gross Receipts and Compensating Tax Act.
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0005| C. A wine blender's license does not authorize the
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0006| person to whom it is issued:
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0007| (1) to crush, ferment and produce wine from
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0008| grapes, berries and other fruits;
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0009| (2) to obtain or be issued a winer's license,
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0010| a retailer's license or a dispenser's license;
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0011| (3) to buy, sell, receive or deliver wine from
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0012| persons other than authorized licensees; or
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0013| (4) to conduct wine tasting or sell for
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0014| consumption off premises, at retail, or to sponsor wine
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0015| tastings, either on or off the wine blender's premises."
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0016| Section 5. Section 60-6A-27 NMSA 1978 (being Laws 1983,
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0017| Chapter 280, Section 8, as amended) is amended to read:
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0018| "60-6A-27. LICENSE FEES.--Every application for the
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0019| issuance or annual renewal of the following licenses and
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0020| permits shall be accompanied by a license fee or permit fee in
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0021| the following specified amounts:
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0022| A. brandy manufacturer's license, seven hundred
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0023| fifty dollars ($750);
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0024| B. small brewer's license, seven hundred fifty
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0025| dollars ($750);
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0001| [C. winer's license, seven hundred fifty dollars
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0002| ($750);
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0003| D.] C. wine blender's license, seven hundred
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0004| fifty dollars ($750); and
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0005| [E.] D. wine exporter's license, five hundred
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0006| dollars ($500)
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0007| [F. winer's off-premise permit, two hundred
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0008| dollars ($200) for each off-premises location; and
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0009| G. winer's public celebrations permit, ten dollars
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0010| ($10) for each public celebration]."
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0011| Section 6. Section 60-6A-29 NMSA 1978 (being Laws 1988,
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0012| Chapter 60, Section 1) is amended to read:
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0013| "60-6A-29. WINE WHOLESALER'S LICENSE.--
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0014| A. In any local option district, a winegrower [or
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0015| winer] licensed under the Liquor Control Act may apply for and
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0016| be issued a license as a wine wholesaler of wines produced by
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0017| or for New Mexico winegrowers [or winers].
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0018| B. No wine wholesaler shall sell, offer for sale or
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0019| ship wine not received at and shipped from the premises
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0020| specified in the wine wholesaler's license.
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0021| C. No wine wholesaler shall sell or offer for sale
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0022| wine to any person other than the holder of a New Mexico wine
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0023| wholesaler's, wholesaler's, retailer's, dispenser's, canopy,
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0024| restaurant or club license or a governmental licensee or its
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0025| lessee.
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0001| D. Nothing contained in this section shall prevent
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0002| the sale, transportation or shipment of wine by a wine
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0003| wholesaler to any person outside the state when shipped under
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0004| permit from the department."
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0005| Section 7. A new section of the Liquor Control Act is
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0006| enacted to read:
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0007| "[NEW MATERIAL] INTERSTATE WINE TASTINGS--COMPETITIONS-
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0008| -PERMITS.--
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0009| A. Exempt from the procurement of any other license
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0010| or permit issued pursuant to the terms of the Liquor Control
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0011| Act, but not exempt from the procurement of a competition
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0012| permit, is a winemaker or winery licensed outside of New Mexico
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0013| that desires to participate in a regional wine tasting or
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0014| competition within New Mexico. One permit shall be issued by
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0015| the director to an out-of-state winemaker or winery for the
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0016| duration of the wine tasting or competition.
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0017| B. A person issued a competition permit pursuant to
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0018| this section may do any of the following:
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0019| (1) bring no more than twenty-five cases of
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0020| wine into New Mexico after indicating on his permit application
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0021| the number of cases to be brought into the state;
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0022| (2) participate in the regional competition
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0023| and any wine tastings associated with the competition for which
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0024| the competition permit is issued;
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0025| (3) participate in the regional wine tasting
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0001| for which the competition permit is issued; and
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0002| (4) at a wine tasting for which he is issued
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0003| the permit, conduct wine tasting and sell by the glass or
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0004| bottle or in unbroken packages for consumption off the wine
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0005| tasting premises but not for resale, wine brought into the
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0006| state by him for the wine tasting or competition.
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0007| C. Every application for the issuance of a
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0008| competition permit shall be on a form prescribed by the
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0009| director and accompanied by a permit fee of twenty-five dollars
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0010| ($25.00).
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0011| D. As used in this section:
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0012| (1) "competition" means an event at which a
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0013| jury of wine tasters compares the quality of the wines entered
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0014| for judging and at which prizes are offered for the wines
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0015| judged to be of the best quality;
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0016| (2) "regional competition" means a competition
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0017| at which the wines to be judged are from more than one state or
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0018| country;
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0019| (3) "regional wine tasting" means a wine
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0020| tasting at which the wines offered for tasting are from more
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0021| than one state or country;
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0022| (4) "winemaker" means a person who
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0023| manufactures or produces wine;
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0024| (5) "winery" means an establishment at which
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0025| wine is manufactured or produced and that is licensed for that
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0001| purpose by the state or country in which it is located; and
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0002| (6) "wine tasting" means an event at which
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0003| wines are offered for tasting but not necessarily for sale and
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0004| not for comparison for the purpose of awarding prizes to the
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0005| wines of the best quality."
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0006| Section 8. REPEAL.--Section 60-6A-23 NMSA 1978 (being
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0007| Laws 1983, Chapter 280, Section 4, as amended) is repealed.
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0008| Section 9. EFFECTIVE DATE.--The effective date of the
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0009| provisions of this act is June 1, 1997.
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0010|
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0011| State of New Mexico
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0012| House of Representatives
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0013|
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0014| FORTY-THIRD LEGISLATURE
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0015| FIRST SESSION, 1997
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0016|
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0017|
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0018| February 25, 1997
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0019|
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0020|
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0021| Mr. Speaker:
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0022|
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0023| Your BUSINESS AND INDUSTRY COMMITTEE, to whom
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0024| has been referred
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0025|
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0001| HOUSE BILL 574
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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, amended as follows:
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0005|
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0006| 1. On page 10, line 3 after "license", insert "or public
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0007| celebration permit".,
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0008|
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0009| and thence referred to the APPROPRIATIONS AND FINANCE
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0010| 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| Fred Luna, Chairman
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0019|
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0020|
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0021| Adopted Not Adopted
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0022|
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0023| (Chief Clerk) (Chief Clerk)
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0024|
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0025| Date
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0001|
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0002| The roll call vote was 11 For 0 Against
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0003| Yes: 11
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0004| Excused: Hobbs
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0005| Absent: Getty
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0006|
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0007|
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0008| .115943.1
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0009| G:\BILLTEXT\BILLW_97\H0574 State of New Mexico
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0010| House of Representatives
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0011|
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0012| FORTY-THIRD LEGISLATURE
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0013| FIRST SESSION, 1997
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0014|
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0015|
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0016| March 4, 1997
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0017|
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0018|
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0019| Mr. Speaker:
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0020|
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0021| Your APPROPRIATIONS AND FINANCE COMMITTEE, to
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0022| whom has been referred
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0023|
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0024| HOUSE BILL 574, as amended
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0025|
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0001| has had it under consideration and reports same with
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0002| recommendation that it DO PASS.
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0003|
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0004| Respectfully submitted,
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0005|
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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| Max Coll, Chairman
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0011|
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0012|
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0013| Adopted Not Adopted
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0014|
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0015| (Chief Clerk) (Chief Clerk)
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0016|
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0017| Date
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0018|
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0019| The roll call vote was 9 For 0 Against
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0020| Yes: 9
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0021| Excused: Coll, Heaton, Knowles, Marquardt, Picraux, Taylor, JP,
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0022| Varela, Watchman
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0023| Absent: None
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0024|
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0025|
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0001| G:\BILLTEXT\BILLW_97\H0574
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0002|
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0003| FORTY-THIRD LEGISLATURE
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0004| FIRST SESSION, 1997
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0005|
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0006|
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0007| March 17, 1997
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0008|
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0009| Mr. President:
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0010|
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0011| Your PUBLIC AFFAIRS COMMITTEE, to whom has been
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0012| referred
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0013|
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0014| HOUSE BILL 574, as amended
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0015|
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0016| has had it under consideration and reports same with
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0017| recommendation that it DO PASS.
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0018|
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0019| Respectfully submitted,
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0020|
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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| Shannon Robinson, Chairman
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0001|
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0002|
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0003|
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0004| Adopted_______________________ Not
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0005| Adopted_______________________
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0006| (Chief Clerk) (Chief Clerk)
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0007|
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0008|
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0009| Date ________________________
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0010|
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0011|
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0012| The roll call vote was 5 For 0 Against
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0013| Yes: 5
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0014| No: 0
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0015| Excused: Rodarte, Smith, Ingle, Vernon
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0016| Absent: None
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0017|
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0018|
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0019| H0574PA1
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0020|
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