0001| HOUSE BILL 811
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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| GAIL C. BEAM
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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 STUDENT LOANS; ENACTING THE PUBLIC LEGAL SERVICES
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0012| ASSISTANCE ACT; PROVIDING EDUCATIONAL LOAN REPAYMENT SUPPORT
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0013| FOR LAWYERS SERVING PUBLIC BODIES OR INDIGENT PERSONS; CREATING
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0014| AN EDUCATIONAL LOAN REPAYMENT ASSISTANCE FUND; MAKING AN
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0015| APPROPRIATION.
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0016|
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0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0018| Section 1. SHORT TITLE.--This act may be cited as the
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0019| "Public Legal Services Assistance Act".
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0020| Section 2. PURPOSE OF ACT.--The purpose of the Public
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0021| Legal Services Assistance Act is to enhance the ability of the
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0022| state and its political subdivisions to attract and maintain
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0023| public service lawyers and to provide for legal services for
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0024| the care and maintenance of indigent persons by providing
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0025| financial assistance to law school graduates whose service to
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0001| the public or the indigent is burdened by educational debts.
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0002| Section 3. DEFINITIONS.--As used in the Public Legal
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0003| Services Assistance Act:
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0004| A. "award recipient" means a person selected to
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0005| receive loan repayment assistance under the Public Legal
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0006| Services Assistance Act;
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0007| B. "commission" means the commission on higher
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0008| education;
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0009| C. "one year payment" means an amount equal to
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0010| twelve times the monthly payment required to fully repay the
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0011| award recipient's qualifying loans for a term defined by the
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0012| commission;
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0013| D. "qualified graduate" means any person who is a
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0014| graduate of a fully accredited law school in New Mexico and is
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0015| a resident of the state;
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0016| E. "qualifying employment" means full-time
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0017| employment in the state that substantially utilizes the legal
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0018| training and skills of the qualified graduate:
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0019| (1) with the state or with a county, school
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0020| district or municipality, or under contract with the state or
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0021| with a county, school district or municipality, in a position
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0022| for which there is a demonstrated need to attract and maintain
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0023| capable personnel, excluding a judicial clerkship; or
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0024| (2) with an organization that is exempt from
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0025| taxation under Paragraph (3), (4) or (5) of Subsection (c) of
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0001| Section 501 of Title 26 of the United States Code, and in which
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0002| the qualified graduate provides for the care or maintenance of
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0003| indigent persons as his primary duties; and
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0004| F. "qualifying loan" means an educational loan or
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0005| grant of money obtained by a student pursuant to a contract
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0006| between that student and the federal government or a commercial
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0007| lender used to defray the costs of education leading to a juris
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0008| doctor degree and that requires either repayment of principal
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0009| and interest for the loan or repayment in services.
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0010| Section 4. FUND CREATED.--The "public legal services loan
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0011| repayment assistance fund" is created in the state treasury.
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0012| Money in the fund shall not revert at the end of any fiscal
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0013| year. Money appropriated to the fund or accruing to it through
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0014| gifts, grants or bequests shall be deposited in the fund. The
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0015| fund shall be invested as other state funds are invested.
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0016| Disbursements from the fund shall be made upon warrants drawn
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0017| by the secretary of finance and administration pursuant to
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0018| vouchers signed by the executive director of the commission on
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0019| higher education or his designee. Money in the fund shall be
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0020| used to carry out the provisions of the Public Legal Services
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0021| Assistance Act.
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0022| Section 5. DELEGATION OF DUTIES.--
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0023| A. The commission:
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0024| (1) may arrange with other agencies for the
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0025| performance of services required by the Public Legal Services
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0001| Assistance Act;
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0002| (2) may establish an oversight committee
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0003| composed of, but not limited to, representatives from the state
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0004| bar of New Mexico and the university of New Mexico school of
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0005| law to perform services required by the Public Legal Services
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0006| Assistance Act;
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0007| (3) shall establish repayment penalties for
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0008| individuals who do not comply with the provisions of the Public
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0009| Legal Services Assistance Act; and
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0010| (4) shall adopt regulations and procedures to
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0011| implement the provisions of the Public Legal Services
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0012| Assistance Act.
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0013| Section 6. ELIGIBILITY--AMOUNT OF AWARD.--
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0014| A. A qualified graduate who has obtained qualifying
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0015| employment may be awarded loan repayment assistance from the
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0016| public legal services loan repayment assistance fund if:
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0017| (1) funds are available and the qualified
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0018| graduate is employed in a position for which there is great
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0019| demonstrated need to attract and maintain capable personnel;
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0020| (2) the loan repayment award does not exceed
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0021| the one-year payment for the award recipient in either of the
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0022| first two years of qualifying employment;
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0023| (3) no less than one-third of the
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0024| appropriation available for loan repayment awards in the fiscal
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0025| year is awarded to qualified graduates in qualifying
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0001| employment, unless an insufficient number of qualified
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0002| applicants are employed in those positions; and
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0003| (4) the award recipient agrees to comply with
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0004| all rules and regulations adopted by the commission pursuant to
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0005| the Public Legal Services Assistance Act.
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0006| Section 7. CONDITIONS FOR CONTINUING ELIGIBILITY.--An
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0007| award recipient shall continue to receive loan repayment
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0008| assistance pursuant to the Public Legal Services Assistance
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0009| Act, if:
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0010| A. the award recipient maintains residence in the
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0011| state and maintains qualifying employment; and
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0012| B. the award recipient provides documentation
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0013| required pursuant to rules and regulations adopted by the
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0014| commission to carry out the provisions of the Public Legal
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0015| Services Assistance Act, including proof of qualifying
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0016| employment, copies of income tax returns and notice of
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0017| increases in income.
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0018| Section 8. TERMINATION OF ASSISTANCE.--Loan repayment
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0019| assistance to an award recipient shall be terminated upon:
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0020| A. failure by the award recipient to maintain New
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0021| Mexico residency or qualifying employment; or
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0022| B. substantial noncompliance by the award recipient
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0023| with the Public Legal Services Assistance Act or the rules,
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0024| regulations or procedures promulgated by the commission.
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0025| Section 9. PAYMENT OF AWARD.--Loan repayment assistance
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0001| shall occur on a monthly basis and payment shall be made
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0002| directly to the noteholder or lending institution.
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0003| Section 10. APPROPRIATION.--Thirty thousand dollars
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0004| ($30,000) is appropriated from the general fund to the public
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0005| legal services loan repayment assistance fund for expenditure
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0006| in fiscal year 1998 for the purpose of carrying out the
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0007| provisions of the Public Legal Services Assistance Act. No
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0008| more than three percent of the appropriation shall be used for
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0009| administrative purposes. Any unexpended or unencumbered
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0010| balance remaining at the end of fiscal year 1998 shall not
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0011| revert to the general fund.
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0012|
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0013| State of New Mexico
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0014| House of Representatives
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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| February 24, 1997
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0021|
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0022|
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0023| Mr. Speaker:
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0024|
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0025| Your JUDICIARY COMMITTEE, to whom has been referred
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0001|
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0002| HOUSE BILL 811
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0003|
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0004| has had it under consideration and reports same with
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0005| recommendation that it DO PASS, amended as follows:
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0006|
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0007| 1. On page 3, line 2, after "provides" insert "legal
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0008| services" and after "for" strike the remainder of the line.,
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0009|
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0010| and thence referred to the APPROPRIATIONS AND FINANCE
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0011| COMMITTEE.
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0012|
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0013| Respectfully submitted,
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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|
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0019| Thomas P. Foy, Chairman
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0020|
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0021|
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0022| Adopted Not Adopted
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0023|
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0024| (Chief Clerk) (Chief Clerk)
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0025|
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0001| Date
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0002|
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0003| The roll call vote was 9 For 1 Against
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0004| Yes: 9
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0005| No: Alwin
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0006| Excused: M.P. Garcia, Pederson, Rios
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0007| Absent: None
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0008|
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0009|
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0010| .117685.1
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0011| G:\BILLTEXT\BILLW_97\H0811
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