0001| HOUSE BILL 995
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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| W. C. "DUB" WILLIAMS
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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 TAXATION; AMENDING THE NMSA 1978 TO MODIFY THE
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0012| SUPPLEMENTAL MUNICIPAL GROSS RECEIPTS TAX ACT TO EXTEND ITS
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0013| OPERATION AND PERMIT REFUNDING BONDS.
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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 7-19-11 NMSA 1978 (being Laws 1979,
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0017| Chapter 397, Section 2, as amended) is amended to read:
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0018| "7-19-11. DEFINITIONS.--As used in the Supplemental
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0019| Municipal Gross Receipts Tax Act:
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0020| A. "department" or "division" means the taxation
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0021| and revenue department, the secretary of taxation and revenue
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0022| or any employee of the department exercising authority lawfully
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0023| delegated to that employee by the secretary;
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0024| B. "governing body" means the city council or city
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0025| commission of a municipality;
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0001| C. "municipality" means any incorporated city, town
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0002| or village having a population under [twelve] thirteen
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0003| thousand as determined by the last official United States
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0004| census and being located within a class [C] B county;
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0005| D. "person" means an individual or any other legal
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0006| entity;
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0007| E. "refunding bonds" means bonds issued pursuant
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0008| to the provisions of the Supplemental Municipal Gross Receipts
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0009| Tax Act to refund supplemental municipal gross receipts tax
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0010| bonds issued pursuant to the provisions of that act;
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0011| [E.] F. "state gross receipts tax" means the
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0012| gross receipts tax imposed under the Gross Receipts and
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0013| Compensating Tax Act; and
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0014| [F.] G. "supplemental municipal gross receipts
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0015| tax" means the tax authorized to be imposed under the
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0016| Supplemental Municipal Gross Receipts Tax Act."
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0017| Section 2. Section 7-19-12 NMSA 1978 (being Laws 1979,
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0018| Chapter 397, Section 3, as amended by Laws 1986, Chapter 6,
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0019| Section 1 and also by Laws 1986, Chapter 20, Section 80) is
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0020| amended to read:
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0021| "7-19-12. AUTHORIZATION TO IMPOSE SUPPLEMENTAL MUNICIPAL
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0022| GROSS RECEIPTS TAX--AUTHORIZATION FOR ISSUANCE OF SUPPLEMENTAL
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0023| MUNICIPAL GROSS RECEIPTS BONDS--ELECTION REQUIRED
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0024| [--AUTHORIZATION REMOVED].--
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0025| A. The majority of the members elected to the
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0001| governing body of a municipality may enact an ordinance
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0002| imposing an excise tax on any person engaging in business in
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0003| the municipality for the privilege of engaging in business in
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0004| the municipality. This tax is to be referred to as the
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0005| "supplemental municipal gross receipts tax". The rate of the
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0006| tax shall not exceed one percent of the gross receipts of the
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0007| person engaging in business and shall be imposed in one-fourth
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0008| percent increments if less than one percent.
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0009| B. The governing body of a municipality enacting an
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0010| ordinance imposing the tax authorized in Subsection A of this
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0011| section shall submit the question of imposing such tax and the
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0012| question of the issuance of supplemental municipal gross
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0013| receipts bonds in an amount not to exceed nine million dollars
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0014| ($9,000,000), for which the revenue from the supplemental
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0015| municipal gross receipts tax is dedicated, to the qualified
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0016| [registered] electors of the municipality at a regular or
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0017| special election.
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0018| C. The questions referred to in Subsection B of
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0019| this section shall be submitted to a vote of the qualified
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0020| [and registered] electors of the municipality as two separate
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0021| ballot questions which shall be substantially in the following
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0022| form:
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0023| (1) "Shall the municipality be authorized to
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0024| issue supplemental municipal gross receipts bonds in an amount
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0025| of not exceeding ____________________ dollars for the purpose
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0001| of constructing and equipping and otherwise acquiring a
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0002| municipal water supply system?
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0003| For __________ Against __________"; and
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0004| (2) "Shall the municipality impose an excise
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0005| tax for the privilege of engaging in business in the
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0006| municipality which shall be known as the "supplemental
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0007| municipal gross receipts tax" and which shall be imposed at a
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0008| rate of __________ percent of the gross receipts of the person
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0009| engaging in business, the proceeds of which are dedicated to
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0010| the payment of supplemental municipal gross receipts bonds?
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0011| For __________ Against __________".
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0012| D. Only those voters who are registered electors
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0013| who reside within the municipality shall be permitted to vote
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0014| on these two questions. The procedures for conducting the
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0015| election shall be substantially the same as the applicable
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0016| provisions in Sections 3-30-1, 3-30-6 and 3-30-7 NMSA 1978
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0017| relating to municipal debt.
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0018| E. If at an election called pursuant to this
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0019| section a majority of the voters voting on each of the two
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0020| questions vote in the affirmative on each such question, then
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0021| the ordinance imposing the supplemental municipal gross
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0022| receipts tax shall be approved. If at such election a majority
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0023| of the voters voting on such questions fail to approve any of
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0024| the questions, then the ordinance imposing the tax shall be
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0025| disapproved and the questions required to be submitted by
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0001| Subsection B of this section shall not be submitted to the
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0002| voters for a period of one year from the date of the election.
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0003| F. Any ordinance enacted under the provisions of this
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0004| section shall include an effective date of either July 1 or
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0005| January 1, whichever date occurs first after the expiration of
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0006| at least five months from the date of the election. A
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0007| certified copy of any ordinance imposing a supplemental
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0008| municipal gross receipts tax shall be mailed to the division
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0009| within five days after the ordinance is adopted by the approval
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0010| by the electorate. Any ordinance repealing the imposition of a
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0011| tax under the provisions of the Supplemental Municipal Gross
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0012| Receipts Tax Act shall become effective on either July 1 or
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0013| January 1, after the expiration of at least five months from
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0014| the date the ordinance is repealed by the governing body.
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0015| G. [No ordinance pursuant to the provisions of the
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0016| Supplemental Municipal Gross Receipts Tax Act shall be
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0017| effective unless it is enacted and the required election is
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0018| held prior to February 1, 1986.] Nothing in this section is
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0019| intended to or does alter the effectiveness or validity of any
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0020| actions taken in accordance with Subsection G of Section 80 of
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0021| Chapter 20 of Laws 1986."
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0022| Section 3. Section 7-19-18 NMSA 1978 (being Laws 1979,
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0023| Chapter 397, Section 9, as amended) is amended to read:
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0024| "7-19-18. SUPPLEMENTAL MUNICIPAL GROSS RECEIPTS TAX--USE
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0025| OF PROCEEDS--RESTRICTION.--
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0001| A. The proceeds from the supplemental municipal
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0002| gross receipts tax shall be deposited in a special improvement
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0003| account of the municipality and shall be used only for:
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0004| (1) the payment of the principal of, interest
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0005| on, any prior redemption premiums due in connection with and
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0006| other expenses related to the supplemental municipal gross
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0007| receipts bonds issued pursuant to the Supplemental Municipal
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0008| Gross Receipts Tax Act;
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0009| (2) the funding of any reserves and other
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0010| accounts in connection with such bonds;
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0011| (3) refunding bonds; and
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0012| (4) to the extent not needed for [such]
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0013| those purposes, the improvement of the municipality's water
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0014| system. B. When [the] any issue of supple-
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0015|
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0016| mental municipal gross receipts bonds [are] is fully paid,
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0017| [any] the supplemental municipal gross receipts tax shall
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0018| cease to be imposed for that issue, but may continue to be
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0019| imposed for bonds enacted and approved pursuant to Section 7-
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0020| 19-12 NMSA 1978 and thereafter issued, or for refunding bonds
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0021| issued pursuant to Section 4 of this 1997 act. Any money
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0022| remaining in a special improvement account after the
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0023| obligations for [the] supplemental municipal gross receipts
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0024| bonds and refunding bonds, are fully paid may be transferred
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0025| to any other fund of the municipality."
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0001| Section 4. A new section of Chapter 7, Article 19 NMSA
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0002| 1978 is enacted to read:
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0003| "[NEW MATERIAL] REFUNDING BONDS--AUTHORIZATION.--
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0004| A. Any municipality may issue refunding bonds for the
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0005| purpose of refinancing, paying and discharging all or any part
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0006| of outstanding supplemental municipal gross receipts tax bonds
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0007| of any one or more or all outstanding issues:
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0008| (1) for the acceleration, deceleration or other
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0009| modification of the payment of such obligations, including
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0010| without limitation any capitalization of any interest thereon
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0011| in arrears or about to become due for any period not exceeding
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0012| one year from the date of the refunding bonds;
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0013| (2) for the purpose of reducing interest costs
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0014| or affecting other economies;
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0015| (3) for the purpose of modifying or eliminating
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0016| restrictive contractual limitations pertaining to the issuance
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0017| of additional bonds, otherwise concerning the outstanding bonds
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0018| or to any facilities relating thereto; or
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0019| (4) for any combination of such purposes.
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0020| B. The municipality may pledge irrevocably for the
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0021| payment of interest and principal on refunding bonds the
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0022| appropriate pledged revenues, which may be pledged to an
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0023| original issue of bonds as provided in the Supplemental
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0024| Municipal Gross Receipts Tax Act. Nothing in this section
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0025| shall permit the pledge of the gross receipts tax revenue to
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0001| the payment of bonds that refund bonds issued under any other
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0002| provision of law.
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0003| C. Refunding bonds may be issued separately or issued
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0004| in combination in one series or more.
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0005| D. Refunding bonds issued pursuant to the
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0006| Supplemental Municipal Gross Receipts Tax Act shall be
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0007| authorized by ordinance. Any bonds that are refunded under the
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0008| provisions of this section shall be paid at maturity or on any
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0009| permitted prior redemption date in the amounts, at the time and
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0010| places and, if called prior to maturity, in accordance with any
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0011| applicable notice provisions, all as provided in the
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0012| proceedings authorizing the issuance of the refunded bonds, or
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0013| otherwise appertaining thereto, except for any such bond that
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0014| is voluntarily surrendered for exchange or payment by the
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0015| holder or owner.
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0016| E. Provision shall be made for paying the bonds
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0017| refunded at the time or places provided in Subsection D of this
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0018| section. The principal amount of the refunding bonds may
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0019| exceed, be less than or be the same as the principal amount of
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0020| the bonds being refunded so long as provision is duly and
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0021| sufficiently made for the payment of the refunded bonds.
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0022| F. The proceeds of refunding bonds, including any
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0023| accrued interest and premium appertaining to the sale of
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0024| refunding bonds, shall either be immediately applied to the
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0025| retirement of the bonds being refunded or be placed in escrow
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0001| in a commercial bank or trust company that possesses and is
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0002| exercising trust powers and that is a member of the federal
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0003| deposit insurance corporation, to be applied to the payment of
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0004| the principal of, interest on and any prior redemption premium
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0005| due in connection with the bonds being refunded; provided that
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0006| such refunding bond proceeds, including any accrued interest
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0007| and any premium appertaining to a sale of refunding bonds, may
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0008| be applied to the establishment and maintenance of a reserve
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0009| fund and to the payment of expenses incidental to the refunding
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0010| and the issuance of the refunding bonds, the interest on the
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0011| refunding bonds and the principal of the refunding bonds or
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0012| both interest and principal as the municipality may determine.
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0013| Nothing in this section requires the establishment of an escrow
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0014| if the refunded bonds become due and payable within one year
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0015| from the date of the refunding bonds and if the amounts
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0016| necessary to retire the refunded bonds within that time are
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0017| deposited with the paying agent for the refunded bonds. Any
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0018| such escrow shall not necessarily be limited to proceeds of
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0019| refunding bonds but may include other money available for its
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0020| escrow purpose. Any proceeds in escrow pending such use may be
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0021| invested or reinvested in bills, certificates of indebtedness,
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0022| notes or bonds that are direct obligations of or the principal
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0023| and interest of which obligations are unconditionally
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0024| guaranteed by the United States or in certificates of deposit
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0025| of banks that are members of the federal deposit insurance
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0001| corporation, the par value of which certificates of deposit is
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0002| collateralized by a pledge of obligations of or the payment of
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0003| which is unconditionally guaranteed by the United States, the
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0004| par value of which obligations is least seventy-five percent of
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0005| the par value of the certificates of deposit. Such proceeds
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0006| and investments in escrow together with any interest or other
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0007| income to be derived from any such investment shall be in an
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0008| amount at all times sufficient as to principal, interest, any
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0009| prior redemption premium due and any charges of the escrow
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0010| agent payable therefrom to pay the bonds being refunded as they
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0011| become due at their respective maturities or due at any
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0012| designated prior redemption date in connection with which the
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0013| municipality shall exercise a prior redemption option. Any
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0014| purchaser of any refunding bond issued pursuant to the
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0015| provisions of the Supplemental Municipal Gross Receipts Tax Act
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0016| is in no manner responsible for the application of the proceeds
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0017| thereof by the municipality or any of its officers, agents or
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0018| employees.
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0019| G. Refunding bonds may be sold at a public or
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0020| negotiated sale and may bear such additional terms and
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0021| provisions as may be determined by the municipality subject to
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0022| limitations in the Supplemental Municipal Gross Receipts Tax
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0023| Act. The terms, provisions and authorization of the refunding
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0024| bonds are not subject to the provisions of any other statute,
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0025| provided that the Public Securities Limitation of Action Act
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0001| shall be fully applicable to the issuance of refunding bonds.
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0002| H. The municipality shall receive from the department
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0003| of finance and administration written approval of any refunding
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0004| bonds issued pursuant to the provisions of this section."
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0005| State of New Mexico
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0006| House of Representatives
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0007|
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0008| FORTY-THIRD LEGISLATURE
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0009| FIRST SESSION, 1997
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0010|
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0011|
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0012| March 5, 1997
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0013|
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0014|
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0015| Mr. Speaker:
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0016|
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0017| Your TAXATION AND REVENUE COMMITTEE, to whom has
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0018| been referred
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0019|
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0020| HOUSE BILL 995
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0021|
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0022| has had it under consideration and reports same with
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0023| recommendation that it DO PASS, amended as follows:
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0024|
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0025| 1. On page 2, line 2, after "having" strike the remainder
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0001| of the line and all of lines 3 and 4 and insert in lieu thereof
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0002| "previously qualified to impose and did impose the tax pursuant
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0003| to the provisions of the Supplemental Municipal Gross Receipts
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0004| Tax Act;".
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0005|
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0006| 2. On page 8, line 15, strike "may" and insert in lieu
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0007| thereof "shall not".
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0008|
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0009| 3. On page 8, line 16, after the comma insert "but may".
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0010|
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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|
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0019| Jerry W. Sandel, Chairman
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0020|
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0021|
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0022| Adopted Not Adopted
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0023| (Chief Clerk)
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0024| (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 12 For 0 Against
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0004| Yes: 12
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0005| Excused: Crook
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0006| Absent: None
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0007|
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0008|
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0009| .118236.1
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0010| .118342.1
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0011|
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0012| G:\BILLTEXT\BILLW_97\H0995 FORTY-THIRD LEGISLATURE
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0013| FIRST SESSION
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0014|
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0015|
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0016| March 7, 1997
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0017|
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0018|
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0019| HOUSE FLOOR AMENDMENT number ___1___ to HOUSE BILL 995, as amended
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0020|
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0021| Amendment sponsored by Representative Jerry W. Sandel
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0022|
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0023|
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0024| 1. Strike House Taxation and Revenue Committee Amendment 1.
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0025|
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0001| 2. On page 2, line 2, after "having" strike the remainder of the
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0002| line and all of lines 3 and 4 and insert in lieu thereof "previously
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0003| qualified to impose and did impose the tax pursuant to the provisions
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0004| of the Supplemental Gross Receipts Tax Act in effect prior to this 1997
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0005| act;".
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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| ___________________________
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0012| Jerry W. Sandel
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0013|
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0014|
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0015|
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0016| Adopted ___________________ Not Adopted ___________________________
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0017| (Chief Clerk) (Chief Clerk)
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0018|
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0019|
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0020| Date ________________
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0021|
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0022| FORTY-THIRD LEGISLATURE
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0023| FIRST SESSION, 1997
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0024|
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0025|
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0001| March 19, 1997
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0002|
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0003| Mr. President:
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0004|
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0005| Your WAYS AND MEANS COMMITTEE, to whom has been referred
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0006|
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0007| HOUSE BILL 995, as amended
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0008|
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0009| has had it under consideration and reports same with recommendation
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0010| that it DO PASS, and thence referred to the 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| Carlos R. Cisneros, Chairman
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0018|
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0019|
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0020|
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0021| Adopted_______________________ Not Adopted_______________________
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0022| (Chief Clerk) (Chief Clerk)
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0023|
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0024|
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0025| Date ________________________
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0001|
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0002|
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0003| The roll call vote was 8 For 0 Against
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0004| Yes: 8
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0005| No: 0
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0006| Excused: McSorley
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0007| Absent: None
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0008|
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0009|
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0010| H0995WM1
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0011|
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0012|
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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| March 21, 1997
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0019|
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0020| Mr. President:
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0021|
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0022| Your FINANCE COMMITTEE, to whom has been referred
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0023|
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0024| HOUSE BILL 995, as amended
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0025|
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0001| has had it under consideration and reports same with recommendation
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0002| 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| Ben D. Altamirano, Chairman
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0010|
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0011|
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0012|
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0013| Adopted_______________________ Not Adopted_______________________
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0014| (Chief Clerk) (Chief Clerk)
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0015|
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0016|
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0017|
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0018| Date ________________________
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0019|
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0020|
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0021| The roll call vote was 6 For 0 Against
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0022| Yes: 6
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0023| No: None
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0024| Excused: Carraro, Eisenstadt, Ingle, Lyons, McKibben
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0025| Absent: None
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0001|
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0002|
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0003| H0995FC1
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