0001|                           SENATE BILL 245
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0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003|                            INTRODUCED BY
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0004|                          MICHAEL S. SANCHEZ
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0005|     
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0006|                                   
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0007|     
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0008|       FOR THE WATER, UTILITIES AND NATURAL RESOURCES COMMITTEE
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0009|     
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0010|                                AN ACT
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0011|     RELATING TO RURAL ELECTRIC COOPERATIVES; AMENDING THE RURAL
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0012|     ELECTRIC COOPERATIVE ACT TO ALLOW MERGERS AND CONSOLIDATIONS
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0013|     WITH CERTAIN CORPORATIONS AND COOPERATIVES ORGANIZED UNDER THE
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0014|     LAWS OF ANOTHER STATE; DECLARING AN EMERGENCY.
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0015|     
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0016|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017|          Section 1.  Section 62-15-2 NMSA 1978 (being Laws 1939,
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0018|     Chapter 47, Section 2, as amended) is amended to read:
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0019|          "62-15-2.  PURPOSE--DEFINITION.--Cooperative nonprofit
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0020|     membership corporations may be organized under the Rural
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0021|     Electric Cooperative Act for the primary purpose of supplying
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0022|     electric power and energy and promoting and extending the use
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0023|     of electricity in rural areas.  Corporations organized under
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0024|     that act and corporations which become subject to that act in
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0025|     the manner provided in that act <u>and for the purposes of
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<center>- 1 -</center>

<u></u>0001| <u>    Sections 62-15-13, 62-15-14, 62-15-15 and 62-15-19 NMSA 1978,
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<u></u>0002| <u>    corporations organized on a nonprofit or cooperative basis
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<u></u>0003| <u>    under the laws of another state for the primary purpose of
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<u></u>0004| <u>    supplying electric power or energy</u> are referred to in the
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0005|     Rural Electric Cooperative Act as "cooperatives"."
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0006|          Section 2.  Section 62-15-15 NMSA 1978 (being Laws 1939,
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0007|     Chapter 47, Section 15) is amended to read:
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0008|          "62-15-15.  EFFECT OF CONSOLIDATION OR MERGER.--The
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0009|     effect of consolidation or merger shall be as follows:
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0010|               <s>[(a)]</s> <u>A.</u>  the several cooperatives, parties to
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0011|     the consolidation or merger, shall be a single cooperative,
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0012|     which in the case of a consolidation shall be the new
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0013|     cooperative provided for in the articles of consolidation and
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0014|     in the case of a merger shall be that cooperative designated
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0015|     in the articles of merger as the surviving cooperative, and
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0016|     the separate existence of all cooperatives, parties to the
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0017|     consolidation or merger, except the new or surviving
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0018|     cooperative shall cease;
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0019|               <s>[(b)  Such]</s> <u>B.  the</u> new or surviving
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0020|     cooperative shall have all the rights, privileges, immunities
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0021|     and powers and shall be subject to all the duties and
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0022|     liabilities of a cooperative organized under the provisions of
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0023|     <s>[this]</s> <u>the Rural Electric Cooperative</u> Act <s>[and]</s>.  It
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0024|     shall possess all the rights, privileges, immunities and
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0025|     franchises, <s>[as well]</s> of a public as <u>well as</u> of a private
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<center>- 2 -</center>

0001|     nature, and all property, real and personal, applications for
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0002|     membership, all debts due on whatever account and all other
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0003|     choses in action of each of the consolidating or merging
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0004|     cooperatives, and <s>[furthermore all and]</s> every interest of or
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0005|     belonging or due to each of the cooperatives <s>[so]</s>
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0006|     consolidated or merged shall be <s>[taken and]</s> deemed to be
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0007|     transferred to and vested in <s>[such]</s> <u>the</u> new or surviving
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0008|     cooperative without further act or deed <s>[and]</s>.  The title to
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0009|     any real estate, or any interest therein, under the laws of
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0010|     this state vested in any such cooperatives shall not revert
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0011|     <s>[to]</s> <u>or</u> be in any way impaired by reason of <s>[such]</s> <u>the</u>
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0012|     consolidation or merger;
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0013|               <s>[(c)  Such]</s> <u>C.  the</u> new or surviving
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0014|     cooperative shall thenceforth be responsible and liable for
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0015|     all of the liabilities and obligations of each of the
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0016|     cooperatives <s>[so]</s> consolidated or merged, and any claim
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0017|     existing, or action or proceeding pending, by or against any
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0018|     of such cooperatives may be prosecuted as if <s>[such]</s> <u>the</u>
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0019|     consolidation or merger had not taken place, but <s>[such]</s>
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0020|     <u>the</u> new or surviving cooperative may be substituted in its
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0021|     place;
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0022|               <s>[(d)]</s> <u>D.</u>  neither the rights of creditors nor
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0023|     any liens upon the property of any of such cooperatives shall
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0024|     be impaired by <s>[such]</s> <u>the</u> consolidation or merger; and
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0025|               <s>[(e)]</s> <u>E.</u>  in the case of a consolidation, the
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<center>- 3 -</center>

0001|     articles of consolidation shall be deemed to be the articles
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0002|     of incorporation of the new cooperative; and in the case of a
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0003|     merger, the articles of incorporation of the surviving
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0004|     cooperative shall be deemed to be amended to the extent, if
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0005|     any, that changes <s>[therein]</s> <u>in the articles of
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<u></u>0006| <u>    incorporation</u> are provided for in the articles of merger."
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0007|          Section 3.  EMERGENCY.--It is necessary for the public
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0008|     peace, health and safety that this act takes effect
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0009|     immediately.
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0010|                              
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