0001|                         HOUSE BILL 787
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0002|     42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003|     1996
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0004|                         INTRODUCED BY
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0005|                        TIMOTHY E. MACKO
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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|                             AN ACT
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0012|     RELATING TO TRANSPORTATION; ABOLISHING THE STATE TRANSPORTATION
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0013|     AUTHORITY; TRANSFERRING PERSONNEL, ASSETS AND OBLIGATIONS;
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0014|     REPEALING THE RESOURCE TRANSPORTATION AND PASSENGER
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0015|     TRANSPORTATION DEVELOPMENT ACT; AUTHORIZING THE STATE HIGHWAY
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0016|     COMMISSION TO ISSUE REVENUE BONDS AND REFUNDING BONDS; PROVIDING
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0017|     THE STATE HIGHWAY COMMISSION WITH THE POWER OF EMINENT DOMAIN;
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0018|     REPEALING AND ENACTING SECTIONS OF THE NMSA 1978.
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0019|     
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0020|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0021| Section 1.  A new section of Chapter 67, Article 3 NMSA
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0022|     1978 is enacted to read:
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0023|       "[<u>NEW MATERIAL</u>]  STATE HIGHWAY COMMISSION--POWERS OF
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0024|     EMINENT DOMAIN.--
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0025|            A.  The state highway commission shall have the power
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0001|     to acquire property by purchase, lease, gift, devise or eminent
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0002|     domain for the construction and maintenance of transportation
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0003|     systems, communication and transportation structures and other
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0004|     facilities necessary for the operation of transportation
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0005|     systems.
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0006|            B.  The state highway commission shall have the
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0007|     authority to acquire property from any person, governmental
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0008|     entity or Indian tribe or pueblo for the purposes set forth in
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0009|     this section."
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0010|       Section 2.  A new section of Chapter 67, Article 3 NMSA
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0011|     1978 is enacted to read:
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0012|       "[<u>NEW MATERIAL</u>]  TRANSPORTATION BONDS.--
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0013|            A. Whenever the state highway commission by
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0014|     resolution determines that interest or necessity demands the
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0015|     issuance of revenue bonds to finance the development and
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0016|     construction of transportation systems, it may, by resolution,
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0017|     make and issue state revenue bonds which shall be known as
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0018|     "transportation bonds".  Such bonds shall be payable solely out
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0019|     of the net income to be derived from the operation of the
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0020|     project and shall pledge, irrevocably, such income to the
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0021|     payment of those bonds.  The state board of finance may require
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0022|     such other guarantees as it deems necessary.  The bonds shall
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0023|     never become a general obligation of the state or any political
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0024|     subdivision.
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0025|            B.  The proceeds from the sale of transportation
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0001|     bonds shall be used solely for the purposes specified in the
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0002|     resolution and for which they were issued."
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0003|       Section 3.  A new section of Chapter 67, Article 3 NMSA
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0004|     1978 is enacted to read:
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0005|       "[<u>NEW MATERIAL</u>]  TRANSPORTATION BONDS--TERMS.--Transportation bonds issued by the state highway commission:
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0006|            A.  shall bear interest which at the time of
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0007|     commitment shall be equal to the market return on comparable
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0008|     investments but shall not be less than the average rate of
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0009|     interest or return on all the investments of the severance tax
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0010|     permanent fund for the immediately preceding fiscal year minus
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0011|     two percentage points previous to their issue;
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0012|            B.  shall be payable at such times as the commission
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0013|     may provide and shall be fully registered as to principal and
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0014|     interest;
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0015|            C.  may be subject to prior redemption at the
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0016|     commission's option at such time and upon such terms and
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0017|     conditions, with or without payment of premiums, as may be
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0018|     provided in the resolution of the commission;
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0019|            D.  may mature at any time not exceeding fifty years
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0020|     after the date of issuance;
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0021|            E.  may be serial in form and maturity and may
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0022|     consist of one bond payable at one time or in installments;
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0023|            F.  shall be sold for cash at, above or below par and
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0024|     at the effective interest rate permitted in this section; and
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0025|            G.  may be sold at a public or private sale."
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0001|       Section 4.  A new section of Chapter 67, Article 3 NMSA
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0002|     1978 is enacted to read:
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0003|       "[<u>NEW MATERIAL</u>]  REFUNDING BONDS.--
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0004|            A.  Transportation bonds issued pursuant to the
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0005|     provisions of Chapter 67, Article 3 NMSA 1978 that are
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0006|     outstanding may at any time and from time to time be refunded by
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0007|     the state highway commission upon the adoption of a resolution
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0008|     providing for such issuance and by the issuance of refunding
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0009|     bonds in such amount as the commission determines to refund the
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0010|     principal of the transportation bonds, all unpaid accrued and
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0011|     unaccrued interest thereon to the normal maturity date of such
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0012|     bonds or to selected prior redemption dates thereof, any
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0013|     redemption premiums, any commission and all estimated costs
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0014|     incidental to the issuance of such bonds and to such refunding
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0015|     as may be determined by the commission.
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0016|            B.  The principal amount of any such refunding bonds
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0017|     may be equal to, less than or greater than the principal amount
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0018|     of the bonds so refunded.
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0019|            C.  Any refunding may be effected, whether the bonds
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0020|     to be refunded have then matured or thereafter mature, either by
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0021|     sale of the refunding bonds and the application of the proceeds
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0022|     thereof for the payment of the bonds to be refunded or by
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0023|     exchange of the refunding bonds for the bonds to be refunded;
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0024|     provided that the bonds to be refunded shall not be canceled
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0025|     without the consent of the holders to surrender their bonds for
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0001|     payment or exchange prior to the date on which they are payable
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0002|     or if they are called for redemption prior to the date on which
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0003|     they are by their terms subject to redemption.
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0004|            D.  Any refunding bonds issued pursuant to this
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0005|     section shall be payable solely from the revenues out of which
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0006|     transportation bonds may be payable or solely from those amounts
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0007|     derived from an escrow as provided in this section, including
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0008|     amounts derived from the investment of refunding bond proceeds
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0009|     and other legally available amounts also provided in this
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0010|     section or from any combination of those sources.
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0011|            E.  Proceeds of refunding bonds shall either be
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0012|     applied immediately to the retirement of the bonds being
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0013|     refunded or be placed in escrow in a commercial bank or trust
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0014|     company that possesses and is exercising trust powers.
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0015|     Notwithstanding any statute to the contrary, such escrowed
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0016|     proceeds may be invested in short-term securities, long-term
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0017|     securities or both."
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0018|       Section 5.  A new section of Chapter 67, Article 3 NMSA
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0019|     1978 is enacted to read: 
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0020|       "[<u>NEW MATERIAL</u>]  TRANSPORTATION BONDS ELIGIBLE FOR
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0021|     INVESTMENT.--Transportation bonds issued by the state highway
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0022|     commission are hereby made securities in which all public
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0023|     officers and public bodies of this state and its political
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0024|     subdivisions and all insurance companies, trust companies,
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0025|     banking associations, investment companies, executors,
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0001|     administrators, trustees and other fiduciaries may properly and
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0002|     legally invest funds, including capital in their control or
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0003|     belonging to them.  Such bonds are securities which may properly
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0004|     and legally be deposited with and be received by any state or
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0005|     political subdivision officer for which the deposit of bonds or
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0006|     obligations of the state is authorized by law.  The bonds may be
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0007|     deemed by the state highway commission, with the approval of the
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0008|     state board of finance, certificates of deposit for purposes of
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0009|     the investment of state money, in which case the commission
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0010|     shall be deemed a New Mexico savings and loan association for
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0011|     these purposes only; provided that the state board of finance
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0012|     may waive all collateralization and other requirements as long
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0013|     as it finds the bonds to be comparable in safety to other
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0014|     investments of state funds.  No bonds issued by the state
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0015|     highway commission shall be eligible for investment or deposit
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0016|     by or with the state or any of its political subdivisions unless
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0017|     they have been rated AA or higher by an independent nationally
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0018|     recognized bond rating service based solely on the security of
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0019|     the bonds as investments without resort to any collateral
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0020|     guarantees.  No bonds shall be eligible for investment or
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0021|     deposit by or with the state or any of its political
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0022|     subdivisions unless the state highway commission has filed with
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0023|     the legislative finance committee its decision to issue the
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0024|     bonds and all of its findings and reasons in support of the
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0025|     decision and one complete regular session of the legislature has
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0001|     intervened since the filing."
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0002|       Section 6.  A new section to Chapter 67, Article 3 NMSA
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0003|     1978 is enacted to read:
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0004|       "[<u>NEW MATERIAL</u>]  TRANSPORTATION BONDS--EXEMPTION FROM
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0005|     TAXATION.--The construction, operation and maintenance of any
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0006|     transportation project by the state highway commission will
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0007|     constitute the performance of an essential governmental
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0008|     function.  As such, the income from any transportation bonds
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0009|     issued pursuant to Chapter 67, Article 3 NMSA 1978 shall at all
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0010|     times be free from taxation by the state and by its political
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0011|     subdivisions."
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0012|       Section 7.  TEMPORARY PROVISION--TRANSFER OF PERSONNEL,
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0013|     ASSETS AND OBLIGATIONS.--On July 1, 1996:
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0014|            A.  all personnel, appropriations, money, records,
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0015|     property, equipment and supplies of the state transportation
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0016|     authority shall be transferred to the state highway and
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0017|     transportation department; and
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0018|            B.  all contracts, agreements and obligations of the
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0019|     state transportation authority shall be binding and effective on
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0020|     the state highway and transportation department.
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0021|       Section 8.  REPEAL.--Sections 73-23-1 through 73-23-13 NMSA
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0022|     1978 (being Laws 1985 (1st. S.S.), Chapter 14, Sections 1
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0023|     through 13, as amended) are repealed.
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0024|       Section 9.  EFFECTIVE DATE.--The effective date of the
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0025|         provisions of this act is July 1, 1996.                      State of New Mexico
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0001|                    House of Representatives
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0002|   
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0003|                    FORTY-SECOND LEGISLATURE
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0004|                      SECOND SESSION, 1996
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0005|   
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0006|   
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0007|                                             February 13, 1996
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0008|   
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0009|   
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0010|   Mr. Speaker:
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0011|   
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0012|       Your TRANSPORTATION COMMITTEE, to whom has been
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0013|   referred
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0014|   
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0015|                         HOUSE BILL 787
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0016|                                
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0017|                                 has had it under consideration and reports same with
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0018|   recommendation that it DO PASS, and thence referred to the
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0019|   JUDICIARY COMMITTEE.
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0020|   
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0021|                                Respectfully submitted,
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0022|   
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0023|   
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0024|   
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0025|                                <u>                                 
</u>    |
<u></u>0001| <u>  </u>                            Daniel P. Silva, Chairman
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0002|   
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0003|   
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0004|   Adopted <u>                    </u>    Not Adopted <u>                     
</u>    |
<u></u>0005| <u>  </u>
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0006|            (Chief Clerk)                       (Chief Clerk)
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0007|   
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0008|                      Date <u>            </u>
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0009|   
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0010|   The roll call vote was<u> 7 </u> For<u> 0 </u> Against
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0011|   Yes:          7
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0012|   Excused: Miera, Rodella
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0013|   Absent:  Olguin, Watchman, Whitaker
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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|   H0787TC1
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