0001| HOUSE BILL 435
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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| G.X. MCSHERRY
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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 AGRICULTURE; MAKING CHANGES IN THE PRODUCER'S LIEN
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0013| ACT TO CLARIFY ITS PROVISIONS; AMENDING, REPEALING AND ENACTING
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0014| SECTIONS OF THE NMSA 1978.
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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 48-5B-1 NMSA 1978 (being Laws 1995,
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0018| Chapter 157, Section 1) is amended to read:
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0019| "48-5B-1. SHORT TITLE.--[Sections 1 through 15 of this
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act] Chapter 48, Article 5B NMSA 1978 may be cited as the
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0021| "Producer's Lien Act"."
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0022| Section 2. Section 48-5B-2 NMSA 1978 (being Laws 1995,
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0023| Chapter 157, Section 2) is amended to read:
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0024| "48-5B-2. DEFINITIONS.--As used in the Producer's Lien
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0025| Act:
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0001| A. "department" means the New Mexico department of
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0002| agriculture;
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0003| B. "director" means the director of the
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0004| department;
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0005| [B.] C. "farm product" means an unprocessed
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0006| agricultural commodity; [as species of livestock used or
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produced in farming operations or a product of such crop or
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livestock in its unmanufactured state that is in the possession
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of a person engaged in farming operations and includes a list of
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farm products that are covered by this general definition as
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prepared by the secretary of state]
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0012| D. "person" means an individual or any other legal
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0013| entity;
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0014| E. "process" means to treat, refine or prepare for
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0015| sale, use, transportation or marketing;
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0016| [C.] F. "processor" means [any] a person
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0017| [firm or corporation that treats] who processes [or refines
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or in any other way prepares for sale, use, transportation or
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marketing] farm products; and
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0020| [D.] G. "producer" means [any] a person
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0021| [firm or corporation that is] engaged in the business of
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0022| [growing or] producing [any] a farm product [and
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E. "director" means the director of the New Mexico
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department of agriculture]."
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0025| Section 3. Section 48-5B-3 NMSA 1978 (being Laws 1995,
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0001| Chapter 157, Section 3) is amended to read:
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0002| "48-5B-3. EXTENT OF LIEN--PROPERTY SUBJECT TO
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0003| LIEN--ATTACHMENT AND [COMPLETION] PERFECTION.--
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0004| A. [In addition to all other rights and remedies
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that are provided for by law] Every producer [of a farm
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product] that sells a farm product [grown by him] to a
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0007| processor under contract [express or implied] has a lien to
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0008| be known as a "producer's lien" upon the farm product and upon
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0009| all processed or manufactured forms of the farm product to
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0010| secure payment to him for his labor, care and expense in
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0011| [growing and harvesting] producing the farm product.
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0012| B. The amount of a producer's lien [shall be to
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the extent of] is the [agreed] contract price for the
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0014| farm product sold. If there is no [agreed price or method for
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determining it, the extent] contract price, the amount of the
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0016| producer's lien is the value of the farm product [as of]
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0017| on the date of delivery to the processor. [Any portion of
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the farm product or the processed or manufactured forms of the
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farm product in excess of the amount necessary to satisfy the
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total amount owed under contract to a producer shall be free and
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clear of the lien]
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0022| C. [Every] A producer's lien [that is provided
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for in the Producer's Lien Act is on every] attaches to a
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0024| farm product and any processed form of the farm product that is
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0025| in the possession of the processor [without]. Segregation of
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0001| the product is not required. For purposes of the Producer's
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0002| Lien Act, [any] a farm product or processed form of a farm
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0003| product deposited by a processor [with] in a warehouse,
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0004| whether or not warehouse receipts are given as security to a
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0005| lender, [shall be considered as being] are deemed to be in
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0006| the possession of the processor and subject to the producer's
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0007| lien.
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0008| D. The producer's lien attaches [on all of the
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delivered product] from the date of delivery of the farm
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0010| product or any portion of it by a producer to [any] a
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0011| processor.
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0012| E. Unless the producer's lien is released by
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0013| payment or by security given for the payment as provided in
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0014| Section [6 of the Producer's Lien Act] 48-5B-5 NMSA 1978,
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0015| the producer's lien is [complete from] perfected on the date
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0016| of delivery of the farm product or [from] the date of the last
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0017| delivery if there is a series of deliveries.
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0018| F. [Nothing in] The Producer's Lien Act [shall
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operate to interfere with the operation of or shall relieve]
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0020| does not change the rights and responsibilities of financial
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0021| institutions, producers or processors [of their rights and
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responsibilities under] pursuant to the Farm Products Secured
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0023| Interest Act and the provisions of the Uniform Commercial
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0024| Code."
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0025| Section 4. Section 48-5B-5 NMSA 1978 (being Laws 1995,
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0001| Chapter 157, Section 5) is repealed and a new Section 48-5B-5
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0002| NMSA 1978 is enacted to read:
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0003| "48-5B-5. [NEW MATERIAL] TERMINATION OF PRODUCER'S
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0004| LIEN.--
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0005| A. A producer's lien is terminated by:
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0006| (1) payment of the full amount of the lien;
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0007| (2) the furnishing of security pursuant to the
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0008| provisions of Subsection C of this section; or
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0009| (3) execution of a written release of the lien
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0010| by the producer.
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0011| B. The effective date of a termination occurring
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0012| pursuant to Subsection A of this section is the date of payment,
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0013| the date of approval in writing of the furnishing of security or
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0014| the effective date of a written release.
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0015| C. The furnishing of acceptable security by a
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0016| processor to secure payment of the unpaid amount owed a producer
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0017| by a processor terminates the producer's lien on the farm
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0018| product for which payment has not been completed. Security is
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0019| acceptable if it is in a form and amount approved in writing by
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0020| the director pursuant to regulations adopted by the director for
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0021| the administration of the Producer's Lien Act. The amount or
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0022| value of the security shall be in an amount no less than the
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0023| amount of the producer's lien."
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0024| Section 5. Section 48-5B-6 NMSA 1978 (being Laws 1995,
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0025| Chapter 157, Section 6) is amended to read:
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0001| "48-5B-6. REMOVAL--SALE--PROCEEDS USED TO SATISFY
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0002| OBLIGATIONS.--[No] A processor shall not remove [any]
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0003| a farm product or [any] a processed form of the farm
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0004| product from New Mexico or from beyond his ownership or control
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0005| if it is delivered to him with a producer's lien attached.
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0006| However, any of the farm product or processed farm product that
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0007| is in excess of a quantity on hand that is of a value sufficient
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0008| to satisfy all existing liens on that product may be removed
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0009| by the processor. [Any] A farm product or a processed
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0010| form of the farm product to which a producer's lien has
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0011| attached may be sold [provided that] only if the total
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0012| proceeds of the sale are used to and do satisfy obligations to
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0013| producers that are secured by [a lien established pursuant to
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the Producer's Lien Act] producer's liens."
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0015| Section 6. Section 48-5B-7 NMSA 1978 (being Laws 1995,
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0016| Chapter 157, Section 7) is amended to read:
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0017| "48-5B-7. ACCEPTANCE OF SECURITY--PAYMENT OF
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0018| CLAIMS--ACTION TO ENFORCE PAYMENT UNDER BOND.--
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0019| A. The director may accept [a bond or other]
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0020| security [as provided in] pursuant to Section [6 of the
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Producer's Lien Act] 48-5B-5 NMSA 1978. If a claim secured
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0022| by a producer's lien is not paid in accordance with the
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0023| condition of the security, the director may, on proof being made
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0024| to his satisfaction of the [amounts that are] amount due
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0025| [to the claimants] a producer, pay all the unpaid claims
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0001| insofar as possible out of the [deposit money] security or
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0002| proceeds from [any] a sale made by him of [any securities
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or processed farm products that are given as] the security.
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0004| B. If a bond has been given as security, the
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0005| director shall notify the principal and surety of [any]
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0006| default [on the part] of the principal [under the bond] and
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0007| make demand for payment on behalf of the unpaid [claimants]
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0008| producer. If payment is not made, the director may take any
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0009| available legal action [he deems necessary] to enforce
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0010| payment under the bond.
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0011| [C. If the director has received warehouse receipts
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for any processed farm product as security and the processor
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giving them has failed to pay the claims in accordance with the
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terms of the security, the director may sell the security with
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or without notice and in the manner he determines] The
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0016| director shall adopt regulations establishing procedures for the
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0017| sale of security made pursuant to the provisions of this
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0018| section."
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0019| Section 7. Section 48-5B-9 NMSA 1978 (being Laws 1995,
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0020| Chapter 157, Section 9) is amended to read:
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0021| "48-5B-9. FORECLOSURE--RIGHT OF ACTION AGAINST
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0022| PROCESSOR--EFFECT OF PERSONAL JUDGMENT ON LIEN RIGHTS.--
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0023| A. A producer may enforce a producer's lien by
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0024| bringing a foreclosure action in district court. A producer's
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0025| lien is foreclosed in the same manner as a mortgage.
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0001| [A.] B. The Producer's Lien Act does not impair
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0002| or affect the right of a [claimant who possesses] producer
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0003| having a lien from maintaining a personal action to recover the
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0004| debt against a processor, either in an action to foreclose his
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0005| lien or in a separate action. [The claimant is not required to
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state in his affidavit that his demand is not secured by a lien
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in order to procure an attachment.]
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0008| [B.] C. A money judgment obtained by a
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0009| [claimant] producer in [the personal action or personal
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judgment obtained in the lien action] a foreclosure action or
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0011| an action to enforce the secured debt does not impair or merge
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0012| any lien right or claim held by the [claimant. However]
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0013| producer, but any money collected on the judgment shall be
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0014| credited on the amount of the producer's lien or [claims]
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0015| underlying claim in any action that is brought to enforce the
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0016| lien or in any action that is filed pursuant to the Producer's
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0017| Lien Act by the director."
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0018| Section 8. Section 48-5B-14 NMSA 1978 (being Laws 1995,
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0019| Chapter 157, Section 14) is amended to read:
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0020| "48-5B-14. DEPARTMENT DUTIES.--The department shall
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0021| [promulgate] adopt rules and regulations necessary to carry
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0022| out the provisions of the Producer's Lien Act, including
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0023| procedures for inspecting [processor's] processors' records
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0024| regarding [the] farm [product] products."
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0025| Section 9. A new section of the Producer's Lien Act is
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0001| enacted to read:
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0002| "[NEW MATERIAL] SALE OF PRODUCT--REQUIREMENT FOR
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0003| PROCESSOR'S STATEMENT TO BUYER PRIOR TO DELIVERY.--
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0004| A. Prior to the delivery of a farm product or
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0005| processed farm product to a buyer pursuant to a sale to the
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0006| buyer, a processor shall furnish the buyer a written statement
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0007| made by the processor and verified under oath stating the
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0008| following:
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0009| (1) whether or not a producer's lien has
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0010| attached and exists in respect to the product being delivered,
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0011| and if a lien exists, the amount of the lien;
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0012| (2) if a lien previously attached to the
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0013| product and has been terminated prior to delivery, a description
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0014| of how the lien was terminated; and
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0015| (3) if a lien exists on the product, a
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0016| statement that the proceeds of the sale will be used to and are
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0017| sufficient to satisfy all liens attached to the product.
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0018| B. If a processor's statement furnished pursuant to
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0019| Subsection A of this section includes the information required
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0020| by Paragraph (2) of that subsection, the processor shall attach
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0021| to the statement all documents that evidence the stated
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0022| termination.
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0023| C. A processor who fails to provide the statement
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0024| required by this section or who provides the statement but
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0025| includes false information in the statement shall be liable to a
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0001| buyer who relies on the statement and accepts delivery of the
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0002| product or processed product in an amount equal to twice the
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0003| purchase price paid by the buyer to the processor for the
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0004| product. A buyer may enforce this right by action in the
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0005| district court."
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0006| Section 10. REPEAL.--Sections 48-5B-4, 48-5B-8 and
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0007| 48-5B-10 through 48-5B-13 NMSA 1978 (being Laws 1995, Chapter
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0008| 157, Sections 4, 8 and 10 through 13) are repealed. State of New Mexico
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0009| House of Representatives
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0010|
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0011| FORTY-SECOND LEGISLATURE
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0012| SECOND SESSION, 1996
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0013|
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0014|
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0015| February 1, 1996
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0016|
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0017|
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0018| Mr. Speaker:
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0019|
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0020| Your AGRICULTURE AND WATER RESOURCES COMMITTEE,
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0021| to whom has been referred
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0022|
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0023| HOUSE BILL 435
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0024|
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0025| has had it under consideration and reports same with
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0001| recommendation that it DO PASS, and thence referred to the
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0002| JUDICIARY COMMITTEE.
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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| G. X. McSherry, Chairman
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0010|
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0011|
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0012| Adopted Not Adopted
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0013|
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0014| (Chief Clerk) (Chief Clerk)
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0015|
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0016| Date
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0017|
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0018| The roll call vote was 5 For 0 Against
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0019| Yes: 5
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0020| Excused: Casey, Crook, Porter, Stell
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0021| Absent: None
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0022|
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0023|
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0024|
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0025| H0435AG1 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 5, 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 JUDICIARY COMMITTEE, to whom has been referred
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0013|
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0014| HOUSE BILL 435
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0015|
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0016| has had it under consideration and reports same with
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0017| recommendation that it DO PASS.
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0018|
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0019| Respectfully submitted,
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0020|
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0021|
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0022|
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0023|
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0024| Cisco McSorley, Chairman
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0025|
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0001|
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0002| Adopted Not Adopted
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0003|
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0004| (Chief Clerk) (Chief Clerk)
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0005|
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0006| Date
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0007|
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0008| The roll call vote was 8 For 0 Against
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0009| Yes: 8
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0010| Excused: Baca, Luna, McSorley, Sanchez, R.G., Stewart
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0011| Absent: None
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0012|
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0013|
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0014|
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0015| H0435JC1
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0016|
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0017| FORTY-SECOND LEGISLATURE
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0018| SECOND SESSION, 1996
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0019|
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0020|
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0021| February 13, 1996
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0022|
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0023| Mr. President:
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0024|
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0025| Your CONSERVATION COMMITTEE, to whom has been referred
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0001|
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0002| HOUSE BILL 435
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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, and thence referred to the
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0006| JUDICIARY COMMITTEE.
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0007|
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0008| Respectfully submitted,
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0009|
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0010|
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0011|
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0012| __________________________________
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0013| TOM R. BENAVIDES, Chairman
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0014|
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0015|
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0016|
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0017| Adopted_______________________ Not Adopted_______________________
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0018| (Chief Clerk) (Chief Clerk)
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0019|
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0020|
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0021| Date ________________________
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0022|
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0023|
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0024| The roll call vote was 6 For 0 Against
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0025| Yes: 6
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0001| No: 0
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0002| Excused: Tsosie, Vernon, Wray
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0003| Absent: 0
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0004|
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0005|
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0006| H0435CO1
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0007|
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0008|
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0009|
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0010| FORTY-SECOND LEGISLATURE
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0011| SECOND SESSION, 1996
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0012|
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0013|
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0014| February 14, 1996
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0015|
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0016| Mr. President:
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0017|
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0018| Your JUDICIARY COMMITTEE, to whom has been referred
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0019|
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0020| HOUSE BILL 435
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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.
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0024|
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0025| Respectfully submitted,
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0001|
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0002|
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0003|
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0004| __________________________________
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0005| Janice D. Paster, Chairman
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0006|
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0007|
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0008|
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0009| Adopted_______________________ Not Adopted_______________________
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0010| (Chief Clerk) (Chief Clerk)
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0011|
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0012|
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0013|
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0014| Date ________________________
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0015|
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0016|
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0017| The roll call vote was 7 For 0 Against
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0018| Yes: 7
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0019| No: 0
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0020| Excused: None
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0021| Absent: Carraro, Vernon
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0022|
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0023|
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0024| H0435JU1
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0025|
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