0001|                        SENATE BILL 814
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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|                          ROMAN M. MAES
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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 THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE.
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0013|     
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0014|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0015|         .110993.1    
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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 9, 1996
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0022|   
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0023|   Mr. President:
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0024|   
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0025|     Your CORPORATIONS & TRANSPORTATION COMMITTEE, to
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0001|   whom has been referred
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0002|   
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0003|                        SENATE BILL 814
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0004|   
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0005|   has had it under consideration and reports same with
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0006|   recommendation that it DO NOT PASS, but that
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0007|   
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0008|             SENATE CORPORATIONS & TRANSPORTATION COMMITTEE
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0009|               SUBSTITUTE FOR SENATE BILL 814                     
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0010| 
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0011|   DO PASS, and further recommends that it be referred to COMMITTEES'
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0012|   COMMITTEE, and thence referred to the WAYS AND MEANS
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0013|   COMMITTEE.
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0014|   
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0015|                              Respectfully submitted,
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0016|   
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0017|   
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0018|   
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0019|                              __________________________________
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0020|                              Roman M. Maes, III, Chairman
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0021|   
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0022|   
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0023|   Adopted_______________________ Not Adopted_______________________

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0024|             (Chief Clerk)                          (Chief Clerk)
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0025|   
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0001|                     Date ________________________
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0002|   
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0003|   
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0004|   The roll call vote was <u> 5 </u> For <u> 0 </u> Against
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0005|   Yes:  5
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0006|   No:        0
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0007|   Excused:   Kidd, McKibben, Rawson, Reagan
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0008|   Absent:    None
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0009|   
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0010|     S0814CT1SENATE CORPORATIONS AND TRANSPORTATION COMMITTEE SUBSTITUTE FOR
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0011|                        SENATE BILL 814
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0012|     42nd legislature - STATE OF NEW MEXICO - second session, 1996
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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|     
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0020|                             AN ACT
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0021|     RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE; AMENDING
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0022|     AND REPEALING SECTIONS OF THE SUBSEQUENT INJURY ACT; DECLARING AN
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0023|     EMERGENCY.
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0024|     
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0025|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0001|         Section 1.  Section 52-2-4 NMSA 1978 (being Laws 1961, Chapter
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0002|     134, Section 4, as amended) is amended to read:
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0003|         "52-2-4.  SUBSEQUENT INJURY FUND.--A special fund to be known as
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0004|     the "subsequent injury fund" is established for the purpose of carry-
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0005|     ing out the provisions of the Subsequent Injury Act. <s>[The fund shall
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<s></s>0006| <s>    be derived from the following sources:
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<s></s>0007| <s>             A.  the employer or his insurance carrier shall pay to the
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<s></s>0008| <s>    superintendent of insurance the sum of one thousand dollars ($l,000)
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<s></s>0009| <s>    as indemnity benefits for the death of an employee when a final
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<s></s>0010| <s>    determination is made that there is no beneficiary entitled to death
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<s></s>0011| <s>    benefits under the Workers' Compensation Act;
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<s></s>0012| <s>             B.  each employer or his insurance carrier shall quarterly,
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<s></s>0013| <s>    under regulations prescribed by the superintendent of insurance,
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<s></s>0014| <s>    pay to the superintendent of insurance a percentage not to
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<s></s>0015| <s>    exceed three percent of the money paid out during such quarter
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<s></s>0016| <s>    as compensation benefits and medical benefits, exclusive of
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<s></s>0017| <s>    attorneys' fees and related benefits.  The above percentage
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<s></s>0018| <s>    shall be determined once before the end of each fiscal year by
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<s></s>0019| <s>    the superintendent of insurance so as to provide a sufficient
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<s></s>0020| <s>    income to meet payments from the fund for the next fiscal year;
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<s></s>0021| <s>    provided that for the first fiscal year, the percentage shall be
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<s></s>0022| <s>    one-half of one percent; and
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<s></s>0023| <s>           C.  the superintendent of insurance shall deposit all
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<s></s>0024| <s>    such money collected by him with the state treasurer who shall
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<s></s>0025| <s>    credit such deposits and accrued interest thereon to the
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<s></s>0001| <s>    subsequent injury fund. The deposits made shall be a separate
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<s></s>0002| <s>    fund for payments authorized under the provisions of the 
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<s></s>0003| <s>    Subsequent Injury Act.]</s>"
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0004|       Section 2.  Section 52-2-5 NMSA 1978 (being Laws 1986,
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0005|     Chapter 22, Section 47, as amended) is amended to read:
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0006|       "52-2-5.  PAYMENTS FROM FUND--CLAIMS AGAINST FUND.--
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0007|            A.  The superintendent of insurance may authorize
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0008|     payments from the subsequent injury fund for the following
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0009|     purposes, whether or not a compensation order has been entered:
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0010|                 (1)  the reimbursement to the employer or its
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0011|     insurance carrier of the fund's portion of benefits payable to
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0012|     an injured worker under the Workers' Compensation Act as
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0013|     apportioned under the Subsequent Injury Act;
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0014|                 <s>[(2)  the payment to the worker of the fund's
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<s></s>0015| <s>    portion of benefits payable to the injured worker if a worker
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<s></s>0016| <s>    brings an action under Subsection D of this section;
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<s></s>0017| <s>                (3)]</s> <u>(2)</u>  the payment of fees to attorneys who
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0018|     represent the superintendent of insurance and the subsequent injury
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0019|     fund and of fees to other professional advisers to the
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0020|     superintendent of insurance in connection with the superintendent's
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0021|     administration of the subsequent injury fund; and
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0022|                 <s>[(4)]</s> <u>(3)</u>  the payment of any other expenses
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0023|     ancillary to the superintendent's administration of the subsequent
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0024|     injury fund.
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0025|            <s>[B.  Subject to the requirements of Section 52-2-14 NMSA
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<s></s>0001| <s>    1978, an employer or its insurance carrier may assert a claim
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<s></s>0002| <s>    against the subsequent injury fund under the following
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<s></s>0003| <s>    circumstances only:
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<s></s>0004| <s>                (1)  if a worker asserts a claim against the employer
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<s></s>0005| <s>    under the Workers' Compensation Act, the employer or its insurance
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<s></s>0006| <s>    carrier may join the subsequent injury fund as an additional party
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<s></s>0007| <s>    and assert a right to reimbursement from the subsequent injury
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<s></s>0008| <s>    fund; and
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<s></s>0009| <s>                (2)  if the worker is receiving compensation benefits
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<s></s>0010| <s>    from the employer, the employer or its insurance carrier may
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<s></s>0011| <s>    continue to make the payments and file a claim pursuant to the
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<s></s>0012| <s>    Subsequent Injury Act against the subsequent injury fund for
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<s></s>0013| <s>    apportionment of compensation benefits between the employer or its
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<s></s>0014| <s>    insurance carrier and the subsequent injury fund.
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<s></s>0015| <s>           C.]</s> <u>B.</u>  The superintendent of insurance shall be a
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0016|     party to all proceedings wherein a compensation order is sought
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0017|     against the superintendent of insurance and the fund.
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0018|            <s>[D.  A worker may assert a claim against the fund only
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<s></s>0019| <s>    when the worker's employer is no longer doing business in New
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<s></s>0020| <s>    Mexico or is bankrupt and the employer or its insurance carrier
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<s></s>0021| <s>    cannot for reason of the cessation of business or bankruptcy assert
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<s></s>0022| <s>    a claim against the fund.  The worker's claim is limited to
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<s></s>0023| <s>    apportionment of benefits under the Subsequent Injury Act to
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<s></s>0024| <s>    recover amounts that the fund would have paid the employer or its
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<s></s>0025| <s>    insurance carrier as reimbursement.  The fund shall not be liable
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<s></s>0001| <s>    to the worker for any amounts for which the employer or its in-
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<s></s>0002| <s>    surance carrier would be liable to the worker under the Workers'
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<s></s>0003| <s>    Compensation Act.  The worker takes the place of and assumes the
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<s></s>0004| <s>    status of the worker's employer on the claim against the fund.  The
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<s></s>0005| <s>    fund shall be liable only to the worker, and not the employer or
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<s></s>0006| <s>    its insurance carrier, for any portion of benefits which the fund
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<s></s>0007| <s>    would have paid to the employer or its insurance carrier.
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<s></s>0008| <s>           E.  A worker shall not assert a claim against the fund
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<s></s>0009| <s>    except as provided in Subsection D of this section.]</s>"
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0010|       Section 3.  TEMPORARY PROVISION--SUBSEQUENT INJURY FUND--TRANSFER OF FUNDS.--On the effective date of Section 5 of this act,
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0011|     any unexpended or unencumbered balance remaining in the subsequent
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0012|     injury fund shall be transferred to the general fund.
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0013|       Section 4.  REPEAL.--Sections 52-2-2, 52-2-3, 52-2-6 through
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0014|     52-2-9, 52-2-11, 52-2-12 and 52-2-14 NMSA 1978 (being Laws 1961,
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0015|     Chapter 134, Section 2, Laws 1986, Chapter 22, Section 46, Laws
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0016|     1975, Chapter 298, Section 2, Laws 1961, Chapter 134, Sections 6, 7
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0017|     and 9, Laws 1986, Chapter 22, Section 50, Laws 1961, Chapter 134,
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0018|     Section 12 and Laws 1988, Chapter 109, Section 7, as amended) are
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0019|     repealed.
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0020|       Section 5.  DELAYED REPEAL.--Sections 52-2-1, 52-2-4 and 
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0021|     52-2-5 NMSA 1978 (being Laws 1961, Chapter 134, Sections 1 and 4
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0022|     and Laws 1986, Chapter 22, Section 47, as amended) are repealed
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0023|     effective July 1, 1999.
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0024|       Section 6.  EFFECTIVE DATE--CONTINGENCY.--The provisions of
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0025|     this act shall be effective only upon enactment into law of House
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0001|     Bill 7 or any similar bill of the second session of the forty-second legislature transferring money from the subsequent injury
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0002|     fund to the general fund.
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0003|       Section 7.  EMERGENCY.--It is necessary for the public peace,
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0004|     health and safety that this act take effect immediately.
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0005|                                         
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0006|   
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0007|                     FORTY-SECOND LEGISLATURE
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0008|                       SECOND SESSION, 1996
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0009|   
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0010|   
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0011|                                               FEBRUARY 13, 1996
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0012|   
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0013|   Mr. President:
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0014|   
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0015|     Your COMMITTEES' COMMITTEE, to whom has been referred
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0016|   
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0017|         SENATE CORPORATIONS AND TRANSPORTATION COMMITTEE
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0018|   SUBST             ITUTE FOR SENATE BILL 814
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0019|                                   
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0020|   has had it under consideration and finds same to be GERMANE, PURSUANT
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0021|   TO CONSTITUTIONAL PROVISIONS , and further refers the same to  WAYS
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0022|   AND MEANS COMMITTEE.
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0023|   
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0024|                              Respectfully submitted,
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0025|   
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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|                              SENATOR MANNY M. ARAGON, 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|                     Date ________________________
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0014|   
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0015|   
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0016|   
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0017|     S0814CC1
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0018|   
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0019|                      FORTY-SECOND LEGISLATURE
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0020|                        SECOND SESSION, 1996
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0021|   
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0022|   
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0023|                                                  February 13, 1996
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0024|   
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0025|   Mr. President:
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0001|   
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0002|     Your WAYS AND MEANS COMMITTEE, to whom has been referred
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0003|   
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0004|               SENATE CORPORATIONS AND TRANSPORTATION
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0005|                      COMMMITTEE SUBSTITUTE FOR
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0006|                           SENATE BILL 814
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0007|   
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0008|   has had it under consideration and reports same with recommendation that
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0009|   it DO PASS.
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0010|   
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0011|                              Respectfully submitted,
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0012|   
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0013|   
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0014|   
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0015|                              __________________________________
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0016|                              TITO D. CHAVEZ, Chairman 
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0017|   
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0018|   
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0019|   
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0020|   Adopted_______________________ Not Adopted_______________________
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0021|             (Chief Clerk)                          (Chief Clerk)
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0022|   
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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 <u> 4 </u> For <u> 1 </u> Against
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0004|   Yes:  4
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0005|   No:        Rawson
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0006|   Excused:   Campos, Rhodes, Jennings
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0007|   Absent:    None
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0008|   
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0009|   
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0010|   S0814WM1
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0011|   
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