Law Of Development Sustainable Of The Cane Of Sugar

Original Language Title: Ley de Desarrollo Sustentable de la Caña de Azúcar

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Sustainable Development Law of the Sugar Cane

SUSTAINABLE DEVELOPMENT LAW OF SUGARCANE

Official Journal of the Federation August 22, 2005

Statement of Invalidity of Articles by Statement from the SCJN DOF December 7, 2007

Particular Vote to Statement from the SCJN DOF October 20, 2008

On the sidelines a seal with the National Shield, which reads: United Mexican States.-Presidency of the Republic.

VICENTE FOX QUESADA, President of the United Mexican States, to its inhabitants known:

That the Honorable Congress of the Union, has been used to address the following:

DECREE

"THE GENERAL CONGRESS OF THE MEXICAN UNITED STATES, D E C R E T A:

THE SUGAR CANE SUSTAINABLE DEVELOPMENT ACT IS SET OUT.

Single Article.-The Sustainable Development of Sugar Cane Act is issued.

SUSTAINABLE DEVELOPMENT LAW FOR SUGARCANE.

TITLE FIRST

GENERAL PROVISIONS

Article 1.- Law is issued in the framework of Articles 25 and 27, fraction XX, of the Political Constitution of the United Mexican States and other provisions that are applicable.

Article 2.- His provisions are of public interest and of social order, because of their basic and strategic character for the national economy in terms of the Law of Sustainable Rural Development aims to regulate the activities associated with contract agriculture and sustainable integration of sugar cane, the processes of sowing, cultivation, harvesting, industrialization and placing on the market of sugar cane, its products, by-products, co-products, and derivatives.

Article 3.- For the purposes of this Law:

I.          Suppliers of Cana: The producers, natural or moral persons, whose land is wholly or partly devoted to the cultivation of sugar cane, for industrial use and which have concluded a Uniform Contract sanctioned by the Committee of Production and quality Canera or a contract of particular conditions;

II. Sugar Chamber: The National Chamber of Sugar and Alcoholera Industries;

III. Sugar Cycle: The period from October 1, one year to 30 years September of the following year;

IV. Intersecretarial Commission: The Intersecretarial Commission for Rural Development Sustainable;

V. National Committee: The National Committee for Sustainable Development of the Cana Sugar;

VI. Regional Committee: Each of the Regional Committees for Sustainable Development of the Sugar Cane;

VII. Committee: Each of the Canera Production and Quality Committees of each Ingenie;

VIII. Contract: The Uniform Contract of Sale and Splanting, Crop, Harvest, Delivery and receiving sugar cane;

IX. Industrialists: The owners of the sugar cane processors;

X. Ingenio: The industrial plant dedicated to processing, processing and Sugar cane industrialization;

XI. Permanent Board: The Permanent Board of Arbitration for the Agro-Industry of the Cana Sugar, in accordance with the Sustainable Rural Development Act;

XII. Law: The Sustainable Sugar Cane Development Act;

XIII. Organizations: The national and local organizations of Abastenedas de Cana de Cana sugar;

XIV. National Godfather: The listing of the country's Cana Abasters;

XV. Template: Cana in its first crop cycle, which is harvested in the first cut;

XVI. Registration: The National Agricultural Register Service, provided for by the Law of Sustainable Rural Development;

XVII. Resoca: Second soca, cane that is harvested after the soca;

XVIII.   Secretariat: The Secretariat of Agriculture, Livestock, Rural Development, Fisheries and Food;

XIX. CICCTCANA: Center for Scientific and Technological Research in the Sugar Cane;

XX. Soca: Cane that is harvested after the template;

XXI. Supply Zone: The geographical area where the land is located caterers of each Ingenie, and

XXII. Contract of particular conditions: The Contract of Sale, sowing, cultivation, harvest, delivery and reception of sugar cane, which will be voluntarily and individually celebrated by the Abasterers of Cana with some Ingenio, who could stipulate conditions other than those of the Uniform Contract.

Article 4.- The policy lines for the sugar cane agroindustry must be considered and provided for in the National Agri-Industry Program. Sugar cane with special character, considering the objectives, the goals, the strategies and the lines of action proposed in the agricultural, industrial and commercial sector programs.

Article 5.- The cane sugar product, as it is necessary for the national economy and popular consumption, is subject to the provisions contained in the Article 7o. of the Federal Law on Economic Competition.

Article 6.- The Abasters of Cana, the Industrial Sugar Cane Processors, and the Organizations that represent them are the subject of this Law.

TITLE SECOND

OF THE AUTHORITIES AND ORGANS OF THE SUGAR CANE AGROINDUSTRY.

CHAPTER I

From the Secretariat

Article 7. The Secretariat, in coordination with the competent agencies and agencies of the Federal, State and Federal District Governments, as well as the municipalities, within the scope of their privileges, shall do the following:

I. Dictate the national public policies to be applied in the field, to the purpose of the printing of profitability, productivity and competitiveness to the activities that this Law regulates, which make it sustainable;

II.        To establish programs for the promotion and development of the sugarcane agroindustry and to promote schemes that encourage investment in the cane field and in the sugar industry;

III.       Manage the resources that demand the implementation of the programs that you formulate to promote the improvement of the sugar cane agroindustry;

IV.        Formulate in coordination with the National Committee, support and financing programs aimed at the sugar cane agroindustry, as well as the Rules of Operation thereof;

V. Participate in coordination with the authorities concerned, in the processing and/or the provision of all services associated with the sugar cane agroindustry;

VI. Establish in coordination with the Secretariat of Economy, measures to procure sufficient national supply of cane sugar by providing for the strategic reserve to allow the establishment of appropriate inventory levels;

VII. Propose to the Secretariat of Economy the bases for fixing maximum prices in the matter, in terms of Article 7o. of the Federal Law on Economic Competition;

VIII. Promote and channel credit in coordination with the Secretariat of Finance and Public Credit, for the development and stimulation of the production of the cane field, the operation of the Ingenios and the financing of the sugar inventories;

IX. Encouraging in coordination with the Economic and Energy Secretaries of products, co-products, by-products and sugar cane derivatives;

X. Propose the Finance and Public Credit and Economy Secretariats when they are requires, the quota and tariff levels for the import of sugar and its substitutes;

XI.        Participate and implement in coordination with the Secretariat of the Environment and Natural Resources, actions to preserve the environment and the protection of biodiversity in the field of supply in the areas of supply and Mills, driving the execution of ecological recovery programs;

XII.      Encourage the national consumption of sugar and sugar cane products, co-products, by-products and derivatives;

XIII.     To establish in coordination with the Secretariat of Economy a comprehensive system of information of markets and other services that consolidate the domestic market and the export of products, coproducts, by-products and derivatives of the cane sugar;

XIV. Develop, update and disseminate a project bank and investment opportunities in the agro-industry of sugar cane and its complementary activities, for which, in coordination with the agencies or competent entities of the three government orders, will encourage the establishment of companies from the social and private sectors the social object of which is the use of sugar cane, the industrialisation and marketing of products, co-products, by-products and derivatives thereof, leading to competitiveness and, where appropriate, productive conversion;

XV. Develop and promote productivity programs in the Supply Zones where The implementation of the programmes for rural infrastructure and hydro-agricultural infrastructure;

XVI.      Instrumentation the system of registration of local and national organizations of Abasteras de Cana, as well as of the Ingenios, within the National Service of the Agricultural Registry;

XVII. Promote the reconciliation and arbitration of the controversies of the agroindustry Sugar cane in the terms of the National Arbitration System that establishes the Sustainable Rural Development Law and this Law, and

XVIII. The others that this Law and its Regulations establish.

Article 8.- The Secretariat, in coordination with the National Committee, will have to formulate the National Agri-Industry Program of Sugar Cane special, which will be submitted for approval to the Federal Executive, which will have to consider at least the sugar balance and the balance sheet of sweeteners, the investment financing policies for the field and factory, trade policies, fiscal stimulus and government support, competitiveness in costs and prices, the development and application of new technologies, trade agreements concluded with other countries and the behavior of the domestic and international market, with the aim of establishing, for the short and medium term, the objectives, goals, strategies, lines of action, allocation of resources, responsibilities, instruments of evaluation, and mechanisms of collaboration and inter-institutional coordination with the Federal governments, State, Federal and Municipal District, to promote the organization, strengthening and transparency in the activities of the sugar cane agroindustry.

CHAPTER II

Of The National Committee for Sustainable Sugar Cane Development

First Section

Of the naming, object, and address.

Article 9.- In terms of the provisions of Article 14 of the Federal Law of ParaState Entities, the National Committee for Development is constituted. Sustainable de la Cana de Azúcar as a decentralized public body, dependent on the Federal Public Administration, whose object will be the coordination and realization of all the activities foreseen in this Law related to the Sugar cane industry; its legal domicile will be Mexico City, District Federal.

Section Second

Of attributions

Article 10.- The National Committee, for the fulfilment of its object, will have the following attributions:

I. Propose to the Secretariat, in the terms of the National Planning System, the programmes which are more suitable for the production, industrialization and marketing of sugar cane, its co-products, by-products and derivatives, as well as infrastructure works, in the light of the environment in which the sector in the short and medium term;

II. Generate mechanisms for concertation between Abasteras de Cana e Industriales;

III.       To analyze the size of the sweetener markets for the purpose of implementing strategies for expansion and refolding of cane sugar in their different presentations, as well as their co-products, by-products and derivatives, according to the trends in the markets and conditions of the country, which in turn allow for the participation of relevant and objective criteria in the definition of tariffs, quotas and arrangements for the import of sugar, co-products, by-products, derivatives and substitutes;

IV. Promote alliances and agreements for the integration of agents participants, bringing a record of agreements, agreements and contracts of partnership in participation and co-investments between the Ingenios and their Abasterators of Cana;

V. Assess the repercussions of free trade agreements in the field of the sugar cane industry and propose the appropriate measures;

VI.        Instrumentation in coordination with the Secretariat, a mandatory system of recording and reporting weekly, monthly and annual control of the performance of the sugar balance and total sweeteners based on the sugar cycle;

VII.      Take the record and control of optimal production levels by Ingenio to help raise the sector's competitiveness;

VIII.     Periodically evaluate the cane payment system for uniform quality and the payment system for the quality of the individual or group cane; proposing the necessary changes that will make it viable in the context of the behavior of the markets. Any necessary changes must be approved by the Committee's plenary session;

IX. Elaborate sugar balances and total sweeteners by country, to approve public policies of our country's trading partners in relation to costs, prices, subsidies, productivity indices, compensatory funds, fiscal stimulus, interest rates, credit policies, trade policies, prices (a) the management of the market, which is considered to be establishing the basis for setting maximum price criteria for cane sugar on the domestic market;

X. Reconcile among the country's Ingenios, the distribution of export quotas of sugar agreed in the trade agreements that Mexico has concluded or celebrated in the future;

XI. Based on the sugar balance for the corresponding harvest, calculate and propose the reference price for sugar for the payment of cane, bearing the registration and control of domestic sugar prices and international market prices including the market prices of the United States of America;

XII. Elaborate and approve the terms and clauses of the Contract and, if applicable, its modifications;

XIII.     Encourage the sugar cane payment system by individual or group quality;

XIV.      Take the national register of the methods of payment for the quality of the cane adopted by the Committee of each Ingenie, considering the systems of determination of the kilograms of standard base recoverable sugar, for the purposes of calculating the price of the reed;

XV.       Draw up the production and productivity results of the safras, both in the field and in the factory;

XVI.      Propose to the Abasterers of Cana and the Industrialists the instrumentation of an information system that allows the production costs of the sowing, the cultivation, the harvest, the costs of transformation and distribution of the Sugar cane and sugar to underpin the agro-industry's productivity and competitiveness programme;

XVII.    Approve the promotion programs that are limited to the Supply Zones, authorizing their execution through the Committees;

XVIII.   Promote the installation of the Regional Committees, supported by the multifunctionality of the Supply Zones, the development of rural areas, complementing and integrating economic, agricultural, livestock, forestry and fishing, to strengthen employment, investment and social welfare programs that improve the minimum welfare of the families of the cane and the population;

XIX. To contribute to the strict compliance of the Law and all the provisions of it emanate, as well as agreements between the different sectors involved in the sugar cane agroindustry to increase their efficiency and productivity;

XX. Instrumentation a technological development program that articulates the field with the factory to raise its competitiveness levels in a sustainable way;

XXI.      Approve the Regulation, the work program and the budget of the Center for Scientific and Technological Research of the Sugar Cane, receive regular reports and evaluate the performance of its performance, as well as propose the contributions to do the Industrialists, the national organizations and the Secretariat;

XXII.    Propose in coordination with the Secretariat, the actions and programs of training, technical assistance and technology transfer, formulating and executing under criteria of sustainability, integrality, inclusion and participation, which will be part of the National System of Comprehensive Rural Technical Training and Assistance, which establishes the Sustainable Rural Development Law;

XXIII. Receive, analyze and evaluate the reports of the Committees regarding the programs In addition to the Commission's proposal for a Directive on the implementation of the Directive on the environment, the Commission's proposal for a Directive on the use of certain types of equipment for the purposes of Directive judgment is necessary to take decisions on this Law;

XXIV.    Carry out reviews, examinations or audits at the request of the Committees on the performance of their operations in general or in particular;

XXV.     To give an opinion on all those matters which are subject to its consideration and which encourage the administrative efficiency and full use of resources, in order to achieve satisfactory levels of sugar production and increase the efficiency and productivity in the field and in the factory;

XXVI.    Propose to the corresponding instance all those rules, definitions and provisions that contribute to the implementation of the Law;

XXVII. Intervene in the technical, budgetary or programmatic queries that are being raised;

XXVIII.        Invite research centers, higher education institutions, and non-governmental organizations related to the activity of the sugar cane agroindustry to hear their opinion according to the nature of the issues to be addressed and to be incorporated into the Sugar Cane Science and Technology Research Center, and

XXIX.    The others that are pointed out in this Law.

Third Section

Of National Committee Management Bodies

Article 11.- The National Committee administration will be in charge of:

I. The Board of Directors, and

II. The Director General.

Article 12.- The Board of Directors is the supreme authority of the National Committee and will consist of:

I.          The holder of the Secretariat, who shall preside over it;

II.        The Secretariat of Finance and Public Credit;

III.       The Secretariat of Economics;

IV.        The Secretariat of the Environment and Natural Resources;

V. The Secretary of Labor and Social Welfare;

VI. Representatives of the Sugar Chamber, and

VII.      Representatives of the national organizations of Abasterers of Cana de Cana.

For each owning member there will be an alternate and will have the same powers as the owners, in case of absence of these.

The total membership of the Board of Directors shall be no less than five and no more than fifteen.

May be integrated with the Board of Directors as guests and only with the right to voice, the public servants of the federal, state and municipal public administration, who are responsible for actions relating to the subject matter of the National Committee, as well as representatives of private or social organisations with related activities, as long as the Board of Directors so approves.

Article 13.- The sessions held by the Board of Directors shall be ordinary or extraordinary. Ordinary sessions shall be held at least four times a year on a quarterly basis and the extraordinary times as often as necessary.

Sessions will be valid when the majority of its members are present. In the absence of the President, the session shall be chaired by his alternate. The President, or who is in session, shall have a vote of quality in the event of a tie.

The agreements will be taken by a majority of the votes of the members present; from each session will be lifted the same circumstantial act that will be signed by the assistants and entered in the Register.

Article 14.- The Board of Directors will have the following powers and obligations:

I. Set in line with the national planning system, policies General and define the priorities to be attached to the National Committee for the fulfilment of its object;

II. Approve the Institutional Development Program and the Financial Program The Action Programmes, which derive from the medium-term programmes, as well as the Annual Operational Programme of the National Committee, the Revenue and Income Budget and its amendments to the terms of the applicable legislation;

III.       Know and approve the implementation of the Institutional Development Program, the Action Programs and the Annual Operational Program, in correlation with the budget year, in accordance with the current legal provisions;

IV.        Approve the cooperation and development agreements that the National Committee holds with national and foreign institutions, as well as with the public, private and social sectors, for the benefit of the National Committee and the sector;

V. Approve the organic structure of the National Committee and the modifications that proceed to the same;

VI.        Approve the Organic Statute of the National Committee and the regulatory provisions governing its organization, operation, control and evaluation, as well as its modifications;

VII.      Know and resolve the matters of your jurisdiction in accordance with this Law, the Organic Statute and other applicable legal provisions;

VIII.     To ensure compliance with the legislation applicable to the National Committee and, where appropriate, apply the corresponding penalties in the terms of the legislation in the field of its competence;

IX. Name and remove on proposal from the Director General, the public servants of the a body holding positions in the two immediate administrative hierarchies lower than those of the one, as well as approving the fixing of salaries, benefits and licensing;

X. Analyze and then approve, the annual and quarterly reports, that the Director-General on the performance of the National Committee, with the intervention that corresponds to the Commissioner;

XI.        Approve and adjust the prices of goods and services that the National Committee produces or provides, in order to incorporate them into its revenue budget;

XII.      Approve the coordination of the appropriations for the financing of the National Committee, as well as observe the guidelines dictated by the competent authorities regarding the management of financial resources;

XIII.     Issue the rules or general bases under which the Director General may, in accordance with the applicable legislation, be able to dispose of the fixed assets of the National Committee which do not correspond to the operations object of the same;

XIV.      Approve, in accordance with the laws, regulations and other applicable provisions, the general bases and programmes governing the conventions, contracts, orders or agreements to be concluded by the National Committee with third parties in public works, leases, acquisitions and services related to movable and immovable property. The Director-General and, where appropriate, the public servants who are required to intervene in accordance with the Organic Statute, shall carry out such acts under their responsibility, subject to the guidelines laid down by the Board;

XV.       Authorize, on a proposal from the President, or at least one third of the National Committee, the creation of specialized committees to support the strategic programming and supervision of the normal National Committee's progress, problems of administration and organization, as well as for the selection and application of scientific and technological advances to increase productivity and efficiency;

XVI.      Approve, in the event of an economic surplus, the constitution of reserves and their application, subject to the authorization of the Inter-Secrésecretarial Gast-Financiamento;

XVII.    Establish, subject to the applicable provisions, the rules and bases for the acquisition, leasing and disposal of the immovable property required by the National Committee for the provision of its services, with the exception of those buildings that the law considers to be in the public domain;

XVIII.   Agree to the applicable legal provisions, donations and extraordinary payments and to verify that they are applied for the purposes stated;

XIX.      Approve the rules and bases to cancel debits from third parties and in favor of the National Committee in the terms of the law. Where the practice of their charges is notoriously impossible, it shall inform the authorities concerned;

XX.       Approve each year prior to the Commissioner's report and the opinion of the external auditors where appropriate, the financial statements and the state of the financial year of the body and authorise the publication of the same;

XXI.      Control and evaluate the way the objectives are achieved and the way in which the basic strategies and goals are met, taking into account the reports that are taken in control and audit, monitoring the implementation of the preventive and corrective measures to be taken;

XXII.    Appoint and remove, on a proposal from its President, the Secretary of the governing body, who may or may not be a member of the Board of Directors, as well as appoint or remove the Director-General's proposal to the Prosect of the governing body, who must be a public servant of the National Committee, and

XXIII. Others who grant you this Law and the legal/administrative provisions applicable.

Article 15.- The Director General shall be appointed and removed by the Federal Executive.

Article 16.- To be Director General requires:

I. Being Mexican by birth;

II.        Be greater than thirty and under seventy years;

III.       Have an academic degree, preferably linked to the tasks of the sector, and have knowledge in the field of public administration, and

IV. Not to be a minister of religious worship, active military, political party leader, trade union representative or manager of business bodies at the time of appointment.

Article 17.- The Director General will have the following powers and obligations:

I. Re-present the National Committee legally and carry out all legal acts and domain necessary for the fulfillment of their obligations according to the guidelines established by the Board of Directors, which may determine in which cases their prior and special approval must be necessary and also in which cases it may be Replace such representation;

II. Submit for approval to the Board of Directors the Institutional Program Development and the corresponding Financial Program; the Action programs; as well as the Annual Operational Program and the National Committee's Revenue and Income budgets;

III.       Submit for approval to the governing body, the cooperation and development agreements that the National Committee holds with national and international institutions, as well as with the public, private and social sectors, for the benefit of the National and Industry Committee;

IV.        Submit for approval to the Board, the organic structure and its modifications;

V. Submit to the consideration of the governing body for approval, the Statute Organic National Committee, as well as corresponding regulatory provisions for its organization, operation, control and evaluation;

VI.        Develop the National Committee's organizational, procedures and policy manuals and submit it to the Board of Directors for approval;

VII. Direct the development of technical, substantive and administrative activities, as well as control and evaluation of the National Committee and issue relevant agreements for these purposes;

VIII.     Propose to the Board of Directors, the appointment or removal of the first two levels of public servants of the National Committee inferior to the Director General, propose the fixing of salaries and other benefits and designate the rest of the In accordance with the overall budget and current expenditure allocations approved by the Board of Directors, in accordance with the terms of the law;

IX. Establish the control systems and management evaluation of the National Committee, a the purpose of providing accurate and timely information on meeting the objectives and targets, as well as institutional performance for decision-making and to report to the Board of Directors on a quarterly basis;

X. Present on a quarterly basis and annually to the Board of Directors, the report the activities and results;

XI. Promote the dissemination and dissemination of the sector and its activities;

XII.      Establish the evaluation mechanisms that highlight the efficiency and effectiveness with which the National Committee is performed and present the management evaluation to the Board of Directors, listening to the Commissioner, to take action to improve continues;

XIII.     Run the general provisions and agreements of the Board of Directors;

XIV.      Carry out all acts of administration, domain, litigation and collection, with all the powers that require special clause under the law and replace and delegate this representation to one or more proxies for exercise individually or jointly;

XV.       Compel the National Committee to change, issue, and negotiate credit titles and to arrange credit operations, in accordance with applicable laws and regulations;

XVI.      Commit matters in arbitration and conduct business and financial transactions in the terms of the law, subject to the authorization of the competent body;

XVII. To exercise all the necessary acts of representation and mandate, especially those who require a special clause for their exercise, as well as to revoke the powers it grants, to withdraw from the trial of amparo, to file complaints or complaints and to grant the corresponding pardon;

XVIII.   Establish mechanisms and procedures to enable the optimal use of the National Committee's movable and immovable property;

XIX. Set up the tools to control the quality of supplies and receiving programmes to ensure continuity in the provision of services which are the subject of the National Committee;

XX. Establish and keep updated information systems and procedures, as well as its application to ensure a quality service in the National Committee;

XXI.      Establish the tools and procedures to enable work processes to be performed in an articulated, consistent and effective manner;

XXII.    Establish the necessary registration, control and evaluation systems to achieve the results, goals and objectives proposed for the short and medium term;

XXIII. Establish efficient systems for staff management, resources financial and material to ensure the provision of services provided by the National Committee;

XXIV.    Establish a system of indicators that allows the management of the entity to be evaluated;

XXV. Establish self-assessment mechanisms that highlight efficiency and effectiveness the National Committee is to be performed and submit to the governing body at least twice a year the management evaluation in the detail previously agreed with the body and listening to the public commissioner;

XXVI.    Subscribe, where appropriate, the collective and individual contracts that regulate the entity's employment relationships with its employees, and

XXVII. Other than you trust this Law and applicable legal provisions.

Section Fourth

National Committee Heritage

Article 18.- The National Committee's heritage will be integrated with:

I. Your income from the services you provide in compliance with your object;

II.        The contributions, participations, subsidies and support granted to the federal, state and municipal governments and in general by the natural and moral persons for the fulfillment of their object;

III.       The legacies, inheritances, and donations granted in your favor and the trusts in which you point out as a trustee;

IV.        The movable and immovable property of your property and those that you acquire for any legal title, and

V. Interest, income and in general, any income you acquire for any legal title.

Fifth Section

From Surveillance

Article 19.- The oversight of the National Committee shall be carried out by a Commissioner who owns and is an alternate, appointed by the Secretariat of the Civil Service; without prejudice to the fact that the National Committee integrates its own internal control body into its structure.

Article 20.- The Commissioner will evaluate the overall performance and functions of the National Committee, conduct studies on the efficiency with which the (a) the revenue and expenditure incurred, as well as the revenue and expenditure in general, shall request all information to carry out acts requiring the proper performance of their duties, without prejudice to the tasks assigned to it by the Secretariat of the Civil Service assign you in accordance with the law. For the proper performance of their duties, the Board and the Director-General shall provide the information requested by the Commissioner.

Sixth Section

Of Labor Relationships

Article 21.- The working relations between the decentralized body and its staff will be governed by the legislation provided for in Article 123 of the Constitution. Politics of the United Mexican States.

CHAPTER III

of the Regional Sugar Cane Development Committees

Article 22.- In the territorial area in which each of the regions determined by the National Committee is included, the creation of the Committees shall be promoted. In accordance with the agreements of the National Committee and the state and municipal programs of the sector, regional planning, organization, production, competitiveness and profitability, based on the multifunctionality of the cane areas, circumscribing their performance the regional and state level that corresponds, in the terms of the Law itself.

It is up to the National Committee to install the Regional Committees and issue its Rules of Procedure.

CHAPTER IV

Canera Production and Quality Committees

Article 23.- In each Ingenio a Committee shall be set up to deal with all matters concerning sowing, cultivation, harvesting, delivery, reception and quality and industrialization of the raw material.

Article 24.- The Committees shall be integrated with the representatives of the Ingeniuses and the representatives of the Abasterers of Cana who correspond, under the following rules:

I. A representative of the Ingenio with powers to make decisions, preferably the legal representative or general manager and the superintendent of the field, with the character of the owner and alternate, respectively; those who accredit their character with the corresponding appointment or power of attorney, and

II.        Each of the local organizations of Abastenedors de Cana will have a representative owner with their respective alternate, who will credit their personality with the corresponding appointment or power of attorney. The President or Secretary-General of each local organisation shall, where appropriate, act as owners, the alternate being a member of the executive committee of the local organisation designated by it.

Article 25.- The Committees ' agreements shall be taken by a majority of votes, except those relating to the determination of dates for the commencement and termination of zafra, the yield cut from the standard base recoverable sugar kilograms, discounts and penalties for reeds, deferred reeds and reeds, as well as the distribution of pro-rata expenditure to the common mass of liqueable cane, to be adopted by unanimity.

Article 26.- The Committees are the bodies responsible for monitoring compliance with this Law, and for the rules and definitions agreed upon by the National Committee and will have the following powers and obligations:

I. Form for your respective Supply Zone the operating programs of Agricultural activities; mechanization of the cane field; harvest and milling of cane for the harvest; conservation and improvement of road paths; shelters for cutters; modification of fees for works (i) the implementation of the new system; growing, harvesting, delivery and receiving of cane and credit applications in general;

II.        Develop and modify, as appropriate, the weekly program of priorities of the Court; adapt the program of the zafra when in its judgment it is convenient and agree to the suspension of cuts if the conditions require it;

III.       Determine the fees that, if any, the Industrial and/or the Cane Sugar Producers must do to cover costs generated by interruptions in the harvest, including among others the support for cutters and fleeteers;

IV. Convening the economic and operating conditions for the cane transfer of sugar from one Ingenie to another, where appropriate;

V. Exorder the orders for the suspension of watering, burning and cutting, as well as to draw up the end of harvest minutes within 10 days of their termination;

VI. Determine the impurity discounts applicable to the sugar cane upon being given to the Ingenie, in terms of this Law;

VII.      Determine the amount of the penalties to be made by the Abasterors of Cana or the Industrial, in the terms of Article 79;

VIII.     Review and approve the conservation and maintenance budgets for road paths;

IX. Approve control and rotation of cane stowage in the Ingenio batey;

X.            Approve the distribution of all prorrateable expenses incurred during the periods of pre-zafra and zafra to be applied to the common mass of the liquidable cane;

XI.        Inform the National Committee in the formats it issues, the progress of the agreed programs; the weekly and accumulated advances of the field programs and the reed in the factory; the reports of evaluation of activities and program changes; the start and end of the zafra operation and the others that are requested;

XII.      To assist in its field of action with the necessary measures that will give viability to the activities that contribute to the sustainable development of the sugarcane;

XIII.     Integrate digitised information from the Supply Zone with the aim of being able to agree on what is appropriate to raise the productivity and production of sugar per hectare;

XIV.      To request the National Committee to carry out reviews, examinations or audits on the performance of the Committee's operations in general or on any of them in particular;

XV. Inform the Abastenedas de Cana in a public, clear and timely manner, by the respective representative's conduct, the expenditure incurred in the performance of his duties, specifying amounts, concepts and distribution thereof, and

XVI.      The others entrusted to them by this Law.

Article 27.- The Committees will hold the following meetings:

a) Ordinary, once a week during the zafra and every 15 days in the time of pre-zafra, and

b) Extraordinary, when required by urgent matters, must be convened, in writing, by any of its members, and must be accompanied by the relevant agenda.

Article 28.- When without cause justified and having been legally notified do not attend any of the representatives to an ordinary session of the Committee do not know The meeting will take effect, and a new meeting will be convened with three calendar days in advance. In the case of extraordinary sessions, the call for a new meeting may be held within 24 hours if the matter so warrants.

In both cases, they will be performed with those in attendance, with the agreements being binding for all parties.

Article 29.- All of the charges on the Committee will be honorific.

THIRD TITLE

OF SUGAR CANE SUPPLIERS

CHAPTER I

Constitution and Object of the Organizations of Abasters

Article 30.- The Abasterers of Cana de los Ingeníos will be able to set up local and national organizations of cane producers for the best representation and defense of their interests.

Article 31.- National and local organizations shall be constituted or constituted in accordance with the provisions of the Agrarian Law or the Federal Laws, State and Federal District in force, whatever their matter.

Article 32.- The Secretariat, through the Registry and with the intervention of the Permanent Board, will register local and national organizations suppliers that are constituted, settling the data relating to the constitutive act and to their membership register, the statutes, directives and modifications of documents, prior to the fulfilment of the requirements mentioned in this Law and in the regulation corresponding.

Once the registration of local and national organizations is obtained based on the provisions of this Law, the Abasterers of Cana through their organizations be represented in the National Committee and the Permanent Board; as well as in the Mexican Council and the Councils for Sustainable Rural Development in the municipalities, in the Rural Development Districts and in the federal entities, to which it refers Article 24 of the Law on Sustainable Rural Development.

The entries made in the Register, related to the subjects of this Law, will have effects of public faith, in accordance with the provisions of the Law of Sustainable Rural Development and other applicable provisions.

CHAPTER II

Of Local Cana Abastening Organizations

Article 33.- The Local Organizations of Abastenas de Cana will be constituted in the Supply Zones with the cane producers that have been held Contract with the corresponding Ingenio.

Article 34.- Local organizations that are constituted, to obtain and maintain their registration, must have a minimum membership equal to 10% of the the total number of the Abasterers of Cana del Ingenio in question and at least with the l0 % of the total volume of the cane of the corresponding Supply Zone, comply with the requirements laid down in the legislation under which they adopt the legal figure for their constitution and must be duly registered in the Register. For these purposes, the Registry shall certify that such rolls comply with the requirements set forth in this Law.

Likewise, they must display two copies of their constituent minutes and their duly certified statutes, two copies of the minutes of election of their existing Local Committee and two copies of their statutes. copies of the associated Cana Abasterers register, which must be updated annually.

Suppliers of Cana who have a contract of particular conditions shall have the same rights and obligations as set out in this Law.

Article 35.- Among other functions, the local organizations of Abastenedas de Cana, will correspond to them:

I. Represent the General Interests of Your Agremiados to Industrialists and All class of federal, state and municipal authorities and bodies;

II.        Encourage the modernization of the Cane Supply Zones and the adoption of productive practices and technological innovations that tend to increase productivity among its affiliates;

III.       Promote the measures that are deemed appropriate to drive the cane activity in the Cane Supply Zones;

IV.        Organize the provision of guidance and technical, legal and administrative assistance related to their activities, for the benefit of their partners;

V. Defend the particular interests of its affiliates in the Committees;

VI. Organize and participate in events, exhibitions, conferences, seminars and in All types of activities that are in the interests of their members are general;

VII.      To strive for the improvement of living conditions and the updating of the Sugar Canaers to raise their production levels;

VIII.     Strive to improve the living conditions of the cane families in the Supply Zones;

IX. Promote and encourage associative figures for project development productive and financing that contribute to regional, municipal and employment development;

X.         Report regularly to the Abastenados de Cana members of their organization on their performance, and the scope of programs and actions for the benefit of their agents, and

XI. The others that this Law and its own statutes point out to you.

Article 36.- Local cane organizations that are established in accordance with this Law, may be integrated or adhered to any of the cane organizations. legally registered nationals.

CHAPTER III

Of The National Abastening Organizations of Cana

Article 37.- For the best attention and defense of the interests of its agencies, local organizations of Abastenados de Cana can be established in national cane organizations in the terms of this Law.

Article 38.- The national organizations of Sugar Cana Abasterers shall be duly registered with the Register.

For your due record, you must display two copies of the associated Cana Abasterers register which you will need to update annually. The certification of the register will be based on the registration of affiliations of their local organizations, sanctioned by the Committee of each of the Ingenios.

In order to encourage the formation of new national organizations of Abastenedas de Cana, for the only time the National Service of the Agricultural Registry will be able to to grant national organizations of Abastenas de Cana registered under the cycles 2005-2006 and 2006-2007, which may be final as long as such organizations demonstrate that their local organizations are constituted in terms of Article 34 of this Law, and:

a) Contar initially with 5% of the membership of the National Register of Abasterers of Cana, 5% of the national cane production and have a presence at least in four sugar cane producing states, and

b) Contar with presence in sugar cane producing states and with the percentage of national membership and production during the sugar cycles following:

If in any of these cycles, the national organization that has a conditional registration is credited with complying with the requirements of the second paragraph of This article will obtain your final registration; if you do not comply, you will lose the conditional registration.

The national organization with a conditional registration, will have the right to participate in a voice and without a vote in the National Committee and in the Permanent Board, until as long as it does not obtain its final registration.

Article 39.- National organizations, among others, will have as their object:

I.          Represent the interests of its affiliates with any public or private authority or body;

II. Support the development and strengthening of local affiliated organizations;

III.       Encourage the modernization of the national field and the adoption of technological improvements;

IV.        Promote the implementation of policies that drive the balanced development of cane activity in our country;

V. Organising and participating in events, exhibitions, conferences, seminars and in All types of activities that are in the interest of the fishing activity are general;

VI.        To promote and implement training and training programs for the professionalization of the suppliers, technicians and managers of the cane organizations;

VII.      To study and promote the establishment and improvement of the social security and prevention system for the benefit of female families;

VIII.     To encourage the formation and operation of credit and services related to agricultural activities;

IX. Seek to improve the living conditions of the country's families. and promote the sustainable rural development of the sugar cane agroindustry;

X. Participate in representation of the interests of your colleagues in the Committee National and the bodies referred to in the Law on Sustainable Rural Development and this Law;

XI.        Defend the interests of its members in the Standing Board, in the terms that are stated in its statutes and in the rules of procedure of the Standing Board;

XII. Public services that are authorized or licensed to them by the Federal Governments, Federal or Municipal Entities;

XIII. Inform your local organizations and the Abastenas of Cana with periodicity members on their action, and the scope of the programmes and actions for the benefit of their employees, and

XIV.      The others to point out this Law and its own statutes.

CHAPTER IV

From The National Abastening Midwife

Article 40.- The National Register will be made up of the country's list of Abasterers of Cana, specifying the Ingenios with which they have a contract and the local and/or national organisation to which they belong, as well as the data enabling their full identification.

Article 41.- In accordance with Articles 32, 34 and 38 of this Law, the Registry shall be verified by the Register of Abasterers. of the Sugar Cane of each Ingenie and the certification, if any, of the affiliations and disclaimers to the local and/or national organizations that are presented to them.

Article 42.- For the purposes of the previous article the following procedure is set:

I. The Abasters of Cana who have an interest in constituting an Organization or to waive the membership, must submit the application for membership and/or waiver which shall contain the following:

a) Name of the Cana Abastator;

b) Ingenio's supplier key in question;

c) Name of the property, plot, ejido or congregation, municipality and federal entity to which it belongs;

d) The contracted surface and volume of reed delivered in the immediate prior zafra or, where applicable, the estimated production to be industrialized;

e) Number of affiliation to the Mexican Social Security Institute;

f) Express manifestation of the local and/or national organization to which you want to belong or quit, and

g) The applicant's signature or fingerprint, if this is the case, the signature of two witnesses will be required.

II. In case of resignation from the Organization to which it belongs, it must be presented by written to it, with a copy to the Committee, to the Registry, and to the Organization to which it wishes to belong.

Article 43.- Once the documentation referred to in the previous article has been received by the Registry, it shall carry out its analysis, evaluation and approval, where appropriate; if appropriate, it shall certify the same for the legal purposes to which there is a place.

Article 44.- The Ingeniuses shall have the obligation to submit to the Committee and to the Register the ratio of the totality of their Sugar Canals to the Committee annually or when required, specifying the pool to which they correspond.

Article 45.- When there is duplicity of an affiliation, the Registry will ask the Committee to cite the Abastening of the Sugar Cane so that, in a personal manner, manifest which Organization you want to belong to, certifying such a decision.

In case the Sugar Cane Abastator does not attend the summons without cause to justify it, it will be deemed not affiliated with any Organization.

Article 46.- Applications for membership and/or waiver that are filed prior to the commencement of the Sugar Cycle will take effect from the start of the Sugar Cycle.

If they are presented once the Sugar Cycle is started they will have legal effects until the beginning of the next.

Article 47.- The rolls of Abasters of Sugar Cane by Ingenio will be updated annually; no modification will be presented once the Cycle is started Sugar, the standard of the previous Cycle shall prevail.

Article 48.- The affiliations that have been certified will be included in the Register of the National Register when they have the approval of the Organization to the who want to belong.

Article 49.- The National Register will serve as a basis for encouraging and strengthening government programs and actions aimed at modernizing and developing the areas of supply.

TITLE FOURTH

OF CONTRACTUAL RELATIONSHIPS

CHAPTER I

of The Uniform Contract

Article 50.- The Contract to be held by the Industrialists with the Abasterers of Cana is the legal instrument that regulates the relations between the two. The sowing, cultivation, harvest and industrialization of the sugar cane will be uniform for all the country's Ingenies, will be subject to the terms established in this Law and will require the sanction of the corresponding Committee, copy of the same to the parties.

Must contain, at least the personality of the contractors, the identification of the Ingenie and the land contracted for sugar cane production, the validity of the Contract, the form of payment of the reed, the payment of ordinary or moratory interest, the cause of termination, the express submission of the parties to the agreements of the National Committee and of the Committee, as well as to the jurisdiction of the Permanent Board.

Invalid paragraph declared invalid by SCJN to Inconstitutionality Action DOF 07-12-2007statement

(In the normative portion that points to: "as well as to the jurisdiction of the Standing Board")

The National Committee will elaborate the format of the Contract.

Article 51.- The termination of any Contract may be given only by the will of the parties; when the Ingenio or the Committee considers that there are grounds for termination, proceed to submit the case to the Permanent Board for final resolution. The suppliers may also use the Permanent Board when their contract is terminated without prior resolution of the contract.

Article 52.- The Contracts to be concluded by the Sugar and Industrial Abasters must be considered for their duration, the nature of the cycle Sugar cane, with regard to new crops, a mandatory minimum term of four cuts and one year for the Cycles of Soca and Resoca, preserving the Abastening of Cana the right to rehire the same surface at the end of the term or replace it with an equal or similar surface or improved production conditions, after approval of the respective Committee.

In the case of purchase operations of the area sown with sugar cane, the acquirer shall retain, if it so wishes, the contractual relationship of the same with the Ingenie.

Article 53.- When the contract considers the granting of credits, the Industrial will act as a retainer, in this case, at the request of the Organizations and by the minutes of the Committee, it shall retain from the scope of the Sugar Cane Abasters the amounts indicated to it, making the whole of the financial creditor.

In cases where it is appropriate for the Industrialists to act as retainers, they will not be forced to withhold and find out amounts of credit that have not been contracted through the institutions belonging to the Mexican Banking System or the Auxiliary Credit Organizations in terms of the General Law of Credit Organizations and Activities of Credit.

Article 54.- In the Contract the necessary mechanisms will be established to ensure the timely payment of the reaches corresponding to the Abasterers of Cane.

However, in the case of a commercial competition of the Industrialists without liquidity or the impossibility of access to credits to cover their contractual obligations with the Suppliers of Cana, these will be considered creditors with real guarantee in the terms of the provisions of Articles 217, Fraction II, and 219 of the Law of the Commercial Concourses.

Article 55.- The contracts that are voluntarily concluded by the Ingenios and the Abastenedos de Cana in the area of co-investment, formation of associations or any other contract to increase investment, productivity, efficiency and diversification of the field, so that they have an impact that must be recorded before the Permanent Board.

Article 56.- The Ingeniuses and their Abasterers of Cana will expressly submit themselves to the jurisdiction of the Permanent Board in order to settle disputes. arising out of a breach of the provisions of this Law and of the Contract which they conclude and other related and related provisions.

Invalid item declared invalid by SCJN to Inconstitutionality Action DOF 07-12-2007

CHAPTER II

Of The Payment System

Article 57.- The price of sugar cane will be governed annually, according to the reference price of sugar proposed by the National Committee, and publish the competent in the Official Journal of the Federation in the month of October of the first year of each harvest.

Article 58.- When sugar cane is intended for sugar production, its price must refer to standard base recoverable sugar, at 57% of the reference price of one kilogram of standard base sugar.

The reference price of a kilogram of standard base sugar will be determined as the weighted average of the national wholesale standard sugar price plus the price average of the sugar exports made in the Sugar Cycle concerned.

For the purposes of the preceding paragraph, the national wholesale standard sugar price shall be determined on the basis of the monitoring of the National Market Information System, or of the mechanism to be replaced by the National Committee and the average price of the sugar exports shall be calculated on the basis of the records of the sugar balance to be determined, on the basis of the national sugar production and consumption, the net exportable surpluses of domestic sugar and by Ingenio, where it is you will get the percentage variation of the export component of the sugar price.

The reference price will be the one that is obtained as a weighted average of both prices.

Article 59.- By virtue of the productive diversification that may occur in this agroindustry, by mutual agreement of the Abastenedos de Cana and the Industriales de a specific Ingenio, may agree modifications or replacement of the payment system referred to in the previous article, when the cane is used to obtain goods other than sugar, after approval of the National Committee and the sanction of the Secretary of Economy.

Article 60.- To determine the amount to be paid based on the quality of the cane according to a uniform standard base recoverable sugar content in each Wit, the following must be met:

I.          At the end of the milling of an Ingenio, the weighted average of the standard base recoverable sugar shall be determined in accordance with the total milled net cane in the zafra concerned, calculated in kilograms of standard base sugar per tonne, using the final report, reconciled by the technical representatives of the Abasteras de Cana e Industriales, results to be settled in the official final run report, and

II. The standard base recoverable sugar will be calculated based on the following Elements: the percentage of pol in cane, the percentage of fiber in cane and the purity of the mixed juice recorded in the daily report reconciled by the technical representatives of the Abasterers of Cana and Industriales, results to be left settled in the official weekly run reports, considering further a minimum factory efficiency of 82,37%, applied to a specific cane quality of each Ingenie.

Article 61.- The Ingenios will pay the cane according to the following rules:

I. A pre-settlement equivalent to 80% of the net cane received on the basis of the weighted average of the standard base recoverable sugar obtained in the previous five zafras, calculated with respect to the industrial net cane, and the credit obligations and contributions corresponding to the maturity in the harvest in question. The pre-settlement shall be covered at the price in force on the 15th day of each month when the termination of the cane cut by Contract is in the second half of the previous month, and the last day of the month when the termination of the cane cut by Contract is in the first fortnight of the same month, and

II. A final settlement equal to the difference between the total kilograms of the standard base recoverable sugar obtained and the kilograms considered in the respective pre-settlement; the balance shall be deducted from outstanding obligations which have not been discounted during the pre-settlement. This balance must be paid with the current price, within a period not greater than thirty calendar days counted from the day of the termination of the harvest.

Article 62.- If there is agreement of the respective Committee to determine the amount to be paid to the Abasters of Cana, according to a base sugar content individual standard and/or by groups of Cana Abasterers organized on cutting fronts or harvesting units, shall be complied with:

I. The standard base recoverable sugar will be calculated by analyzing the samples taken with a representative sampling system through a mechanical probe or other suitable implement installed in the sampling yard;

II.        The calculation of the standard base sugar shall be based on the following elements: the reed pol or the percentage of sucrose, the purity of the juice extracted by a hydraulic press or other suitable mechanism and the fibre in cane, obtained from the The weight of the residual cake of the bagasse that throws the sampling mechanism to refer to the fiber in cane, considering also a given efficiency of factory not less than 82,37% with respect to a specific quality of cane delivered by each Abastening of Cana or group of suppliers, in accordance with the relevant guidelines, and

III.       The sampling shall be carried out at random, with the presence of the reed of the cane of the Contracts to which the sample is to be applied, in accordance with the respective regulations. The Committee shall establish the methods of grouping and sampling of the reeds delivered.

Article 63.- When the system referred to in Article 62 of this Law is applicable, the Ingeniuses will pay the received cane as follows:

I. A pre-settlement equivalent to 85% of the standard base recoverable sugar determined, which must pay the price in force on the fifteenth day of each month when the termination of the cane cut by Contract is in the second half of the previous month and the last day of the month when the termination of the cut is in the first fortnight of the same, and their credit obligations and contributions should be discontoured correspond to the maturity of the zafra in question, and

II.        A final settlement equivalent to 15% of the standard base recoverable sugar, the amount of which shall be paid within a period not greater than 30 calendar days at the price prevailing from the termination of the harvest, credit obligations and contributions that would not have been discounted during the pre-settlement.

Article 64.- For the calculation of the price of the sugar cane tonne using both the uniform standard base recoverable sugar determination system, as individual or by group, shall be considered up to thousandths of kilograms of standard base recoverable sugar in relation to net cane.

Article 65.- For the individual sugar cane quality payment described in Article 62 of this Law, the corresponding Committee shall submit for approval. to the National Committee, the program, the date and the financial and technological feasibility of the mechanical probe or the technology that they decide to adopt, provided that the same guarantee, in terms of equity and measurement, the quality of the cane and the procedure as it should be paid. The National Committee shall respond within a reasonable time.

Article 66.- Industrialists will be required to deliver weekly, a copy of the Official Weekly Run Report to the National Committee, to the Board of Directors. Permanent, to the Sugar Chamber and to the national and local organizations of Abastenedas de Cana.

CHAPTER III

Of The Features of the Cane as Prima Matter for the Sugar Industry

Article 67.- By sugar cane as raw material for the sugar industry, the part of the stem from the nearest to the furrow is understood. the last developed upper train, corresponding to the section between the coaches 8 and 10, devoid of, whether or not adhered to, other portions of the graminea or of the earth, as well as the foreign objects of whatever nature they are.

Article 68.- The apparent pol or sucrose is in itself what gives the sugar cane value as raw material for the sugar cane agroindustry and is distributed in its highest proportion in the part of the stem that has reached its total physiological development, from its base to the training of 8 to 10. Coaches 8 to 10 on a normally developed reed are located by counting the leaves from the tip down, with the number one starting to unwrap.

The upper stem portion of these 8-10 training is called a cogolo or tip and has no value as a raw material for the sugar industry. canero after harvest.

Article 69.- They shall be included within the name of the household, foreign matter or impurities: the pods and leaves or tlazole, tips or cogollos including the banderilla or inflorescence, insufficient development stems known as mamons or suckers, germinated buds or lalas, loose roots or attached to the stem, soil, stones and any other material other than sugar cane.

Article 70.- Scheduled cane shall mean that which falls within the cut-off dates according to the previous programme approved by the Committee, duly updated during the development of the zafra and covered by its respective order of burning in its case, cutting and/or suspension of waterings, based on its maturity index.

Article 71.- Gross cane is understood to be the weight of the cane in scale without any discount.

Article 72.- Net cane means the result obtained from deducting from raw cane any quantity in kilograms corresponding to garbage or material strange.

Article 73.- At the time of receipt of the Ingenio batey, the sugar cane must have the following condition and characteristics:

I. Be understood within the timely cut programs, according to your maturity index;

II. Be fresh, at the time of delivery, understanding for it no more than 72 hours after your cut in the case of raw cane and no more than 48 hours later of its burning;

III. You must be unpunctured immediately above section 8-10 which is the most recent maturity part. In the case of canes affected by frost, the gap shall be made at the limit between the healthy part and the damaged part, in accordance with the degree of damage suffered;

IV. In the case of drought, flood, cyclone and pest reeds, special consideration should be given to a technical investigation. part of the respective Committee, in order to ascertain the degree of deterioration of that reed, to dictate the resolution that is conducive, and

V. Be made up of clean cane stalks of trash, foreign matter, or impurities.

Article 74.- When raw cane rebase 72 hours from your cut, for reasons attributable to the Sugar Cane Abastator, it will be subject to a penalty of up to 10% of its value for the first 24 hours following and up to 20% of its value during the 24 hours after the Committee has delivered its opinion. The receipt of reed with a longer period of time shall be the reason for analysis to determine its deterioration and, where appropriate, the corresponding punishment to be established by the aforementioned Committee.

Article 75.- When the cane rebases the 48 hours after it burns without being delivered in the batey, for causes imputable to the Abastening of the Sugar Cane, it will be subject to a penalty of up to 10% of its value during the first 24 hours following and up to 20% of its value during the 24 hours following, which the Committee will rule. The reception of the cane more than the time mentioned above will be a reason for analysis to determine its deterioration and, where appropriate, the corresponding punishment to be established by the aforementioned Committee.

Article 76.- For the case of the two previous articles, when the reed is caused by delays in delivery due to causes that are not attributable to the Abastening Sugar cane, such as weather events, fires or explosions, the Committee will decide how to conduct it.

Article 77.- For the organization of the overall harvest, unscheduled reeds will be subject to the following procedures:

I. When the Abastening of the Sugar Cane without a court order and without authorization from the Committee recoses its cane, it may not be received by the Ingenio, and

II. When for accidental cause a surface with a developed cane is burned without a cut order, it shall be punished with up to 10% of its value without prejudice to other discounts and/or punishments that may correspond to you. The Committee shall, after investigation of the causes of the accident, determine such punishment.

Article 78.- For the assessment of garbage, foreign matter, or impurities in sugar cane intended for the sugar industry, the following shall be adopted: procedure:

I.      The assessment of the percentage of litter, foreign matter or impurities shall be carried out under the direction and responsibility of the Committee, by physical sampling at batey or in the field.

The evaluation in percent shall be the ratio resulting from dividing the weight of garbage and foreign matter between the raw weight of the cane sample, multiplied per 100. The total waste and foreign matter will be obtained by separating from the stems and weighing in scale: tlazole, roots, mamons, couches, parts of the stem damaged by frost, soil and materials other than the cane that are to be carefully cleaned. shows.

The result obtained shall serve as a basis for calculating the deduction to be made of the weight of the raw cane delivered and thus obtain the net weight;

II.    The Committee may agree that the classification of waste, foreign matter or impurities is carried out in visual form, but is always based on physical sampling.

As the visual qualification does not detect the presence of stones, earths, earth and other elements, the weight deductions to be made by these concepts, they will have to be based precisely on physical sampling, and

III. When the discount for the concepts mentioned in this article exceeds 10%, it will be the reason for agreement between the parties for the application of the discount either the result of the rejection of the cane.

Article 79.- The net amount of the cane punished will be determined by multiplying the total amount of cane punished by the price of the cane ton, deduced the total amount of your average harvest costs and other deductible costs. The resulting amount shall invariably be prorated between the total uncastigated cane volume of the zafra.

For the purposes of determining penalties, the Committee shall listen to the persons concerned and in the event of failure to do so, it shall be recorded in the respective minutes for the purposes of resources to the Standing Board.

Article 80.- When the Ingenio for any cause suspends the reception and/or the milling of sugar cane for more than 12 hours, it must immediately notify the Committee, so that it suspends the orders of burning and reprogram the courts, lifting the corresponding record of the cane burned in the field and on the way to the Ingenio, for their relation with the application of punishments in their case.

Article 81.- When for reasons attributable to the Ingenio, the cane is processed with deterioration due to delays in its reception, or for having been more than 24 hours in the batey without grinding, will be applied a punishment that will be up to 10% of the value of the damaged cane and up to 20% of its value during the next 24 hours. The amount of this punishment shall be determined by the Committee and the Ingenie shall pay it to the total reed.

CHAPTER IV

Of Non-Industrialized Contreated Canas

Article 82.- Non-industrialized contracted reeds in the zafra in question shall be considered as remaining reeds, except those that are agreed by the Ingenie and the Caterer to defer for the next zafra.

Article 83.- When for reasons attributable to the Ingenio, they are not industrialized, these must be paid to the supplier for that Ingenio, in the terms set out in this Chapter.

Article 84.- The following are the causes of the Ingenio:

I. The decrease in grinding capacity, duly verified and sanctioned by the Committee;

II. When factory extensions result in delays in normal startup of the factory's zafra and/or malfunction;

III.       The suspension of labor-labor conflicts;

IV. The Imforesight of the Ingenio in the utilization or utilization of equipment, materials, parts and substances necessary to affect the normal operation of the milling;

V. The insufficiency in the mill capacity at the factory, in relation to the cane contracted and programmed for industrialization;

VI.        When you move reed from another Ingenio, or not contracted, without the sanction of the Committee and be left reed without industrializing;

VII.      When without the sanction of the Committee, an Ingenio encourages and contracts the production of the sugar cane;

VIII.     For deficiency in the cutting and transport of the reeds, when these operations are organized and executed directly by the Ingenio;

IX. When there is a decrease in the ability to receive the Ingenio, for not achieve adequate fluidity in the movement of the cane in scale, cranes and batey of the Ingenio, either by poor administrative organization or lack of necessary equipment;

X. When the Ingenio does not abide by the Committee's agreements and directly affects the grinding, and

XI.        When the Committee is not notified in good time about the possibility of surpluses, in order to take the necessary steps to industrialize the cane into another Ingenio.

Article 85.- The following shall be construed as causes imputable to the Sugar Cane Abasters of an Ingenio:

I. When, without justification, they object to the cut of their scheduled cane for safrar;

II.        When they do not comply with the provisions of the Committee concerning the suspension of waterings, in accordance with the cane ripening programme;

III.       When they do not carry out the necessary tasks and works in good time to allow the harvest and transport of the cane;

IV.        When by conflicts of the Abasterers of Cana, they partially or totally hinder the delivery of cane;

V. When the Abasterers of Cana do not justify partial or partial cause fully the delivery of the cane;

VI.        When they do not comply with the agreements that have been issued and notified in a timely manner by the Committee and directly affect the milling, and/or

VII.      When they do not timely address the burning, cutting, and carrying of their reeds.

Article 86.- In case of accidentally burned and off-program reeds, the Committee may carry out a reprogramming on its cutting fronts, turning out in the aid of the Abastator of Cana affected to facilitate delivery, in order for the greatest possible volume to be industrialized without injuring the interests of other caneros whose reeds are in the process of being cut.

Article 87.- When for haphazard cases or force majeure, such as meteorological phenomena, alien to the Ingenio and the Abastenas of Cana, they remain reeds. contracted and programmed without industrialisation in the zafra in question, for the benefit of the Abasterers of Cana concerned the following is established:

I. According to the estimated cane production, carried out by the Committee For each case, the calculations of the value of these reeds will be made, deducting the average of the total costs of harvest and other deductibles that correspond to it. Of the resulting value, 34% will be absorbed by the Abastenado de Cana himself, who will pay to his account 66%, of which the Ingenio will cover 33% and the other 33% will be in charge of the totality of the Abasterers of Cana who have delivered cane during the zafra in question, and

II.        In cases of times lost due to excessive rainfall during the harvest programme and accidental burning of reeds developed outside the time of harvest, according to the opinion of the Committee, its solution will be addressed in the same way. referred to in the preceding paragraph.

Article 88.- For all intents and purposes, the Abastator of Cana will retain ownership of unindustrialized cane and subsequent socas and reeds.

Article 89.- In the case demonstrated and sanctioned by the Committee for the eventual or permanent incapacity, partial or total, of the Abasterers of Cana to comply with the obligation to deliver the raw material, according to the delivery quotas indicated in the programming or reprogramming, the Ingenio will be authorized to carry out the necessary steps to normalize the deliveries, regularizing grinding and avoiding the possibility of them being left without to industrialize, even being imputable to the Abastenedones of Cana, and should intervene in this act with the authorization of the Committee.

Article 90.- Once the zafra has been completed, the Abastator of Cana who has been left without industrializing, standing or cut, will have to go inside the 10 days following the official conclusion of the harvest in question to the Committee, in order for it to be sanctioned and record the following:

I. The quantification of the volume of cane considered as non-industrialized, including name of the Abastator of Cana, net surface, estimated yield per hectare and tonnes of cane, and

II.        The classification of the origin of the claim of the Abastator of Cana in the terms of this Law.

Article 91.- The value of unindustrialized cane imputable to the Ingenio, will be calculated based on the settlement price of the industrialized cane deduced the average of the total harvest costs and other deductibles that correspond to it when the cane has not been burned or cut. The balance shall be completed within thirty calendar days from the date of termination of the corresponding Ingenio harvest.

When the cane is burned, standing or cut, or raw cut, the amount of the cutting works, pica and saca as appropriate, shall be added to the previous value of (i) agreement with the fees sanctioned by the Committee.

Article 92.- By mutual agreement of the contracting parties, the difference in the harvest of cane surfaces may be programmed for the beginning of the harvest. duly sanctioned by the respective Committee.

CHAPTER V

From The System to Determine Standardized Standard Base Recoverable Sugar from the Industrialized Cana

Article 93.- To determine the standard base recoverable sugar of the industrialized cane, as set out in Article 58 of this Law, the a corresponding system that considers a minimum Factory Base Efficiency of 82.37% referred to the specific quality of cane of each Ingenie of the country.

To this end, standardisation will be encouraged and the programmes for quality promotion will be promoted.

CHAPTER VI

Of Factory Process Standards and Monitoring

Article 94.- The procedure for sampling, handling and analysis of samples shall be carried out on the basis of the standard applicable to the agro-industry of sugar cane issued by the Directorate-General for Standards of the Secretariat of the Economy and, in the absence thereof, by the agreements adopted within the National Committee.

Article 95.- For the taking of representative samples and the carrying out of the analysis in the laboratory, the Industrialists will be obliged to count in the with the local functional laboratory, exclusive to this, with space and sufficient furniture for the staff representative of Abastenados de Cana e Industriales, equipped with all the materials, equipment, appliances and reagents contemplated in the specifications of the respective Mexican rules. To this end, the Federal Government is obliged to verify, calibrate and certify the measuring instruments, materials, reagents and other elements required in the terms laid down in the Federal Law on Metrology and Standardisation.

Article 96.- Under the system where the price of the cane is determined by the uniform average standard recoverable sugar of all ground cane in the zafra for each Ingenie of the country, the result of the sugar physically produced in each zafra will have no relation to the payment of the cane.

Consequently, the Abasterers of Cana through their organizations have the right to supervise in the factory and to participate jointly with the staff of the Wit, only up to the part of the process involved for the determination of the parameters included in the calculation of the recoverable sugar of its cane, which are:

a) Peso de la cana al being delivered en batey del Ingenio;

b) Weight or measurement of imbibide water;

c) Mixed juice weight;

d) Taking, handling, and preserving mixed juice and bagasse samples;

e) Determination of the pol and the fibre in cane;

f) Determination of pol in mixed juice and bagasse;

g) Determination of brix or total solids in mixed juice;

h) Calculations to get the weighted average data of the day, week, and accumulated at the end of the percent of the pol in cane and the percent of fibre in cane, as well as the pol and brix of the mixed juice to determine its purity, and

i) Verification of the installation on the Ingenios of the necessary equipment and their correct operation, as well as the due application of the Mexican norms in force and corresponding provisions issued by the Directorate-General for Standards of the Secretariat of the Economy.

In case the Organizations appoint representatives to monitor and participate in the determination of the parameters used in the calculation of the recoverable sugar The industrialized cane must sign together with the staff of the Ingenio responsible for these activities the daily results obtained. In the event of a divergence, the parties shall express their disagreement by lifting the respective minutes of the immediate knowledge of the Committee of the Ingenie concerned.

TITLE FIFTH

OF RESEARCH, DIVERSIFICATION AND ENTRENTERILDN

CHAPTER I

From Research and Technological Development

Article 97.- The Center for Scientific and Technological Research of the Sugar Cane (CICCTCANA) is created, which will aim to guide the projects of research and development to give more competitiveness and profitability to the sugar cane industry.

This center will depend on the National Committee, and will be subject to the guidelines of the National Committee, to those of the National System of Research and Technology Transfer for the Sustainable Rural Development and policies that are approved by the Intersecretarial Commission and the Mexican Council on the subject.

Its structure, medium-term program, and annual operational research and development program, as well as its budget, will be approved by the National Committee.

Article 98.- To make CICTCANA viable, a fund will be created with tripartite contributions, from the Federal Government, the Industrialists and the the terms, guidelines and regulations agreed upon by the National Committee.

Article 99.- Through CICTCANA, in coordination with participating research and higher education institutions, priority will be given to the establishment from a national inventory of research projects and material resources in experimental campuses, in order to optimize the research and its results obtained and to take advantage of the existing campuses for the development of new projects.

Article 100.- The CICTCANA will be supported in collegiate bodies formed by researchers of recognized prestige who will be called from the different institutions public that conduct scientific and technological research in the country.

Article 101.- The CICTCANA, with the approval of the National Committee, will address the demands of the members of the sugar cane agroindustry, and will have the following fundamental purposes:

I.          Develop new varieties with high sucrose, low fiber, pest and disease, drought and flood, and other climatological adversities.

II.        Generate regional technology packages that substantially increase agricultural and industrial productivity;

III.       Designing and evaluating satellite mapping and geoppositional systems and computer programs that ensure standardized application and use in the Committees, in order to strengthen the Information System for decision-making. to enable the productivity and competitiveness of each of the areas of supply to be increased;

IV.        Establish the mechanisms for linking and coordinating all the instances involved in the technological development of the graminea and in particular taking back control of the hybridization and quarantine stations to project the programme of new long-term varieties, avoid duplication and lower costs;

V. Promote research that diversifies and optimizes the use of Cane based on its profitability, market and availability of investments;

VI.        Develop the applied research inventory and its products on the market, in order to measure its benefits and its cost benefit, making it available to Abasteras de Cana e Industriales;

VII.      Deepen the assessment of the effect on factory and field yields of the manufacturing process of green-cut cane sugar;

VIII.     To promote each region and a standardized satellite geo-mapping system for each of the Committees, with the aim of facilitating productive reconversion and achieving full use of the land;

IX. Determine through studies and research, the contribution to competitiveness of the rural territory of each of the areas of supply of supplies to consolidate production, employment and rural services;

X.         To inventory research and its results in co-products, by-products and derivatives, and to promote new research to maximize the use and diversification of sugar cane, and

XI.        Carry out the research, studies and actions that the National Committee agrees and instructs you.

Article 102.- The CICTCANA will promote, through the coordination mechanisms established with academic and research institutions, training of the human resource that gives certainty and continuity to this Research Center.

Article 103.- In order to guarantee the contribution of the Federal Government to this Center, the necessary forecasts will be made in the Special Program include the Federation's Budget of Eglings every year. The contributions to be made by the Abasterers of Cana and the Industrialists will be made per tonne of cane and will be agreed in the plenary of the National Committee.

CHAPTER II

Productive Diversification

Article 104.- It is considered as productive diversification to obtain cane sugar in all of its presentations, the Coproducts, Subproducts and Derivatives of sugar cane.

The Coproducts: are a variety of intermediate and final products, which aim to give better use to the residues of the agricultural process and the industry of the sugar cane.

By-products: are collateral products for sugar production.

Derivatives: are those products that are obtained from the Subproducts of the cane.

Article 105.- The National Committee, relying on CICTCANA, will promote the exchange of proven technologies in the use of agroenergy, with the the purpose of the data subjects to have the necessary information to improve the thermal efficiency of the Ingenio, which allows for the cogeneration of electrical energy and the production of synthetic gas.

Article 106.- The National Committee, through the Secretariat, will propose to the Intersecretarial Commission the policies, the legal and administrative framework public as private, allowing for the diversified use of sugar cane, in order to bring about the appropriate laws and regulations.

Article 107.- The CICTCANA will propose to the National Committee the studies and projects that have as a priority the development and use of agroenergy, in The invention also relates to ethanol as fuel and gasoline oxygenator from initial and final honeys, as well as to the use of cane bagasse for the purposes of industrialization for energy cogeneration and gas production. synthetic. In the same way, food products such as sucralose, olestra, fructooligosaccharides and pharmaceuticals such as sucralfate, polysucrose, special esters, epoxides, sucrogel and bioplastics derived from sucrose.

The results of these studies must incorporate the financial, social and institutional profitability, so that, if favorable, the National Committee proposes to the Intersecretarial commission the regulations and initiatives of law that allow the use of the co-products as strategic assets for the national sovereignty in the production of energy and the derivatives of sucrose as necessary goods for the food and pharmaceutical sovereignty of the country.

Article 108.- The National Committee will propose to the Intersecretarial Commission, for its approval, the incentives for investment for the production of synthetic gas, Cogeneration of energy and production of ethanol as fuel, while including the rest of the co-products, by-products and derivatives.

Article 109.- The National Committee, with the support of the Secretariat, will promote the development of the Coproducts, Subproducts and Derivatives by linking them to the shared risk and investment risk, to productive alliances and to the institutions of higher education existing within the territory of the Canero Supply Zone where, through demonstration modules, the feasibility of this development.

Article 110.- The supports that the Federal Government will grant for the productive diversification of the cane agroindustry will be provided for in the Special Program Concurrent for Sustainable Rural Development that includes the Federation's Budget of expenditures each year.

CHAPTER III

From Sustainability

Article 111.- The National Committee, with the support of CICTCANA, will identify the innovative activities, both in the agricultural and industrial areas contribute to the sustainable development of the sector.

Article 112.- The National Committee will promote sustainable cane farming systems based on environmental conservation and efficient exploitation. of the resources available, involving the quality of life of producers and of society in general.

Article 113.- The National Committee will evaluate, promote and support the implementation of programs that reduce the industry's polluting source, both in the air as to the soil and water, the solution of the treatment of the wastewater of the Ingenios and of the distilleries and the combustion gases of the boilers.

Article 114.- The adoption of sustainable soil management practices will be promoted and supported, establishing a system of registration for Ingenio.

Article 115.- The use of the residual biomass of sugar cane, particularly the processes of gasification or thermolysis, will be boosted, supporting projects that demonstrate sustainable profitability.

Article 116.- The National Committee will draw up a proposal for investment incentives for those Industrialists who undertake and implement projects. sustainable high energy efficiency, focused on their own energy supply and supply. The Secretariat will propose to the Intersecretarial Commission the approval of this proposal for the legal, administrative and budgetary effects that need to be implemented.

Article 117.- For the purpose of ensuring sustainable agriculture and sugar cane industrialization, the necessary support will be considered. The Special Program of the Federation's Budget of expenditures for each financial year.

TITLE SIXTH

OF CONCILIATION AND ARBITRATION IN THE SUGAR CANE AGROINDUSTRY

CHAPTER I

of Controversies

Article 118.- It is sugar disputes that, in the event of non-compliance with the provisions contained in this Law, the Contract and derived provisions, are subtracted from:

a) Sugar and Industrial Cana Abasteras;

b) Sugar Cane Abasters;

c) Industrials, and

d) Any of the above subjects and the Committees.

The Code of Commerce, the Federal Civil Code, the Federal Code of Civil Procedures and the General Law of Titles and Operations will be applicable in an additional manner. of Credit.

Article 119.- The sugar cane agro-industry conflict resolution system will conform to:

a) Committees, as a reconciliation instance, and

b) Permanent Board, in a conciliation procedure or in an arbitration procedure.

Article 120.- In the handling of disputes brought under their knowledge, the Standing Board and the Committees shall be subject to the procedure provided for in Article 120. In this Law, the written record of all their actions must be recorded in the respective files.

CHAPTER II

Of The Conciliatory Procedure

Article 121.- The Committees shall have the jurisdiction that corresponds to them on the basis of the Ingenio where they are constituted.

Article 122.- The Committees, for the purposes of reconciliation, shall be integrated into the terms provided for in Article 24 of this Law.

Article 123.- The Committees, in their conciliatory function, shall have the following powers and obligations:

I. Act as a conciliatory instance in sugar controversies arising between Abasterers of Cana of sugar, including those with or between the Industriales;

II.        To seek a conciliatory settlement of the sugar disputes;

III. Receive the evidence that the Abasterers of Cana or the Industrialists judge They should be accountable to them, in relation to the actions and exceptions they intend to deduct before the Permanent Board. The term for the receipt of evidence shall not exceed ten days;

IV.        Carry out the necessary formalities for registration in the Register of the constances of the acts in their conciliatory function, and

V.         The others who entrust them with the laws.

In addition, at the request of a party, you will be able to receive the requests submitted to you, referring them to the Permanent Board. Also supplement the exhorts and practice the steps requested by the Permanent Board.

Article 124.- The reconciliatory procedure will be subject to the following rules:

I.          The conciliatory body, upon receipt of the request for its intervention in such a way, shall cite the parties to a hearing of the settlement by pointing to the place, date and time for its conclusion, as well as the motive of the hearing;

II.        On the day of the hearing of the settlement, the conciliatory body will urge the parties to resolve their differences amicably, proposing for the effect the alternatives of solution that they consider relevant to their judgment;

III.       If the parties to a settlement, the conflict will be terminated in a conciliatory manner, settling the agreement in an agreement that must be signed by those parties, which will produce all the legal effects of an award and will carry It is running, and

IV.        If any of the parties do not attend the convened hearing, they shall be held in breach of any arrangement, or if the parties have not been assisted, the conciliation procedure shall be terminated.

CHAPTER III

Of The Arbitration

Article 125.- For the resolution of the sugar controversies that are raised, the Abastenedos de Cana and the Industriales must submit to the jurisdiction of the Permanent Board, at the request of a party, in the terms established in this Law, in the Contract and other derivative provisions.

The parties must comply with the resolutions that the Permanent Board dictates, once they cause status.

Invalid item declared invalid by SCJN to Inconstitutionality Action DOF 07-12-2007

Article 126.- The arbitral procedure, if any, will be subject to the following rules:

I.        If the parties ' reconciliation is not achieved, either before the relevant Committee or before the Standing Board, and the arbitral intervention requested, the Permanent Board shall transfer the claim and place the defendant in order to the term of 10 working days, counted from the date on which the site takes effect, to respond to the site, to derogate from and to provide the evidence it deems necessary.

II. Contingent or not the demand, and the admitted tests, will be granted to the parties a period of ten working days to present their pleadings.

When, in order to better provide, the Permanent Board needs to obtain more information, obtain more evidence, or conduct some research on the (i) the dispute between the Member States and the Member States; In such cases, it shall be cited for pleadings once the evidence and proceedings that have been ordered have been collected and removed.

III.     Transcurrids the aforementioned stages and presented or not the pleadings of the parties, the Permanent Board shall close the period of instruction and shall have a maximum period of thirty working days to dictate the corresponding award.

CHAPTER IV

From the Standing Board

Article 127.- The Permanent Board is created in terms of the Sustainable Rural Development Act, which will have full competence to meet and resolve all issues. those sugar controversies that are subject to you.

In no case shall the Permanent Board intervene in disputes of an internal character of the Organizations or in political matters of the Organizations.

Article 128.- The Permanent Board will be endowed with autonomy to dictate its rulings and will have its own annual budget, which will be integrated with the contributions annual of the sectors represented in it, in the amounts determined by its plenary, in terms of Article 186 of the Law on Sustainable Rural Development.

Article 129.- The Permanent Board, in agreement with the Secretariat, through the Registry, will take note of the integration and updating of the national and local cane producers ' organizations; registration of the members of the Committee of each Ingenie and the official registration of the Padron in the terms of this Law, and the Turnar Register must be copied to the Permanent Board of the documentation respective.

Article 130.- The Permanent Board will be domiciled in Mexico City, Federal District.

CHAPTER V

From the Permanent Board Plenary

Article 131.- The plenum will be the supreme organ of the Permanent Board, who will dictate the awards and the interlocutors that end the controversies sugar.

Article 132.- The Permanent Board's plenary session will be composed of:

a) A representative of the Secretariat, who will chair it;

b) A representative of each of the registered national organizations, and

c) Representatives of the Sugar Chamber, in number equal to that of the representatives of the registered national organizations.

The President will have the representation of the Permanent Board and will have all the general powers for lawsuits and charges and acts of administration. these powers in whole or in part, for the purposes that are required.

For each representative owner there will be an alternate; these charges will be non-transferable and honorific.

Article 133.- The Chair of the Permanent Board shall be appointed by the Secretary of the Secretariat. Their temporary and final absences, as long as the appointment is made, will be covered by their alternate.

Article 134.- Meetings shall be chaired by the President or, in his absence, by his or her alternate; the Plenary Session shall be held by the President or at the request of, at least two of its members, subject to prior written notification of its members with five working days in advance.

Article 135.- The plenary session should be held with the full assistance of its members. If a session is not held for the assistance of one of them, the Secretary-General shall again quote to be held within the following three working days, with whom they attend, and the members shall be in agreement not in attendance with the resolutions or agreements that are made in it.

Article 136.- The plenary session of the Standing Board shall decide by unanimity or majority of votes on matters to be considered by the parties. In case of a tie the president shall have a vote of quality.

Article 137.- The Permanent Board's plenary has the following powers and obligations:

I. Exorder the Permanent Board's Rules of Procedure;

II.        Learn about and resolve the sugar controversies presented to you;

III.       Receive the requests filed against the Committees, as a whole or the integral part thereof that is responsible, when due to negligence or bad faith duly proven, cause harm to the Abastenor de Cana or to the Ingenio;

IV.        Designate the Secretary-General of the Standing Board, and

V. The others that give you the laws.

CHAPTER VI

From the General Secretariat of the Permanent Board

Article 138.- The plenary session of the Permanent Board shall appoint the Secretary-General of the Permanent Board, who shall be entitled to be Licensed with a minimum experience of five years. years in the field of the sugar cane agroindustry, which will be granted the necessary powers for their best performance, responsible for the proper functioning of the Permanent Board.

Article 139.- The Secretary-General of the Standing Board shall have, among others, the following functions:

I. Coordinate the work of the Permanent Board and administer human resources, financial and materials assigned to it;

II.        Call on the parties in dispute in the terms of Article 124 of this Law to ensure that a solution is sought in the conciliation process that satisfies them;

III.       Commission staff who consider it necessary, on their own initiative or at the request of a party, for the investigation, information or clarification of the matter to be considered;

IV.        Integrate the case files into the process, dictating all types of agreements that are necessary for the substantiation of the procedure;

V.         Order the necessary investigations and the provision of data or documents which are related to the cases that are being aired before the same and, in its opportunity, to formulate the draft of the award or the interlocutory terminated the arbitral judgment, which shall be submitted for consideration by the Plenary;

VI. Take care of the substantiation of the arbitral proceedings until they are left in State of resolution, including the signature of the interlocutory resolutions declaring the exceptions of prior and special pronouncement that do not involve the termination of the arbitral judgment;

VII.      Keep up to date a record of the members of the Committee for each Ingenie in the country;

VIII.     Take the official register of the cane tonnage contributed by the suppliers;

IX. Submit for analysis and approval to the plenary session of the Permanent Board, in form detailed and based on the functional operational needs, the annual budget of the Standing Board;

X. Report in writing, quarterly or as many times as required by the Committee National or by the plenary of the Standing Board, the exercise and management of the funds allocated to the Permanent Board;

XI.        Order the issue of certified copies, at the request of an interested party, of the constances in the archives of the Permanent Board;

XII.      Authorize with your signature the actions and certified copies that are requested for them, and

XIII.     Other than those provided for in this Law.

CHAPTER VII

From the Competence and Procedure Scope to the Standing Board

Article 140.- The Permanent Board will have jurisdiction to hear about the controversies arising between Abastenedos de Cana de Sugar, from these with the Industrialists or among the latter, arising from the application of this Law, the Contract and other relevant provisions.

Article 141.- The controversial claims filed with the Permanent Board shall be made in writing by pointing to the name and address of the persons against whom they are engaged, as well as the fundatory facts of their petition. The initial statement of application, as well as the documents of its action, must be submitted in original and accompanied by the copies necessary for the transfer. They shall also provide the evidence deemed appropriate.

Article 142.- When a controversial claim is not sufficiently clear to the Permanent Board, it will request the relevant clarifications, the which shall be made within a maximum of 10 working days. After that period of time without the requested clarifications being made, no action shall be taken on the application or the non-conformity, leaving the actor's rights to the exception, thereby interrupting the time limit for the prescription of the action attempted.

The above clarification will not be necessary, in the event that the Organizations of Abasterers of Cana demand the Ingenio determined benefit without specifying their amount, the name of Abasterers of Cana and tonnes of cane delivered by each one, since in case of provenance, any quantification may be made at the time of the liquidation of the failed, by means of estimates of production or volume of sugar cane and means of sucrose content or quality index corresponding to it, as well as records of Abastenteres de Cana, unless the Permanent Board considers that they are necessary for the defense of the counterparty or resolution of the dispute, or when an exception is made by the Ingenio that comprises a supplier or supplier group.

Controversial claims must be filed against the physical or moral person on an individualized basis.

Article 143.- When the Standing Board receives an injunction from a court or arbitration body to promote competition and consider due hold his or her, within a period not longer than three working days, so inform the competitor.

Article 144.- When the person who appears before the Permanent Board does so on behalf of another, it will be sufficient for him to accredit his personality with signed letter of power. by the mightily and two witnesses.

In case of moral persons, they must accredit the personality of their representative with the corresponding power of attorney.

The national and local organizations of Abastenedas de Cana registered in the Register, will have personality to represent their members legally before the Board Permanent.

When the personality of the parties has previously been recognized within a procedure established, such personality shall be recognized by the Board. Permanent, except non-compliance or proof to the contrary.

Article 145.- The parties shall indicate in their written request or address in Mexico City, Federal District, that they are notify them of the agreements and awards given by the Standing Board, if they do not, the notifications shall be made by list.

Article 146.- Received the request for an arbitration intervention, the Permanent Board will initiate the procedure, issue the order of filing of the lawsuit controversial and will proceed to intervene in the resolution of the conflict, in a single instance, according to its powers.

Article 147.- Addicted to the controversial claim, the Permanent Board will subpoena the parties to a conciliatory hearing to be held within ten years. business days.

In the summons, the full name of the actor, his claim, the date, time and place set to carry out the hearing shall be expressed.

Article 148.- In the resolution of conflicts, the Standing Board shall give its lauds to truth known and good faith kept, appreciating the facts due in awareness, without being subject to the rules or formalities on test estimation, but expressing the legal grounds and grounds for their failures to be supported.

Article 149.- The processing agreements may be appealed to the person who has issued them; the incidental ones that do not end the procedure, may be used before the Full; the awards and the interlocutors of the latter shall, where appropriate, be subject to the provisions of the Federal Code of Civil Procedures.

Article 150.- The condemned party shall comply with the Standing Board's award within ten working days from the date of notification. corresponding. If it does not do so, the interested party may apply for approval and enforcement to the competent authority.

TRANSIENT

FIRST.- This Law shall enter into force on the day following its publication in the Official Journal of the Federation.

SECOND.- Any provision that contravene this Law is repealed, with the exception of the provisions of the third, fifth, sixth, and eighth of the present.

THIRD.- The issues that are pending to be resolved in the Canera Production Committees and the Board of Conciliation and Arbitration for Controversies Sugar, at the entry into force of this Law, shall continue to be processed and resolved in accordance with the provisions that were in force at the time of its commencement.

FOURTH.- The National Committee, the Permanent Board and the CICTCANA must be duly installed no later than thirty days after entry. in force of this Law.

For the installation of one and the other the Secretariat must convene the sectors involved in a maximum term of 15 days after the entry into force of this Law.

QUINTO.- For the establishment of the sugar cane price, as long as the National Committee does not adopt a unanimous agreement that will modify them, the "Agreement establishing the Rules for the Determination of the Sugar Reference Price for the Payment of Sugar Cane", published in the Official Journal of the Federation of 26 March 1997; the " Agreement Reforming the Diverse that Sets Rules for the Determination of the Sugar Reference Price for the Cana Payment ', published in the Official Journal of the Federation of 31 March 1998 and the Agreement of the National Committee of the Agricultural Sugar Industry, adopted at its regular meeting on 10 October 1991, concerning the' System for the Determination of Sugar Recoverable Standard Uniform Standard of the Cane Industrialized in each ingenuity of the Country ", as established in the article TENTH SECOND of the Decree declaring the sowing, cultivation, harvesting and industrialization of public interest Sugar cane, published on May 31, 1991, as well as the Decree that reform the declaring in the public interest the sowing, cultivation, harvesting and industrialization of sugar cane, published on 27 July 1993.

SIXTH.- The local and national organizations of Abastenedas de Cana, who were registered with the Board of Conciliation and Arbitration for Controversies Sugar, you will have them recognized, you must update your registration in the terms of Articles 34 and 38 and in accordance with the provisions of the seventh article of this Law.

SEVENTH.- The programs, projects and actions to be carried out by the application of this Law, as well as the supports, subsidies and benefits that are They shall be subject to federal resources, subject to the availability of resources which have been approved for that purpose in the Federation of the Federation of the Federation of the Fiscal Year concerned and shall observe the provisions applicable in budgetary matters.

EIGHTH.- As long as the National Committee does not elaborate a new contract format to be held by the Industrialists with the Sugar Canaers, The format of the Uniform Contract, derived from the Decree declaring public interest, the sowing, cultivation, harvesting and industrialization of sugar cane, published in the Official Journal of the Federation on 31 May, will continue in force. of 1991.

Mexico, D.F., as of June 21, 2005.-Sen. Diego Fernandez de Cevallos Ramos, President. -Dip. Manlio Fabio Beltrones Rivera, President.-Sen. Sara Isabel Castellanos Cortes, Secretary.-Dip. Marcos Morales Torres, Secretary.-Rubicas."

In compliance with the provisions of Article 89 of the Political Constitution of the United Mexican States, and for their due publication and observance, I request the present Decree at the Federal Executive Branch, in Mexico City, Federal District, at the nineteenth day of August of two thousand five.- Vicente Fox Quesada.-Heading.-The Secretary of the Interior, Carlos Maria Abascal Carranza.-Heading.


TRANSIENT ITEMS OF REFORM DECREES

SENTENCE of nine of July of two thousand seven given in the Action of Unconstitutionality 27/2005 promoted by the Attorney General of the Republic against the Congress of the Union and the President of the Republic.

Published in the Official Journal of the Federation on 7 December 2007

On the sidelines a seal with the National Shield, which reads: United Mexican States.-Supreme Court of Justice of the Nation.-General Secretariat of Agreements.

UNCONSTITUTIONALITY action 27/2005.

PROMOTE: ATTORNEY GENERAL OF THE REPUBLIC.

MINISTER RAPPORTEUR: JUAN N. SILVA MEZA.

SECRETARY: GUILLERMINA COUTINO MATA.

Mexico, Federal District. Agreement of the Full Court of the Supreme Court of Justice of the Nation, corresponding to the day nine of July of two thousand seven.

SEEN; and RESULTING:

FIRST TO DECIMAL.- ..........

CONSIDERING:

FIRST TO QUINTO.- ..........

SIXTH.- ..........

Consequently, the invalidity of Article 50 is declared, in the normative portion of its second paragraph which states: " as well as to the jurisdiction of the Board Permanent "; of article 56 in its entirety, which provides that " The Ingeniuses and their Abasteras of Cana will expressly submit to the jurisdiction of the Permanent Board in order to settle the disputes that arise on the occasion of the non-compliance with the provisions of this Law and of the Contract which they hold and other derived and related provisions "; and article 125, in its entirety, which states: " For the resolution of the sugar controversies that are raised, the Abastenedones of Cana and the Industrialists must submit to the jurisdiction of the Permanent Board, at the request of a party, in the terms established in this Law, in the Contract and other derivative provisions. --- The parties shall comply with the resolutions that the Permanent Board dictates, once they cause state ", all of the Sugar Cane Sustainable Development Act, this declaratory of Invalidity shall take effect on the day following the publication of this enforceable in the Official Journal of the Federation.

SEVENTH TO DECIMAL.- ..........

For the above and well founded it is solved:

FIRST.- This unconstitutionality action is partially and partially founded.

SECOND.- The invalidity of Articles 50, second paragraph, last part, 56 and 125 of the Sugar Cane Sustainable Development Act is declared in the the regulatory portions specified in recital 6 of this judgment.

THIRD.- The declaration of invalidity contained in the resolutionwhich antecedents will have effects in the terms specified in the last recital of this resolution.

FOURTH.- The validity of Articles 5, 7, fraction VII, 10, fraction XI, 34, 38, 57, 58, 98 and 119 of the Sustainable Development Law of the Cana de la Cana is recognized. Sugar, for the reasons set out in the fifth, sixth last part, seventh and eighth recitals of this performance.

QUINTO.- The present action of unconstitutionality with respect to Article 87 of the Law on Sustainable Development of the Sugar Cane is dismissed. noted in recital 9 of this performance.

SIXTH.- Publish this judgment in the Judicial Weekly of the Federation and its Gazette, as well as in the Official Journal of the Federation.

Notify; by means of trade to the parties and, in your opportunity, file the case.

Put to the vote the modified draft, unanimously of nine votes of the ministers Aguirre Anguiano, Franco Gonzalez Salas, Gongora Pimentel, Gudino Pelayo, Azuela Guitron, Valls Hernández, Sánchez Cordero de García Villegas, Silva Meza and Presidente Ortiz Mayagoitia were approved: the First Resolution; the Second Resolution, except the declaration of invalidity of Article 87, which was approved by a majority of Seven votes of the Ministers Aguirre Anguiano, Franco Gonzalez Salas, Gongora Pimentel, Gudino Pelayo, Azuela Guitron, Sánchez Cordero de García Villegas and President Ortiz Mayagoitia, voted against the Ministers Valls Hernández and Silva Meza and reserved their right to formulate particular votes or votes In the case of a minority, the Ministers of the majority reserved their own to formulate, in their case and opportunity, concurrent votes; the Third Resolution; the Fourth Resolution, except for the recognition of validity of Articles 57 and 58, which was approved by a majority of five votes of the ministers, Mr Franco González Salas, Gongora Pimentel, Azuela Guitron, Valls Hernández and Silva Meza, voted against the Ministers Aguirre Anguiano, Gudino Pelayo, Sánchez Cordero de García Villegas and President Ortiz Mayagoitia and reserved their right to formulate votes In the case of a minority vote, the Ministers of the majority reserved their own to formulate, where appropriate and opportunity, concurrent votes; and the recognition of the validity of Article 98, which was adopted by a majority of seven votes of the Ministers Aguirre Anguiano, Franco González Salas, Azuela Guitron, Valls Hernández, Sanchez Cordero de García Villegas, Silva Meza and Presidente Ortiz Mayagoitia, voted against the ministers Gongora Pimentel and Gudino Pelayo and reserved their right to formulate particular votes or minority votes, and the ministers of the majority reserved their own to formulate, in their case and opportunity, concurrent votes; and the Fifth Resolution.

By virtue of the fact that the declaration of invalidity of Article 87 did not obtain the qualified vote of eight votes, in accordance with the provisions of Article 105, Last paragraph, of the Political Constitution of the United Mexican States and 72 of the Regulatory Law of Fractions I and II of Article 105 of the Constitution, the action of unconstitutionality with respect to that legal precept must be rejected. the respective resolutive and the recital are drawn up. -Minister Margarita Luna Ramos was not in attendance for being in compliance with an official commission, and Minister Jose Ramon Cossio Diaz, for enjoying a vacation by virtue of having integrated the Committee on the Recess of the Second Session Period of two thousand six.

Sign the Minister President of the Supreme Court of Justice Guillermo I. Ortiz Mayagoitia, and the Minister Rapporteur Juan N. Silva Meza and the Licentiate Jose Javier Aguilar Domínguez, Secretary General of Agreements, who authorizes and gives faith.

President Guillermo I. Ortiz Mayagoitia.-Heading.-Minister Rapporteur: Juan N. Silva Meza.-Heading.-The Secretary General of Agreements, José Javier Aguilar Domínguez.-Heading.

LICENSED JOSÉ JAVIER AGUILAR DOMINGUEZ, SECRETARY GENERAL OF AGREEMENTS OF THE SUPREME COURT OF JUSTICE OF THE NATION, CERTIFIES: That this constant photocopy of Eighty-eight useful fojas, it agrees faithfully and exactly with its original corresponding to the sentence of nine of July last dictated in the action of unconstitutionality 27/2005 promoted by the Attorney General of the Republic against the Congress of the Union and the President of the Republic. It is certified for publication in the Official Journal of the Federation, in compliance with what the Court of Justice of the Supreme Court of the Nation ordered in the Sixth Resolution of the said sentence.-Mexico, Federal District, seven November of two thousand seven.-Conste.-Heading.

VOTES of Ministers José Fernando Franco González Salas and Genaro David Gongora Pimentel, in the Action of Unconstitutionality 27/2005, promoted by the Attorney General of the Republic against the Congress of the Union and the President of the Republic.

Published in the Official Journal of the Federation on 23 July 2008

Special VOTO that Minister Sergio Salvador Aguirre Anguiano formulates in the Action of Unconstitutionality 27/2005, promoted by the Prosecutor General of the Republic against the Congress of the Union and the President of the Republic.

Published in the Official Journal of the Federation on 20 October 2008