HOUSE MEMORIAL 75

53rd legislature - STATE OF NEW MEXICO - first session, 2017

INTRODUCED BY

Angelica Rubio

A MEMORIAL

REQUESTING THE STATE INVESTMENT COUNCIL TO AVOID INVESTING IN COMPANIES THAT ARE INVOLVED IN CONSTRUCTION OF A BORDER WALL BETWEEN THE UNITED STATES AND MEXICO.

     WHEREAS, the federal government has announced plans to build a wall along the roughly two-thousand-mile border between the United States and Mexico; and

     WHEREAS, the United States department of homeland security estimates that the proposed wall along the United States-Mexico border will cost as much as twenty-one billion six hundred million dollars ($21,600,000,000) to construct and take more than three years to complete; and

     WHEREAS, under the federal government's proposal, the United States congress will initially authorize the United States to pay for the cost of the wall, to be reimbursed later by the Mexican government; and

     WHEREAS, if the federal government follows through with its plan, the border wall will represent a major construction project requiring substantial manpower and construction materials; and

     WHEREAS, the state investment council manages New Mexico's twenty-billion-five-hundred million-dollar ($20,500,000,000) permanent endowment, including the land grant and severance tax permanent funds, as well as investments for twenty-one other governmental clients; and

     WHEREAS, the purpose of the state investment council is to manage the state's permanent funds for the residents of New Mexico and to maximize distributions to the state's operating budget while preserving the real value of the funds for future generations of New Mexicans; and

     WHEREAS, the state investment council and the investment office are governed by the Uniform Prudent Investor Act; and

     WHEREAS, under that act, investment and management decisions respecting individual assets are not evaluated in isolation but in the context of the portfolio as a whole and as part of an overall investment strategy having risk and return objectives reasonably suited to the state investment council; and

     WHEREAS, possible legislative and other changes may be needed by the state investment council to exclude companies hired to construct the border wall from the state investment council's investment choices and in compliance with the Uniform Prudent Investor Act; and

     WHEREAS, when two companies are equally situated in all respects, it would be beneficial for the state investment council to consider whether the companies are involved in the construction of the border wall when making investment choices;

     NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF NEW MEXICO that the state investment council be requested to study possible necessary legislative and other changes to exclude companies hired to construct the United States-Mexico border wall from the state investment council's investment choices while complying with the Uniform Prudent Investor Act; and

     BE IT FURTHER RESOLVED that when two companies are equally situated in all respects, that the state investment council be requested to consider whether the companies are involved in the construction of the border wall when making investment choices; and

     BE IT FURTHER RESOLVED that a copy of this memorial be transmitted to the state investment officer of the state investment council.

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