0001| HOUSE BILL 146
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| MAX COLL
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0005|
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0006|
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0007|
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0008| FOR THE LEGISLATIVE FINANCE COMMITTEE
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0009|
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0010| AN ACT
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0011| RELATING TO THE INVESTMENT OF PUBLIC MONEY; PROVIDING FOR
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0012| BUDGET AND PAYMENT OF ADMINISTRATIVE AND INVESTMENT EXPENSES OF
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0013| THE INVESTMENT OFFICE FROM THE STATE PERMANENT FUNDS AND OTHER
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0014| FUNDS MANAGED BY THE INVESTMENT OFFICE; AUTHORIZING THE
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0015| INVESTMENT OFFICE TO USE INVESTMENT MANAGERS; AUTHORIZING THE
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0016| STATE INVESTMENT OFFICER TO PROVIDE INVESTMENT SERVICES TO
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0017| POLITICAL SUBDIVISIONS OF THE STATE AND THE NEW MEXICO FINANCE
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0018| AUTHORITY; AMENDING SECTIONS OF THE NMSA 1978; DECLARING AN
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0019| EMERGENCY.
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0020|
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0021| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0022| Section 1. Section 6-8-1 NMSA 1978 (being Laws 1957,
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0023| Chapter 179, Section 1, as amended by Laws 1983, Chapter 301,
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0024| Section 11 and also by Laws 1983, Chapter 306, Section 1) is
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0025| amended to read:
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0001| "6-8-1. DEFINITIONS.--As used in [Sections 6-8-1 through
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6-8-16] Chapter 6, Article 8 NMSA 1978:
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0003| A. "secretary" means the secretary of finance and
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0004| administration;
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0005| B. "department" means the department of finance and
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0006| administration;
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0007| C. "land grant permanent [fund] funds" means
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0008| those funds derived from lands under the direction, control,
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0009| care and disposition of the commissioner of public lands
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0010| conferred by Article 13, Sections 1 and 2 of the constitution
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0011| of New Mexico; and
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0012| D. "council" means the state investment council."
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0013| Section 2. Section 6-8-5 NMSA 1978 (being Laws 1957,
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0014| Chapter 179, Section 5, as amended) is amended to read:
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0015| "6-8-5. BOND--STAFF--BUDGET.--
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0016| A. Before the state investment officer, or other
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0017| responsible employee of the investment [division, shall
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enter] office, enters upon his duties, the secretary shall
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0019| require an individual bond or [shall] include the state
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0020| investment officer and other responsible employees under a
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0021| blanket bond for an amount and for a coverage deemed best to
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0022| protect the state's interest. The bond premiums shall be paid
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0023| by the state.
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0024| B. The state investment officer shall annually
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0025| prepare a budget for administering and investing all funds
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0001| managed by the investment office, which shall be reviewed by
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0002| the council [and the secretary]. Any funds provided for the
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0003| operating budget of the [division] investment office shall
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0004| be appropriated from [earnings on investments of permanent
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funds before distribution to the income funds] the assets of
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0006| the land grant permanent funds, the severance tax permanent
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0007| fund, pooled client funds or any other funds managed by the
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0008| investment office, as authorized by law; however, in regard
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0009| to the land grant permanent funds, appropriation shall be made
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0010| from earnings on investments of the land grant permanent funds
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0011| before distribution to the income funds during the period prior
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0012| to the date the United States congress consents to the
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0013| provisions of Constitutional Amendment 1 approved at the 1996
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0014| general election.
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0015| C. Amounts budgeted or appropriated from the land
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0016| grant permanent funds and the severance tax permanent fund for
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0017| the costs of administering and investing those funds shall be
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0018| in addition to the amounts distributed to the beneficiaries of
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0019| the land grant permanent funds and to the general fund from the
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0020| severance tax permanent fund as provided by law; provided that
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0021| amounts budgeted or appropriated from the land grant permanent
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0022| funds shall be made from earnings on investments of the funds
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0023| before distribution to the income funds during the period prior
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0024| to the date the United States congress consents to the
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0025| provisions of Constitutional Amendment 1 approved at the 1996
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0001| general election.
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0002| [C.] D. The state investment officer shall
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0003| appoint all employees of the investment [division] office."
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0004| Section 3. Section 6-8-7 NMSA 1978 (being Laws 1957,
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0005| Chapter 179, Section 7, as amended) is amended to read:
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0006| "6-8-7. POWERS AND DUTIES OF STATE INVESTMENT OFFICER--
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0007| INVESTMENT POLICY--INVESTMENT MANAGERS.--
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0008| A. Subject to the limitations, conditions and
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0009| restrictions contained in policy-making regulations or
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0010| resolutions adopted by the council and subject to prior
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0011| authorization by the council, the state investment officer has
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0012| the power to make purchases, sales, exchanges, investments and
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0013| reinvestments of the [permanent fund] assets of all funds
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0014| administered under the supervision of the council. The state
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0015| investment officer is charged with the duty of seeing that
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0016| money invested is at all times handled in the best interests of
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0017| the state.
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0018| B. Securities or investments purchased or held may
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0019| be sold or exchanged for other securities and investments;
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0020| provided, however, that no sale or exchange [is] shall be
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0021| at a price less than the going market at the time the
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0022| securities or investments are sold or exchanged.
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0023| C. In purchasing bonds, the state investment
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0024| officer shall require a certified or original written opinion
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0025| of a reputable bond attorney or the attorney general of the
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0001| state certifying the legality of the bonds to be purchased;
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0002| provided, however, this written opinion may be the approving
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0003| legal opinion ordinarily furnished with the bond issue.
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0004| D. The state investment officer shall formulate and
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0005| recommend to the council for approval investment regulations or
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0006| resolutions pertaining to the kind or nature of investments and
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0007| limitations, conditions and restrictions upon the methods,
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0008| practices or procedures for investment, reinvestment, purchase,
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0009| sale or exchange transactions that should govern the activities
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0010| of the investment office.
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0011| E. The council shall meet at least once each month,
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0012| and as often as exigencies may demand, to consult with the
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0013| state investment officer concerning the work of the investment
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0014| office. The council shall have access to all files and records
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0015| of the investment office and shall require the state investment
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0016| officer to report on and provide information necessary to the
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0017| performance of council functions. The council may hire one or
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0018| more investment management firms to advise the council with
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0019| respect to the council's overall investment plan for the
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0020| investment of all funds managed by the investment office and
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0021| pay reasonable compensation for such advisory services from
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0022| [funds of the investment office] the assets of the
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0023| applicable funds, subject to budgeting and appropriation by the
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0024| legislature. The terms of any such investment management
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0025| services contract shall incorporate the statutory requirements
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0001| for investment of funds under the council's jurisdiction.
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0002| F. For the purposes of the investment of [the
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severance tax permanent fund] all funds managed by the
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0004| investment office, the state investment officer shall manage
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0005| the [fund in such a prudent manner as to ensure a reasonable
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diversification and reasonable yield] funds on a total rate
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0007| of return basis in accordance with the standard of prudence set
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0008| forth in Section 6-8-10 NMSA 1978. With the approval of the
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0009| council, the state investment officer may employ investment
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0010| management services to invest the funds and may pay reasonable
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0011| compensation for investment management services from the assets
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0012| of the applicable funds subject to budgeting and appropriation
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0013| by the legislature.
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0014| G. For funds available for investment for more than
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0015| one year, the state investment officer may contract with any
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0016| state agency to provide investment advisory or investment
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0017| management services, separately or through a pooled investment
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0018| fund, provided the state agency enters into a joint powers
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0019| agreement with the [state investment] council and that state
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0020| agency pays at least the direct cost of such services.
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0021| Notwithstanding any statutory provision governing state agency
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0022| investments, the state investment officer may invest funds of a
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0023| state agency in any type of investment permitted for the land
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0024| grant permanent funds under the same standard of care
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0025| applicable to investments of the land grant permanent funds.
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0001| In performing investment services for a state agency, the
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0002| council and the state investment officer are exempt from the
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0003| New Mexico Securities Act of 1986. As used in this subsection,
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0004| "state agency" means any branch, agency, department, board,
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0005| instrumentality, [or] institution or political subdivision
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0006| of the state [other than the educational retirement board and
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the retirement board created by the Public Employees Retirement
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Act] and the New Mexico finance authority."
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0009| Section 4. EMERGENCY.--It is necessary for the public
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0010| peace, health and safety that this act take effect immediately.
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0011|
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0012|
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0013| State of New Mexico
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0014| House of Representatives
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0015|
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0016| FORTY-THIRD LEGISLATURE
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0017| FIRST SESSION, 1997
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0018|
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0019|
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0020| February 12, 1997
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0021|
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0022|
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0023| Mr. Speaker:
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0024|
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0025| Your TAXATION AND REVENUE COMMITTEE, to whom has
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0001| been referred
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0002|
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0003| HOUSE BILL 146
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0004|
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0005| has had it under consideration and reports same with
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0006| recommendation that it DO PASS, amended as follows:
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0007|
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0008| 1. On page 3, lines 4 and 5, strike "pooled client funds"
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0009| and insert in lieu thereof "funds available for investment
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0010| pursuant to Subsection G of this section".
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0011|
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0012| 2. On page 6, line 5, after "basis" strike the remainder of
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0013| the line and strike line 6 up to the period.
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0014|
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0015| 3. On page 6, lines 20 and 21, strike "of a state agency"
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0016| and insert in lieu thereof "available from a state agency
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0017| pursuant to a joint powers agreement".
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0018|
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0019| 4. On page 7, lines 4 and 5, strike the brackets and line-
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0020| through, and on line 6, strike "and" and insert in lieu thereof
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0021| ", but including".,
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0022|
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0023| and thence referred to the APPROPRIATIONS AND FINANCE
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0024| COMMITTEE.
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0025|
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0001| Respectfully submitted,
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0002|
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0003|
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0004|
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0005|
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0006|
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0007| Jerry W. Sandel, Chairman
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0008|
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0009|
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0010| Adopted Not Adopted
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0011|
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0012| (Chief Clerk) (Chief Clerk)
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0013|
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0014| Date
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0015|
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0016| The roll call vote was 11 For 0 Against
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0017| Yes: 11
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0018| Excused: Lovejoy, Parsons
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0019| Absent: None
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0020|
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0021|
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0022|
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0023| .116074.1
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0024| .116499.1
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0025| G:\BILLTEXT\BILLW_97\H0146 State of New Mexico
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0001| House of Representatives
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0002|
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0003| FORTY-THIRD LEGISLATURE
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0004| FIRST SESSION, 1997
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0005|
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0006|
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0007| February 25, 1997
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0008|
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0009|
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0010| Mr. Speaker:
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0011|
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0012| Your APPROPRIATIONS AND FINANCE COMMITTEE, to
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0013| whom has been referred
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0014|
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0015| HOUSE BILL 146, as amended
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0016|
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0017| has had it under consideration and reports same with
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0018| recommendation that it DO PASS, amended as follows:
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0019|
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0020| 1. Strike House Taxation and Revenue Committee Amendments
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0021| 1, 2 and 4.
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0022|
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0023| 2. On page 3, lines 4 and 5, strike "pooled client funds"
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0024| and insert in lieu thereof "funds available for investment
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0025| pursuant to Subsection G of Section 6-8-7 NMSA 1978".
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0001|
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0002| 3. On page 6, line 5, after "in", strike the remainder of
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0003| the line, strike all of line 6 up to the period and insert in
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0004| lieu thereof "a prudent manner, unless a higher standard of care
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0005| is required by law".
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0006|
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0007| Respectfully submitted,
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0008|
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0009|
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0010|
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0011|
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0012|
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0013| Max Coll, Chairman
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0014|
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0015|
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0016| Adopted Not Adopted
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0017|
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0018| (Chief Clerk) (Chief Clerk)
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0019|
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0020| Date
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0021|
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0022| The roll call vote was 12 For 0 Against
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0023| Yes: 12
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0024| Excused: Heaton, Marquardt, Taylor, JP, Townsend, Watchman
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0025| Absent: None
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0001|
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0002|
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0003| .117588.2
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0004| G:\BILLTEXT\BILLW_97\H0146
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0005|
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0006| FORTY-THIRD LEGISLATURE
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0007| FIRST SESSION, 1997
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0008|
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0009|
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0010| March 7, 1997
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0011|
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0012| Mr. President:
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0013|
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0014| Your WAYS AND MEANS COMMITTEE, to whom has been
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0015| referred
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0016|
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0017| HOUSE BILL 146, as amended
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0018|
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0019| has had it under consideration and reports same with
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0020| recommendation that it DO PASS, and thence referred to the
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0021| FINANCE COMMITTEE.
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0022|
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0023| Respectfully submitted,
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0024|
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0025|
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0001|
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0002|
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0003| __________________________________
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0004| Carlos R. Cisneros, Chairman
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0005|
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0006|
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0007|
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0008| Adopted_______________________ Not
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0009| Adopted_______________________
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0010| (Chief Clerk) (Chief Clerk)
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0011|
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0012|
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0013| Date ________________________
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0014|
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0015|
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0016| The roll call vote was 5 For 3 Against
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0017| Yes: 5
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0018| No: Duran, Kidd, McSorley
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0019| Excused: Jennings
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0020| Absent: None
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0021|
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0022|
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0023| H0146WM1
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0024|
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0025|
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0001|
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0002| FORTY-THIRD LEGISLATURE
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0003| FIRST SESSION, 1997
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0004|
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0005|
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0006| March 12, 1997
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0007|
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0008| Mr. President:
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0009|
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0010| Your FINANCE COMMITTEE, to whom has been referred
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0011|
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0012| HOUSE BILL 146, as amended
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0013|
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0014| has had it under consideration and reports same with
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0015| recommendation that it DO PASS.
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0016|
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0017| Respectfully submitted,
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0018|
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0019|
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0020|
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0021|
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0022| __________________________________
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0023| Ben D. Altamirano, Chairman
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0024|
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0025|
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0001|
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0002| Adopted_______________________ Not
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0003| Adopted_______________________
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0004| (Chief Clerk) (Chief Clerk)
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0005|
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0006|
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0007|
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0008| Date ________________________
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0009|
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0010|
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0011| The roll call vote was 6 For 0 Against
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0012| Yes: 6
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0013| No: None
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0014| Excused: Carraro, Ingle, Lyons, McKibben, Fidel
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0015| Absent: None
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0016|
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0017| H0146FC1
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