SENATE BILL 25

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Timothy M. Keller

FOR THE INVESTMENTS OVERSIGHT COMMITTEE

AN ACT

RELATING TO PUBLIC FINANCES; AMENDING DUTIES OF THE PRIVATE EQUITY INVESTMENT ADVISORY COMMITTEE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 6-8-20 NMSA 1978 (being Laws 1987, Chapter 219, Section 3, as amended) is amended to read:

     "6-8-20. PRIVATE EQUITY INVESTMENT ADVISORY COMMITTEE CREATED--MEMBERSHIP--DUTIES--TERMS--LIABILITIES--CONFLICT OF INTEREST.--

          A. There is created the "private equity investment advisory committee" to the council. The committee consists of the state investment officer, a member of the council appointed by the council and three members who are qualified by competence and experience in finance and investment and knowledgeable about the private equity investment process and who are appointed by the council.

          B. Members appointed by the council, except the council member, shall be appointed for three-year terms; provided that the terms of the initial committee members shall be staggered so that the term of one member expires each year. After the initial appointments, all appointed members shall be appointed for three-year terms. Members shall serve until their successors are appointed. A vacancy occurring other than by expiration of term shall be filled in the same manner as the original appointment, but only for the unexpired term.

          C. The committee shall review and make recommendations to the council on investments authorized pursuant to Sections 7-27-5.15 and 7-27-5.26 NMSA 1978 and all other private equity investments and shall advise the council in matters and policies related to such investments. The committee shall establish policies for national private equity fund investments, New Mexico private equity fund investments and New Mexico film private equity fund investments not less often than annually and shall make copies available to interested parties.

          D. The committee shall review and make recommendations to the council on economically targeted investments, and the council shall not make an economically targeted investment until the investment has been reviewed and approved by the committee. The committee shall identify performance measures and for each economically targeted investment made by the council shall track:

                (1) the impact of the investment on the economy;

                (2) the return on investment of the investment;

                (3) the number of jobs created as a result of the investment; and

                (4) other economic impacts of the investment.

          [D.] E. Members of the committee shall receive per diem and mileage as provided for nonsalaried public officers in the Per Diem and Mileage Act and shall receive no other compensation, perquisite or allowance.

          [E.] F. The committee shall elect annually a chair from among its members and may elect other officers as necessary. The committee shall meet upon the call of the chair or the state investment officer.

          [F.] G. Members of the committee are public employees within the meaning of the Tort Claims Act and are entitled to all immunity and indemnification provided under that act.

          [G.] H. A person shall not be a member of the committee if any recommendation, action or decision of the committee will or is likely to result in direct, measurable economic gain to that person or that person's employer.

          [H.] I. The state investment officer may enter into contracts with investment advisors for private equity fund investments and film fund investments authorized pursuant to Sections 7-27-5.15 and 7-27-5.26 NMSA 1978 and all other private equity investments and may pay budgeted expenses for the advisors from the assets of any fund administered under the supervision of the council, as applicable.

          [I.] J. As used in this section:

                (1) "economically targeted investment" means an investment made with the collateral intent to assist in the improvement of the economic well-being of New Mexico, its localities and residents and selected for its economic benefit apart from its investment return; and

                (2) "private equity investments" means any legal entity that has as its primary business activity the investment of funds in return for equity in or debt of businesses for the purpose of providing capital for startup, expansion, new product development, recapitalization or a similar business purpose."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2011.

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