SENATE RULES COMMITTEE SUBSTITUTE FOR

SENATE BILL 25

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

AN ACT

RELATING TO PUBLIC FINANCES; REQUIRING THE STATE INVESTMENT COUNCIL TO FORM A SUBCOMMITTEE TO EVALUATE ECONOMICALLY TARGETED INVESTMENTS; REPEALING THE PRIVATE EQUITY INVESTMENT ADVISORY COMMITTEE.

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

     SECTION 1. A new section of Chapter 6, Article 8 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] SUBCOMMITTEE ON ECONOMICALLY TARGETED INVESTMENTS.--

          A. The council shall establish a subcommittee of council members to evaluate economically targeted investments made by the council. The subcommittee shall:

                (1) establish a disclosure and transparency policy for economically targeted investments. Standards in the policy shall meet or exceed industry and institutional investment reporting standards, but shall not jeopardize investments or create an increased risk of legal liability to the subcommittee or the council due to disclosure provisions in preexisting contracts or investment agreements; and

                (2) review and make recommendations to the council on economically targeted investments. The subcommittee shall identify performance measures, and for each economically targeted investment made by the council, the subcommittee, its investment consultant or a qualified third party with expertise in economic analysis shall track:

                     (a) the estimated impact of the investment on the economy;

                     (b) the return on investment of the investment;

                     (c) the number of jobs created as a result of or due in part to the investment; and

                     (d) other economic impacts of the investment.

          B. As used in this section, "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 in addition to its investment return."

     SECTION 2. REPEAL.--Section 6-8-20 NMSA 1978 (being Laws 1987, Chapter 219, Section 3, as amended) is repealed.

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2011.

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