SENATE BILL 269

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

INTRODUCED BY

John M. Sapien

AN ACT

RELATING TO EDUCATIONAL RETIREMENT; AUTHORIZING THE EDUCATIONAL RETIREMENT BOARD TO SELECT A CUSTODIAL BANK AND TO HIRE ATTORNEYS ON A CONTINGENT FEE BASIS.

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

     SECTION 1. Section 22-11-6 NMSA 1978 (being Laws 1967, Chapter 16, Section 130) is amended to read:

     "22-11-6. BOARD--POWERS--DUTIES.--

          A. The board shall:

                [A.] (1) properly and uniformly enforce the Educational Retirement Act;

                [B.] (2) hire employees and delegate administrative authority to these employees;

                [C.] (3) make an actuarial report on the financial operation of the Educational Retirement Act to the legislature at each regular session every odd-numbered year;

                [D.] (4) accept donations, gifts or bequests; and

                [E.] (5) adopt regulations pursuant to the Educational Retirement Act.

          B. The board may:

                (1) select and contract for the services of one or more custodial banks. For purposes of this subsection, "custodial bank" means a financial institution with the general fiduciary duties to manage, control and collect the assets of an investment fund, including receiving all deposits and paying all disbursements as directed by staff, safekeeping of assets, coordination of asset transfers, timely settlement of securities transactions and accurate and timely reporting by individual account and in total; and

                (2) contract for legal services for litigation matters on a contingent fee basis, subject to the provisions of the Procurement Code."

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