0001| SENATE BILL 143
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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| ROMAN M. MAES, III
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0005|
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0006|
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0007| FOR THE SCIENCE, TECHNOLOGY, ENERGY AND DEFENSE
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0008| CONVERSION COMMITTEE
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0009|
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0010| AN ACT
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0011| RELATING TO TAXATION; INCREASING THE AMOUNT OF THE SEVERANCE
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0012| TAX PERMANENT FUND THAT MAY BE INVESTED IN A NEW MEXICO VENTURE
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0013| CAPITAL FUND; AMENDING A SECTION OF THE SEVERANCE TAX BONDING
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0014| ACT.
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0015|
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0016| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017| Section 1. Section 7-27-5.15 NMSA 1978 (being Laws 1990,
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0018| Chapter 126, Section 5, as amended) is amended to read:
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0019| "7-27-5.15. NEW MEXICO VENTURE CAPITAL FUND
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0020| INVESTMENTS.--
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0021| A. No more than [one-half of] one percent of the
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0022| [book] market value of the severance tax permanent fund may
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0023| be invested in New Mexico venture capital funds under this
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0024| section.
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0025| B. If an investment is made under this section, not
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0001| [less than five hundred thousand dollars ($500,000) or] more
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0002| than [three million dollars ($3,000,000)] seven million five
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0003| hundred thousand dollars ($7,500,000) of the amount authorized
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0004| for investment pursuant to Subsection A of this section shall
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0005| be invested in any one New Mexico venture capital fund. The
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0006| amount invested in any one New Mexico venture capital fund
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0007| shall not exceed [forty] fifty percent of the committed
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0008| capital of that fund. [Investments shall be made only in the
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initial offering of a New Mexico venture capital fund provided
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that any investment may be made in one or more increments].
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0011| C. In making investments pursuant to this section,
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0012| the council shall give consideration to investments in New
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0013| Mexico venture capital funds whose investments enhance the
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0014| economic development objectives of the state.
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0015| D. The state investment officer shall make
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0016| investments pursuant to this section only upon approval of the
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0017| council and upon review of the recommendation of the venture
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0018| capital investment advisory committee. The state investment
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0019| officer is authorized to make investments pursuant to this
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0020| section contingent upon a New Mexico venture capital fund
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0021| securing paid-in investments from other accredited investors
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0022| for the balance of the minimum committed capital of the fund.
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0023| E. As used in this section:
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0024| (1) "committed capital" means the sum of the
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0025| fixed amounts of money which accredited investors have
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0001| obligated for investment in a New Mexico venture capital fund
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0002| and which fixed amounts may be invested in that fund on one or
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0003| more payments over time; and
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0004| (2) "New Mexico venture capital fund" means any
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0005| [limited] limited liability company partnership or
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0006| corporation organized and operating in the United States and
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0007| maintaining [its principal active] an office staffed by a
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0008| full-time investment officer in New Mexico that:
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0009| (a) has as its primary business activity the
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0010| investment of funds in return for equity in businesses for the
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0011| purpose of providing capital for start-up, expansion, product
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0012| or market development or similar business purposes;
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0013| (b) holds out the prospects for capital
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0014| aggregation from such investments;
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0015| (c) has a minimum committed capital of [one
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million two hundred fifty thousand dollars ($1,250,000)] five
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0017| million dollars ($5,000,000);
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0018| (d) has at least one full-time
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0019| [management] manager with at least three years of
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0020| professional experience in assessing the growth prospects of
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0021| businesses or evaluating business plans and who has established
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0022| permanent residency in the state;
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0023| (e) is committed to investing [in New
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Mexico one hundred percent of the investments] or helps
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0025| secure investing by others in an amount at least equal to the
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0001| total investment made by the state investment officer in that
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0002| fund pursuant to this section, in businesses with a principal
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0003| place of business in the state and [holds] that hold
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0004| promise for attracting additional capital from individual or
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0005| institutional investors nationwide [to] for businesses in
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0006| the state; and
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0007| (f) accepts investments only from accredited
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0008| investors as that term is defined in Section 2 of the federal
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0009| Securities Act of 1933, as amended, (15 U.S.C. Section 77(b))
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0010| and rules and regulations promulgated pursuant to that
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0011| section [and
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(g) receives at least forty percent of the
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fund's capital from institutional investors. For the purposes
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of this section, "institutional investors" includes pension
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funds, insurance companies, corporations, trust funds,
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foundations, venture capital funds and financial
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institutions]."
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0003|
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0004|
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0005| FORTY-THIRD LEGISLATURE
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0006| FIRST SESSION, 1997 SB 143/a
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0007|
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0008|
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0009| February 11, 1997
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0010|
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0011| Mr. President:
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0012|
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0013| Your CONSERVATION COMMITTEE, to whom has been referred
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0014|
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0015| SENATE BILL 143
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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. On page 3, line 4, insert a comma following "company",
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0021|
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0022| and thence referred to the FINANCE COMMITTEE.
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0023|
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0024| Respectfully submitted,
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0025|
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0002|
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0003|
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0004| __________________________________
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0005| Michael S. Sanchez, Chairman
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0006|
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0007|
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0008|
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0009| Adopted_______________________ Not
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0010| Adopted_______________________
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0011| (Chief Clerk) (Chief Clerk)
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0012|
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0013|
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0014| Date ________________________
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0015|
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0016|
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0017| The roll call vote was 7 For 0 Against
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0018| Yes: 7
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0019| No: None
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0020| Excused: Griego, Macias, Tsosie
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0021| Absent: None
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0024|
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0025|
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0001|
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0002| S0143CO1
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0003|
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0004| FORTY-THIRD LEGISLATURE SB 143/a
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0005| FIRST SESSION, 1997
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0006|
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0007|
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0008| March 15, 1997
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0009|
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0010| Mr. President:
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0011|
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0012| Your FINANCE COMMITTEE, to whom has been referred
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0013|
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0014| SENATE BILL 143, as amended
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0015|
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0016| has had it under consideration and reports same with
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0017| recommendation that it DO PASS, amended as follows:
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0018|
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0019| 1. On page 3, line 4, strike all of the line up to "or" and
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0020| insert in lieu thereof "limited partnership, limited liability
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0021| company".
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0022|
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0023|
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0024| Respectfully submitted,
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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| __________________________________
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0005| Ben D. Altamirano, Chairman
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0006|
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0007|
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0008|
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0009| Adopted_______________________ Not
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0010| Adopted_______________________
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0011| (Chief Clerk) (Chief Clerk)
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0012|
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0013|
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0014| Date ________________________
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0015|
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0016|
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0017| The roll call vote was 6 For 0 Against
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0018| Yes: 6
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0019| No: None
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0020| Excused: Aragon, Carraro, Ingle, Lyons, McKibben
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0021| Absent: None
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0022|
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0023|
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0024| S0143FC1 .116653.1
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0025|
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