0001|                            SENATE BILL 8
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0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003|                            INTRODUCED BY
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0004|                              Roman Maes
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0005|     
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0006|                                   
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0007|     
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0008|                                   
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0009|     
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0010|                                AN ACT
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0011|     RELATING TO PUBLIC FINANCE; REQUIRING THE STATE INVESTMENT
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0012|     OFFICER TO CONTRACT WITH INVESTMENT ADVISERS FOR VENTURE
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0013|     CAPITAL FUND INVESTMENTS; PROVIDING STAFF FOR THE VENTURE
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0014|     CAPITAL INVESTMENT ADVISORY COMMITTEE.
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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 6-8-20 NMSA 1978 (being Laws 1987,
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0018|     Chapter 219, Section 3, as amended) is amended to read:
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0019|          "6-8-20.  VENTURE CAPITAL INVESTMENT ADVISORY COMMITTEE
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0020|     CREATED--|SUPPORT STAFF|--MEMBERSHIP--DUTIES--TERMS--
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0021|     LIABILITIES--CONFLICT OF INTEREST.--
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0022|               A.  There is created the "venture capital
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0023|     investment advisory committee" to the council.  The committee
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0024|     consists of the state investment officer, a member of the
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0025|     council appointed by the governor and three members who are
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0001|     qualified by competence and experience in finance and
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0002|     investment and knowledgeable about the venture capital process
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0003|     and who are appointed by the governor.
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0004|               B.  Members appointed by the governor, except the 
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0005|     council member, shall be appointed for three-year terms;
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0006|     provided that the terms of the initial committee members shall
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0007|     be staggered so that the term of one member expires each year. 
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0008|     After the initial appointments, all governor-appointed members
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0009|     shall be appointed for three-year terms.  Members shall serve
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0010|     until their successors are appointed.  A vacancy occurring
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0011|     other than by expiration of term shall be filled in the same
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0012|     manner as the original appointment, but only for the unexpired
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0013|     term.
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0014|               C.  The committee shall review and make
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0015|     recommendations to the council on investments authorized
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0016|     pursuant to Sections 6-8-21, 7-27-5.6 and 7-27-5.15 NMSA 1978
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0017|     and shall advise the council in matters and policies related
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0018|     to such investments.  The committee shall establish policies
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0019|     for venture capital fund and New Mexico venture capital fund
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0020|     investments not less often than annually and shall make copies
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0021|     available to interested parties.
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0022|               D.  Members of the committee shall receive per diem
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0023|     and mileage as provided for nonsalaried public officers in the
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0024|     Per Diem and Mileage Act and shall receive no other
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0025|     compensation, perquisite or allowance.
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0001|               E.  The committee shall elect annually a chairman
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0002|     from among its members and may elect other officers as
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0003|     necessary.  The committee shall meet upon the call of the
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0004|     chairman or the state investment officer.
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0005|               F.  Members of the committee are public employees
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0006|     within the meaning of the Tort Claims Act and are entitled to
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0007|     all immunity and indemnification provided under that act.
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0008|               G.  No person may be a member of the committee if
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0009|     any recommendation, action or decision of the committee will
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0010|     or is likely to result in direct, measurable economic gain to
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0011|     that person or his employer.
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0012|               H.  The state investment officer ~[may]~ |shall|
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0013|     enter into a contract with ~[an]~ |one or more| investment
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0014|     ~[adviser]~ |advisers| for venture capital fund investments
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0015|     authorized pursuant to Sections 6-8-21, 7-27-5.6 and 7-27-5.15
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0016|     NMSA 1978 and may pay budgeted expenses for ~[the]~ venture
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0017|     capital fund ~[adviser]~ |advisers| from the assets of any
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0018|     fund administered under the supervision of the council, as
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0019|     applicable.  |Expenses for an adviser shall not exceed fifty
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0020|     basis points, or one-half of one percent of the capital under
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0021|     advisement.  Subject to approval by the committee, the state
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0022|     investment officer shall provide a full-time staff member with
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0023|     experience in private equity investments to support the
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0024|     committee.|"
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0025|                                  
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