0001|                       SENATE JOINT MEMORIAL 16
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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|                            DEDE FELDMAN 
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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|                           A JOINT MEMORIAL
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0011|     REQUESTING THE STATE INVESTMENT COUNCIL TO STUDY STATE
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0012|     INVESTMENT IN COMPANIES THAT PRODUCE OR MARKET TOBACCO
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0013|     PRODUCTS.
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0014|     
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0015|          WHEREAS, the use of tobacco products constitutes a
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0016|     continuing threat to the health of the citizens of New Mexico;
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0017|     and
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0018|          WHEREAS, investment in companies that produce or market
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0019|     tobacco products perpetuates the sale of these deadly and
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0020|     addictive products; and
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0021|          WHEREAS, the state of New Mexico should not profit from
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0022|     the sale of products that result in disease and death for
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0023|     hundreds of thousands of people every year; and
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0024|          WHEREAS, investment in companies that produce or market
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0025|     tobacco products creates a conflict in public policy because
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0001|     such investments can be profitable only if the state's
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0002|     prevention and public health policies fail; and
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0003|          WHEREAS, in light of the risks of financial liability
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0004|     from ongoing litigation against tobacco companies and from
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0005|     legislated settlements, continued investment of state funds in
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0006|     companies that have substantial interests in the production or
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0007|     marketing of tobacco products might not comply with the
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0008|     prudent man rule pursuant to Section 6-8-10 NMSA 1978; and
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0009|          WHEREAS, the disinvestment of state funds in companies
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0010|     that have substantial interests in the production or marketing
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0011|     of tobacco products might be achieved in a fiscally prudent
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0012|     manner due to the availability of alternative investments
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0013|     providing comparable rates of return;
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0014|          NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE
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0015|     STATE OF NEW MEXICO that the state investment council be
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0016|     requested to review the extent of investment of funds managed
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0017|     by the state investment council in companies that derive more
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0018|     than fifteen percent of their earnings from the production or
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0019|     marketing of tobacco products; determine if these investments
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0020|     are in keeping with their fiduciary responsibilities and the
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0021|     prudent man rule; investigate possible alternative investments
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0022|     that would be in keeping with the prudent man rule; and report
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0023|     its findings to the legislative health and human services
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0024|     committee and the legislative finance committee prior to the
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0025|     first session of the forty-fourth legislature; and
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0001|          BE IT FURTHER RESOLVED that copies of this memorial be
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0002|     transmitted to the state investment council.
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0003|                              
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