FORTY-SIXTH LEGISLATURESB 316/a

SECOND SESSION, 2004

February 8, 2004

Madam President:

    Your FINANCE COMMITTEE, to whom has been referred

SENATE BILL 316, as amended

has had it under consideration and reports same with recommendation that it DO PASS, amended as follows:

    1. Strike all senate corporations and transportation committee amendments.

    2. On page 4, line 2, after "that" insert a colon, the subparagraph designation "(a)" and the following:

"investments in hedge funds that invest primarily in real estate investment trusts may be made pursuant to this paragraph only if the fund advisors: 1) provide audited financial statements to the state investment officer; 2) agree to provide regular reports detailing underlying fund investment holdings and transactions to the state investment officer and a third party risk assessment firm designated by the state investment officer; 3) possess a three-year performance record that has been reviewed by the state investment officer; and 4) manage a minimum of fifty million dollars ($50,000,000) of investments in the investment strategy to be used for the investment made pursuant to this subparagraph; and

                  (b)".

    3. On page 6, after line 25 insert the following new subparagraph:

                  "(b) the hedge fund advisors: 1) provide audited financial statements to the state investment officer; 2) agree to provide regular reports detailing underlying fund investment holdings and transactions to the state investment officer and a third party risk assessment firm designated by the state investment officer; 3) possess a three-year performance record that has been reviewed by the state investment officer; and 4) manage a minimum of one hundred million dollars ($100,000,000) of investments in the investment strategy to be used for the investment made pursuant to this paragraph;".

    4. Reletter the succeeding subparagraph accordingly.

    5. On page 10, line 7, after "that" insert a colon, the subparagraph designation "(a)" and the following:

"investments in hedge funds that invest primarily in real estate investment trusts may be made pursuant to this paragraph only if the fund advisors: 1) provide audited financial statements to the state investment officer; 2) agree to provide regular reports detailing underlying fund investment holdings and transactions to the state investment officer and a third party risk assessment firm designated by the state investment officer; 3) possess a three-year performance record that has been reviewed by the state investment officer; and 4) manage a minimum of fifty million dollars ($50,000,000) of investments in the investment strategy to be used for the investment made pursuant to this subparagraph; and

                  (b)".

    6. On page 16, between lines 17 and 18, insert the following new subparagraph:

                  "(b) the hedge fund advisors: 1) provide audited financial statements to the state investment officer; 2) agree to provide regular reports detailing underlying fund investment holdings and transactions to the state investment officer and a third party risk assessment firm designated by the state investment officer; 3) possess a three-year performance record that has been reviewed by the state investment officer; and 4) manage a minimum of one hundred million dollars ($100,000,000) of investments in the investment strategy to be used for the investment made pursuant to this paragraph;".

    7. Reletter the succeeding subparagraph accordingly.          

                               Respectfully submitted,

                               __________________________________

                               Ben D. Altamirano, Chairman

Adopted_______________________ Not Adopted_______________________

          (Chief Clerk) (Chief Clerk)

                  Date ________________________

The roll call vote was 6 For 0 Against

Yes:      6

No:       0

Excused: Beffort, Jennings, Rawson, Tsosie

Absent:   None

SB0316FC1                                                  .150940.1

.150805.2