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AN ACT

CREATING A JOINT INTERIM LEGISLATIVE COMMITTEE TO OVERSEE

STATE INVESTMENTS AND RETIREMENT SYSTEMS; MAKING AN

APPROPRIATION; DECLARING AN EMERGENCY.

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

Section 1. STATE INVESTMENT AND RETIREMENT SYSTEMS

OVERSIGHT COMMITTEE CREATED.--The "state investment and

retirement systems oversight committee" is created as a joint

interim legislative committee.

Section 2. MEMBERSHIP--APPOINTMENT--VACANCIES.--

A. The state investment and retirement systems

oversight committee shall be composed of ten voting members

and five nonvoting members.

B. Five members of the house of representatives

shall be appointed as voting members of the committee by the

speaker of the house of representatives, and five members of

the senate shall be appointed as voting members of the

committee by the committees' committee of the senate or, if

the senate appointments are made in the interim, by the

president pro tempore of the senate after consultation with

and agreement of a majority of the members of the committees'

committee. Members shall be appointed from each house so as

to give the two major political parties in each house the same

proportionate representation on the committee as prevails in

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each house. An appointed member may designate a legislator

from the member's party to serve in the member's place at a

committee meeting at which the member is going to be absent.

The member shall select the designee from a list of four

potential designees from each house, appointed in the same

manner as the appointment of the members.

C. The five nonvoting members of the board shall

be: the state investment officer or the officer's designee;

the secretary of finance and administration or the secretary's

designee; the state treasurer or the treasurer's designee; the

investment director of the public employees retirement

association or the director's designee; and the director of

the educational retirement board or the director's designee.

D. Vacancies on the committee shall be filled by

appointment in the same manner as the original appointments.

The speaker of the house of representatives and the president

pro tempore of the senate shall each designate one co-chair of

the committee.

E. No action shall be taken by the committee if a

majority of the total membership from either house on the

committee rejects such action.

Section 3. POWERS AND DUTIES.--After its appointment,

the state investment and retirement systems oversight

committee shall hold one organizational meeting to develop a

work plan and budget for the ensuing interim. The work plan

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and budget shall be submitted to the New Mexico legislative

council for approval. Upon approval of the work plan and

budget by the legislative council, the committee shall:

A. monitor and oversee the investment and

financial management practices used by the state investment

council, the state board of finance and the state treasurer

with respect to all public funds, including the permanent

funds, and the investment practices used by the public

employees retirement association and the educational

retirement board with respect to their retirement funds;

B. undertake a continuing analysis of the

financial and actuarial status of the retirement systems,

including the benefit structure, of the public employees

retirement association and the educational retirement board;

C. develop recommendations as appropriate to

improve state investment practices and to ensure the financial

and actuarial soundness of the retirement funds;

D. make referrals of matters needing further

attention to the appropriate public official, agency,

oversight board or the attorney general for investigation,

corrective action and penalties if warranted;

E. request that all proposed legislation affecting

state investment practices, the permanent funds or the

retirement funds be presented to the committee for review and

analysis in the interim prior to the legislative session in

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which the legislation will be introduced; and

F. report to the legislature prior to the start of

each regular legislative session any recommendations that the

committee may have for legislative action.

Section 4. ASSISTANCE TO COMMITTEE.--The public

employees retirement association, the educational retirement

board, the state investment council, the department of finance

and administration and the state treasurer shall assist the

committee in the performance of its duties and shall make

available records and information requested.

Section 5. STAFF.--The staff for the state investment

and retirement systems oversight committee shall be provided

by the legislative council service, but actuarial and other

outside consultants are authorized as necessary to assist the

committee in carrying out its duties.

Section 6. APPROPRIATION.--One hundred fifty thousand

dollars ($150,000) is appropriated from the legislative cash

balances to the legislative council service for expenditure in

fiscal years 2006 and 2007 for the purpose of paying for

technical and legal assistance and actuarial and other outside

consultants to assist the state investment and retirement

systems oversight committee, for necessary equipment and

supplies used in carrying out the provisions of this act and

for reimbursing the per diem and mileage expenses of the

committee. Payments from the appropriation shall be made upon

vouchers signed by the director of the legislative council

service or the director's authorized representative.

Section 7. EMERGENCY.--It is necessary for the public

peace, health and safety that this act take effect

immediately. HB 212

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