SENATE BILL 218
49th legislature - STATE OF NEW MEXICO - second session, 2010
INTRODUCED BY
Steven P. Neville
AN ACT
RELATING TO STATE INVESTMENTS; CHANGING THE COMPOSITION OF THE STATE INVESTMENT COUNCIL; CHANGING THE METHOD OF APPOINTMENT OF PUBLIC MEMBERS OF THE STATE INVESTMENT COUNCIL AND THE STATE INVESTMENT OFFICER; DECLARING AN EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 6-8-2 NMSA 1978 (being Laws 1957, Chapter 179, Section 2, as amended) is amended to read:
"6-8-2. STATE INVESTMENT COUNCIL.--
A. There is created a "state investment council". The council shall be composed of:
[A.] (1) the governor;
[B.] (2) the state treasurer;
[C.] (3) the commissioner of public lands;
[D.] (4) the secretary;
[E. three public members appointed by the governor with the advice and consent of the senate;
F. the state investment officer; and
G.] (5) the chief financial officer of a state institution of higher education appointed by the governor with the advice and consent of the senate;
(6) one public member appointed by the president pro tempore of the senate with the advice and consent of the senate;
(7) one public member appointed by the minority floor leader of the senate with the advice and consent of the senate;
(8) one public member appointed by the speaker of the house of representatives with the advice and consent of the senate;
(9) one public member appointed by the minority floor leader of the house of representatives with the advice and consent of the senate; and
(10) two members nominated by the governor and approved by the other nine members of the council with the advice and consent of the senate.
B. The [chairman] chair of the council shall be the governor, and the vice chair shall be selected by the council. All actions of the council shall be by majority vote, and [at least three members appointed pursuant to Subsections E and G of this section must be present to] a majority of the members shall constitute a quorum.
C. Members of the council appointed pursuant to Paragraphs (6) through (10) of Subsection [E] A of this section shall be reimbursed per diem and mileage pursuant to the provisions of the Per Diem and Mileage Act."
Section 2. Section 6-8-3 NMSA 1978 (being Laws 1957, Chapter 179, Section 3, as amended) is amended to read:
"6-8-3. COUNCIL TERMS AND QUALIFICATIONS.--
A. Members of the council appointed [by the governor] pursuant to Paragraphs (6) through (10) of Subsection A of Section 6-8-2 NMSA 1978, with the advice and consent of the senate, shall serve for staggered terms of five years. Members of the council shall serve until their successors are appointed and have qualified.
B. The members of the council appointed pursuant to Paragraphs (6) through (10) of Subsection [E] A of Section 6-8-2 NMSA 1978 shall be qualified by competence and no less than ten years experience in the field of investment or finance. [During tenure, a member of the council shall not be engaged in any capacity in the sale of securities to the state.] A member of the council shall not have had any contracts to do business with the state investment council, the investment office, the office of the state treasurer, the educational retirement board, the public employees retirement association, the New Mexico finance authority or the state board of finance for a period of two calendar years prior to the person's appointment to the council and shall not enter into any contracts to do business with any of the named state agencies or instrumentalities for a period of two calendar years after the end of the term for which the member was appointed. Members of the council and officers and employees of the council shall be governed by the provisions of the [Conflict of Interest] Governmental Conduct Act. Nothing in this section or in the [Conflict of Interest] Governmental Conduct Act shall be construed as prohibiting an officer of a financial institution from participating as a member of the council in setting general policies of the council, nor shall any provision of the [Conflict of Interest] Governmental Conduct Act prohibit the council or the state treasurer from depositing funds under the jurisdiction of the council in any financial institution. A council member shall not hold an office or employment in a political party.
C. The member appointed pursuant to Paragraph (5) of Subsection A of Section 6-8-2 NMSA 1978 shall serve at the pleasure of the governor. [Any] A member of the council appointed pursuant to Paragraphs (6) through (10) of Subsection [E or G] A of Section 6-8-2 NMSA 1978 may be removed from the council by the governor, for cause, in the manner provided for removal of members of boards of regents under Article 12, Section 13 of the constitution of New Mexico. A vacancy in the membership of the council occurring other than by expiration of term shall be filled in the same manner as the original appointment but for the unexpired term only."
Section 3. Section 6-8-4 NMSA 1978 (being Laws 1957, Chapter 179, Section 4, as amended) is amended to read:
"6-8-4. INVESTMENT OFFICE--STATE INVESTMENT OFFICER--TERMS.--
A. There is established an "investment office". The chief administrative officer of the office shall be known as the "state investment officer".
B. The state investment officer shall be appointed by the [governor] council with the advice and consent of the senate. [Recommendations as to his appointment shall be made to the governor by the investment council.] The state investment officer shall devote [his] the officer's entire time and attention to the duties of [his] that office and shall not engage in any other occupation or profession [nor shall he] or hold any other public office, appointive or elective. [He] The officer shall be a person qualified, by training and investment experience, to direct the work of the investment [division] office and shall have had at least five years' professional experience as an investment officer. [He] The officer shall receive a salary to be determined by the state investment council but in no case less than fifty thousand dollars ($50,000) annually.
C. The state investment officer shall serve for an initial term of two years beginning July 1, 1981 and thereafter for terms of four years. The state investment officer may be removed from office by the [governor] council for cause in the manner provided for removal of members of boards of regents under Article 12, Section 13 of the constitution of New Mexico."
Section 4. TEMPORARY PROVISION--TRANSITION MEMBERSHIP OF STATE INVESTMENT COUNCIL.--
A. On the effective date of this act:
(1) the state investment officer is no longer a member of the state investment council; and
(2) the three public members serving on the state investment council the day before the effective date of this act shall continue to serve until their successors are appointed for an interim basis pursuant to Subsection B of this section.
B. On or after the effective date of this act, members shall be appointed pursuant to Paragraphs (6) through (9) of Subsection A of Section 6-8-2 NMSA 1978 and shall serve on an interim basis until confirmed by the senate, provided that the first three members appointed pursuant to this subsection shall succeed to the positions held by the three public members serving on the day before the effective date of this act.
C. After the appointments made pursuant to Subsection B of this section, two members may be appointed pursuant to Paragraph (10) of Subsection B of Section 6-8-2 NMSA 1978 and shall serve on an interim basis until confirmed by the senate.
D. The six members appointed pursuant to Subsections B and C of this section shall, by lot, determine the initial terms of office for each position so that one position will be for a term of one year, one position will be for a term of two years, two positions will be for a term of three years, one position will be for a term of four years and one position shall be for a term of five years. Thereafter, the terms shall be for five years.
Section 5. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.
- 7 -