SENATE BILL 24
50th legislature - STATE OF NEW MEXICO - first session, 2011
INTRODUCED BY
Timothy M. Keller
FOR THE INVESTMENTS OVERSIGHT COMMITTEE
AN ACT
RELATING TO THE SMALL BUSINESS INVESTMENT CORPORATION; CHANGING THE MEMBERSHIP OF THE SMALL BUSINESS INVESTMENT CORPORATION BOARD OF DIRECTORS; AMENDING REPORTING REQUIREMENTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 58-29-5 NMSA 1978 (being Laws 2000, Chapter 97, Section 7, as amended) is amended to read:
"58-29-5. CORPORATION BOARD OF DIRECTORS--APPOINTMENT--POWERS.--
A. The corporation shall be governed by the board. The corporation's board of directors shall consist of:
(1) the state treasurer or [his] the state treasurer's designee;
(2) the state investment officer or [his] the state investment officer's designee;
(3) [six] three members appointed by the governor, with the advice and consent of the senate, for a term of five years, who shall serve at the pleasure of the governor; and
(4) three members appointed by the New Mexico legislative council, with the advice and consent of the senate, for a term of five years; provided that no more than two members shall be members of the same political party.
B. Each [director] member shall hold office for the length of [his] the member's term in office or until a successor is appointed or elected and begins service on the board.
[C. The governor shall appoint, with the consent of the senate, the six public directors of the board who shall serve at the pleasure of the governor.]
[D.] C. The governor's and the New Mexico legislative council's appointees to the board shall be public members who have general expertise in small business management, but they shall not be employed by or represent small businesses receiving equity investments from the corporation.
[E.] D. No two members of the board shall be employed by or represent the same company or institution.
[F.] E. The board shall annually elect a [chairman] chair from among its members and shall elect those other officers that it determines are necessary for the performance of its duties.
[G.] F. The power to set the policies and procedures for the corporation is vested in the board. The board may perform all acts necessary or appropriate to exercise that power.
[H.] G. Public members of the board shall be reimbursed for attending meetings of the board as provided in the Per Diem and Mileage Act and shall receive no other compensation, perquisite or allowance.
[I.] H. Public members of the board are appointed public officials of the state while carrying out their duties and activities under the Small Business Investment Act. The directors and the employees of the corporation are not liable personally, either jointly or severally, for any debt or obligation created or incurred by the corporation or for any act performed or obligation entered into in an official capacity when done in good faith, without intent to defraud and in connection with the administration, management or conduct of the corporation or affairs relating to it.
[J.] I. The board shall conduct an annual audit of the books of accounts, funds and securities of the corporation to be made by a competent and independent firm of certified public accountants. A copy of the audit report shall be filed with the president and posted on the corporation's web site. The audit shall be open to the public for inspection."
SECTION 2. Section 58-29-6 NMSA 1978 (being Laws 2000, Chapter 97, Section 8, as amended) is amended to read:
"58-29-6. PRESIDENT--POWERS AND DUTIES.--
A. The board shall select a president of the corporation from among its members. The corporation is under the administrative control of the president or a person selected by the board to administer the operations of the corporation. The board shall periodically review and appraise the investment strategy being followed, and the president shall report at least once a month to the board on investment results and related matters. The president shall:
(1) act for the corporation in collecting and disbursing money necessary to administer the corporation and conduct its business;
(2) sign contracts and incur obligations on behalf of the corporation;
(3) perform all acts necessary to exercise power, authority or jurisdiction over the corporation to discharge its functions and fulfill its responsibilities; and
(4) make investments pursuant to the Small Business Investment Act and upon approval of the board.
B. The president shall submit an annual report, independently audited in accordance with generally accepted procedures governing annual reports, by October 1 of each year to the governor, the legislative finance committee and any other appropriate legislative committee indicating the business done by the corporation during the previously completed fiscal year and containing a statement of the resources and liabilities of the corporation. The report shall be posted on the corporation's web site and shall include:
(1) the average rate of return enjoyed by the corporation on invested assets;
(2) recommendations concerning desired changes in the corporation to promote its prompt and efficient administration of policies and claims;
(3) recommendations to the legislature and the governor regarding the continued operation of the corporation; and
(4) any other information the president deems appropriate."
SECTION 3. TEMPORARY PROVISIONS--TRANSITION MEMBERSHIP
OF THE SMALL BUSINESS INVESTMENT CORPORATION BOARD OF DIRECTORS.--
A. Within thirty days of July 1, 2011, three members shall be appointed to the small business investment corporation board of directors as successors to current public board members by the New Mexico legislative council pursuant to Paragraph (4) of Subsection A of Section 1 of this act and shall serve on an interim basis until confirmed by the senate.
B. Within thirty days of July 1, 2011, three members shall be appointed to the small business investment corporation board of directors as successors to current public board members by the governor pursuant to Paragraph (3) of Subsection A of Section 1 of this act and shall serve on an interim basis until confirmed by the senate.
C. The three members appointed pursuant to
Subsection A of this section and the three members appointed
pursuant to Subsection B 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
terms of three years, one position will be for a term of four
years and one position will be for a term of five years.
Thereafter, the terms of members shall be for five years.
SECTION 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2011.
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