SENATE BILL 82
50th legislature - STATE OF NEW MEXICO - first session, 2011
INTRODUCED BY
John M. Sapien
ENDORSED BY THE INVESTMENTS OVERSIGHT COMMITTEE
AN ACT
RELATING TO THE STATE INVESTMENT OFFICER; REMOVING THE STATE INVESTMENT OFFICER FROM MEMBERSHIP ON BOARDS OF THE NEW MEXICO FINANCE AUTHORITY, THE SMALL BUSINESS INVESTMENT CORPORATION AND THE NEW MEXICO RENEWABLE ENERGY TRANSMISSION AUTHORITY AND FROM THE EDUCATION TRUST BOARD.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 6-21-4 NMSA 1978 (being Laws 1992, Chapter 61, Section 4, as amended) is amended to read:
"6-21-4. NEW MEXICO FINANCE AUTHORITY CREATED--MEMBERSHIP--QUALIFICATIONS--QUORUM--MEETINGS--COMPENSATION--BOND.--
A. There is created a public body politic and corporate, separate and apart from the state, constituting a governmental instrumentality to be known as the "New Mexico finance authority" for the performance of essential public functions.
B. The authority shall be composed of [twelve] eleven members. The [state investment officer, the] secretary of finance and administration, the secretary of economic development, the secretary of energy, minerals and natural resources, the secretary of environment, the executive director of the New Mexico municipal league and the executive director of the New Mexico association of counties or their designees shall be ex-officio members of the authority with voting privileges. The governor, with the advice and consent of the senate, shall appoint to the authority the chief financial officer of a state higher educational institution and four members who are residents of the state. The appointed members shall serve at the pleasure of the governor.
C. The appointed members of the authority shall be appointed to four-year terms. The initial members shall be appointed to staggered terms of four years or less, so that the term of at least one member expires on January 1 of each year. Vacancies shall be filled by appointment by the governor for the remainder of the unexpired term. Any member of the authority shall be eligible for reappointment.
D. Each appointed member before entering upon [his] the member's duty shall take an oath of office to administer the duties of [his] the member's office faithfully and impartially. A record of the oath shall be filed in the office of the secretary of state.
E. The governor shall designate an appointed member of the authority to serve as [chairman] chair. The authority shall elect annually one of its members to serve as vice [chairman] chair. The authority shall appoint and prescribe the duties of such other officers, who need not be members, as the authority deems necessary or advisable, including chief executive officer and a secretary, who may be the same person. The authority may delegate to one or more of its members, officers, employees or agents such powers and duties as it may deem proper and consistent with the New Mexico Finance Authority Act.
F. The chief executive officer of the authority shall direct the affairs and business of the authority, subject to the policies, control and direction of the authority. The secretary of the authority shall keep a record of the proceedings of the authority and shall be custodian of all books, documents and papers filed with the authority, the minute book or journal of the authority and its official seal. The secretary shall make copies of all minutes and other records and documents of the authority and give certificates under the official seal of the authority to the effect that the copies are true copies, and all persons dealing with the authority may rely upon the certificates.
G. Meetings of the authority shall be held at the call of the [chairman] chair or whenever three members shall so request in writing. A majority of members then serving constitutes a quorum for the transaction of any business. The affirmative vote of at least a majority of a quorum present shall be necessary for any action to be taken by the authority. An ex-officio member may designate in writing another person to attend meetings of the authority and to the same extent and with the same effect act in [his] the ex-officio member's stead. No vacancy in the membership of the authority shall impair the right of a quorum to exercise all rights and perform all duties of the authority.
H. Each member of the authority shall give bond as provided in the Surety Bond Act. All costs of the surety bonds shall be borne by the authority.
I. The authority is not created or organized, and its operations shall not be conducted, for the purpose of making a profit. No part of the revenues or assets of the authority shall benefit or be distributable to its members, officers or other private persons. The members of the authority shall receive no compensation for their services, but shall be reimbursed for actual and necessary expenses at the same rate and on the same basis as provided for public officers in the Per Diem and Mileage Act.
J. The authority shall not be subject to the supervision or control of any other board, bureau, department or agency of the state except as specifically provided in the New Mexico Finance Authority Act. No use of the terms "state agency" or "instrumentality" in any other law of the state shall be deemed to refer to the authority unless the authority is specifically referred to in the law.
K. The authority is a governmental instrumentality for purposes of the Tort Claims Act."
SECTION 2. Section 21-21K-4 NMSA 1978 (being Laws 1997, Chapter 259, Section 4) is amended to read:
"21-21K-4. BOARD CREATED--MEMBERS--APPOINTMENT--TERMS OF OFFICE--POWERS AND DUTIES.--
A. There is created the "education trust board". The board is administratively attached to the [commission] higher education department, and the [commission] department shall provide administrative support for the board in carrying out its duties pursuant to the Education Trust Act. The board shall consist of the following voting members:
(1) the [executive director of the commission or his] secretary of higher education or the secretary's designee, who shall be the ex-officio chair of the board;
[(2) the state investment officer or his designee;
(3)] (2) one member appointed by the governor;
[(4)] (3) one member representing institutions of higher education, appointed by the speaker of the house of representatives; and
[(5)] (4) one member representing students at institutions of higher education, appointed by the president pro tempore of the senate.
B. The appointed members must possess knowledge, skill and experience in higher education, business or finance.
C. The appointed members shall serve six-year terms, with the exception of the member representing students, who shall be appointed for a two-year term. Vacancies on the board shall be filled by the respective appointing authority for the remainder of the vacating member's term.
D. Members of the board shall be subject to the provisions of the Per Diem and Mileage Act and shall receive no other compensation, perquisite or allowance for their service on the board.
E. The board is authorized to adopt and promulgate rules and regulations as necessary to carry out the provisions of the Education Trust Act, protect the financial integrity of the fund, preserve the program's benefits and [assure] ensure the appropriate use of the tax benefits. The board shall also determine and adopt by regulation the cost of attendance at institutions of higher education; provided that the cost of attendance shall include the same components and allowances as are used to determine cost of attendance for the federal student financial assistance programs."
SECTION 3. 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; and
[(2) the state investment officer or his designee;
(3)] (2) six members appointed by the governor.
B. Each director shall hold office for the length of [his] the director'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. The governor'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. No two members of the board shall be employed by or represent the same company or institution.
F. The board shall annually elect a [chairman] chair from among its members and shall elect those other officers it determines necessary for the performance of its duties.
G. 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. 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. 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. 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. The audit shall be open to the public for inspection."
SECTION 4. Section 62-16A-3 NMSA 1978 (being Laws 2007, Chapter 3, Section 3) is amended to read:
"62-16A-3. NEW MEXICO RENEWABLE ENERGY TRANSMISSION AUTHORITY CREATED--ORGANIZATION.--
A. The "New Mexico renewable energy transmission authority" is created as a public body, politic and corporate, separate and apart from the state, constituting a governmental instrumentality for the performance of essential public functions.
B. The authority shall be composed of [seven] six members as follows:
(1) three members appointed by the governor with the advice and consent of the senate. The initial appointees shall be appointed for staggered terms of one, two and three years; thereafter, the members shall be appointed for three-year terms;
[(2) the state investment officer or the state investment officer's designee;
(3)] (2) the state treasurer or the state treasurer's designee;
[(4)] (3) one member appointed by the speaker of the house of representatives who shall serve at the pleasure of the speaker of the house; and
[(5)] (4) one member appointed by the president pro tempore of the senate who shall serve at the pleasure of the president pro tempore.
C. The qualifications of the members shall be as follows:
(1) one member appointed by the governor shall have expertise in financial matters involving the financing of major electrical transmission projects;
(2) the other four appointed members shall have:
(a) special knowledge of the public utility industry, as evidenced by college degrees or by experience, at least five years of which must be with the public utility industry; and
(b) knowledge of renewable energy development; and
(3) no member shall represent a person that owns or operates facilities.
D. The members initially appointed by the speaker of the house and the president pro tempore of the senate shall, by lot, determine one to have an initial term of two years and one to have an initial term of four years; thereafter, the appointments will be for staggered terms of four years.
E. In addition to the seven voting members, the secretary of energy, minerals and natural resources shall serve as an ex-officio nonvoting member of the authority.
F. The governor shall designate an appointed member of the authority to serve as chair, and the authority may elect annually such other officers as it deems necessary.
G. The authority shall meet at the call of the chair or whenever four members shall so request in writing. A majority of members then serving constitutes a quorum for the transaction of business, but the affirmative vote of at least four members is necessary for any action to be taken by the authority.
H. The authority is not created or organized, and its operations are not conducted, for the purpose of making a profit, but it is expected to recover the costs of operating the authority. No part of the revenues or assets of the authority shall benefit or be distributable to its members, officers or other private persons. The members of the authority shall receive no compensation for their services, but the public members shall be reimbursed for actual and necessary expenses at the same rate and on the same basis as provided for public officers in the Per Diem and Mileage Act.
I. The authority is not subject to the supervision or control of any other board, bureau, department or agency of the state except as specifically provided in the New Mexico Renewable Energy Transmission Authority Act. No use of the terms "state agency" or "instrumentality" in any other law of the state shall be deemed to refer to the authority unless the authority is specifically referred to in the law.
J. The authority is a governmental instrumentality for purposes of the Tort Claims Act."
SECTION 5. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2011.
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