SENATE JUDICIARY COMMITTEE SUBSTITUTE FOR
SENATE BILL 269
50th legislature - STATE OF NEW MEXICO - first session, 2011
AN ACT
RELATING TO EDUCATIONAL RETIREMENT; AUTHORIZING THE EDUCATIONAL RETIREMENT BOARD TO SELECT A CUSTODIAL BANK AND TO HIRE ATTORNEYS ON A CONTINGENT FEE BASIS; CREATING A SUSPENSE FUND.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 22-11-6 NMSA 1978 (being Laws 1967, Chapter 16, Section 130) is amended to read:
"22-11-6. BOARD--POWERS--DUTIES.--
A. The board shall:
[A.] (1) properly and uniformly enforce the Educational Retirement Act;
[B.] (2) hire employees and delegate administrative authority to these employees;
[C.] (3) make an actuarial report on the financial operation of the Educational Retirement Act to the legislature at each regular session every odd-numbered year;
[D.] (4) accept donations, gifts or bequests; and
[E.] (5) adopt regulations pursuant to the Educational Retirement Act.
B. The board may:
(1) select and contract for the services of one or more custodial banks. For purposes of this subsection, "custodial bank" means a financial institution with the general fiduciary duties to manage, control and collect the assets of an investment fund, including receiving all deposits and paying all disbursements as directed by staff, safekeeping of assets, coordination of asset transfers, timely settlement of securities transactions and accurate and timely reporting by individual account and in total; and
(2) contract for legal services for litigation matters on a contingent fee basis, subject to the provisions of the Procurement Code; provided that:
(a) the board shall submit each proposed contract to the attorney general for review of the contingency fee. The attorney general's review shall take into account the complexity of the factual and legal issues presented by the claims to be pursued under the contract. If the attorney general advises the board that the proposed contingency fee is not reasonable, the board may nevertheless approve the contract and the contingency fee if no fewer than four members vote for approval; and
(b) each prospective contractor seeking to represent the board on a contingency fee basis shall file with the board the disclosure required by Section 13-1-191.1 NMSA 1978 disclosing all campaign contributions made to the governor, attorney general, state treasurer or any member of the board, or to a political committee that is intended to aid or promote the nomination or election of any candidate to a state office if the committee is: 1) established by any of the foregoing persons or their agents; 2) established in consultation with or at the request of any of the foregoing persons or their agents; or 3) controlled by one of the foregoing persons or their agents."
SECTION 2. Section 22-11-11 NMSA 1978 (being Laws 1967, Chapter 16, Section 135) is amended to read:
"22-11-11. EDUCATIONAL RETIREMENT FUND--SUSPENSE FUND.--
A. The "educational retirement fund" [is] and the "educational retirement suspense fund" are created.
B. The state treasurer shall be the custodian of the [fund] funds, and the board shall be the trustee of the [fund] funds.
C. All membership fees, contributions from members and local administrative units, securities evidencing the investment of money from the fund, interest, gifts, grants or bequests shall be deposited in the educational retirement fund.
D. All amounts received in satisfaction of a claim brought by private attorneys on behalf of the board shall be deposited into the educational retirement suspense fund. The board shall disburse the compensation due the private attorneys, together with reimbursement for reasonable costs and expenses, in accordance with the terms of the contract with the attorneys. After the disbursements have been made, the balance of each deposit shall be distributed to the educational retirement fund."
SECTION 3. Section 22-11-12 NMSA 1978 (being Laws 1967, Chapter 16, Section 136, as amended) is amended to read:
"22-11-12. FUND--SUSPENSE FUND--DISBURSEMENTS.--The state treasurer shall make disbursements from the educational retirement fund or the educational retirement suspense fund only on warrants issued by the department of finance and administration or through any other process as approved by the department of finance and administration. Warrants for disbursements from the educational retirement fund or the educational retirement suspense fund shall be issued by the department of finance and administration only upon voucher of the director."
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