SENATE BILL 163
53rd legislature - STATE OF NEW MEXICO - second session, 2018
INTRODUCED BY
George K. Munoz
AN ACT
RELATING TO PUBLIC EMPLOYEES; PROVIDING FOR AN INVESTMENT- PERFORMANCE-BASED FRAMEWORK FOR THE COMPENSATION OF PUBLIC EMPLOYEES RETIREMENT ASSOCIATION AND EDUCATIONAL RETIREMENT BOARD INVESTMENT STAFF; EXEMPTING THOSE AGENCIES' INVESTMENT STAFF POSITIONS FROM THE PERSONNEL ACT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Public Employees Retirement Act is enacted to read:
"[NEW MATERIAL] INVESTMENT STAFF--INVESTMENT-PERFORMANCE-BASED COMPENSATION--REPORTING.--
A. Each year, the retirement board, in consultation with the executive director of the association, shall establish a framework for the compensation of the association's chief investment officer and other investment staff that:
(1) includes, for each of those positions:
(a) a base compensation component; and
(b) a variable, investment-performance-based component aligned with investment industry norms and best practices; and
(2) applies to the following fiscal year.
B. The association's chief investment officer and other investment staff shall receive compensation in accordance with the framework developed by the retirement board.
C. Each year, the executive director of the association shall report to the legislative finance committee and, as appropriate, to one or more other legislative interim committees, on the compensation framework established in accordance with Subsection A of this section."
SECTION 2. A new section of the Educational Retirement Act is enacted to read:
"[NEW MATERIAL] INVESTMENT STAFF--INVESTMENT-PERFORMANCE-BASED COMPENSATION--REPORTING.--
A. Each year, the board, in consultation with the director, shall establish a framework for the compensation of the board's chief investment officer and other investment staff that:
(1) includes, for each of those positions:
(a) a base compensation component; and
(b) a variable, investment-performance-based component aligned with investment industry norms and best practices; and
(2) applies to the following fiscal year.
B. The board's chief investment officer and other investment staff shall receive compensation in accordance with the framework developed by the board.
C. Each year, the director shall report to the legislative finance committee and, as appropriate, to one or more other legislative interim committees, on the compensation framework established in accordance with Subsection A of this section."
SECTION 3. Section 10-9-4 NMSA 1978 (being Laws 1961, Chapter 240, Section 4, as amended) is amended to read:
"10-9-4. COVERAGE OF SERVICE.--The Personnel Act and the service cover all state positions except:
A. officials elected by popular vote or appointed to fill vacancies to elective offices;
B. members of boards and commissions and heads of agencies appointed by the governor;
C. heads of agencies appointed by boards or commissions;
D. directors of department divisions;
E. those in educational institutions and in public schools;
F. those who are employed by state institutions and by state agencies providing educational programs and who are required to hold valid certificates as certified school instructors, as defined in Section 22-1-2 NMSA 1978, issued by the public education department;
G. those in the governor's office;
H. those in the state militia or the commissioned officers of the New Mexico state police division of the department of public safety;
I. those in the judicial branch of government;
J. those in the public defender department, upon implementation of personnel policies and rules by the public defender commission;
K. those in the legislative branch of government;
L. [not more than] up to two assistants and one secretary in the office of each official listed in Subsections A [B] and C of this section [excluding members of boards and commissions in Subsection B of this section] and in the office of each head of an agency appointed by the governor;
M. those of a professional or scientific nature and that are temporary [in nature];
N. those filled by patients or inmates in charitable, penal or correctional institutions;
O. state employees if the board in its discretion decides that the position is one of policymaking; [and]
P. disadvantaged youth under twenty-two years of age who are regularly enrolled or to be enrolled in a secondary educational institution approved by the public education department or in an accredited state institution of advanced learning or vocational training and who are to be employed for not more than seven hundred twenty hours during any calendar year:
(1) the term "disadvantaged youth" shall be defined for purposes of this exemption by regulation duly promulgated by the board; and
(2) the board shall:
(a) require that all the criteria of this subsection have been met;
(b) establish employment lists for the certification of the highest-standing candidates to the prospective employers; and
(c) establish the pay rates for such employees;
Q. the chief investment officer of the public employees retirement association and those subject to the investment-performance-based compensation framework provided for by Section 1 of this 2018 act; and
R. the chief investment officer of the educational retirement board and those subject to the investment- performance-based compensation framework provided for by Section 2 of this 2018 act."
SECTION 4. Section 10-9-5 NMSA 1978 (being Laws 1978, Chapter 96, Section 1, as amended) is amended to read:
"10-9-5. PUBLIC OFFICERS AND PUBLIC EMPLOYEES--EXECUTIVE BRANCH--ANNUAL EXEMPT SALARIES PLAN.--
A. The department of finance and administration shall prepare, by December 1 of each year, an exempt salaries plan for the governor's approval [The plan shall specify] that specifies salary ranges for the following public officer and public employee positions of the executive branch of government:
(1) members of boards and commissions appointed by the governor;
(2) heads of agencies or departments appointed by the governor;
(3) heads of agencies or departments appointed by the respective boards and commissions of the agencies;
(4) directors of department divisions;
(5) employees in the governor's office;
(6) positions in the state militia and the commissioned officers of the New Mexico state police division of the department of public safety;
(7) assistants and secretaries in the offices of each official covered by Paragraphs (2) and (3) [and (10)] of this subsection;
(8) temporary positions of a professional or scientific nature [which are temporary in nature]; and
(9) state employees whose positions the [personnel] board has classified as [policy-making] policymaking positions and exempt employees of elective public officials [and
(10) secretaries of departments appointed by the governor].
B. Excluded from the provisions of this section are:
(1) employees of the [commission on] higher education [and] department;
(2) employees of state educational institutions named in Article 12, Section 11 of the constitution of New Mexico;
(3) the chief investment officer of the public employees retirement association and those subject to the investment-performance-based compensation framework provided for by Section 1 of this 2018 act; and
(4) the chief investment officer of the educational retirement board and those subject to the investment-performance-based compensation framework provided for by Section 2 of this 2018 act.
C. The exempt salaries plan for the ensuing fiscal year, as prepared by the department of finance and administration and approved by the governor, shall be published as a part of the executive budget document presented to the legislature at its next regular session following the preparation of the plan.
D. Upon the governor's approval, the plan shall take effect at the beginning of the subsequent fiscal year."
SECTION 5. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2019.
- 8 -