Goals of this Legislation:
- Save public dollars that are currently wasted on corruption.
- Reduce the actuality and appearance of “pay to play” corruption in New Mexico.
- Lessen the influence of special interests in the political process.
- Increase public trust in government.
Elements of this Legislation:
- Prohibit political contributions from:
- registered lobbyists;
- state government contractors; and
- entities seeking targeted state subsidies
- Prohibit these groups from contributing to:
- candidates for the legislature or statewide office; and
- political committees (including party committees) that fund those candidates.
- Prohibit these groups from bundling contributions from other donors and delivering them to candidates or political committees.
SB 18s first stop will to the Senate Rules committee where several amendments are expected. The bill, which was deliberated in the interim investment oversight committee and legislative finance committee, considers reforming the state investment council (SIC) and other state funds:
A) SIC board restructuring: similar to last years SB460, adds seats appointed by legislature, but the new version will make this apply to all state funds
B) Governance reform: to address structural concerns regarding alternative investments, chief investment office (CIO) reporting relationships, hiring/firing of 3rd parties responsibilities and providing for adequate oversight expertise, Summary Modifications:
o CIO positions for all funds will be hired by the respective board or council (current they are appointed by the Governor)
o Hiring and firing of all third party ultimately up to the respective board or appropriate advisory committee (currently in practice or in law the responsibility of the CIO)
o Appointment of advisory committee members by respective board (for the SIC currently done by the Governor)
o All funds wishing to investment more than 10% of the fund in an “alternative investment” are required to create advisory committee to review all related transactions comprised of individuals who have 10 years of experience in that particular asset class. Committees would be dissolved if investment allocation drops below 5%. The idea here is really to ensure that there is someone “in the room” with relevant asset class experience to provide oversight to the hiring of third parties and investments in alternative investments.