SB 421 — EDUCATIONAL RETIREMENT BOARD POWERS

SENATEFIFTY-SEVENTH BILL 421 57TH LEGISLATURE -STATEOFNEWMEXICO- FIRST REGULAR SESSION, 2025 INTRODUCEDFebruary BY26, Linda2025 M.Mr.

TrujilloPresident: 6 8 10 AN ACT RELATING TO EDUCATIONAL RETIREMENT;

CLARIFYINGYour POWERSEDUCATION OFCOMMITTEE THE, EDUCATIONALto RETIREMENTwhom BOARD.has been referred SENATE BILL 421 has had it under consideration and reports same with recommendation that it DO PASS , and thence referred to the JUDICIARY COMMITTEE .

14Respectfully BEsubmitted, IT___________________________________ ENACTEDSenator BYWilliam THEP. LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTIONSoules, 1.Chair Adopted_______________________ Not Adopted_______________________ (Chief Clerk) (Chief Clerk) Date ________________________ The roll call vote was 7 For 0 Against Yes:

SectionEzzell, 22-11-6Figueroa, NMSAHickey, 1978Nava, (beingPope, LawsSoules, 1967,Thornton ChapterNo: 16, Section 130, as amended) is amended to read:

e0 tExcused: 17 "22-11-6.

BOARD--POWERS--DUTIES.--Boone, wRamos lAbsent: n d 18 A.

TheNone boardSB0421ED1.wpd shall:

= = 19 a l (1) properly and uniformly enforce the i a e r 20 Educational Retirement Act;

a t m m 21 (2) hire employees and delegate administrative d r e 22 authority to these employees;

c e s k 23 (3) make an actuarial report on the financial e a n b 24 operation of the Educational Retirement Act to the legislature u [ at each regular session every odd-numbered year;

.230854.1 (4) accept donations, gifts or bequests to the fund;

and (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 e t 17 the Procurement Code;

provided that:

w l n d 18 (a) the board shall submit each proposed = = 19 a l contract to the attorney general for review of the contingency i a e r 20 fee.

The attorney general shall review a proposed contract a t m m 21 within thirty days after receiving the contract.

The review d r e 22 shall take into account the complexity of the factual and legal c e s k 23 issues presented by the claims to be pursued under the e a n b 24 contract.

If the attorney general advises the board that the u [ proposed contingency fee is not reasonable, the board may .230854.1 - 2 - nevertheless approve the contract and the contingency fee if no fewer than four members vote for approval;

(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;

and (c) nothing in this paragraph shall prejudice or impair the rights of a qui tam plaintiff pursuant e t 17 to the Fraud Against Taxpayers Act;

and w l n d 18 (3) purchase, acquire or hold real property = = 19 a l and build or own a building and related improvements located i a e r 20 thereon." a t m m 21 - 3 - d r e 22 c e s k 23 e a n b 24 u [ .230854.1