2019 New Mexico Statutes
Chapter 6 - Public Finances
Article 8 - Investment of Public Money
Section 6-8-4 - Investment office; state investment officer; terms.

A. There is established an "investment office". The chief administrative officer of the office shall be known as the "state investment officer".

B. The state investment officer shall be appointed by the council. The state investment officer shall devote the officer's entire time and attention to the duties of that office and shall not engage in any other occupation or profession or hold any other public office, appointive or elective. The state investment officer shall be an individual qualified by at least ten years of investment and executive experience to direct the work of the investment office. The state investment officer shall appoint a deputy state investment officer, with at least seven years' professional experience in the field of institutional investment management, to serve as the chief investment officer. The state investment officer shall receive a salary to be determined by the council.

C. The state investment officer shall serve at the will of the council.

History: 1953 Comp., § 11-2-8.7, enacted by Laws 1957, ch. 179, § 4; 1977, ch. 247, § 97; 1981, ch. 264, § 3; 2010, ch. 14, § 3; 2015, ch. 95, § 3.

The 2015 amendment, effective June 19, 2015, expanded the qualification requirements for the state investment officer and the deputy state investment officer; in Subsection B, after "appointive or elective. The", added "state investment", after "shall be", deleted "a person" and added "an individual", after "qualified by", deleted "training and" and added "at least ten years of", after "investment", added "and executive", after "investment office", deleted "and shall have had at least five years' professional experience as an investment officer" and added "The state investment officer shall appoint a deputy state investment officer, with at least seven years' professional experience in the field of institutional investment management, to serve as the chief investment officer.", after "The", added "state investment", after "determined by the", deleted "state investment", after "council", deleted "but in no case less than fifty thousand dollars ($50,000) annually"; and in Subsection C, after "investment officer shall serve", deleted "for an initial term of two years beginning July 1, 1981 and thereafter for terms of four years. The state investment officer may be removed from office by the council for cause" and added "at the will of the council".

The 2010 amendment, effective March 1, 2010, in Subsection B, changed the first sentence, after "shall be appointed by the", deleted "governor with the advice and consent of the senate" and added "council"; deleted the former second sentence, which provided that recommendations for the appointment of the state investment officer shall be made to the governor by the investment council; and in Subsection C, in the second sentence, after "removed from office by the" changed "governor for cause in the manner provided for removal of members of boards of regents under Article 12, Section 13 of the constitution of New Mexico" to "council for cause".

Duties of investment officer not delegated. — Within the scope of the duties and potential liabilities established within the contractual relationship, an investment advisor was required to advise the state to make lawful investments. The contract did not delegate nondelegable duties to the advisor, and the advisor was therefore estopped to assert that doctrine as a bar to suit on the contract. State ex rel. Udall v. Colonial Penn Ins. Co., 1991-NMSC-048, 112 N.M. 123, 812 P.2d 777.

The state investment council may not delegate authority to settle litigation. — Where the New Mexico state investment council (NMSIC) delegated authority to a litigation committee to settle legal matters and where the litigation committee approved a settlement under the Fraud Against Taxpayers Act, 44-9-1 to 44-9-14 NMSA 1978, the actions of the litigation committee were void because the only mention of NMSIC's ability to delegate its responsibilities states that the NMSIC may delegate administrative and investment-related functions to the state investment officer, and that the NMSIC may use committees, but only to make recommendations to the NMSIC. N.M. State Inv. Council v. Weinstein, 2016-NMCA-069, cert. denied.