AGO IAL 022908.

• Case Date: February 29, 2008
• Court: New Mexico

New Mexico Attorney Gen eral Opinions 2008. AGO IAL 022908. February 29, 2008IAL 022908Betty Sparrow Doris, Cabinet SecretaryDepartment of Workforce Solutions 401 Broadway NE Albuquerque, NM 87103 Gary Bland, State Investment OfficerState Investment Office 2055 S. Pacheco St.Santa Fe, NM 87505 Re: Opinion Request - State Unemployment Trust FundDear Secretary Doris and Mr. Bland: The State Investment Office ("SIO") and Department of Workforce Solutions ("Department") have jointly requested our opinion regarding the appropriate investment requirements for the State Unemployment Trust Fund ("Fund"). In 2007, the legislature created the Fund and stated: "[m]oney in the fund shall be invested by the state investment officer as land grant permanent funds are invested pursuant to Chapter 6, Article 8 NMSA 1978." NMSA 1978, § 51-1-19.1(A) (2007). The land grant permanent fund, also known as the Permanent School Fund, is a constitutionally created fund with specific enumerated requirements. See N.M. Const. art. XII, § 7(D). It is our understanding that the SIO is currently investing the Fund in accordance with the requirements for the land grant permanent fund. Based on our examination of the relevant New Mexico statutes, opinions and case law authorities, and on the information available to us at this time, we conclude the SIO should continue to invest the Fund pursuant to the investment requirements of Article XII, Section 7. The requirements in Article XII, Section 7(D) provide that:

(1) not more than sixty-five percent of the book value of the fund shall be invested at any given time in corporate stocks;

(2) not more than ten percent of the voting stock of a corporation shall be held;

(3) stocks eligible for purchase shall be restricted to those stocks of businesses listed upon a national stock exchange or included in a nationally recognized list of stocks; and

(4) not more than fifteen percent of the book value of the fund may be invested in international securities at any single time. NMSA 1978, Chapter 6, Article 8 authorizes the SIO, in conjunction with the State Investment Council, to establish investment policies to implement these requirements. See

NMSA 1978, § 6-8-7(A) (2005). The investment policies set annual numeric allocation targets, caps and ranges. The SIO and Department have a difference of opinion...