HB0155

HOUSE BILL 155

52nd legislature - STATE OF NEW MEXICO - first session, 2015

INTRODUCED BY

Jeff Steinborn

AN ACT

RELATING TO LOBBYIST REGULATION; REQUIRING CERTAIN REPORTS TO BE MADE BY LOBBYISTS' EMPLOYERS; CHANGING REPORTING REQUIREMENTS; EXTENDING THE RETENTION PERIOD FOR REPORTS; REQUIRING REPORTS TO BE POSTED ONLINE; CHANGING REGISTRATION FEES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1. Section 2-11-3 NMSA 1978 (being Laws 1977, Chapter 261, Section 3, as amended) is amended to read:

"2-11-3. REGISTRATION STATEMENT TO BE FILED--CONTENTS--MODIFICATION TO STATEMENT.--

A. In the month of January prior to each regular session or before any service covered by the Lobbyist Regulation Act commences, any individual who is initially employed or retained as a lobbyist shall register with the secretary of state by paying an annual filing fee of [twenty-five dollars ($25.00)] fifty dollars ($50.00) for each of the lobbyist's employers and by filing a single registration statement under oath on a prescribed form showing:

(1) the lobbyist's full name, permanent business address and business address while lobbying; and

(2) the name and address of each of the lobbyist's employers.

B. No registration fee shall be required of individuals receiving only reimbursement of personal expenses and no other compensation or salary for lobbying. No expenditure statement required by Section 2-11-6 NMSA 1978 shall be required if the lobbyist anticipates making or incurring and makes or incurs no expenditures or political contributions under Section 2-11-6 NMSA 1978. The lobbyist shall indicate in [his] the lobbyist's registration statement whether those circumstances apply to [him] the lobbyist.

C. No more than five days after a registration is filed, the secretary of state shall publish the registration statement on the secretary of state's lobbying disclosure web site.

[C.] D. For each employer listed in Paragraph (2) of Subsection A of this section, the lobbyist shall file the following information:

(1) a full disclosure of the sources of funds used for lobbying;

(2) a written statement from each of the lobbyist's employers authorizing [him] the lobbyist to lobby on the employer's behalf;

(3) a brief description of the matters in reference to which the service is to be rendered, including the legislative or administrative issue for which the lobbyist is employed; and

(4) the name and address of the person, if other than the lobbyist or [his] the lobbyist's employer, who will have custody of the accounts, bills, receipts, books, papers and documents required to be kept under the provisions of the Lobbyist Regulation Act.

[D.] E. For each succeeding year that an individual is employed or retained as a lobbyist by the same employer, and for whom all the information disclosed in the initial registration statement remains substantially the same, the lobbyist shall file a simple annual registration renewal in January and pay the [twenty-five-dollar ($25.00)] fifty-dollar ($50.00) filing fee for each of the lobbyist's employers together with a short, abbreviated prescribed form for renewal.

[E.] F. Whenever there is a modification of the facts required to be set forth by this section or there is a termination of the lobbyist's employment as a lobbyist before the end of the calendar year, the lobbyist shall notify the secretary of state within one month of such occurrence and shall furnish full information concerning the modification or termination. If the lobbyist's employment terminates at the end of a calendar year, no separate termination report need be filed."

SECTION 2. Section 2-11-6 NMSA 1978 (being Laws 1977, Chapter 261, Section 6, as amended) is amended to read:

"2-11-6. EXPENDITURE REPORT TO BE FILED--CONTENTS--REPORTING PERIODS.--

A. Each lobbyist or lobbyist's employer who makes or incurs expenditures or political contributions for the benefit of or in opposition to a state legislator or candidate for the state legislature, a state public officer or candidate for state public office, a board or commission member or state employee who is involved in an official action affecting the lobbyist's employer or in support of or in opposition to a ballot issue or pending legislation or official action shall file an expenditure report with the secretary of state on a prescribed form or in an electronic format approved by the secretary of state and published by the secretary of state in accordance with Section 2-11-7 NMSA 1978. The expenditure report shall include a sworn statement that sets forth:

(1) the cumulative total of the expenditures made or incurred [separated into categories that identify the total separate amounts spent on] by the employer or lobbyist during the covered reporting period, listed separately by each recipient, indicating the amount spent and a description of the expenditure. The list shall be separated into the following categories:

(a) meals and beverages;

(b) other entertainment expenditures;

(d) other expenditures;

(2) each political contribution made, identified by amount, date and name of the candidate or ballot issue supported or opposed; and

(3) the names, addresses and occupations of other contributors and the amounts of their separate political contributions if the lobbyist or lobbyist's employer delivers directly or indirectly separate contributions from those contributors in excess of [five hundred dollars ($500)] one hundred dollars ($100) in the aggregate for each election to a candidate, a campaign committee or anyone authorized by a candidate to receive funds on the candidate's behalf.

B. If the expenditure report is filed electronically, the report shall be electronically authenticated by the lobbyist or the lobbyist's employer using an electronic signature as prescribed by the secretary of state in conformance with the Electronic Authentication of Documents Act and the Uniform Electronic Transactions Act. For the purposes of the Lobbyist Regulation Act, a report that is electronically authenticated in accordance with the provisions of this subsection shall be deemed to have been subscribed and sworn to by the lobbyist or the lobbyist's employer that is required to file the report.

C. In identifying expenditures pursuant to the provisions of Paragraph (1) of Subsection A of this section, any individual expenditure that is more than the threshold level established in the Internal Revenue Code of 1986, as amended, that must be reported separately to claim a business expense deduction, as published by the secretary of state, shall be identified by amount, date, purpose, type of expenditure and name of the person who received or was benefited by the expenditure; provided, in the case of special events, including parties, dinners, athletic events, entertainment and other functions, to which all members of the legislature, to which all members of either house or any legislative committee or to which all members of a board or commission are invited, expenses need not be allocated to each individual who attended, but the date, location, name of the body invited and total expenses incurred shall be reported.

D. The reports required pursuant to the provisions of the Lobbyist Regulation Act shall be filed:

(1) by January 15 for all expenditures and political contributions made or incurred during the preceding year and not previously reported;

(2) within forty-eight hours for each separate expenditure made or incurred during a legislative session that was for five hundred dollars ($500) or more; and

(3) by May 1 for all expenditures and political contributions made or incurred through April 25 of the current year and not previously reported.

E. Except as may be required by Section 2-11-6.1 NMSA 1978, a lobbyist's personal living expenses and the expenses incidental to establishing and maintaining an office in connection with lobbying activities or compensation paid to a lobbyist by a lobbyist's employer need not be reported.

F. A lobbyist or lobbyist's employer shall obtain and preserve all records, accounts, bills, receipts, books, papers and documents necessary to substantiate the financial statements required to be made under the Lobbyist Regulation Act for a period of two years from the date of filing of the report containing such items. When the lobbyist is required under the terms of the lobbyist's employment to turn over any such records to the lobbyist's employer, responsibility for the preservation of them as required by this section and the filing of reports required by this section shall rest with the employer. Such records shall be made available to the secretary of state or attorney general upon written request.

G. [Any] A lobbyist's employer shall comply with the provisions of Section 2-11-6.1 NMSA 1978 and a lobbyist's employer who also engages in lobbying shall also comply with the provisions of [the Lobbyist Regulation Act] this section.

H. An organization of two or more persons, including an individual who [holds himself out] makes any representation as being an organization, that within one calendar year expends funds in excess of two thousand five hundred dollars ($2,500) not otherwise reported under the Lobbyist Regulation Act to conduct an advertising campaign for the purpose of lobbying shall register with the secretary of state within forty-eight hours after expending two thousand five hundred dollars ($2,500). Such registration shall indicate the name of the organization and the names, addresses and occupations of any of its principals, organizers or officers and shall include the name of any lobbyist or lobbyist's employer who is a member of the organization. Within fifteen days after a legislative session, the organization shall report the contributions, pledges to contribute, expenditures and commitments to expend for the advertising campaign for the purpose of lobbying, including the names, addresses and occupations of the contributors, to the secretary of state on a prescribed form."

SECTION 3. A new section of the Lobbyist Regulation Act, Section 2-11-6.1 NMSA 1978, is enacted to read:

"2-11-6.1. [NEW MATERIAL] ESTIMATED LOBBYING EXPENSE REPORTS TO BE FILED BY LOBBYISTS' EMPLOYERS.--

A. No later than January 15 of each year, a lobbyist's employer who incurs lobbying expenses shall file an estimated lobbying expense report with the secretary of state on a prescribed form or in an electronic format approved by the secretary of state. The estimated lobbying expense report shall include:

(1) a sworn statement that sets forth the total estimated lobbying expenses that will be incurred through April 25 of the current year; and

(2) a sworn statement setting forth the amount of total lobbying expenses actually incurred from April 25 through December 31 of the preceding year, provided that no statement is required pursuant to this paragraph unless:

(a) the total lobbying expenses actually incurred from April 25 through December 31 of the preceding year differ by more than ten percent from the amount of lobbying expenses estimated for that period; or

(b) lobbying expenses were actually incurred from April 25 through December 31 of the preceding year and no report was filed estimating lobbying expenses for that period.

B. No later than May 1 of each year, a lobbyist's employer who incurs lobbying expenses shall file an estimated lobbying expense report with the secretary of state on a prescribed form or in an electronic format approved by the secretary of state. The estimated lobbying expense report shall include:

(1) a sworn statement that sets forth the total estimated lobbying expenses that will be incurred from April 25 through December 31 of the current year; and

(2) a sworn statement setting forth the amount of total lobbying expenses actually incurred through April 25 of the current year, provided that no statement is required pursuant to this paragraph unless:

(a) the total lobbying expenses actually incurred through April 25 of the current year differ by more than ten percent from the amount of lobbying expenses estimated for that period; or

(b) lobbying expenses were actually incurred through April 25 of the current year and no report was filed estimating lobbying expenses for that period.

C. After the initial employment or retention of a lobbyist and before the lobbyist engages in lobbying:

(1) the lobbyist's employer shall amend the amount of total estimated lobbying expenses stated in any report filed pursuant to Subsection A or B of this section for the period in which the lobbyist is initially employed or retained; or

(2) if the lobbyist's employer has not filed a report for the period pursuant to Subsection A or B of this section, the lobbyist's employer shall file an initial report for the remainder of the reporting period in which the lobbyist is initially employed or retained.

D. If the estimated lobbying expense report is filed electronically, the report shall be electronically authenticated by the lobbyist's employer using an electronic signature as prescribed by the secretary of state in conformance with the Electronic Authentication of Documents Act and the Uniform Electronic Transactions Act. For the purposes of the Lobbyist Regulation Act, a report that is electronically authenticated in accordance with the provisions of this subsection shall be deemed to have been subscribed and sworn to by the lobbyist's employer that is required to file the report.

E. As used in this section, "lobbying expenses" means an aggregate total of:

(1) expenditures paid by a lobbyist that are reimbursed by the lobbyist's employer;

(2) the political contributions made by a lobbyist that are reimbursed by the lobbyist's employer;

(3) other expenses incurred by a lobbyist that are reimbursed by the lobbyist's employer, including living expenses, expenses for maintaining an office and other expenses incidental to lobbying;

(4) all compensation paid to a lobbyist for lobbying;

(5) if a lobbyist is an employee of the lobbyist's employer, the salary paid to the lobbyist for the time that the lobbyist is engaged in lobbying; and

(6) any other lobbying expenditures made by the lobbyist's employer and not included in Paragraphs (1) through (5) of this subsection."

SECTION 4. Section 2-11-7 NMSA 1978 (being Laws 1977, Chapter 261, Section 7, as amended) is amended to read:

"2-11-7. REGISTRATION AND EXPENDITURE STATEMENT--LOBBYING EXPENSE REPORT--PRESERVATION AS PUBLIC RECORD--ONLINE REPORTS.--

A. Each registration and expenditure statement and each lobbying expense report as required by the Lobbyist Regulation Act shall be [preserved by] archived and accessible on the secretary of [state] state's lobbyist disclosure web site for a period of [two] at least ten years from the date of filing as a public record, open to public inspection at any reasonable time. Unless an action or prosecution is pending that requires preserving the report, it may be destroyed [two] ten years after the date of filing.

B. Lobbyist registrations, statements and lobbying expense reports shall be kept and maintained on the secretary of state's lobbyist disclosure web site and shall be available in searchable and downloadable formats. The secretary of state shall update the web site no less than monthly throughout the year and as expeditiously as possible when the legislature is in session.

C. For the purposes of this section, "accessible" means, with respect to the secretary of state's lobbyist disclosure web site, that all records are easily searchable, sortable and downloadable by the public."

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