House Bill text for HB0878

HOUSE BILL 878

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Brian F. Egolf

AN ACT

RELATING TO STATE CONTRACTS; REQUIRING PROSPECTIVE CONTRACTORS TO REGISTER WITH THE GENERAL SERVICES DEPARTMENT; REQUIRING DISCLOSURE OF CERTAIN INFORMATION BY PROSPECTIVE STATE CONTRACTORS; PROVIDING FOR ONLINE ACCESS OF DISCLOSURE STATEMENTS AND REGISTRATION INFORMATION; PROHIBITING CONTRIBUTIONS DURING PENDENCY OF THE PROCUREMENT PROCESS; ENACTING AND REPEALING SECTIONS OF THE NMSA 1978.

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

Section 1. [NEW MATERIAL] PROSPECTIVE CONTRACTOR REGISTRATION--CAMPAIGN CONTRIBUTION DISCLOSURE AND PROHIBITION.--

A. A prospective contractor, prior to seeking a state contract with a state agency, shall register with the general services department on a form developed by the department and made available on the department's web site. The prospective contractor shall provide the following information:

(1) the name and address of the business;

(2) the principals of the business;

(3) any affiliated business entities;

(4) the name and address of a contact person for the business;

(5) any contracts the contractor currently has with a state agency and the amount and term of each contract; and

(6) a contribution disclosure statement as required by Subsection C of this section.

B. A prospective contractor shall provide or update the information required by Subsection A of this section prior to responding to a solicitation from a state agency.

C. A prospective contractor shall disclose all campaign contributions given by a principal of the prospective contractor to a state public officer during the two years prior to the date the prospective contractor responds to a solicitation by a state agency to enter into a state contract if the aggregate total of contributions from a principal to a public officer exceeds two hundred fifty dollars ($250) over the two-year period. The disclosure shall indicate the date, the amount and the nature of the contribution and the person receiving the contribution.

D. Before awarding or entering into a state contract with a prospective contractor, the appropriate state agency purchasing officer or contract evaluation committee shall review all of the information the contractor has submitted to the general services department and shall certify that:

(1) the prospective contractor has properly registered with the department and submitted the list of contributions required by this section;

(2) the appropriate purchasing officer or committee has reviewed the contributions list; and

(3) no conflict of interest appears to exist and no undue influence has been exerted regarding award of the contract.

E. A principal of a state contractor shall not make a campaign contribution to or solicit a campaign contribution for the benefit of a state public officer during the pendency of the procurement process.

F. A solicitation for or proposed award of a contract may be canceled or a contract that is executed may be terminated if it is in the best interests of the state when a state contractor or a prospective contractor fails to submit a fully completed disclosure statement pursuant to this section or makes or solicits a contribution prohibited by Subsection E of this section.

G. As used in this section:

(1) "business entity" includes, whether organized in or outside of this state, a sole proprietorship; a partnership; a joint venture; a limited liability company; a for-profit or nonprofit corporation organized pursuant to this or another state's law or federal law; a cooperative; and any other association, organization or entity that is engaged in the operation of a business or profit-making activity;

(2) "contribution" means a gift, subscription, loan, advance or deposit of money or other thing of value, including the estimated value of an in-kind contribution, that is made or received for a political purpose, including payment of a debt incurred in an election campaign;

(3) "pendency of the procurement process" means the time period commencing on the day of the initial solicitation for a state contract by the state agency and ending with the award of the contract or the cancellation of the solicitation;

(4) "principal of a prospective contractor" means, in addition to the prospective contractor itself:

(a) a person who is a member of the board of directors of, or has an ownership interest in, the prospective contractor that is a business entity, except for an individual who owns less than five percent of the shares of that prospective contractor that is a publicly traded corporation;

(b) a person who is employed by the prospective contractor that is a business entity, as president, treasurer or executive or senior vice president; (c) a person who is the chief executive officer of the prospective contractor;

(d) an employee of the prospective contractor who has managerial or discretionary responsibilities with respect to a state contract;

(e) the spouse or a dependent child of a person described in this paragraph;

(f) a candidate committee or political committee established by or on behalf of a person described in this paragraph; or

(g) a person who is compensated to seek or lobby for state contracts by the prospective contractor; (5) "prospective contractor" means a business entity that submits a bid in response to a bid solicitation by a state agency or a proposal in response to a request for proposals or other solicitation by a state agency until the state contract has been entered into. "Prospective contractor" does not include a municipality or any other political subdivision of the state or an employee of a state agency, whether full- or part-time, in such person's capacity as an employee of the state agency or political subdivision of the state;

(6) "state agency" means an office, department, board, council, commission, institution or agency in the executive, legislative or judicial branch of state government, an institution of the state or an instrumentality of the state;

(7) "state contract" means an agreement or contract with any state agency having a value of twenty thousand dollars ($20,000) or more, or a combination or series of such agreements or contracts having a value of twenty thousand dollars ($20,000) or more in a fiscal year, for:

(a) the rendition of services, including professional services and financial services;

(b) the furnishing of any material, supplies or equipment;

(d) the acquisition, sale or lease of any land or building;

(e) a licensing arrangement;

(f) a grant, loan or loan guarantee; or

(g) the purchase of financial securities or instruments;

(8) "state contractor" means a business entity that enters into a state contract and that shall be deemed to be a state contractor until the termination of the contract. "State contractor" does not include a municipality or any other political subdivision of the state or an employee in the executive, legislative or judicial branch of state government or an instrumentality of the state, whether full- or part-time, in that person's capacity as an employee of the state or instrumentality of the state; and

(9) "state public officer" means a person elected to an office, or a person appointed to complete a term of an elected office, in the executive, legislative or judicial branch of state government, a candidate or political committee established or controlled by or affiliated with a state public officer and any department secretary in the executive branch having an active candidate committee or political committee account."

Section 2. REPEAL.--Section 13-1-191.1 NMSA 1978 (being Laws 2006, Chapter 81, Section 1, as amended) is repealed.

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