SENATE RULES COMMITTEE SUBSTITUTE FOR

SENATE BILLS 263 & 296

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

AN ACT

RELATING TO PUBLIC CONTRACTS; REQUIRING PROSPECTIVE CONTRACTORS TO REGISTER WITH THE DEPARTMENT OF FINANCE AND ADMINISTRATION; REQUIRING DISCLOSURE OF CAMPAIGN CONTRIBUTIONS BY PROSPECTIVE STATE AND LOCAL CONTRACTORS AND STATE AND LOCAL CONTRACTORS; PROVIDING FOR ON-LINE ACCESS OF DISCLOSURE STATEMENTS AND REGISTRATION INFORMATION; REPEALING AND ENACTING SECTIONS OF THE NMSA 1978.

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

     Section 1. PROSPECTIVE STATE AND LOCAL CONTRACTOR REGISTRATION--CAMPAIGN CONTRIBUTION DISCLOSURE AND PROHIBITION.--

          A. A prospective contractor, prior to entering into a state contract with a state agency or a local contract with a local public body, shall register with the department of finance and administration 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; and

                (5) any contracts the contractor currently has with a state agency or local public body and the amount and term of the contract.

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

          C. A prospective state contractor shall disclose all campaign contributions given by a principal of the prospective state contractor to a state public officer during the two years prior to the date the prospective state contractor responds to a solicitation by a state agency to enter into a state contract if the total contributions from a principal to a public officer exceed two hundred fifty dollars ($250) over the two-year period.

          D. A prospective local contractor shall disclose all campaign contributions given by a principal of the prospective local contractor to a local public officer during the two years prior to the date the prospective local contractor responds to a solicitation by a local public body to enter into a contract with the local public body if the total contributions from a principal to a local public officer exceed two hundred fifty dollars ($250) over the two-year period.

          E. The disclosure shall indicate the date, the amount and the nature of the contribution and the person receiving the contribution. Prospective state and local contractors shall complete the disclosure statement on-line and the department of finance and administration shall post the disclosure statements in a searchable format on its web site.

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

          G. If a contractor enters into a contract with a state agency or local public body, during the term of the contract the contractor shall update the information required by this section quarterly. Quarterly updates shall be filed by 5:00 p.m. on the second Monday in January, April, July and October.

           H. Before awarding or entering into a state or local contract with a prospective contractor, the appropriate purchasing agent or contract evaluation committee shall review the information that the prospective contractor has submitted and shall certify that the prospective contractor has properly registered with the department of finance and administration and submitted the list of contributions required by this section.

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

          J. As used in this section:

                (1) "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;

                (2) "local public body" means the governing authority of a political subdivision of the state;

                (3) "local contractor" means a person that enters into a local contract. "Local contractor" does not include a state agency or a political subdivision of the state or an employee of a state agency or political subdivision of the state, whether full or part-time, in that person's capacity as an employee of the state or political subdivision of the state;

                (4) "local public officer" means a person elected to an office, or a person appointed to complete a term of an elected office, in the political subdivision of the state where the local public body is seeking to contract with a local contractor;

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

                (6) "principal of a prospective state or local contractor" means, in addition to the contractor itself:

                     (a) an owner, officer or director of a corporation that is a prospective contractor, a member or manager of a limited liability company that is a prospective contractor, a partner of a partnership that is a prospective contractor or trustee of a trust of a prospective contractor; and

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

                (7) "prospective state or local contractor" means a person that submits a bid in response to a bid solicitation by a state agency or a local public body, or a proposal in response to a request for proposals or other solicitation by a state agency or a local public body until the contract has been entered into. "Prospective state or local contractor" does not include a state agency or a political subdivision of the state or an employee of a state agency or political subdivision of the state, whether full or part-time, in that person's capacity as an employee of the state or political subdivision of the state;

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

                (9) "state contract" or "local contract" means an agreement or contract with a state agency, or a local public body in the case of a local contract, having a value of fifty thousand dollars ($50,000) or more, or a combination or series of such agreements or contracts having a value of fifty thousand dollars ($50,000) or more in a fiscal year, for:

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

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

                     (c) the construction, alteration or repair of any public building or public work;

                     (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;

                (10) "state contractor" means a person that enters into a state contract. "State contractor" does not include a state agency or a political subdivision of the state or an employee of a state agency or political subdivision of the state, whether full or part-time, in that person's capacity as an employee of the state or political subdivision of the state; and

                (11) "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 or legislative branch of state government, a campaign committee established or controlled by or affiliated with that person or any department secretary in the executive branch having an active campaign 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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