SENATE BILL 611

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

INTRODUCED BY

Stuart Ingle

AN ACT

RELATING TO CAMPAIGN FINANCE; PROHIBITING CERTAIN CONTRIBUTIONS AND SOLICITATIONS OF CONTRIBUTIONS BY THE PRINCIPALS OF INVESTMENT SERVICES CONTRACTORS AND PROSPECTIVE INVESTMENT SERVICES CONTRACTORS; PROHIBITING CERTAIN SOLICITATIONS OF CONTRIBUTIONS FROM INVESTMENT SERVICES CONTRACTORS AND PROSPECTIVE INVESTMENT SERVICES CONTRACTORS.

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

     Section 1. A new section of the Campaign Reporting Act is enacted to read:

     "[NEW MATERIAL] CONTRIBUTIONS FROM INVESTMENT SERVICES CONTRACTORS PROHIBITED.--

          A. No principal of an investment services contractor or prospective investment services contractor shall make a contribution to, or solicit contributions on behalf of:

                (1) a candidate or candidate committee of a candidate for nomination or election to the office of governor, lieutenant governor, state treasurer, state auditor, attorney general, secretary of state or commissioner of public lands;

                (2) a person elected or appointed to the office of governor, lieutenant governor, state treasurer, state auditor, attorney general, secretary of state or commissioner of public lands; or

                (3) a political committee authorized to make contributions or expenditures to or for the benefit of such officers or candidates.

          B. If a principal of an investment services contractor makes or solicits a contribution prohibited by Subsection A of this section, the contracting state agency or instrumentality of the state may, in the case of a state contract executed on or after the effective date of this section, void the existing contract with that contractor, and no state agency or instrumentality of the state shall award that contractor a state investment services contract or an extension or an amendment to a state investment services contract for two years after the election for which the contribution is made or solicited. Each investment services contract shall include the provisions of Subsection A of this section and this subsection as conditions of the contract.

          C. The governor, lieutenant governor, state treasurer, state auditor, attorney general, secretary of state or commissioner of public lands, a candidate for the office of one of those public officers or any agent of one of those officers or candidates for one of those offices, shall not solicit contributions on behalf of a candidate, a candidate committee or a political committee from a principal of an investment services contractor or prospective investment services contractor.

          D. The provisions of this section shall not restrict a principal of an investment services contractor or prospective investment services contractor from establishing a candidate committee for the principal's own campaign or from soliciting contributions from persons not prohibited from making contributions by this section.

          E. As used in this section:

                (1) "investment services" means banking and deposit services, investment legal services, investment banking services, investment advisory services, underwriting services, financial advisory services, brokerage firm services or the investment of public funds, including the purchase or sale of securities, derivatives or other financial instruments;

                (2) "investment services contract" means an agreement or contract with a state agency in the executive branch or an instrumentality of the state for investment services, investment management services or other investment-related services involving the investment of public funds or issuance of bonds and includes the direct purchase or sale of securities, derivatives or other financial instruments;

                (3) "investment services contractor" means a person or business entity that is paid compensation, expenses or fees for investment services by, or has a contract for investment services with, a state agency in the executive branch or an instrumentality of the state;

                (4) "principal of an investment services contractor or prospective investment services contractor" means, in addition to the investment services contractor itself and any of its affiliates:

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

                     (b) a person who is employed by an investment services contractor or prospective investment services contractor;

                     (c) an agent of an investment services contractor or prospective investment services contractor who has managerial or discretionary responsibilities for an investment services contract;

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

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

                (5) "prospective investment services contractor" means a person or business entity that submits a response to a solicitation for investment services from a state agency or an instrumentality of the state, or a proposal in response to a request for proposals for investment services by a state agency or an instrumentality of the state, until the contract has been entered into."

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