HOUSE GOVERNMENT, ELECTIONS AND

INDIAN AFFAIRS COMMITTEE SUBSTITUTE FOR

HOUSE BILL 115

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

AN ACT

RELATING TO ETHICS; ENACTING THE STATE ETHICS COMMISSION ACT; CREATING THE STATE ETHICS COMMISSION; PROVIDING FOR AN EXECUTIVE DIRECTOR; PROVIDING FOR ANNUAL ETHICS TRAINING AND THE PUBLICATION OF ETHICS GUIDES; REQUIRING THE DEVELOPMENT OF A PROPOSED ETHICS CODE; PROVIDING FOR THE ISSUANCE OF ADVISORY OPINIONS; TRANSFERRING THE ADMINISTRATION OF CERTAIN ACTS TO THE STATE ETHICS COMMISSION; PROVIDING FOR THE FILING OF COMPLAINTS AGAINST PUBLIC OFFICERS AND EMPLOYEES, CANDIDATES, GOVERNMENT CONTRACTORS AND LOBBYISTS FOR ETHICS VIOLATIONS; PROVIDING FOR INVESTIGATIONS AND HEARINGS; GRANTING SUBPOENA POWERS; REQUIRING CONFIDENTIALITY; PROHIBITING RETALIATION; PROVIDING PENALTIES.

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

     SECTION 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 through 16 of this act may be cited as the "State Ethics Commission Act".

     SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the State Ethics Commission Act:

          A. "adjunct agency" means an agency, board, commission, office or other instrumentality, not assigned to an elected constitutional officer, that is excluded from any direct or administrative attachment to a department and that retains policymaking and administrative autonomy separate from any other agency of state government;

          B. "commission" means the state ethics commission;

          C. "commissioner" means a member of the commission;

          D. "complainant" means a person who files an ethics complaint with the commission;

          E. "director" means the executive director of the commission;

          F. "elected office" means a state or county office the candidates for which are subject to the provisions of the Campaign Reporting Act;

          G. "ethics violation" means an action that is a violation of the Gift Act; the Governmental Conduct Act; the Procurement Code; the Lobbyist Regulation Act; the Financial Disclosure Act; the Voter Action Act; Chapter 1, Article 19 NMSA 1978, including the Campaign Reporting Act; or any code of ethics adopted pursuant to those laws or Section 5 of the State Ethics Commission Act;

          H. "government contractor" means a person who has a contract with a state agency or who has submitted a competitive sealed proposal or competitive sealed bid for a contract with a state agency;

          I. "legislative body" means the house of representatives or the senate;

          J. "lobbying" means attempting to influence:

                (1) a decision related to any matter to be considered or being considered by the legislative branch of state government or any legislative committee or to any legislative matter requiring action by the governor or awaiting action by the governor; or

                (2) an official action;

          K. "lobbyist" means a person who is compensated for the specific purpose of lobbying; who is designated by an interest group or organization to represent it on a substantial or regular basis for the purpose of lobbying; or who, in the course of the person's employment, is engaged in lobbying on a substantial or regular basis. "Lobbyist" does not include:

                (1) a person who appears on the person's own behalf in connection with legislation or an official action;

                (2) an elected or appointed officer of the state, a political subdivision of the state or an Indian nation, tribe or pueblo who is acting in the officer's official capacity;

                (3) a state employee or an employee of a political subdivision of the state, specifically designated by an elected or appointed officer, who appears before a legislative committee or in a rulemaking proceeding only to explain the effect of legislation or a rule on that employee's agency or political subdivision; provided that the elected or appointed officer files the designation with the commission and makes it available for public inspection;

                (4) a designated member of the staff of an elected state official; provided that the elected state official files the designation with the commission and makes it available for public inspection;

                (5) a legislator or legislative staff member;

                (6) a witness called by a legislative committee or administrative agency to appear before it in connection with legislation or an official action;

                (7) a person who provides only oral or written public testimony in connection with a legislative committee or in a rulemaking proceeding and whose name and the interest on behalf of which the person testifies have been clearly and publicly identified; or

                (8) a publisher, owner or employee of the news media while gathering or disseminating news or editorial comment to the general public in the ordinary course of business;

          L. "official action" means a decision, action or nonaction of a state official or state agency in a rulemaking or other matter, except an adjudicatory proceeding;

          M. "political party" means a political party that has complied with the provisions of Section 1-7-2 NMSA 1978;

          N. "public employee" means a person employed by the state or by a political subdivision of the state;

          O. "public officer" means a state official or a person elected to an office of a political subdivision of the state;

          P. "respondent" means a public officer, public employee, candidate for elected office, government contractor or lobbyist who is the subject of a complaint filed with or by the commission;

          Q. "state agency" means any department, commission, council, board, committee, agency or institution of the executive or legislative branch of government of the state or any instrumentality of the state, including the New Mexico mortgage finance authority, the New Mexico finance authority, the New Mexico exposition center authority, the New Mexico hospital equipment loan council and the New Mexico renewable energy transmission authority;

          R. "state employee" means an employee of a state agency; and

          S. "state official" means a person elected to an office of the executive or legislative branch of the state or a person appointed to a state agency.

     SECTION 3. [NEW MATERIAL] STATE ETHICS COMMISSION CREATED--MEMBERSHIP--TERMS--REMOVAL.--

          A. The "state ethics commission" is created as an adjunct agency of the executive branch under the direction of eleven commissioners, appointed as follows:

                (1) five commissioners appointed by the governor, no more than three of whom shall be of the same political party and at least one commissioner shall be appointed from each congressional district;

                (2) one commissioner appointed by the president pro tempore of the senate;

                (3) one commissioner appointed by the minority floor leader of the senate;

                (4) one commissioner appointed by the speaker of the house of representatives;

                (5) one commissioner appointed by the minority floor leader of the house of representatives; and

                (6) two commissioners appointed by the chief justice of the supreme court, who shall be district court judges and who shall not be of the same political party and shall not be appointed from the same congressional district.

          B. The appointing authorities shall give due regard to the cultural diversity of the state and to achieving geographical representation from across the state. No more than five commissioners shall be registered members of the same political party.

          C. Each appointing authority shall file letters of appointment with the secretary of state.

          D. Commissioners shall be appointed for staggered terms of four years beginning July 1, 2016. The initial commissioners shall draw lots to determine which three commissioners serve an initial term of two years, which four commissioners serve an initial term of three years and which four commissioners serve an initial term of four years; thereafter, all commissioners shall serve four-year terms. Members shall serve until their successors are appointed and qualified.

          E. A person shall not serve as a commissioner for more than two consecutive terms. A vacancy on the commission shall be filled by appointment by the original appointing authority for the remainder of the unexpired term.

          F. The commission shall meet as necessary to carry out its duties pursuant to the State Ethics Commission Act. Commissioners are entitled to receive per diem and mileage as provided in the Per Diem and Mileage Act and shall receive no other compensation, perquisite or allowance.

          G. The commission shall elect a chair, who shall be one of the governor's appointees, and a vice chair and other officers it deems necessary.

          H. Six commissioners constitute a quorum for the transaction of business. No action shall be taken by the commission unless at least six members concur.

          I. A commissioner may be removed only for incompetence, neglect of duty or malfeasance in office. A proceeding for the removal of a commissioner may be commenced by the commission or by the attorney general upon the request of the commission. The supreme court has exclusive jurisdiction over proceedings to remove commissioners, and its decision shall be final. A commissioner shall be given notice of hearing and an opportunity to be heard before the commissioner is removed.

     SECTION 4. [NEW MATERIAL] COMMISSIONERS--QUALIFICATIONS--LIMITATIONS.--

          A. To qualify for appointment to the commission, a person shall:

                (1) be a resident of New Mexico; and

                (2) not have changed political party affiliation for at least one year prior to appointment.

          B. Before entering upon the duties of the office of commissioner, each commissioner shall review the State Ethics Commission Act and other laws and rules pertaining to the commission's responsibilities and to ethics and governmental conduct in New Mexico. Each commissioner shall take the oath of office as provided in Article 20, Section 1 of the constitution of New Mexico.

          C. During a commissioner's tenure, a commissioner shall not:

                (1) seek or hold an office in a political party;

                (2) seek or hold an elective public office or an appointed public position, except for a commissioner appointed by the chief justice of the supreme court in continuing to hold the office of district court judge; or

                (3) be a state employee, government contractor or lobbyist.

          D. A commissioner who violates Subsection C of this section is deemed to have resigned from the commission.

          E. For a period of one calendar year following a commissioner's tenure or following the resignation or removal of a commissioner, the commissioner shall not:

                (1) seek or hold an elective public office, an appointed public position or public employment, except for a commissioner appointed by the chief justice of the supreme court in continuing to hold the office of district court judge;

                (2) represent a respondent, unless appearing on the commissioner's own behalf; or

                (3) accept employment or otherwise provide services to a respondent unless the commissioner accepted employment or provided services prior to the filing of a complaint against the respondent.

      SECTION 5. [NEW MATERIAL] COMMISSION--DUTIES AND POWERS.--

          A. The commission shall:

                (1) receive and investigate complaints alleging ethics violations against public officers, public employees, candidates for elected office, government contractors and lobbyists;

                (2) hold hearings in appropriate cases to determine whether there has been an ethics violation;  

                (3) beginning on January 1, 2017, administer the provisions of the following acts:

                     (a) the Campaign Reporting Act;

                     (b) the Voter Action Act;

                     (c) the Lobbyist Regulation Act;

                     (d) the Governmental Conduct Act;

                     (e) the Financial Disclosure Act; and

                     (f) the Gift Act;

                (4) develop, adopt and promulgate the rules necessary to implement and administer the provisions of the State Ethics Commission Act;

                (5) compile, index, maintain and provide public access to all advisory opinions and reports required to be made public pursuant to the State Ethics Commission Act;

                (6) draft a proposed code of ethics for state officials and state employees and submit the proposed code to each elected state official and state agency for adoption;

                (7) compile, adopt, publish and make available to all public officers, public employees, candidates for elected office, government contractors and lobbyists an ethics guide that clearly and plainly explains the ethics requirements set forth in state law, including those that relate to conducting business with the state;

                (8) offer annual ethics training to public officers, public employees, candidates for elected office, government contractors, lobbyists and other interested persons;

                (9) employ an executive director, who shall be an attorney; and

                (10) submit an annual report of its activities, including any recommendations regarding state ethics laws or the scope of its powers and duties, in December of each year to the legislature and the governor.

          B. The commission may:

                (1) initiate complaints alleging ethics violations against public officers, public employees, candidates for elected office, government contractors and lobbyists;

                (2) issue subpoenas requiring the attendance of witnesses or the production of books, records, documents or other evidence relevant to an investigation; and

                (3) issue advisory opinions to public officers, public employees, candidates for elected office, government contractors and lobbyists in accordance with the provisions of the State Ethics Commission Act.

     SECTION 6. [NEW MATERIAL] EXECUTIVE DIRECTOR--APPOINTMENT--DUTIES AND POWERS.--

          A. The commission shall appoint an executive director who shall be knowledgeable about state ethics laws and who shall be appointed without reference to party affiliation and solely on the grounds of fitness to perform the duties of the office. The director shall hold office from the date of appointment until such time as the director is removed by the commission.

          B. The director shall:

                (1) take the oath of office required by Article 20, Section 1 of the constitution of New Mexico;

                (2) perform investigations on behalf of the commission;

                (3) bring complaints and investigation results before the commission for consideration;

                (4) prepare an annual budget for the commission and submit it to the commission for approval;

                (5) make recommendations to the commission of

proposed rules or legislative changes needed to provide better administration of the State Ethics Commission Act; and

                (6) perform other duties as assigned by the commission.

          C. The director may:

                (1) hire a general counsel for the commission and additional personnel as may be necessary to carry out the duties of the commission;

                (2) enter into contracts and agreements on behalf of the commission; and

                (3) administer oaths and take depositions subject to the Rules of Civil Procedure for the District Courts.

          D. For a period of one calendar year immediately following the director's employment with the commission, the director shall not:

                (1) seek or hold an elective public office, an appointed public position or public employment;

                (2) represent a respondent, unless appearing on the director's own behalf; or

                (3) accept employment or otherwise provide services to a respondent, unless the director accepted employment or provided services prior to the filing of a complaint against the respondent.

     SECTION 7. [NEW MATERIAL] RECUSAL--DISQUALIFICATION.--

          A. A commissioner shall recuse from and not participate in a commission proceeding in which the commissioner has a conflict of interest. The commissioner shall state the reason for the recusal.

          B. If the propriety of a commissioner's participation in a particular matter is questioned on the grounds that the commissioner has a conflict of interest, the commission may disqualify that commissioner from participation in a commission proceeding.

          C. A recused or disqualified commissioner shall not participate in any proceeding related to the matter from which the commissioner is recused or disqualified, and the commissioner shall be excused from that portion of a meeting at which the matter is discussed.

          D. If four or more commissioners have recused themselves or are disqualified from participating in a proceeding, the remaining commissioners shall appoint temporary commissioners to participate in that proceeding. Appointments of temporary commissioners shall be made by a majority vote of the remaining commissioners in accordance with the political party affiliation and geographical representation requirements and the qualifications of Sections 3 and 4 of the State Ethics Commission Act.

          E. The commission shall promulgate rules for the recusal and disqualification of members and for the appointment of temporary commissioners.

     SECTION 8. [NEW MATERIAL] ADVISORY OPINIONS.--

          A. The commission may issue advisory opinions on matters related to ethics. Advisory opinions shall:

                (1) be requested in writing by a public officer, public employee, candidate for elected office, government contractor or lobbyist;

                (2) identify a specific set of circumstances involving an ethics issue;

                (3) be issued within sixty days of receipt of the request unless the commission notifies the requester of a delay in issuance and continues to notify the requester every thirty days until the advisory opinion is issued; and

                (4) be published after omitting the requester's name and identifying information.

          B. A request for an advisory opinion is confidential and not subject to the provisions of the Inspection of Public Records Act.

          C. Unless amended or revoked, an advisory opinion shall be binding on the commission in any subsequent commission proceedings concerning a person who acted in good faith and in reasonable reliance on the advisory opinion.

     SECTION 9. [NEW MATERIAL] COMPLAINTS--INVESTIGATIONS--SUBPOENAS.--

          A. A complaint of an alleged ethics violation committed by a public officer, public employee, candidate for elected office, government contractor or lobbyist may be:

                (1) filed with the commission by a person who has actual knowledge of the alleged ethics violation; or

                (2) initiated by the commission upon receipt of evidence deemed sufficient by the commission.

          B. The complainant shall set forth in detail the specific charges against the public officer, public employee, candidate for elected office, government contractor or lobbyist and the factual allegations that support the charges and shall sign the complaint under penalty of false statement. The complainant shall submit any evidence the complainant has that supports the complaint. Evidence may include documents, records and names of witnesses. The commission shall prescribe the forms on which complaints are to be filed.

          C. The chair of the commission shall sign a complaint initiated by the commission, and the complaint shall set forth in detail the specific charges against the public officer, public employee, candidate for elected office, government contractor or lobbyist and the factual allegations that support the charges.

          D. The director shall bring all complaints before the commission and make recommendations to the commission as to whether the conduct alleged in a complaint is within the jurisdiction of the commission and warrants investigation.

          E. The commission shall dismiss complaints that are frivolous, unfounded or outside the jurisdiction of the commission. If the commission dismisses a complaint pursuant to this subsection, the director shall promptly notify the complainant.

          F. If the commission determines that there is sufficient cause to proceed with an investigation, the director shall investigate the complaint. The director shall promptly notify the respondent that a complaint has been filed and is being investigated and shall notify the respondent of the specific allegations in the complaint and the specific ethics violations implicated by the complaint.

          G. As part of an investigation, the director may administer oaths, interview witnesses and examine books, records, documents and other evidence reasonably related to the complaint. All testimony in an investigation shall be under oath, and the respondent shall have the right to be represented by legal counsel. If the director determines that a subpoena is necessary to obtain the testimony of any person or the production of books, records, documents or other evidence, the director shall request that the commission issue an appropriate subpoena.

          H. The commission may issue subpoenas for the attendance and examination of witnesses or for the production of books, records, documents, things or other evidence reasonably related to an investigation. A subpoena shall be signed by the chair of the commission and shall command the person to whom it is directed to attend and give testimony or to produce and permit the inspection of books, documents, records, things or other evidence. A subpoena shall state the general nature of the investigation and shall describe with reasonable specificity the nature of the information to be produced, the time and place where the information shall be produced and the consequences of failure to obey the subpoena. After service of a subpoena, if a person neglects or refuses to comply with the subpoena, the commission may apply to a district court for an order enforcing the subpoena and compelling compliance.

          I. A state official or state employee who is a respondent shall be entitled to representation by the risk management division of the general services department; provided, however, that if the respondent is found to have committed an ethics violation, the respondent shall reimburse the division for the respondent's equitable share of reasonable attorney fees and costs. If the respondent was represented by an attorney employee of the risk management division, the division shall be reimbursed at the full cost incurred by the division, including benefits and taxes, for employing the attorney for the hours the attorney provided on the case.

     SECTION 10. [NEW MATERIAL] STATUS OF INVESTIGATION--TIME LIMITATIONS.--

          A. If the commission has not scheduled a hearing concerning the disposition of a complaint within ninety days after the complaint is received or initiated by the commission, the director shall, as soon as practicable, report to the commission on the progress and status of the investigation. The commission may dismiss the complaint or instruct the director to continue investigating the complaint. Unless the commission dismisses the complaint, the director shall report to the commission every ninety days thereafter on the progress and status of the investigation.

          B. Upon dismissal or a decision to continue an investigation of a complaint, the commission shall notify the respondent in writing of its action. The commission shall also notify the complainant of the dismissal of a complaint. The commission shall not publicly disclose its action or notification except upon the request of the respondent.

     SECTION 11. [NEW MATERIAL] REPORT--HEARING--FINDINGS AND CONCLUSIONS--DISCLOSURE OF ETHICS VIOLATION.--

          A. The director shall provide a written report of the investigation to the commission and to the respondent. The director shall provide the respondent with reasonable written notice of the date, time and place of the commission hearing.

          B. At the hearing, the commission has the power to administer oaths. One of the commissioners appointed by the chief justice of the supreme court shall preside over the hearing. The respondent has the right to be represented by counsel and to present evidence and testimony and examine and cross-examine witnesses.

          C. After the hearing, if the commission finds by clear and convincing evidence that the respondent's conduct constituted an ethics violation, the commission shall issue a written report that shall include findings of fact and conclusions of law. If the respondent is a state official or state employee, the written report may include a public reprimand or censure regarding the respondent's behavior or recommendations for disciplinary action against the respondent.

          D. The commission shall publicly disclose a report issued pursuant to Subsection C of this section and provide it, along with all evidence collected during its investigation, to the respondent, the attorney general and the:

                (1) appropriate legislative body if the respondent is a member of the legislature;

                (2) house of representatives if the respondent is a state official elected to an office of the executive branch;

                (3) respondent's appointing authority if the respondent is an appointed state official;

                (4) appropriate state agency if the respondent is a state employee;

                (5) appropriate district attorney if the respondent is an elected officer or employee of a political subdivision of the state;

                (6) state agency with which the respondent has a government contract if the respondent is a government contractor; or

                (7) respondent's employer and clients if the respondent is a lobbyist.

          E. If, after the hearing, the commission does not find by clear and convincing evidence that the respondent's conduct constituted an ethics violation, the commission shall dismiss the complaint and provide notice of the dismissal to the respondent and complainant no later than five days after the finding is made. A notice issued pursuant to this subsection shall not be public except upon the request of the respondent.

          F. Notwithstanding the provisions of the Open Meetings Act, commission hearings held pursuant to this section are closed to the public. The commission shall promulgate rules establishing procedures for hearings.

     SECTION 12. [NEW MATERIAL] CONFIDENTIALITY OF RECORDS.--All complaints, reports, files, records and communications collected or generated by the commission or its director that pertain to alleged ethics violations shall not be disclosed by the commission or any member, agent or employee of the commission, and are not subject to the Inspection of Public Records Act, unless:

          A. disclosure is necessary to pursue an investigation;

          B. disclosure is required pursuant to the provisions of the State Ethics Commission Act;

          C. they are offered into evidence at a judicial, legislative or administrative proceeding;

          D. disclosure is required by law or ordered by a court; or

          E. the respondent files with the commission a written waiver of confidentiality.

     SECTION 13. [NEW MATERIAL] CRIMINAL VIOLATIONS--REFERRAL.--If the commission finds at any time that the respondent's conduct may amount to a criminal violation, the commission shall immediately refer the matter to the attorney general or an appropriate district attorney. The commission shall provide the attorney general or district attorney with all evidence collected during its investigation that may be used in a criminal proceeding. Nothing in this section prevents the commission from taking any action otherwise authorized by the State Ethics Commission Act or deciding to hold a matter in abeyance pending resolution of any criminal charges.

     SECTION 14. [NEW MATERIAL] LIMITATIONS ON JURISDICTION.--          A. The commission shall not accept or consider a complaint unless the complaint is filed or initiated within three years from the date on which the alleged conduct occurred.

          B. The commission shall dismiss complaints that are frivolous, unfounded or outside the jurisdiction of the commission. A complainant shall be notified of this provision and shall be notified that the complainant may refer any allegations of criminal conduct to the attorney general or appropriate district attorney. The respondent shall be notified that a complaint has been filed and of the specific allegations in the complaint.

          C. The commission shall not investigate allegations of misconduct involving campaign advertisements.

     SECTION 15. [NEW MATERIAL] PROHIBITED ACTIONS.--

          A. A person shall not take or threaten to take any retaliatory, disciplinary or other adverse action against another person who in good faith:

                (1) files a complaint with the commission alleging an ethics violation against a public officer, public employee, candidate for elected office, government contractor or lobbyist; or

                (2) provides testimony, records, documents or other information to the commission during an investigation or at a hearing conducted pursuant to the State Ethics Commission Act.

          B. Nothing in the State Ethics Commission Act precludes civil action for malicious abuse of process.

          C. All pleadings and papers filed with the commission and all evidence submitted to the commission in a proceeding under the State Ethics Commission Act are absolutely privileged in an action for defamation.

     SECTION 16. [NEW MATERIAL] CONFIDENTIALITY--PENALTY.-- Disclosure of any confidential complaint, report, file, record or communication in violation of the State Ethics Commission Act is a misdemeanor and shall be punished by a fine of not more than one thousand dollars ($1,000) or by imprisonment for not more than one year or both.

     SECTION 17. Section 1-19-26 NMSA 1978 (being Laws 1979, Chapter 360, Section 2, as amended by Laws 2009, Chapter 67, Section 1 and by Laws 2009, Chapter 68, Section 2) is amended to read:

     "1-19-26. DEFINITIONS.--As used in the Campaign Reporting Act:

          A. "advertising campaign" means an advertisement or series of advertisements used for a political purpose and disseminated to the public either in print, by radio or television broadcast or by any other electronic means, including telephonic communications, and may include direct or bulk mailings of printed materials;

          B. "anonymous contribution" means a contribution the contributor of which is unknown to the candidate or the candidate's agent or the political committee or its agent who accepts the contribution;

          C. "bank account" means an account in a financial institution located in New Mexico;

          D. "campaign committee" means two or more persons authorized by a candidate to raise, collect or expend contributions on the candidate's behalf for the purpose of electing the candidate to office;

          E. "candidate" means an individual who seeks or considers an office in an election covered by the Campaign Reporting Act, including a public official, who either has filed a declaration of candidacy or nominating petition or:

                (1) for a nonstatewide office, has received contributions or made expenditures of one thousand dollars ($1,000) or more or authorized another person or campaign committee to receive contributions or make expenditures of one thousand dollars ($1,000) or more for the purpose of seeking election to the office; or

                (2) for a statewide office, has received contributions or made expenditures of two thousand five hundred dollars ($2,500) or more or authorized another person or campaign committee to receive contributions or make expenditures of two thousand five hundred dollars ($2,500) or more for the purpose of seeking election to the office or for candidacy exploration purposes in the years prior to the year of the election;

          F. "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, but "contribution" does not include the value of services provided without compensation or unreimbursed travel or other personal expenses of individuals who volunteer a portion or all of their time on behalf of a candidate or political committee, nor does it include the administrative or solicitation expenses of a political committee that are paid by an organization that sponsors the committee;

          G. "deliver" or "delivery" means to deliver by certified or registered mail, telecopier, electronic transmission or facsimile or by personal service;

          H. "election" means any primary, general or statewide special election in New Mexico and includes county and judicial retention elections but excludes municipal, school board and special district elections;

          I. "election year" means an even-numbered year in which an election covered by the Campaign Reporting Act is held;

          J. "expenditure" means a payment, transfer or distribution or obligation or promise to pay, transfer or distribute any money or other thing of value for a political purpose, including payment of a debt incurred in an election campaign or pre-primary convention, but does not include the administrative or solicitation expenses of a political committee that are paid by an organization that sponsors the committee;

          K. "person" means an individual or entity;

          L. "political committee" means two or more persons, other than members of a candidate's immediate family or campaign committee or a husband and wife who make a contribution out of a joint account, who are selected, appointed, chosen, associated, organized or operated primarily for a political purpose; and "political committee" includes:

                (1) political parties, political action committees or similar organizations composed of employees or members of any corporation, labor organization, trade or professional association or any other similar group that raises, collects, expends or contributes money or any other thing of value for a political purpose;

                (2) a single individual whose actions represent that the individual is a political committee; and

                (3) a person or an organization of two or more persons that within one calendar year expends funds in excess of five hundred dollars ($500) to conduct an advertising campaign for a political purpose;

          M. "political purpose" means influencing or attempting to influence an election or pre-primary convention, including a constitutional amendment or other question submitted to the voters;

          N. "prescribed form" means a form or electronic format prepared and prescribed by the [secretary of] state ethics commission;

          O. "proper filing officer" means [either the secretary of state or the county clerk] the state ethics commission as provided in Section 1-19-27 NMSA 1978;

          P. "public official" means a person elected to an office in an election covered by the Campaign Reporting Act or a person appointed to an office that is subject to an election covered by that act; and

          Q. "reporting individual" means every public official, candidate or treasurer of a campaign committee and every treasurer of a political committee."

     SECTION 18. Section 1-19-26.1 NMSA 1978 (being Laws 1993, Chapter 46, Section 2, as amended) is amended to read:

     "1-19-26.1. POLITICAL COMMITTEES--REGISTRATION--DISCLOSURES.--

          A. It is unlawful for [any] a political committee that receives, contributes or expends in excess of five hundred dollars ($500) in any calendar year to continue to receive or make [any] a contribution or expenditure for a political purpose unless that political committee appoints and maintains a treasurer and registers with the [secretary of] state ethics commission.

          B. A political committee shall register with the [secretary of] state ethics commission within ten days of receiving, contributing or expending in excess of five hundred dollars ($500) by paying a filing fee of fifty dollars ($50.00) and filing a statement of organization under oath on a prescribed form showing:

                (1) the full name of the political committee, which shall fairly and accurately reflect the identity of the committee, including any sponsoring organization, and its address;

                (2) a statement of the purpose for which the political committee was organized;

                (3) the name, address and relationship of any connected or associated organization or entity;

                (4) the names and addresses of the officers of the committee; and

                (5) an identification of the bank used by the committee for all expenditures or contributions made or received.

          C. The provisions of this section do not apply to a political committee that is located in another state and is registered with the federal election commission if the political committee reports on federal reporting forms filed with the federal election commission all expenditures for and contributions made to reporting individuals in New Mexico and files with the [secretary of] state ethics commission, according to the schedule required for the filing of forms with the federal election commission, a copy of either the full report or the cover sheet and the portions of the federal reporting forms that contain the information on expenditures for and contributions made to reporting individuals in New Mexico."

     SECTION 19. Section 1-19-26.2 NMSA 1978 (being Laws 1997, Chapter 112, Section 1) is amended to read:

     "1-19-26.2. RULES [AND REGULATIONS].--The [secretary of] state ethics commission may adopt and promulgate rules [and regulations] to implement the provisions of the Campaign Reporting Act. In adopting and promulgating these rules [and regulations], the [secretary of state] commission shall comply with the provisions of the Administrative Procedures Act. In addition to any other notification required pursuant to the provisions of Paragraph (2) of Subsection A of Section 12-8-4 NMSA 1978, the [secretary of state] commission shall notify all qualified political parties in the state and the New Mexico legislative council prior to adopting, amending or repealing any rule [or regulation] implementing the Campaign Reporting Act."

     SECTION 20. Section 1-19-27 NMSA 1978 (being Laws 1979, Chapter 360, Section 3, as amended) is amended to read:

     "1-19-27. REPORTS REQUIRED--PROPER FILING OFFICER.--

          A. Except for those candidates and public [officals] officials who file a statement of no activity, all reporting individuals shall file with the proper filing officer a report of expenditures and contributions on a prescribed form.

           B. The proper filing officer for filing reports of expenditures and contributions by a political committee is the [secretary of] state ethics commission.

          C. The proper filing officer for filing reports of expenditures and contributions or statements of no activity is the [secretary of] state ethics commission for all candidates and public officials.

          D. The [secretary of] state ethics commission shall develop or contract for services to develop an electronic reporting system for receiving and for public inspection of reports of expenditures and contributions and statements of no activity to the Campaign Reporting Act. The electronic reporting system shall:

                (1) enable a person to file reports online by filling out forms on the [secretary of state's] commission's web site; and

                (2) provide for encrypted transmissions."

     SECTION 21. Section 1-19-28 NMSA 1978 (being Laws 1979, Chapter 360, Section 4, as amended) is amended to read:

     "1-19-28. FURNISHING REPORT FORMS--POLITICAL COMMITTEES-- CANDIDATES.--

          A. The [secretary of] state ethics commission annually shall furnish to all reporting individuals the prescribed forms for the reporting of expenditures and contributions, supplemental reports and a statement of no activity and the specific dates the reports and statement are due.

          B. In addition to the provisions of Subsection A of this section, at the time of filing a declaration of candidacy or a nominating petition, the [proper filing officer] secretary of state or county clerk shall give the candidate the prescribed reporting forms and the schedule of specific dates for filing the required reports or a statement of no activity. The prescribed forms shall also be made available to all reporting individuals at the office of the secretary of state, the state ethics commission and in each county at the office of the county clerk."

     SECTION 22. Section 1-19-29 NMSA 1978 (being Laws 1993, Chapter 46, Section 5, as amended) is amended to read:

     "1-19-29. TIME AND PLACE OF FILING REPORTS.--

          A. Except as otherwise provided in this section, all reporting individuals shall file with the proper filing officer by 5:00 p.m. on the second Monday in April and October a report of all expenditures made and contributions received on or before the first Monday in those months and not previously reported. The report shall be filed biannually until the reporting individual's bank account has been closed and the other provisions specified in Subsection F of this section have been satisfied.

          B. In an election year, instead of the biannual reports provided for in Subsection A of this section, all reporting individuals, except for public officials who are not candidates in an election that year, shall file reports of all expenditures made and contributions received or, if applicable, statements of no activity, according to the following schedule:

                (1) by 5:00 p.m. on the second Monday in April, a report of all expenditures made and contributions received on or before the first Monday in April and not previously reported;

                (2) by 5:00 p.m. on the second Monday in May, a report of all expenditures made and contributions received on or before the first Monday in May and not previously reported;

                (3) by 5:00 p.m. on the second Monday in September, a report of all expenditures made and contributions received on or before the first Monday in September and not previously reported;

                (4) by 5:00 p.m. on the second Monday in October, a report of all expenditures made and contributions received on or before the first Monday in October and not previously reported;

                (5) by 5:00 p.m. on the Thursday before a primary, general or statewide special election, a report of all expenditures made and contributions received by 5:00 p.m. on the Tuesday before the election. Any contribution or pledge to contribute that is received after 5:00 p.m. on the Tuesday before the election and that is for five hundred dollars ($500) or more in a legislative or nonstatewide judicial election, or two thousand five hundred dollars ($2,500) or more in a statewide election, shall be reported to the proper filing officer either in a supplemental report on a prescribed form within twenty-four hours of receipt or in the report to be filed by 5:00 p.m. on the Thursday before a primary, general or statewide special election, except that any such contribution or pledge to contribute that is received after 5:00 p.m. on the Friday before the election may be reported by 12:00 noon on the Monday before the election; and

                (6) by 5:00 p.m. on the thirtieth day after a primary, general or statewide special election, a report of all expenditures made and contributions received on or before the twenty-fifth day after the election and not previously reported.

          C. If a candidate or public official has not received any contributions and has not made any expenditures since the candidate's or official's last report was filed with the proper filing officer, the candidate or official shall only be required to file a statement of no activity, which shall not be required to be notarized, in lieu of a full report when that report would otherwise be due and shall not be required to file a full report until the next required filing date occurring after an expenditure is made or a contribution is received.

          D. In an election year, a public official who is not a candidate shall file biannual reports of expenditures made and contributions received or statements of no activity in accordance with the schedule provided for in Subsection A of this section.

          E. A report of expenditures and contributions filed after a deadline set forth in this section shall not be deemed to have been timely filed.

          F. Except for candidates and public officials who file a statement of no activity, each reporting individual shall file a report of expenditures and contributions pursuant to the filing schedules set forth in this section, regardless of whether any expenditures were made or contributions were received during the reporting period. Reports shall be required until the reporting individual delivers a report to the proper filing officer stating that:

                (1) there are no outstanding campaign debts;

                (2) all money has been expended in accordance with the provisions of Section 1-19-29.1 NMSA 1978; and

                (3) the bank account has been closed.

          G. Each treasurer of a political committee shall file a report of expenditures and contributions pursuant to the filing schedules set forth in this section until the treasurer files a report that affirms that the committee has dissolved or no longer exists and that its bank account has been closed.

          H. A reporting individual who is a candidate within the meaning of the Campaign Reporting Act because of the amount of contributions the candidate receives or expenditures the candidate makes and who does not ultimately file a declaration of candidacy or a nominating petition with the proper filing officer and does not file a statement of no activity shall file biannual reports in accordance with Subsection A of this section.

          I. Reports required by this section shall be subscribed and sworn to by the candidate or the treasurer of the political committee. A report filed electronically shall be electronically authenticated by the candidate or the treasurer of the political committee using an electronic signature in conformance with the Electronic Authentication of Documents Act and the Uniform Electronic Transactions Act. For the purposes of the Campaign Reporting 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 candidate or the treasurer of the political committee who was required to file the report.

          J. Reports required by this section shall be filed electronically by all reporting individuals.

          K. Reporting individuals may apply to the [secretary of] state ethics commission for exemption from electronic filing in case of hardship, which shall be defined by the [secretary of state] commission."

     SECTION 23. Section 1-19-31 NMSA 1978 (being Laws 1979, Chapter 360, Section 7, as amended) is amended to read:

     "1-19-31. CONTENTS OF REPORT.--

          A. Each required report of expenditures and contributions shall be typed or printed legibly, or on a computer disc or format approved by the [secretary of] state ethics commission, and shall include:

                (1) the name and address of the person or entity to whom an expenditure was made or from whom a contribution was received, except as provided for anonymous contributions or contributions received from special events as provided in Section 1-19-34 NMSA 1978; provided that for contributors, the name of the entity or the first and last names of any individual shall be the full name of the entity or individual, and initials only shall not constitute a full name unless that is the complete legal name;

                (2) the occupation or type of business of any person or entity making contributions of two hundred fifty dollars ($250) or more in the aggregate per election;

                (3) the amount of the expenditure or contribution or value thereof;

                (4) the purpose of the expenditure; and

                (5) the date the expenditure was made or the contribution was received.

          B. Each report shall contain an opening and

closing cash balance for the bank account maintained by the reporting individual during the reporting period and the name of the financial institution.

          C. Each report shall specify the amount of each unpaid debt and the identity of the person to whom the debt is owed."

     SECTION 24. Section 1-19-32 NMSA 1978 (being Laws 1979, Chapter 360, Section 8, as amended) is amended to read:

     "1-19-32. INSPECTION OF PUBLIC RECORDS.--

          A. Each of the following documents is a public record open to public inspection during regular office hours in the office in which the document was filed or from which the document was issued:

                (1) a statement of [exception] no activity;

                (2) a report of expenditures and contributions;

                (3) an advisory opinion issued by the [secretary of] state ethics commission;

                (4) a document specified as a public record in the Campaign Reporting Act; and

                (5) an arbitration decision issued by an arbitration panel and filed with the [secretary of] state ethics commission.

          B. Each public record described in Subsection A of this section shall be retained by the state for five years and may be destroyed five years after the date of filing unless a legal action or prosecution is pending that requires the preservation of the public record.

          C. The [secretary of] state ethics commission shall provide for electronic access to reports of expenditures and contributions and statements of [exception] no activity submitted electronically by reporting individuals. Electronic access shall include access via the internet and shall be in an easily searchable format."

     SECTION 25. Section 1-19-32.1 NMSA 1978 (being Laws 1981, Chapter 331, Section 9, as amended) is amended to read:

     "1-19-32.1. REPORTS EXAMINATION--FORWARDING OF

REPORTS.--

          A. The [secretary of] state ethics commission shall conduct a thorough examination of at least ten percent of all reports filed during a year by reporting individuals, selected at random at least forty days after the general election and ten days after the April reports are filed in a non-election year, to determine compliance with the provisions of the Campaign Reporting Act. The examination may include an investigation of any discrepancies, including a cross-reference to reports filed by any other reporting individual. A reporting individual shall be notified in writing if a discrepancy is found in the report filed and shall be permitted to file a written explanation for the discrepancy within ten working days of the date of the notice. The notice, penalty and arbitration provisions set forth in Section 1-19-34.4 NMSA 1978 shall apply to examinations conducted under this section.

          B. After the date stated in the notice of final action for submission of a written explanation, the [secretary of] state ethics commission shall prepare an annual report of any unresolved discrepancies found after examination of the random sample provided for in Subsection A of this section. A copy of this report shall be transmitted to the attorney general for enforcement pursuant to the provisions of Section 1-19-36 NMSA 1978. This report is a public record open to public inspection and subject to the retention and destruction provisions set forth in Section 1-19-32 NMSA 1978."

     SECTION 26. Section 1-19-34.4 NMSA 1978 (being Laws 1993, Chapter 46, Section 15, as amended) is amended to read:

     "1-19-34.4. EDUCATION AND VOLUNTARY COMPLIANCE--INVESTIGATIONS--BINDING ARBITRATION--REFERRALS FOR ENFORCEMENT.--

          A. The [secretary of] state ethics commission shall advise and seek to educate all persons required to perform duties under the Campaign Reporting Act of those duties. This includes advising all known reporting individuals at least annually of that act's deadlines for submitting required reports and statements of exception. The [secretary of state] commission, in consultation with the attorney general, shall issue advisory opinions, when requested in writing to do so, on matters concerning that act. All prescribed forms prepared shall be clear and easy to complete.

          B. The [secretary of] state ethics commission may initiate investigations to determine whether any provision of the Campaign Reporting Act has been violated. Additionally, any person who believes that a provision of that act has been violated may file a written complaint with the [secretary of state] commission any time prior to ninety days after an election, except that no complaints from the public may be filed within eight days prior to an election. The [secretary of state] commission shall adopt procedures for issuing advisory opinions and processing complaints and notifications of violations.

          C. The [secretary of] state ethics commission shall at all times seek to ensure voluntary compliance with the provisions of the Campaign Reporting Act. If the [secretary of state] commission determines that a provision of that act for which a penalty may be imposed has been violated, the [secretary of state] commission shall by written notice set forth the violation and the fine imposed and inform the reporting individual that [he] the individual has ten working days from the date of the letter to correct the matter and to provide a written explanation, under penalty of perjury, stating any reason why the violation occurred. If a timely explanation is filed and the [secretary of state] commission determines that good cause exists to waive the fine imposed, the [secretary of state] commission may by a written notice of final action partially or fully waive any fine imposed for any late, incomplete or false report or statement of [exception] no activity. A written notice of final action shall be sent by certified mail.

          D. Upon receipt of the notice of final action, the person against whom the penalty has been imposed may protest the [secretary of state's] state ethics commission's determination, including an advisory opinion, by submitting on a prescribed form a written request for binding arbitration to the [secretary of state] commission within ten working days of the date of the notice of final action. Any fine imposed shall be due and payable within ten working days of the date of notice of final action. No additional fine shall accrue pending the issuance of the arbitration decision. Fines paid pursuant to a notice of final action that are subsequently reduced or dismissed shall be reimbursed with interest within ten working days after the filing of the arbitration decision with the [secretary of state] commission. Interest on the reduced or dismissed portion of the fine shall be the same as the rate of interest earned by the [secretary of state's] commission's escrow account to be established by the department of finance and administration.

          E. An arbitration hearing shall be conducted by a single arbitrator selected within ten days by the person against whom the penalty has been imposed from a list of five arbitrators provided by the [secretary of] state [Neither the secretary of state nor] ethics commission. A person subject to the Campaign Reporting Act, Lobbyist Regulation Act or Financial Disclosure Act [may] shall not serve as an arbitrator. Arbitrators shall be considered to be independent contractors, not public officers or employees, and shall not be paid per diem and mileage.

          F. The arbitrator shall conduct the hearing within thirty days of the request for arbitration. The arbitrator may impose any penalty the [secretary of] state ethics commission is authorized to impose. The arbitrator shall state the reasons for [his] the arbitrator's decision in a written document that shall be a public record. The decision shall be final and binding. The decision shall be issued and filed with the [secretary of state] commission within thirty days of the conclusion of the hearing. Unless otherwise provided for in this section or by rule or regulation adopted by the [secretary of state] commission, the procedures for the arbitration shall be governed by the Uniform Arbitration Act. No arbitrator shall be subject to liability for actions taken pursuant to this section.

          G. The [secretary of] state ethics commission may refer a matter to the attorney general or a district attorney for a civil injunctive or other appropriate order or for criminal enforcement."

     SECTION 27. Section 1-19-34.6 NMSA 1978 (being Laws 1995, Chapter 153, Section 19) is amended to read:

     "1-19-34.6. CIVIL PENALTIES.--

          A. If the [secretary of] state ethics commission reasonably believes that a person committed, or is about to commit, a violation of the Campaign Reporting Act, the [secretary of state] commission shall refer the matter to the attorney general or a district attorney for enforcement.

          B. The attorney general or district attorney may institute a civil action in district court for any violation of the Campaign Reporting Act or to prevent a violation of that act that involves an unlawful solicitation or the making or acceptance of an unlawful contribution. An action for relief may include a permanent or temporary injunction, a restraining order or any other appropriate order, including a civil penalty of two hundred fifty dollars ($250) for each violation not to exceed five thousand dollars ($5,000), and forfeiture of any contribution received as a result of an unlawful solicitation or unlawful contribution. Each unlawful solicitation and each unlawful contribution made or accepted shall be deemed a separate violation of the Campaign Reporting Act.

          C. The attorney general or district attorney may institute a civil action in district court if a violation has occurred or to prevent a violation of any provision of the Campaign Reporting Act other than that specified in Subsection B of this section. Relief may include a permanent or temporary injunction, a restraining order or any other appropriate order, including an order for a civil penalty of fifty dollars ($50.00) for each violation not to exceed five thousand dollars ($5,000)."

     SECTION 28. Section 1-19-34.7 NMSA 1978 (being Laws 2009, Chapter 68, Section 1) is amended to read: 

     "1-19-34.7. CONTRIBUTION LIMITATIONS--CANDIDATES--POLITICAL COMMITTEES.--

          A. The following contributions by the following persons are prohibited:

                (1) from a person, not including a political committee, to a:

                     (a) candidate for nonstatewide office, including the candidate's campaign committee, in an amount that will cause that person's total contributions to the candidate to exceed two thousand three hundred dollars ($2,300) during the primary election or two thousand three hundred dollars ($2,300) during the general election;

                     (b) candidate for statewide office, including the candidate's campaign committee, in an amount that will cause that person's total contributions to the candidate to exceed five thousand dollars ($5,000) during the primary election or five thousand dollars ($5,000) during the general election; or

                     (c) political committee in an amount that will cause that person's total contributions to the political committee to exceed five thousand dollars ($5,000) during a primary election or five thousand dollars ($5,000) during a general election; and

                (2) from a political committee to:

                     (a) a candidate for office, including the candidate's campaign committee, in an amount that will cause the political committee's total contributions to the candidate to exceed five thousand dollars ($5,000) during the primary election or five thousand dollars ($5,000) during the general election; or 

                     (b) another political committee in an amount that will cause that political committee's total contributions to the political committee to exceed five thousand dollars ($5,000) during a primary election or five thousand dollars ($5,000) during a general election.

          B. All contributions made by a person to a candidate, either directly or indirectly, including contributions that are in any way earmarked or otherwise directed through another person to a candidate, shall be treated as contributions from the person to that candidate.

          C. A person, including a political committee, shall not knowingly accept or solicit a contribution, directly or indirectly, including a contribution earmarked or otherwise directed or coordinated through another person, including a political committee, that violates the contribution limits provided for in this section.

          D. On the day after each general election, the contribution amounts provided in Subsection A of this section shall be increased by the percentage of the preceding two calendar [year's] years' increase of the consumer price index for all urban consumers, United States city average for all items, published by the United States department of labor. The amount of the increase shall be rounded to the nearest multiple of one hundred dollars ($100). The [secretary of] state ethics commission shall publish by October 1 before each general election the adjusted contribution limits that shall take effect the day after the following general election.

          E. All contributions in excess of the limits imposed by the provisions of this section shall be deposited in the public election fund upon a finding by the [secretary of] state ethics commission that the contribution limits have been exceeded.

          F. The limitation on contributions to a candidate provided for in Subsection A of this section shall not apply to a candidate's own contribution from the candidate's personal funds to the candidate's own campaign.

          G. For the purposes of this section:

                (1) "primary election" means the period beginning on the day after the general election for the applicable office and ending on the day of the primary for that office; and

                (2) "general election" means the period beginning on the day after the primary for the applicable office and ending on the day of the general election for that office."

     SECTION 29. Section 1-19-35 NMSA 1978 (being Laws 1979, Chapter 360, Section 11, as amended) is amended to read:

     "1-19-35. REPORTS AND STATEMENTS--LATE FILING

PENALTY--FAILURE TO FILE.--

          A. Except for the report required to be filed and delivered the Thursday prior to the election and any supplemental report, as required in Paragraph (5) of Subsection B of Section 1-19-29 NMSA 1978, that is due prior to the election, and subject to the provisions of Section 1-19-34.4 NMSA 1978, if a statement of no activity or a report of expenditures and contributions contains false or incomplete information or is filed after any deadline imposed by the Campaign Reporting Act, the responsible reporting individual or political committee, in addition to any other penalties or remedies prescribed by the Election Code, shall be liable for and shall pay to the [secretary of] state ethics commission fifty dollars ($50.00) per day for each regular working day after the time required by the Campaign Reporting Act for the filing of statements of no activity or reports of expenditures and contributions until the complete or true statement or report is filed, up to a maximum of five thousand dollars ($5,000).

          B. If any reporting individual files a false, intentionally incomplete or late report of expenditures and contributions due on the Thursday prior to the election, the reporting individual or political committee shall be liable

and pay to the [secretary of] state ethics commission five hundred dollars ($500) for the first working day and fifty dollars ($50.00) for each subsequent working day after the time required for the filing of the report until the true and complete report is filed, up to a maximum of five thousand dollars ($5,000).

          C. If a reporting individual fails to file or files a late supplemental report of expenditures and contributions as required in Paragraph (5) of Subsection B of Section 1-19-29 NMSA 1978, the reporting individual or political committee shall be liable for and pay to the [secretary of] state ethics commission a penalty equal to the amount of each contribution received or pledged after the Tuesday before the election that was not timely filed.

          D. All sums collected for the penalty shall be deposited in the state general fund. A report or statement of [exception] no activity shall be deemed timely filed only if it is received by the proper filing officer by the date and time prescribed by law.

          E. Any candidate who fails or refuses to file a report of expenditures and contributions or statement of no activity or to pay a penalty imposed by the [secretary of] state ethics commission as required by the Campaign Reporting Act shall not, in addition to any other penalties provided by law:

                (1) have the candidate's name printed upon the ballot if the violation occurs before and through the final date for the withdrawal of candidates; or

                (2) be issued a certificate of nomination or election, if the violation occurs after the final date for withdrawal of candidates or after the election, until the candidate satisfies all reporting requirements of the Campaign Reporting Act and pays all penalties owed.

          F. Any candidate who loses an election and who failed or refused to file a report of expenditures and contributions or a statement of no activity or to pay a penalty imposed by the [secretary of] state ethics commission as required by the Campaign Reporting Act shall not be, in addition to any other penalties provided by law, permitted to file a declaration of candidacy or nominating petition for any future election until the candidate satisfies all reporting requirements of that act and pays all penalties owed."

     SECTION 30. Section 1-19A-1 NMSA 1978 (being Laws 2003, Chapter 14, Section 1) is amended to read:

     "1-19A-1. SHORT TITLE.--[Sections 1 through 17 of this act] Chapter 1, Article 19A NMSA 1978 may be cited as the "Voter Action Act"."

     SECTION 31. Section 1-19A-2 NMSA 1978 (being Laws 2003, Chapter 14, Section 2, as amended) is amended to read:

     "1-19A-2. DEFINITIONS.--As used in the Voter Action Act:

          A. "applicant candidate" means a candidate who is running for a covered office and who is seeking to be a certified candidate in a primary or general election;

          B. "certified candidate" means a candidate running for a covered office who chooses to obtain financing pursuant to the Voter Action Act and is certified as a Voter Action Act candidate;

          C. "commission" means the state ethics commission;

          [C.] D. "contested election" means an election in which there are more candidates for a position than the number to be elected to that position;

          [D.] E. "covered office" means any office of the judicial department subject to statewide elections and the office of public regulation commissioner;

          [E.] F. "election cycle" means the primary and general elections for the same term of the same covered office, beginning on the day after the last general election for the office and ending with the general election; the primary election cycle begins on the first day of the election cycle and ends on the day of the primary election; the general election begins on the day after the primary election and ends on the day of the general election;

          [F.] G. "fund" means the public election fund;

          [G.] H. "noncertified candidate" means either a candidate running for a covered office who does not choose to participate in the Voter Action Act and who is not seeking to be a certified candidate or a candidate who files a declaration of intent to participate but who fails to qualify;

          [H.] I. "qualifying contribution" means a donation of five dollars ($5.00) in the form of cash or a check or money order payable to the fund in support of an applicant candidate that is:  

                (1) made by a registered voter who is eligible to vote for the covered office that the applicant candidate is seeking;

                (2) made during the designated qualifying period and obtained through efforts made with the knowledge and approval of the applicant candidate; and

                (3) acknowledged by a receipt that identifies the contributor's name and residential address on forms provided by the [bureau of elections] commission and that is signed by the contributor, one copy of which is attached to the list of contributors and sent to the [bureau of elections] commission;

          [I.] J. "qualifying period" means:

                (1) for major party applicant candidates for covered offices, the period beginning October 1 immediately preceding the election year and ending at 5:00 p.m. on the third Tuesday of March of the election year; and

                (2) for independent and minor party candidates, the period beginning February 1 of the election year and ending that year at 5:00 p.m. on the filing date for independent or minor party candidates for the office for which the candidate is running;

          [J. "secretary" means the secretary of state or the office of the secretary of state] and

          K. "seed money" means a contribution raised for the primary purpose of enabling applicant candidates to collect qualifying contributions and petition signatures."

     SECTION 32. Section 1-19A-3 NMSA 1978 (being Laws 2003, Chapter 14, Section 3) is amended to read:

     "1-19A-3. TERMS OF PARTICIPATION--DECLARATION OF INTENT.--

          A. A candidate choosing to obtain financing pursuant to the Voter Action Act shall first file with the [secretary] commission a declaration of intent to participate in that act as an applicant candidate for a stated covered office. The declaration of intent shall be filed with the [secretary] commission prior to or during the qualifying period according to forms and procedures developed by the [secretary] commission.

          B. An applicant candidate choosing to participate in the Voter Action Act shall submit a declaration of intent prior to collecting any qualifying contributions and make explicit in the declaration that the candidate has complied with and will continue to comply with that act's contribution and expenditure limits and all other requirements set forth in that act and rules issued by the [secretary] commission.

          C. A candidate shall not be eligible to become an applicant candidate if the candidate has accepted contributions totaling five hundred dollars ($500) or more or made expenditures totaling five hundred dollars ($500) or more between the beginning of the qualifying period and filing a declaration of intent."

     SECTION 33. Section 1-19A-6 NMSA 1978 (being Laws 2003, Chapter 14, Section 6) is amended to read:

     "1-19A-6. CERTIFICATION.--

          A. Upon receipt of a final submittal of qualifying contributions by an applicant candidate, the [secretary] commission shall determine whether the applicant candidate has:

                (1) signed and filed a declaration of intent to obtain financing pursuant to the Voter Action Act in accordance with the requirements of that act;

                (2) submitted the appropriate number of qualifying contributions;

                (3) qualified as a candidate pursuant to other applicable state election law;

                (4) complied with seed money contribution and expenditure restrictions; and

                (5) otherwise met the requirements for obtaining financing pursuant to the Voter Action Act.

          B. The [secretary] commission shall certify applicant candidates complying with the requirements of this section as certified candidates as soon as possible and no later than ten days after final submittal of qualifying contributions and certification as a candidate pursuant to other applicable state election law.

          C. A certified candidate shall comply with all requirements of the Voter Action Act after certification and throughout the primary election and general election cycles. A certified candidate who accepts public campaign finance funds for the primary election shall comply with all the requirements of the Voter Action Act for the remainder of the election cycle in question, even if [he] the certified candidate decides not to accept such funds for the general election."

     SECTION 34. Section 1-19A-7 NMSA 1978 (being Laws 2003, Chapter 14, Section 7, as amended) is amended to read:

     "1-19A-7. GUIDELINES AND RESTRICTIONS FOR CONTRIBUTIONS TO AND EXPENDITURES OF CERTIFIED CANDIDATES.--

          A. All money distributed to a certified candidate shall be used for that candidate's campaign-related purposes in the election cycle in which the money was distributed.

          B. A certified candidate shall return to the fund any amount that is unspent or unencumbered at the time that person ceases to be a candidate before a primary or general election for which the fund money was distributed.

          C. A certified candidate shall limit total campaign expenditures and debts to the amount of money distributed to that candidate from the fund. A certified candidate shall not accept contributions or loans from any other source except the certified candidate's political party, as specified in Section 1-19A-8 NMSA 1978.

          D. A certified candidate shall return to the [secretary] commission, within thirty days after the primary election, any amount that is unspent or unencumbered by the date of the primary election for direct deposit into the fund.

          E. A certified candidate shall return to the [secretary] commission, within thirty days after the general election, any amount that is unspent or unencumbered by the date of the general election for direct deposit into the fund."

     SECTION 35. Section 1-19A-9 NMSA 1978 (being Laws 2003, Chapter 14, Section 9) is amended to read:

     "1-19A-9. CANDIDATE REPORTING REQUIREMENTS.--

          A. The [secretary] commission shall publish guidelines outlining permissible campaign-related expenditures.

          B. Applicant candidates shall file a report listing seed money contributions and expenditures with their application for certification.

          C. Applicant candidates shall file qualifying contributions with the [secretary] commission during the qualifying period according to procedures developed by the [secretary] commission. In developing these procedures, the [secretary] commission shall use existing campaign reporting procedures and deadlines whenever practical.

          D. Certified candidates shall report expenditures according to the campaign reporting requirements specified in the Election Code.

          E. In addition to the campaign contribution and expenditure reports specified in the Election Code, all noncertified candidates who have as an opponent a certified candidate shall report to the [secretary] commission ten days before the primary and general elections the amount of money spent by that noncertified candidate. This report shall include all previously unreported transactions through 5:00 p.m. two days before the report is due.

          F. A person or political committee that makes expenditures to influence a race involving a certified candidate shall report to the [secretary] commission the amount that person or political committee has spent. These reports shall include all previously unreported transactions through 5:00 p.m. two days before the report is due, and shall be submitted as follows:

                (1) for the primary election, by 5:00 p.m. on the second Monday in May, by 5:00 p.m. on the eleventh day before the election and by 5:00 p.m. on the Thursday before the election; and

                (2) for the general election, by 5:00 p.m. the first Tuesday in October, by 5:00 p.m. on the eleventh day before the election and by 5:00 p.m. on the Thursday before the election."

     SECTION 36. Section 1-19A-10 NMSA 1978 (being Laws 2003, Chapter 14, Section 10, as amended) is amended to read:

     "1-19A-10. PUBLIC ELECTION FUND--CREATION--USE.--

          A. There is created in the state treasury the "public election fund" solely for the purposes of:

                (1) financing the election campaigns of certified candidates for covered offices;

                (2) paying administrative and enforcement costs of the Voter Action Act; and

                (3) carrying out all other specified provisions of the Voter Action Act.

          B. The state treasurer shall invest the funds as other state funds are invested, and all income derived from the fund shall be credited directly to the fund. Remaining balances at the end of a fiscal year shall remain in the [election] fund and not revert to the general fund.

          C. Money received from the following sources shall be deposited directly into the fund:

                (1) qualifying contributions that have been submitted to the [secretary] commission;

                (2) any recurring balance of unspent fund money distributed to a certified candidate who does not remain a candidate through the primary or general election period for which the money was distributed;

                (3) money that remains unspent or unencumbered by a certified candidate following the date of the primary election;

                (4) money that remains unspent or unencumbered by a certified candidate following the date of the general election;

                (5) unspent seed money that cannot be used for any other purpose;

                (6) money distributed to the fund from funds received pursuant to the Uniform Unclaimed Property Act (1995); and

                (7) money appropriated by the legislature.

          D. A subaccount shall be established in the fund, and money in the subaccount shall only be used to pay the costs of carrying out the provisions of the Voter Action Act related to public regulation commission elections.

          E. Two hundred thousand dollars ($200,000) per year shall be collected and deposited in the subaccount for public regulation commission elections as follows:

                (1) one hundred thousand dollars ($100,000) from inspection and supervision fees collected pursuant to Section 62-8-8 NMSA 1978; and

                (2) one hundred thousand dollars ($100,000) from utility and carrier inspection fees collected pursuant to Section 63-7-20 NMSA 1978."

     SECTION 37. Section 1-19A-11 NMSA 1978 (being Laws 2003, Chapter 14, Section 11) is amended to read:

     "1-19A-11. DETERMINATION OF FUND AMOUNT.--

          A. By January 1, 2007, and every two years thereafter, the [secretary] commission shall prepare and provide to the legislature a report documenting, evaluating and making recommendations relating to the administration, implementation and enforcement of the Voter Action Act.

          B. In the report, the [secretary] commission shall set out the revenues received to date, the expected costs to the fund for the next election cycle and the amount of the annual appropriation from the legislature that will be required to meet this need."

     SECTION 38. Section 1-19A-12 NMSA 1978 (being Laws 2003, Chapter 14, Section 12) is amended to read:

     "1-19A-12. TIMING OF FUND DISTRIBUTION.--

          A. [Beginning with the election cycle that ends with the general election in 2006] The [secretary] commission shall distribute money from the fund to certified candidates in accordance with the provisions of Subsections B and C of this section.

          B. For a primary election certified candidate, the [secretary] commission shall distribute the amount due to that certified candidate for that covered office within one week of certification.

          C. For a candidate certified for the general election, the [secretary] commission shall distribute the amount due to that certified candidate for that covered office within one week after the primary election or, for a minor party or independent candidate, within one week after certification of the candidate."

     SECTION 39. Section 1-19A-13 NMSA 1978 (being Laws 2003, Chapter 14, Section 13, as amended) is amended to read:

     "1-19A-13. AMOUNT OF FUND DISTRIBUTION.--

          A. By August 1 [2007] of each odd-numbered year, the [secretary] commission shall determine the amount of money to be distributed to each certified candidate for the election cycle ending with the next general election [in 2008], based on the type of election and the provisions of Subsections B through F of this section.

          B. For contested primary elections, the amount of money to be distributed to a certified candidate is equal to the following:

                (1) for the office of public regulation commissioner, twenty-five cents ($.25) for each voter of the candidate's party in the district of the office for which the candidate is running; and

                (2) for the office of justice of the supreme court and judge of the court of appeals, fifteen cents ($.15) for each voter of the candidate's party in the state.

          C. For uncontested primary elections, the amount of money to be distributed to a certified candidate is equal to fifty percent of the amount specified in Subsection B of this section.

          D. For contested general elections, the amount of money to be distributed to a certified candidate is equal to the following:

                (1) for the office of public regulation commissioner, twenty-five cents ($.25) for each voter in the district of the office for which the candidate is running; and

                (2) for the office of justice of the supreme court and judge of the court of appeals, fifteen cents ($.15) for each voter in the state.

          E. For uncontested general elections, except as provided in Subsection I of this section, the amount of money to be distributed to a certified candidate is equal to fifty percent of the amount specified in Subsection D of this section. If a general election race that is initially uncontested later becomes contested because of the qualification of an independent or minor party candidate to appear on the ballot for that race, an additional amount of money shall be distributed to the certified candidate to make that candidate's total distribution amount equal to the amount distributed pursuant to Subsection D of this section.

          F. Once the certification for candidates for the primary election has been completed, the [secretary] commission shall calculate the total amount of money to be distributed in the primary election cycle, based on the number of certified candidates and the allocations specified in this section. The [secretary] commission shall increase the total amount by twenty percent to provide funds for additional matching funds in the primary election. The [secretary] commission shall also prepare an estimate of the total amount of money that might be distributed in the general election cycle. This estimate shall be increased by twenty percent to provide funds for additional matching funds in the general election. If the total amount to be distributed in the primary election cycle, plus the added twenty percent and the estimated total amount to be distributed in the general election cycle, plus the added twenty percent, all taken together, exceed the amount expected to be available in the fund, the [secretary] commission shall allocate the amount available between the primary and general election cycles. This allocation shall be based on the ratio of the two total amounts.

          G. If the allocation specified in Subsection F of this section is greater than the total amount available for distribution, then the amounts to be distributed to individual candidates, specified in Subsections B through E of this section, shall each be reduced by the same percentage as the reduction by which the total amount needed has been reduced relative to the total amount available.

          H. At least every two years after January 1, 2007, the [secretary] commission shall evaluate and modify as necessary the dollar values originally determined by Subsections B through E of this section and shall consider and account for inflation in the evaluations.

          I. No money shall be distributed to candidates in judicial retention elections. No money shall be distributed to judicial candidates in uncontested general elections, provided that if a general election race that is initially uncontested later becomes contested, the certified judicial candidate shall receive a distribution in accordance with Subsection D of this section."

     SECTION 40. Section 1-19A-14 NMSA 1978 (being Laws 2003, Chapter 14, Section 14, as amended) is amended to read:

     "1-19A-14. MATCHING FUNDS.--When a certified or noncertified candidate has one or more opponents who are certified candidates and the candidate's campaign finance report or group of reports shows that the sum of the candidate's expenditures and obligations made, or funds raised or borrowed, whichever is greater, alone or in conjunction with expenditures made independently of the candidate to influence the election on behalf of the candidate, exceeds the amount distributed to an opposing certified candidate, the [secretary] commission shall issue immediately to any opposing certified candidate an additional amount equivalent to the excess amount reported by the opposing candidate. Total matching funds to a certified candidate in an election are limited to twice the amount originally distributed to that candidate pursuant to Section 1-19A-13 NMSA 1978."

     SECTION 41. Section 1-19A-15 NMSA 1978 (being Laws 2003, Chapter 14, Section 15) is amended to read:

     "1-19A-15. ADMINISTRATION--[SECRETARY OF STATE] COMMISSION--DUTIES.--

          A. The [secretary] commission shall adopt rules to ensure effective administration of the Voter Action Act.

          B. The rules shall include procedures for:

                (1) qualifications, certification and disbursement of revenues and return of unspent fund revenues;

                (2) obtaining qualifying contributions;

                (3) certification of candidates;

                (4) collection of revenues; and

                (5) return of fund disbursements and other money to the fund."

     SECTION 42. Section 1-19A-16 NMSA 1978 (being Laws 2003, Chapter 14, Section 16) is amended to read:

     "1-19A-16. APPEALS.--The procedure for challenging a certification decision by the [secretary] commission is as follows:

          A. a person aggrieved by a certification decision or a decision regarding the distribution of matching funds may appeal to the [secretary] commission within three days of the decision. The appeal shall be in writing and shall set forth the reasons for appeal;

          B. within five days after an appeal is properly made, and after due notice is given to the parties in dispute, the [secretary] commission shall hold a hearing whereby:

                (1) the appellant has the burden of providing evidence to demonstrate that the [secretary's] commission's decision was improper; and

                (2) the [secretary] commission shall rule on the appeal within three days after the completion of the hearing;

          C. the parties in dispute may appeal the decision of the [secretary] commission by commencing an action in district court; and

          D. certified candidates whose certification is revoked on appeal shall return to the [secretary] commission any unspent money distributed from the fund. If the [secretary] commission or court finds that an appeal was made frivolously or to result in delay or hardship, the [secretary] commission or court may sanction the moving party by requiring the party to pay costs of the administrative hearing, the court hearing and the opposing parties."

     SECTION 43. Section 1-19A-17 NMSA 1978 (being Laws 2003, Chapter 14, Section 17) is amended to read:

     "1-19A-17. PENALTIES.--

          A. In addition to other penalties that may be applicable, a person who violates a provision of the Voter Action Act is subject to a civil penalty of up to ten thousand dollars ($10,000) per violation. In addition to a fine, a certified candidate found in violation of that act may be required to return to the fund all amounts distributed to the candidate from the fund. If the [secretary] commission makes a determination that a violation of that act has occurred, the [secretary] commission shall impose a fine or transmit the finding to the attorney general for prosecution. In determining whether a certified candidate is in violation of the expenditure limits of that act, the [secretary] commission may consider as a mitigating factor any circumstances out of the candidate's control.

          B. A person who willfully or knowingly violates the provisions of the Voter Action Act or rules of the [secretary] commission or knowingly makes a false statement in a report required by that act is guilty of a fourth degree felony and, if [he] the person is a certified candidate, shall return to the fund all money distributed to that candidate."

     SECTION 44. Section 2-11-2 NMSA 1978 (being Laws 1977, Chapter 261, Section 2, as amended) is amended to read:

     "2-11-2. DEFINITIONS.--As used in the Lobbyist Regulation Act:

          A. "compensation" means any money, per diem, salary, fee or portion thereof or the equivalent in services rendered or in-kind contributions received or to be received in return for lobbying services performed or to be performed;

          B. "expenditure" means a payment, transfer or distribution or obligation or promise to pay, transfer or distribute any money or other thing of value but does not include a lobbyist's own 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;

          C. "legislative committee" means a committee created by the legislature, including interim and standing committees of the legislature;

          D. "lobbying" means attempting to influence:

                (1) a decision related to any matter to be considered or being considered by the legislative branch of state government or any legislative committee or any legislative matter requiring action by the governor or awaiting action by the governor; or

                (2) an official action;

          E. "lobbyist" means any individual who is compensated for the specific purpose of lobbying; is designated by an interest group or organization to represent it on a substantial or regular basis for the purpose of lobbying; or in the course of [his] employment, is engaged in lobbying on a substantial or regular basis. "Lobbyist" does not include:

                (1) an individual who appears on [his] the individual's own behalf in connection with legislation or an official action;

                (2) [any] an elected or appointed officer of the state or its political subdivisions or an Indian nation, tribe or pueblo acting in [his] the officer's official capacity;

                (3) an employee of the state or its political subdivisions, specifically designated by an elected or appointed officer of the state or its political subdivision, who appears before a legislative committee or in a rulemaking proceeding only to explain the effect of legislation or a rule on [his] the designated employee's agency or political subdivision, provided the elected or appointed officer of the state or its political subdivision keeps for public inspection and files with the [secretary of] state ethics commission such designation;

                (4) [any] a designated member of the staff of an elected state official, provided the elected state official keeps for public inspection and files with the [secretary of] state ethics commission such designation;

                (5) a member of the legislature, the staff of [any] a member of the legislature or the staff of [any] a legislative committee when addressing legislation;

                (6) [any] a witness called by a legislative committee or administrative agency to appear before that legislative committee or agency in connection with legislation or an official action;

                (7) an individual who provides only oral or written public testimony in connection with a legislative committee or in a rulemaking proceeding and whose name and the interest on behalf of which [he] the individual testifies have been clearly and publicly identified; or

                (8) a publisher, owner or employee of the print media, radio or television, while gathering or disseminating news or editorial comment to the general public in the ordinary course of business;

          F. "lobbyist's employer" means the person whose interests are being represented and by whom a lobbyist is directly or indirectly retained, compensated or employed;

          G. "official action" means the action or nonaction of a state official or state agency, board or commission acting in a rulemaking proceeding;

          H. "person" means an individual, partnership, association, committee, federal, state or local governmental entity or agency, however constituted, public or private corporation or any other organization or group of persons who are voluntarily acting in concert;

          I. "political contribution" means a gift, subscription, loan, advance or deposit of [any] money or other thing of value, including the estimated value of an in-kind contribution, that is made or received for the purpose of influencing a primary, general or statewide election, including a constitutional or other question submitted to the voters, or for the purpose of paying a debt incurred in any such election;

          J. "prescribed form" means a form prepared and prescribed by the [secretary of] state ethics commission;

          K. "rulemaking proceeding" means a formal process conducted by a state agency, board or commission for the purpose of adopting a rule, regulation, standard, policy or other requirement of general applicability and does not include adjudicatory proceedings; and

          L. "state public officer" means a person holding a statewide office provided for in the constitution of New Mexico."

     SECTION 45. 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 ethics commission by paying an annual filing fee of twenty-five dollars ($25.00) 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. 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; 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. 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) filing fee for each of the lobbyist's employers together with a short, abbreviated prescribed form for renewal.

          E. 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 ethics commission 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 46. 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 ethics commission on a prescribed form or in an electronic format approved by the [secretary of state] commission. 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:

                     (a) meals and beverages;

                     (b) other entertainment expenditures;

                     (c) gifts; and

                     (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) 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 ethics commission 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 ethics commission, 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. 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 ethics commission or attorney general upon written request.

          G. [Any] A lobbyist's employer who also engages in lobbying shall comply with the provisions of the Lobbyist Regulation Act.

          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 ethics commission 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 ethics commission on a prescribed form."

     SECTION 47. 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--PRESERVATION AS PUBLIC RECORD.--Each registration and expenditure statement as required by the Lobbyist Regulation Act shall be preserved by the [secretary of] state ethics commission for a period of two 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 years after the date of filing."

     SECTION 48. Section 2-11-8.2 NMSA 1978 (being Laws 1977, Chapter 261, Section 4, as amended) is amended to read:

     "2-11-8.2. COMPLIANCE WITH ACT--ENFORCEMENT OF ACT--

 BINDING ARBITRATION--CIVIL PENALTIES.--

          A. The [secretary of] state ethics commission shall advise and seek to educate all persons required to perform duties pursuant to the Lobbyist Regulation Act of those duties. This includes advising all registered lobbyists at least annually of the Lobbyist Regulation Act's deadlines for submitting required reports. The [secretary of state] commission, in consultation with the attorney general, shall issue advisory opinions, when requested to do so in writing, on matters concerning the Lobbyist Regulation Act. All prescribed forms prepared shall be clear and easy to complete.

          B. The [secretary of] state ethics commission may conduct thorough examinations of reports and initiate investigations to determine whether the Lobbyist Regulation Act has been violated. Additionally, any person who believes that a provision of that act has been violated may file a written complaint with the [secretary of state] commission. The [secretary of state] commission shall adopt procedures for issuing advisory opinions, processing complaints and notifications of violations.

          C. The [secretary of] state ethics commission shall at all times seek to ensure voluntary compliance with the provisions of the Lobbyist Regulation Act. If the [secretary of state] commission determines that a provision of that act for which a penalty may be imposed has been violated, the [secretary of state] commission shall by written notice set forth the violation and the fine imposed and inform the person that [he] the person has ten working days to provide a written explanation, under penalty of perjury, stating any reason the violation occurred. If a timely explanation is filed and the [secretary of state] commission determines that good cause exists, the [secretary of state] commission may by a written notice of final action partially or fully waive any fine imposed. A written notice of final action shall be sent by certified mail.

          D. If the person charged disputes the [secretary of state's] state ethics commission's determination, including an advisory opinion, the person charged may request binding arbitration within ten working days of the date of the final action. Any penalty imposed shall be due and payable within ten working days of the notice of final action. No additional penalty shall accrue pending issuance of the arbitration decision. Fines paid pursuant to a notice of final action that are subsequently reduced or dismissed shall be reimbursed with interest within ten working days after the filing of the arbitration decision with the [secretary of state] commission. Interest on the reduced or dismissed portion of the fine shall be the same as the rate of interest earned by the [secretary of state's] commission's escrow account to be established by the department of finance and administration.

          E. An arbitration hearing shall be conducted by a single arbitrator selected within ten days by the person against whom the penalty has been imposed from a list of five arbitrators provided by the [secretary of] state [Neither the secretary of state nor] ethics commission. A person subject to the Lobbyist Regulation Act, Campaign Reporting Act or Financial Disclosure Act [may] shall not serve as an arbitrator. Arbitrators shall be considered to be independent contractors, not public officers or employees, and shall not be paid per diem and mileage.

          F. The arbitrator may impose any penalty and take any action the [secretary of] state ethics commission is authorized to take. The arbitrator shall state the reasons for [his] the arbitrator's decision in a written document that shall be a public record. The decision shall be final and binding. The decision shall be issued and filed with the [secretary of state] commission within thirty days of the conclusion of the hearing. Unless otherwise provided for in this section, or by rule or regulation adopted by the [secretary of state] commission, the procedures for the arbitration shall be governed by the Uniform Arbitration Act. No arbitrator shall be subject to liability for actions taken pursuant to this section.

          G. Any person who files a report after the deadline imposed by the Lobbyist Regulation Act, or any person who files a false or incomplete report, shall be liable for and shall pay to the [secretary of] state ethics commission fifty dollars ($50.00) per day for each regular working day after the time required for the filing of the report until the complete report is filed, up to a maximum of five thousand dollars ($5,000).

          H. The [secretary of] state ethics commission may refer a matter to the attorney general or a district attorney for a civil injunctive or other appropriate order or enforcement."

     SECTION 49. Section 10-15-1 NMSA 1978 (being Laws 1974, Chapter 91, Section 1, as amended) is amended to read:

     "10-15-1. FORMATION OF PUBLIC POLICY--PROCEDURES FOR OPEN MEETINGS--EXCEPTIONS AND PROCEDURES FOR CLOSED MEETINGS.--

          A. In recognition of the fact that a representative government is dependent upon an informed electorate, it is declared to be public policy of this state that all persons are entitled to the greatest possible information regarding the affairs of government and the official acts of those officers and employees who represent them. The formation of public policy or the conduct of business by vote shall not be conducted in closed meeting. All meetings of any public body except the legislature and the courts shall be public meetings, and all persons so desiring shall be permitted to attend and listen to the deliberations and proceedings. Reasonable efforts shall be made to accommodate the use of audio and video recording devices.

          B. All meetings of a quorum of members of any board, commission, administrative adjudicatory body or other policymaking body of any state agency or any agency or authority of any county, municipality, district or political subdivision, held for the purpose of formulating public policy, including the development of personnel policy, rules, regulations or ordinances, discussing public business or taking any action within the authority of or the delegated authority of any board, commission or other policymaking body are declared to be public meetings open to the public at all times, except as otherwise provided in the constitution of New Mexico or the Open Meetings Act. No public meeting once convened that is otherwise required to be open pursuant to the Open Meetings Act shall be closed or dissolved into small groups or committees for the purpose of permitting the closing of the meeting.

          C. If otherwise allowed by law or rule of the public body, a member of a public body may participate in a meeting of the public body by means of a conference telephone or other similar communications equipment when it is otherwise difficult or impossible for the member to attend the meeting in person; provided that each member participating by conference telephone can be identified when speaking, all participants are able to hear each other at the same time and members of the public attending the meeting are able to hear any member of the public body who speaks during the meeting.

          D. Any meetings at which the discussion or adoption of any proposed resolution, rule, regulation or formal action occurs and at which a majority or quorum of the body is in attendance, and any closed meetings, shall be held only after reasonable notice to the public. The affected body shall determine at least annually in a public meeting what notice for a public meeting is reasonable when applied to that body. That notice shall include broadcast stations licensed by the federal communications commission and newspapers of general circulation that have provided a written request for such notice.

          E. A public body may recess and reconvene a meeting to a day subsequent to that stated in the meeting notice if, prior to recessing, the public body specifies the date, time and place for continuation of the meeting and, immediately following the recessed meeting, posts notice of the date, time and place for the reconvened meeting on or near the door of the place where the original meeting was held and in at least one other location appropriate to provide public notice of the continuation of the meeting. Only matters appearing on the agenda of the original meeting may be discussed at the reconvened meeting.

          F. Meeting notices shall include an agenda containing a list of specific items of business to be discussed or transacted at the meeting or information on how the public may obtain a copy of such an agenda. Except in the case of an emergency or in the case of a public body that ordinarily meets more frequently than once per week, at least seventy-two hours prior to the meeting, the agenda shall be available to the public and posted on the public body's web site, if one is maintained. A public body that ordinarily meets more frequently than once per week shall post a draft agenda at least seventy-two hours prior to the meeting and a final agenda at least thirty-six hours prior to the meeting. Except for emergency matters, a public body shall take action only on items appearing on the agenda. For purposes of this subsection, "emergency" refers to unforeseen circumstances that, if not addressed immediately by the public body, will likely result in injury or damage to persons or property or substantial financial loss to the public body. Within ten days of taking action on an emergency matter, the public body shall report to the attorney general's office the action taken and the circumstances creating the emergency; provided that the requirement to report to the attorney general is waived upon the declaration of a state or national emergency.

          G. The board, commission or other policymaking body shall keep written minutes of all its meetings. The minutes shall include at a minimum the date, time and place of the meeting, the names of members in attendance and those absent, the substance of the proposals considered and a record of any decisions and votes taken that show how each member voted. All minutes are open to public inspection. Draft minutes shall be prepared within ten working days after the meeting and shall be approved, amended or disapproved at the next meeting where a quorum is present. Minutes shall not become official until approved by the policymaking body.

          H. The provisions of Subsections A, B and G of this section do not apply to:

                (1) meetings pertaining to issuance, suspension, renewal or revocation of a license, except that a hearing at which evidence is offered or rebutted shall be open. All final actions on the issuance, suspension, renewal or revocation of a license shall be taken at an open meeting;

                (2) limited personnel matters; provided that for purposes of the Open Meetings Act, "limited personnel matters" means the discussion of hiring, promotion, demotion, dismissal, assignment or resignation of or the investigation or consideration of complaints or charges against any individual public employee; provided further that this paragraph is not to be construed as to exempt final actions on personnel from being taken at open public meetings, nor does it preclude an aggrieved public employee from demanding a public hearing. Judicial candidates interviewed by any commission shall have the right to demand an open interview;

                (3) deliberations by a public body in connection with an administrative adjudicatory proceeding. For purposes of this paragraph, "administrative adjudicatory proceeding" means a proceeding brought by or against a person before a public body in which individual legal rights, duties or privileges are required by law to be determined by the public body after an opportunity for a trial-type hearing. Except as otherwise provided in this section, the actual administrative adjudicatory proceeding at which evidence is offered or rebutted and any final action taken as a result of the proceeding shall occur in an open meeting;

                (4) the discussion of personally identifiable information about any individual student, unless the student or the student's parent or guardian requests otherwise;

                (5) meetings for the discussion of bargaining strategy preliminary to collective bargaining negotiations between the policymaking body and a bargaining unit representing the employees of that policymaking body and collective bargaining sessions at which the policymaking body and the representatives of the collective bargaining unit are present;

                (6) that portion of meetings at which a decision concerning purchases in an amount exceeding two thousand five hundred dollars ($2,500) that can be made only from one source is discussed and that portion of meetings at which the contents of competitive sealed proposals solicited pursuant to the Procurement Code are discussed during the contract negotiation process. The actual approval of purchase of the item or final action regarding the selection of a contractor shall be made in an open meeting;

                (7) meetings subject to the attorney-client privilege pertaining to threatened or pending litigation in which the public body is or may become a participant;

                (8) meetings for the discussion of the purchase, acquisition or disposal of real property or water rights by the public body;

                (9) those portions of meetings of committees or boards of public hospitals where strategic and long-range business plans or trade secrets are discussed; [and]

                (10) that portion of a meeting of the gaming control board dealing with information made confidential pursuant to the provisions of the Gaming Control Act; and

                (11) meetings of the state ethics commission relating to complaints or investigations of alleged ethics violations.

          I. If any meeting is closed pursuant to the exclusions contained in Subsection H of this section:

                (1) the closure, if made in an open meeting, shall be approved by a majority vote of a quorum of the policymaking body; the authority for the closure and the subject to be discussed shall be stated with reasonable specificity in the motion calling for the vote on a closed meeting; the vote shall be taken in an open meeting; and the vote of each individual member shall be recorded in the minutes. Only those subjects announced or voted upon prior to closure by the policymaking body may be discussed in a closed meeting; or

                (2) if a closure is called for when the policymaking body is not in an open meeting, the closed meeting shall not be held until public notice, appropriate under the circumstances, stating the specific provision of the law authorizing the closed meeting and stating with reasonable specificity the subject to be discussed is given to the members and to the general public.

          J. Following completion of any closed meeting, the minutes of the open meeting that was closed or the minutes of the next open meeting if the closed meeting was separately scheduled shall state that the matters discussed in the closed meeting were limited only to those specified in the motion for closure or in the notice of the separate closed meeting. This statement shall be approved by the public body under Subsection G of this section as part of the minutes."

     SECTION 50. Section 10-16-11 NMSA 1978 (being Laws 1967, Chapter 306, Section 11, as amended) is amended to read:        "10-16-11. CODES OF CONDUCT.--

          A. By January 1, 1994, each elected statewide executive branch public officer shall adopt a general code of conduct for employees subject to [his] the officer's control. The New Mexico legislative council shall adopt a general code of conduct for all legislative branch employees. The general codes of conduct shall be based on the principles set forth in the Governmental Conduct Act.

          B. Within thirty days after the general codes of conduct are adopted, they shall be given to and reviewed with all executive and legislative branch officers and employees. All new public officers and employees of the executive and legislative branches shall review the employees' general code of conduct prior to or at the time of being hired.

          C. The head of every executive and legislative agency and institution of the state may draft a separate code of conduct for all public officers and employees in that agency or institution. The separate agency code of conduct shall prescribe standards, in addition to those set forth in the Governmental Conduct Act and the general codes of conduct for all executive and legislative branch public officers and employees, that are peculiar and appropriate to the function and purpose for which the agency or institution was created or exists. The separate codes, upon approval of the responsible executive branch public officer for executive branch public officers and employees or the New Mexico legislative council for legislative branch employees, govern the conduct of the public officers and employees of that agency or institution and, except for those public officers and employees removable only by impeachment, shall, if violated, constitute cause for dismissal, demotion or suspension. The head of each executive and legislative branch agency shall adopt ongoing education programs to advise public officers and employees about the codes of conduct. All codes shall be filed with the [secretary of] state ethics commission and are open to public inspection.

          D. Codes of conduct shall be reviewed at least once every four years. An amended code shall be filed as provided in Subsection C of this section.

          E. All legislators shall attend a minimum of two hours of ethics continuing education and training biennially."

     SECTION 51. Section 10-16-13.1 NMSA 1978 (being Laws 1993, Chapter 46, Section 35) is amended to read:

     "10-16-13.1. EDUCATION AND VOLUNTARY COMPLIANCE.--

          A. The [secretary of] state ethics commission shall advise and seek to educate all persons required to perform duties under the Governmental Conduct Act of those duties. This includes advising all those persons at least annually of that act's ethical principles.

          B. The [secretary of] state ethics commission shall seek first to ensure voluntary compliance with the provisions of the Governmental Conduct Act. A person who violates that act unintentionally or for good cause shall be given ten days' notice to correct the matter. Referrals for civil enforcement of that act shall be pursued only after efforts to secure voluntary compliance with that act have failed."

     SECTION 52. Section 10-16-14 NMSA 1978 (being Laws 1967, Chapter 306, Section 14, as amended) is amended to read:

     "10-16-14. ENFORCEMENT PROCEDURES.--

          A. The [secretary of] state ethics commission may refer suspected violations of the Governmental Conduct Act to the attorney general, district attorney or appropriate state agency or legislative body for enforcement. If a suspected violation involves the office of the [secretary of] state ethics commission, the attorney general may enforce that act. If a suspected violation involves the office of the attorney general, a district attorney may enforce that act.

          B. Violation of the provisions of the Governmental Conduct Act by any legislator is grounds for discipline by the appropriate legislative body.

          C. If the attorney general determines that there is sufficient cause to file a complaint against a public officer removable only by impeachment, [he] the attorney general shall refer the matter to the house of representatives of the legislature. If within thirty days after the referral the house of representatives has neither formally declared that the charges contained in the complaint are not substantial nor instituted hearings on the complaint, the attorney general shall make public the nature of the charges, but [he] the attorney general shall make clear that the merits of the charges have never been determined. Days during which the legislature is not in session shall not be included in determining the thirty-day period.

          D. Violation of the provisions of the Governmental Conduct Act by any public officer or employee, other than those covered by Subsection C of this section, is grounds for discipline, including dismissal, demotion or suspension. Complaints against executive branch employees may be filed with the agency head and reviewed pursuant to the procedures provided in the Personnel Act. Complaints against legislative branch employees may be filed with and reviewed pursuant to procedures adopted by the New Mexico legislative council. Complaints against judicial branch employees may be filed and reviewed pursuant to the procedures provided in the judicial personnel rules.

          E. Subject to the provisions of this section, the provisions of the Governmental Conduct Act may be enforced by the attorney general. Except as regards legislators or statewide elected officials, a district attorney in the county where a person who allegedly violated the provisions resides or where [a] an alleged violation occurred may also enforce that act. Enforcement actions may include seeking civil injunctive or other appropriate orders."

     SECTION 53. Section 10-16-18 NMSA 1978 (being Laws 1995, Chapter 153, Section 23) is amended to read:

     "10-16-18. ENFORCEMENT--CIVIL PENALTIES.--

          A. If the [secretary of] state ethics commission reasonably believes that a person committed, or is about to commit, a violation of the Governmental Conduct Act, the [secretary of state] commission shall refer the matter to the attorney general or a district attorney for enforcement.

          B. The attorney general or a district attorney may institute a civil action in district court if a violation has occurred or to prevent a violation of any provision of the Governmental Conduct Act. Relief may include a permanent or temporary injunction, a restraining order or any other appropriate order, including an order for a civil penalty of two hundred fifty dollars ($250) for each violation not to exceed five thousand dollars ($5,000)."

     SECTION 54. Section 10-16A-1 NMSA 1978 (being Laws 1993, Chapter 46, Section 39) is amended to read:

     "10-16A-1. SHORT TITLE--FINANCIAL DISCLOSURE ACT.--[Sections 39 through 45 of this act] Chapter 10, Article 16A NMSA 1978 may be cited as the "Financial Disclosure Act"."

     SECTION 55. Section 10-16A-3 NMSA 1978 (being Laws 1993, Chapter 46, Section 41, as amended) is amended to read:

     "10-16A-3. REQUIRED DISCLOSURES FOR CERTAIN CANDIDATES AND PUBLIC OFFICERS AND EMPLOYEES--CONDITION FOR PLACEMENT ON BALLOT OR APPOINTMENT.--

          A. At the time of filing a declaration of candidacy or nominating petition, a candidate for legislative or statewide office shall file with the proper filing officer, as defined in Section 1-8-25 NMSA 1978, a financial disclosure statement on a prescribed form. In addition, each year thereafter during the month of January, a legislator and a person holding a statewide office shall file with the proper filing officer a financial disclosure statement. [If the proper filing officer is not the secretary of state] The proper filing officer shall forward a copy of [the] each financial disclosure statement to the [secretary of] state ethics commission within seventy-two hours of its filing.

          B. A state agency head or official whose appointment to a board or commission is subject to confirmation by the senate shall file with the [secretary of] state ethics commission a financial disclosure statement within thirty days of appointment and during the month of January every year thereafter that [he] the state agency head or official holds public office.

          C. The financial disclosure statement shall include for any person identified in Subsection A or B of this section and the person's spouse the following information for the prior calendar year:

                (1) the full name, mailing address and residence address of each person covered in the disclosure statement, except the address of the spouse need not be disclosed; the name and address of the person's and spouse's employer and the title or position held; and a brief description of the nature of the business or occupation;

                (2) all sources of gross income of more than five thousand dollars ($5,000) to each person covered in the disclosure statement, identified by general category descriptions that disclose the nature of the income source, in the following broad categories: law practice or consulting operation or similar business, finance and banking, farming and ranching, medicine and health care, insurance (as a business and not as payment on an insurance claim), oil and gas, transportation, utilities, general stock market holdings, bonds, government, education, manufacturing, real estate, consumer goods sales with a general description of the consumer goods and the category "other", with direction that the income source be similarly described. In describing a law practice, consulting operation or similar business of the person or spouse, the major areas of specialization or income sources shall be described, and if the spouse or a person in the reporting person's or spouse's law firm, consulting operation or similar business is or was during the reporting calendar year or the prior calendar year a registered lobbyist under the Lobbyist Regulation Act, the names and addresses of all clients represented for lobbying purposes during those two years shall be disclosed;

                (3) a general description of the type of real estate owned in New Mexico, other than a personal residence, and the county where it is located;

                (4) all other New Mexico business interests not otherwise listed of ten thousand dollars ($10,000) or more in a New Mexico business or entity, including any position held and a general statement of purpose of the business or entity;

                (5) all memberships held by the reporting individual and [his] the reporting individual's spouse on boards of for-profit businesses in New Mexico;

                (6) all New Mexico professional licenses held;

                (7) each state agency that was sold goods or services in excess of five thousand dollars ($5,000) during the prior calendar year by a person covered in the disclosure statement;

                (8) each state agency, other than a court, before which a person covered in the disclosure statement represented or assisted clients in the course of [his] the person's employment during the prior calendar year; and

                (9) a general category that allows the person filing the disclosure statement to provide whatever other financial interest or additional information the person believes should be noted to describe potential areas of interest that should be disclosed.

          D. A complete financial disclosure statement shall be filed every year. The [secretary of] state ethics commission shall mail each elected official required to file a financial disclosure statement a copy of any statement the person filed the previous year.

          E. The financial disclosure statements filed pursuant to this section are public records open to public inspection during regular office hours and shall be retained by the state for five years from the date of filing.

          F. A person who files a financial disclosure statement may file an amended statement at any time to reflect significant changed circumstances that occurred since the last statement was filed.

          G. [Any] A candidate for a legislative or statewide office who fails or refuses to file a financial disclosure statement required by this section before the final date for the withdrawal of candidates provided for in the Election Code shall not have [his] the candidate's name printed on the election ballot.

          H. For a state agency head or an official whose appointment to a board or commission is subject to confirmation by the senate, the filing of the financial disclosure statement required by this section is a condition of entering upon and continuing in state employment or holding an appointed position."

     SECTION 56. Section 10-16A-4 NMSA 1978 (being Laws 1993, Chapter 46, Section 42) is amended to read:

     "10-16A-4. DISCLOSURES BY CERTAIN PUBLIC OFFICERS OR EMPLOYEES OF STATE AGENCIES--CONDITION OF EMPLOYMENT.--

          A. Every employee who is not otherwise required to file a financial disclosure statement under the Financial Disclosure Act and who has a financial interest that [he] the employee believes or has reason to believe may be affected by [his] the employee's official act or actions of the state agency by which [he] the employee is employed shall disclose the nature and extent of that interest. The disclosures shall be made in writing to the [secretary of] state ethics commission before entering state employment and during the month of January every year thereafter.

          B. Every public officer who is not otherwise required to file a financial disclosure statement under the Financial Disclosure Act and who has a financial interest that [he] the public officer believes or has reason to believe may be affected by [his] the public officer's official act or actions of the board or commission to which [he] the public officer is appointed shall disclose the nature and extent of that interest. The disclosures shall be made in writing to the [secretary of] state ethics commission before taking office and during the month of January every year thereafter.

          C. The information on the disclosures shall be made available by the [secretary of] state ethics commission for inspection to any [citizen of this] resident of the state.

          D. The filing of disclosures pursuant to this section is a condition of entering upon and continuing in state employment or, for persons subject to Subsection B of this section, of holding public office."

     SECTION 57. Section 10-16A-5 NMSA 1978 (being Laws 1993, Chapter 46, Section 43) is amended to read:

     "10-16A-5. EDUCATION AND VOLUNTARY COMPLIANCE.--

          A. The [secretary of] state ethics commission shall advise and seek to educate all persons required to perform duties under the Financial Disclosure Act of those duties. This includes providing timely advance notice of the required financial disclosure statement and preparing forms that are clear and easy to complete.

          B. The [secretary of] state ethics commission shall seek first to ensure voluntary compliance with the provisions of the Financial Disclosure Act. A person who violates that act unintentionally or for good cause shall be given ten days' notice to correct the matter before fines are imposed. Referrals for civil enforcement of the Financial Disclosure Act shall be pursued only after efforts to secure voluntary compliance with that act have failed."

     SECTION 58. Section 10-16A-6 NMSA 1978 (being Laws 1993, Chapter 46, Section 44, as amended) is amended to read:         "10-16A-6. INVESTIGATIONS--BINDING ARBITRATION--FINES--ENFORCEMENT.--

          A. The [secretary of] state ethics commission may conduct thorough examinations of statements and initiate investigations to determine whether the Financial Disclosure Act has been violated. Any person who believes that act has been violated may file a written complaint with the [secretary of state] commission. The [secretary of state] commission shall adopt procedures for processing complaints and notifications of violations.

          B. If the [secretary of] state ethics commission determines that a violation has occurred for which a penalty should be imposed, the [secretary of state] commission shall so notify the person charged and impose the penalty. If the person charged disputes the [secretary of state's] commission's determination, the person charged may request binding arbitration.

          C. The arbitration decision shall be decided by a single arbitrator selected within ten days by the person against whom the penalty has been imposed from a list of five arbitrators provided by the [secretary of] state ethics commission. No arbitrator may be a person subject to the Financial Disclosure Act, Campaign Reporting Act or Lobbyist Regulation Act. Arbitrators shall be considered to be independent contractors, not public officers or employees, and shall not be paid per diem and mileage.

          D. The arbitrator may take any action the [secretary of] state ethics commission is authorized to take. The arbitrator shall state the reasons for [his] the decision in a written document that shall be a public record. The decision shall be final and binding. The decision shall be issued within thirty days of the conclusion of the hearing. Unless otherwise provided for in this section, or by rule or regulation adopted by the [secretary of state] commission, the procedures for the arbitration shall be governed by the Uniform Arbitration Act. No arbitrator shall be subject to liability for actions taken pursuant to this section.

          E. Any person who files a statement or report after the deadline imposed by the Financial Disclosure Act or any person who files a false or incomplete statement or report is liable for and shall pay to the [secretary of] state ethics commission, at or from the time initially required for the filing, fifty dollars ($50.00) per day for each regular working day after the time required for the filing of the statement or report until the complete report is filed, up to a maximum of five thousand dollars ($5,000).

          F. The [secretary of] state ethics commission may refer a matter to the attorney general or a district attorney for a civil injunctive or other appropriate order or enforcement."

     SECTION 59. Section 10-16A-8 NMSA 1978 (being Laws 1995, Chapter 153, Section 25) is amended to read:

     "10-16A-8. ENFORCEMENT--CIVIL PENALTIES.--

          A. If the [secretary of] state ethics commission reasonably believes that a person committed, or is about to commit, a violation of the Financial Disclosure Act, the [secretary of state] commission shall refer the matter to the attorney general or a district attorney for enforcement.

          B. The attorney general or a district attorney may institute a civil action in district court if a violation has occurred or to prevent a violation of any provision of the Financial Disclosure Act. Relief may include a permanent or temporary injunction, a restraining order or any other appropriate order, including an order for a civil penalty of two hundred fifty dollars ($250) for each violation not to exceed five thousand dollars ($5,000)."

     SECTION 60. Section 10-16B-1 NMSA 1978 (being Laws 2007, Chapter 226, Section 1) is amended to read:

     "10-16B-1. SHORT TITLE.--[This act] Chapter 10, Article 16B NMSA 1978 may be cited as the "Gift Act"."

     SECTION 61. Section 10-16B-3 NMSA 1978 (being Laws 2007, Chapter 226, Section 3) is amended to read:

     "10-16B-3. LIMITATION ON GIFTS.--

          A. A state officer or employee or a candidate for state office, or that person's family, shall not knowingly accept from a restricted donor, and a restricted donor shall not knowingly donate to a state officer or employee or a candidate for state office, or that person's family, a gift of a market value greater than two hundred fifty dollars ($250).

          B. A lobbyist registered with the [secretary of] state ethics commission, the lobbyist's employer or a government contractor shall not donate gifts of an aggregate market value greater than one thousand dollars ($1,000) in a calendar year to any one state officer or employee or to any one candidate for state office.

          C. A state officer or employee shall not solicit gifts for a charity from a business or corporation regulated

by the state agency for which the state officer or employee works and shall not otherwise solicit donations for a charity in such a manner that it appears that the purpose of the donor in making the gift is to influence the state officer or employee in the performance of an official duty."

     SECTION 62. TEMPORARY PROVISION--TRANSFER OF PROPERTY, CONTRACTS AND REFERENCES IN LAW AND RULES.--On January 1, 2017:

          A. all functions, appropriations, money, records, property, equipment and supplies of the office of the secretary of state used in the administration of the following acts are transferred to the state ethics commission:

                (1) the Campaign Reporting Act;

                (2) the Voter Action Act;

                (3) the Lobbyist Regulation Act;

                (4) the Governmental Conduct Act;

                (5) the Financial Disclosure Act; and

                (6) the Gift Act;

          B. all contracts, grants, agreements and other obligations of the secretary of state relating to administration of the acts listed in Subsection A of this section are transferred to and binding on the state ethics commission;

          C. all references in law to the secretary of

state relating to administration of the acts listed in Subsection A of this section shall be deemed to be references to the state ethics commission; and

          D. all rules of the secretary of state pertaining to administration of the acts listed in Subsection A of this section shall be considered rules of the state ethics commission.

     SECTION 63. SEVERABILITY.--If any part or application of this act is held invalid, the remainder or its application to other situations or persons shall not be affected.

     SECTION 64. APPLICABILITY.--The provisions of the State Ethics Commission Act apply to conduct that occurs on or after January 1, 2017.

     SECTION 65. EFFECTIVE DATE.--

          A. The effective date of the provisions of Sections 1 through 7, 12 through 16, 49 and 62 through 64 of this act is July 1, 2016.

          B. The effective date of the provisions of Sections 8 through 11, 17 through 48 and 50 through 61 of this act is January 1, 2017.

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