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F I S C A L I M P A C T R E P O R T

SPONSOR Feldman

ORIGINAL DATE

LAST UPDATED

2/6/2006 HB

SHORT TITLE Certain Contributions to Elected Officials

SB 196/aSRC/aSJC

ANALYST McOlash/Earp

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to: HB 326, SB 23

SOURCES OF INFORMATION

LFC Files

Responses Received From

General Services Department (GSD)

Secretary of State (SOS)

Attorney General’s Office (AGO)

NM Corrections Department (CD)

SUMMARY

Synopsis of SJC Amendment

In summary, the Senate Judiciary Committee amendments do the following:

1.

All Senate Rules Committee amendments are stricken.

2.

The prohibition against soliciting, accepting or contributing anything of value is extended

to all candidates for “state public office” (however, it is not clear whether this restriction

applies to sitting state pubic officers other than those specifically named).

3.

The term “candidate” is specifically defined for individuals seeking non-statewide and

statewide offices.

4.

The term “state public officer” is defined to include all persons elected or appointed to

any state elective office who receives compensation or is eligible to receive per diem or

mileage, but excludes judges.

Senate Bill 196/aSRC/aSJC - Page

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5.

A new section is added to the Lobbyist Registration Act that prohibits lobbyists from giv-

ing anything of value, other than campaign contributions, to a state public official.

De minimis gifts worth $20.00 or less in a calendar year are excluded. (Should this item have

been identified as SJC amendment #15.)

Synopsis of SRC Amendment

The Senate Rules Committee amendment identifies the Governor and Lieutenant Governor as

state agents.

The amendment also adds the phrase “full time” before “those positions” in the bill.

State Agent is defined as Governor, Lieutenant Governor, State Auditor, State Treasurer, Secre-

tary of State, State Land Commissioner, Attorney General, or a candidate seeks election to one of

these positions or anyone authorized by the candidate.

Synopsis of Original Bill

Senate Bill 196 enacts a new section of the Election Code (Campaign Practices) by creating a

misdemeanor prohibition (punishable by up to a 364 days in jail and a $1,000) for the State

Auditor, State Treasurer, Secretary of State, Commissioner of Public Lands, Attorney General or

candidates for those offices, an anyone authorized by the candidate to solicit funds from seeking

or accepting campaign contributions or anything of value from persons (or their representatives)

that do business with those offices. A person, who has given or caused to be given a contribution

to any of those officers or candidates for those offices, is prohibited from doing business with

that office for two years after the candidate is elected.

FISCAL IMPLICATIONS

None

SIGNIFICANT ISSUES

Senate Bill 196 defines “Person doing business with the state” as a person or entity who sells

goods or services to a state agency, purchases or leases property from the state, or sells or leases

property to the state

.

“Anything of value” does not include refreshments at a public reception or other public social

function that are available to all guests equally or things of value that the person is otherwise le-

gally entitled to posses.

POSSIBLE QUESTIONS

AGO

The AGO Comments:

If the intent of the bill is to limit contractors’ influence with key state elected officials, why does

the bill exclude the Governor, Lt. Governor and state legislators. Since executive agencies un-

der the Governor’s control are responsible directly to him, and since the Governor’s agencies

Senate Bill 196/aSRC/aSJC - Page

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hire the vast majority of State contractors, if this bill truly seeks its apparent intended effect,

should it not apply especially to the Governor and Lt. Governor.

The bill is not fair and equitable, given current realities of political contributions. For example,

if the tobacco, pharmaceutical or alcohol industries are sued by the State, they can contribute to

the Attorney General candidate of their choice. On the other hand, why should the law prohibit

private plaintiff lawyers, contracted to represent the State in those cases, from contributing to the

Attorney General candidate of their choice.

When does a person become a “candidate.” Time of announcement. Time of filing candidacy

papers.

Does the bill prohibit an employee of the state auditor, state treasurer, secretary of state, commis-

sioner of public lands or attorney general on behalf of that officer from committing these acts.

NMSA 1978, Section 8-8-19(C) for the Public Regulation Commission has a different and more

permissive definition of “anything of value.” Why should these statewide officers have a differ-

ent standard.

Does “election” of the candidate mean November or the following January (when the term be-

gins).

BMC/nt:yr