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AN ACT

RELATING TO ETHICS; AMENDING AND ENACTING SECTIONS OF THE

GOVERNMENTAL CONDUCT ACT; PROHIBITING CERTAIN ACTS BY PUBLIC

OFFICERS AND EMPLOYEES; PROHIBITING CERTAIN CONTRACTS.

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

Section 1. Section 10-16-2 NMSA 1978 (being Laws 1967,

Chapter 306, Section 2, as amended) is amended to read:

"10-16-2. DEFINITIONS.--As used in the Governmental

Conduct Act:

A. "business" means a corporation, partnership,

sole proprietorship, firm, organization or individual carrying

on a business;

B. "confidential information" means information

that by law or practice is not available to the public;

C. "employment" means rendering of services for

compensation in the form of salary as an employee;

D. "family" means an individual's spouse, parents,

children or siblings, by consanguinity or affinity;

E. "financial interest" means an interest held by

an individual or the individual's family that is:

(1) an ownership interest in business; or

(2) any employment or prospective employment

for which negotiations have already begun;

F. "official act" means an official decision,

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recommendation, approval, disapproval or other action that

involves the use of discretionary authority;

G. "public officer or employee" means any person

who has been elected to, appointed to or hired for any state

office and who receives compensation in the form of salary or

is eligible for per diem or mileage but excludes legislators;

H. "standards" means the conduct required by the

Governmental Conduct Act;

I. "state agency" means any branch, agency,

instrumentality or institution of the state; and

J. "substantial interest" means an ownership

interest that is greater than twenty percent."

Section 2. Section 10-16-3 NMSA 1978 (being Laws 1993,

Chapter 46, Section 28) is amended to read:

"10-16-3. ETHICAL PRINCIPLES OF PUBLIC SERVICE--CERTAIN

OFFICIAL ACTS PROHIBITED--PENALTY.--

A. A legislator, public officer or employee shall

treat the legislator's, public officer's or employee's

government position as a public trust. The legislator, public

officer or employee shall use the powers and resources of

public office only to advance the public interest and not to

obtain personal benefits or pursue private interests

incompatible with the public interest.

B. Legislators, public officers and employees

shall conduct themselves in a manner that justifies the

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confidence placed in them by the people, at all times

maintaining the integrity and discharging ethically the high

responsibilities of public service.

C. Full disclosure of real or potential conflicts

of interest shall be a guiding principle for determining

appropriate conduct. At all times, reasonable efforts shall

be made to avoid undue influence and abuse of office in public

service.

D. No legislator, public officer or employee may

request or receive, and no person may offer a legislator,

public officer or employee, any money, thing of value or

promise thereof that is conditioned upon or given in exchange

for promised performance of an official act. Any person who

knowingly and willfully violates the provisions of this

subsection is guilty of a fourth degree felony and shall be

sentenced pursuant to the provisions of Section 31-18-15 NMSA

1978."

Section 3. Section 10-16-4 NMSA 1978 (being Laws 1967,

Chapter 306, Section 4, as amended) is amended to read:

"10-16-4. OFFICIAL ACT FOR PERSONAL FINANCIAL INTEREST

PROHIBITED--DISQUALIFICATION FROM OFFICIAL ACT--PROVIDING A

PENALTY.--

A. It is unlawful for a public officer or employee

to take an official act for the primary purpose of directly

enhancing the public officer's or employee's financial

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interest or financial position. Any person who knowingly and

willfully violates the provisions of this subsection is guilty

of a fourth degree felony and shall be sentenced pursuant to

the provisions of Section 31-18-15 NMSA 1978.

B. A public officer or employee shall be

disqualified from engaging in any official act directly

affecting the public officer's or employee's financial

interest."

Section 4. Section 10-16-6 NMSA 1978 (being Laws 1967,

Chapter 306, Section 6, as amended) is amended to read:

"10-16-6. CONFIDENTIAL INFORMATION.--No legislator,

public officer or employee shall use or disclose confidential

information acquired by virtue of the legislator's, public

officer's or employee's state employment or office for the

legislator's, public officer's, employee's or another's

private gain."

Section 5. Section 10-16-7 NMSA 1978 (being Laws 1967,

Chapter 306, Section 7, as amended) is amended to read:

"10-16-7. CONTRACTS INVOLVING PUBLIC OFFICERS OR

EMPLOYEES.--A state agency shall not enter into a contract for

services, construction or items of tangible personal property

with a public officer or employee of the state, with the

family of the public officer or employee or with a business in

which the public officer or employee or the family of the

public officer or employee has a substantial interest unless

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the public officer or employee has disclosed the public

officer's or employee's substantial interest and unless the

contract is awarded pursuant to the Procurement Code, except

that the potential contractor shall not be eligible for a sole

source or small purchase contract; provided that this section

does not apply to a contract of official employment with the

state or to contracts made pursuant to the provisions of the

University Research Park Act. A person negotiating or

executing a contract on behalf of a state agency shall

exercise due diligence to ensure compliance with the

provisions of this section."

Section 6. Section 10-16-9 NMSA 1978 (being Laws 1967,

Chapter 306, Section 9, as amended) is amended to read:

"10-16-9. CONTRACTS INVOLVING LEGISLATORS--

REPRESENTATION BEFORE STATE AGENCIES.--

A. A state agency shall not enter into a contract

for services, construction or items of tangible personal

property with a legislator, the legislator's family or with a

business in which the legislator or the legislator's family

has a substantial interest unless the legislator has disclosed

the legislator's substantial interest and unless the contract

is awarded in accordance with the provisions of the

Procurement Code, except the potential contractor shall not be

eligible for a sole source or small purchase contract. A

person negotiating or executing a contract on behalf of a

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state agency shall exercise due diligence to ensure compliance

with the provisions of this subsection.

B. A legislator shall not appear for, represent or

assist another person in a matter before a state agency,

unless without compensation or for the benefit of a

constituent, except for legislators who are attorneys or other

professional persons engaged in the conduct of their

professions and, in those instances, the legislator shall

refrain from references to the legislator's legislative

capacity except as to matters of scheduling, from

communications on legislative stationery and from threats or

implications relating to legislative actions."

Section 7. Section 10-16-13 NMSA 1978 (being Laws 1967,

Chapter 306, Section 13) is amended to read:

"10-16-13. PROHIBITED BIDDING.--No state agency or

political subdivision of the state shall accept a bid or

proposal from a person who directly participated in the

preparation of specifications, qualifications or evaluation

criteria on which the specific competitive bid or proposal was

based. A person accepting a bid or proposal on behalf of a

state agency or political subdivision of this state shall

exercise due diligence to ensure compliance with this

section."

Section 8. A new section of the Governmental Conduct

Act is enacted to read:

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"CERTAIN BUSINESS SALES TO STATE AGENCIES AND THEIR

EMPLOYEES PROHIBITED.--

A. A public officer or employee shall not sell or

be a party to a transaction to sell goods, services,

construction or items of tangible personal property directly

or indirectly, through the public officer's or employee's

family or a business in which the public officer or employee

has a substantial interest, to the state agency with which the

public officer or employee is employed. It is not a violation

of this subsection if the public officer or employee employed

by the state agency in good faith is not aware of:

(1) the substantial interest held by the

public officer or employee or the public officer's or

employee's family in the business that is selling or engaged

in a transaction to sell goods, services, construction or

items of tangible personal property to the state agency by

which the public officer or employee is employed; or

(2) the sale of or the transaction to sell

goods, services, construction or items of tangible personal

property by the public officer's or employee's family or by a

business in which the public officer or employee or the public

officer's or employee's family has a substantial interest to

the state agency by which the public officer or employee is

employed.

B. A public officer or employee shall not sell,

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offer to sell, coerce the sale of or be a party to a

transaction to sell goods, services, construction or items of

tangible personal property, directly or indirectly through the

public officer's or employee's family or a business in which

the public officer or employee has a substantial interest, to

an employee supervised by the public officer or employee. A

public officer or employee shall not receive a commission or

shall not profit from the sale or a transaction to sell goods,

services, construction or items of tangible personal property

to an employee supervised by the public officer or employee.

The provisions of this subsection shall not apply if the

supervised employee initiates the sale. It is not a violation

of this subsection if a public officer or employee, in good

faith, is not aware that the employee to whom the goods,

services, construction or items of tangible personal property

are being sold is under the supervision of the public officer

or employee.

C. A public officer or employee shall not sell,

offer to sell, coerce the sale of or be a party to a

transaction to sell goods, services, construction or items of

tangible personal property, directly or indirectly through the

public officer's or employee's family or a business in which

the public officer or employee has a substantial interest, to

a person over whom the public officer or employee has

regulatory authority.

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D. A public officer or employee shall not receive

a commission or shall not profit from the sale or a

transaction to sell goods, services, construction or items of

tangible personal property to a person over whom the public

officer or employee has regulatory authority.

E. A public officer or employee shall not accept

from a person over whom the public officer or employee has

regulatory authority an offer of employment or an offer of a

contract in which the public officer or employee provides

goods, services, construction, items of tangible personal

property or other things of value to the person over whom the

public officer or employee has regulatory authority."

Section 9. A new section of the Governmental Conduct

Act is enacted to read:

"PROHIBITED POLITICAL ACTIVITIES.--Public officers and

employees are prohibited from:

A. directly or indirectly coercing or attempting

to coerce a state officer or employee to pay, lend or

contribute anything of value to a party, committee,

organization, agency or person for a political purpose;

B. threatening to deny a promotion or pay increase

to an employee who does or does not vote for certain

candidates, requiring an employee to contribute a percentage

of the employee's pay to a political fund, influencing a

subordinate employee to purchase a ticket to a political

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fundraising dinner or similar event, advising an employee to

take part in political activity or similar activities; or

C. violating the officer's or employee's duty to

not use state property, or allow its use, for other than

authorized purposes."

Section 10. A new section of the Governmental Conduct

Act is enacted to read:

"DISCLOSURE OF OUTSIDE EMPLOYMENT.--A public officer or

employee shall disclose in writing to the supervisor of the

officer or employee, or in the event there is no supervisor,

to the secretary of state, all employment engaged in by the

officer or employee other than the employment with the state."

Section 11. A new section of the Governmental Conduct

Act is enacted to read:

"PROHIBITED CONTRIBUTIONS--FINANCIAL SERVICE

CONTRACTORS.--

A. A business that contracts with a state agency

to provide financial services involving the investment of

public money or issuance of bonds for public projects shall

not knowingly contribute anything of value to a public officer

or employee of that state agency who has authority over the

investment of public money or issuance of bonds, the revenue

of which is used for public projects in the state.

B. A public officer or employee of a state agency

that has authority over the investment of public money or

issuance of bonds, the revenue of which is used for public

projects in the state, shall not knowingly accept a

contribution of anything of value from a business that

contracts with that state agency to provide financial services

involving the investment of public money or issuance of bonds

for public projects.

C. For the purposes of this section:

(1) "anything of value" means any money,

property, service, loan or promise, but does not include food

and refreshments with a value of less than one hundred dollars

($100) consumed in a day; and

(2) "contribution" means a donation or

transfer to a recipient for the personal use of the recipient,

without commensurate consideration."

Section 12. EFFECTIVE DATE.--The effective date of the

provisions of this act is July 1, 2007.

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