Senate Bill text for SB0007

SENATE BILL 7

48th legislature - STATE OF NEW MEXICO - first special session, 2007

INTRODUCED BY

Joseph J. Carraro

AN ACT

RELATING TO ETHICS; PROHIBITING CONTRIBUTIONS TO ELECTED LEGISLATORS AND CERTIFIED CANDIDATES FOR THE LEGISLATURE; REQUIRING REGISTERED LOBBYISTS TO REPORT THEIR INCOMES; AUTHORIZING THE NEW MEXICO LEGISLATIVE COUNCIL TO PROVIDE YEAR-ROUND STAFF FOR ELECTED LEGISLATORS FOR DUTIES DIRECTLY RELATED TO A STATE LEGISLATOR'S OFFICE; PROVIDING FOR LEGISLATIVE SALARIES.

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

Section 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 through 9 of this act may be cited as the "Level Playing Field Act".

Section 2. [NEW MATERIAL] PURPOSE.--The purpose of the Level Playing Field Act is to attempt to bring government closer to the governed by making elective office more attainable, prohibiting influence gifts to legislators and providing salary and staff for legislators.

Section 3. [NEW MATERIAL] DEFINITIONS.--As used in the Level Playing Field Act:

A. "certified legislative candidate" means a candidate for the state legislature whose name will be included on the general election ballot and who has been certified for funds available through the Voter Action Act;

B. "contribution" means a contribution as defined by the Campaign Reporting Act, or 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; the administrative or solicitation expenses of a political committee that are paid by an organization that sponsors the committee; or a certificate or plaque presented in recognition of service;

C. "does business with the state" means offering a product or service in response to a request for proposals, through the Procurement Code or through a contract with the state such that a person is entitled to remuneration or benefit from the state;

D. "fund" means the public election fund;

E. "lobbyist" means a person required to register under the Lobbyist Regulation Act; and

F. "person" means a person or entity.

Section 4. [NEW MATERIAL] LEGISLATOR SALARY.--Each member of the legislature shall receive annual salary compensation limited to no more than the equivalent of the annual federal poverty guidelines for a family of four.

Section 5. [NEW MATERIAL] STATE FUNDS FOR CERTIFIED LEGISLATIVE CANDIDATES.--Pursuant to the Voter Action Act, a certified legislative candidate is eligible for funds available pursuant to the Voter Action Act so long as the certified legislative candidate accepts no contribution from a person who does business with the state.

Section 6. [NEW MATERIAL] PROHIBITION OF GIFTS TO A LEGISLATOR OR CERTIFIED LEGISLATIVE CANDIDATE.--An elected legislator or a certified legislative candidate shall not receive a contribution at any time from a lobbyist.

Section 7. [NEW MATERIAL] LOBBYIST REPORTING.--A lobbyist shall annually report the lobbyist's compensation for services, including both salary and contract income paid by clients for lobbying services.

Section 8. [NEW MATERIAL] EXPENSES OF LEGISLATORS DIRECTLY RELATED TO THE DUTIES OF THEIR OFFICE--DISTRIBUTION REQUIRED--YEAR-ROUND LEGISLATIVE STAFF.--

A. Pursuant to Article 4, Section 10 of the constitution of New Mexico, each member of the legislature shall receive an annual distribution for expenses directly related to the duties of the member's office in an amount equal to fifteen percent of the annual salary provided for justices of the New Mexico supreme court.

B. Such funds shall be used by a legislator for staffing a year-round office for clerical, research and constituent services duties directly related to the member's office.

C. The New Mexico legislative council shall adopt a policy to carry out the provisions of this section.

Section 9. [NEW MATERIAL] NO ENRICHMENT OF CURRENT LEGISLATORS.--A legislator shall not receive a salary unless the legislator is duly elected after passage of a constitutional amendment authorizing legislative salaries. A legislator appointed to serve the unexpired term of an elected legislator shall not become eligible for a salary until one year after expiration of the term of the elected legislator or until being duly elected.

Section 10. Section 1-19-29.1 NMSA 1978 (being Laws 1993, Chapter 46, Section 6, as amended) is amended to read:

"1-19-29.1. CAMPAIGN FUNDS--LIMITATION ON USE.--

A. It is unlawful for [any] a candidate or [his] the candidate's agent to make an expenditure of contributions received, except for the following purposes or as otherwise provided in this section:

(1) expenditures of the campaign;

(2) expenditures of legislators that are reasonably related to performing the duties of the office held, including mail, telephone and travel expenditures to serve constituents, but excluding personal and legislative session living expenses; provided that a legislator shall accept no contribution from a person who does business with the state of New Mexico;

(3) donations to the state general fund;

(4) donations to an organization to which a federal income tax deduction would be permitted under Subparagraph (A) of Paragraph (1) of Subsection (b) of Section 170 of the Internal Revenue Code of 1986, as amended;

(5) expenditures to eliminate the campaign debt of the candidate for the office sought or expenditures incurred by the candidate when seeking election to another public office covered by the Campaign Reporting Act;

(6) donations to a political party or to another candidate seeking election to public office; or

(7) disbursements to return unused funds pro rata to the contributors if no campaign debt exists.

B. A judge subject to a nonpartisan retention election or a candidate for judicial office shall solicit or accept campaign funds and return unused funds in accordance with the provisions of the Code of Judicial Conduct.

C. No contributions solicited for or received in a federal election campaign may be used in a state election campaign."

Section 11. Section 1-19A-4 NMSA 1978 (being Laws 2003, Chapter 14, Section 4) is amended to read:

"1-19A-4. QUALIFYING CONTRIBUTIONS.--Applicant candidates shall obtain qualifying contributions as follows:

A. the applicant candidate shall obtain qualifying contributions from that number of registered voters that is equal to at least [one-quarter] one-fourth percent of the total vote;

B. applicant candidates may accept qualifying contributions from persons who become registered within the statutory time frame that would enable that person to vote in the primary election; provided that a certified legislative candidate as defined in the Level Playing Field Act shall not accept any contribution from a person who does business with the state of New Mexico;

C. voters registered as independent are not excluded from making qualifying contributions but shall be registered within the statutory time frame as independent; and

D. no payment, gift or anything of value shall be given in exchange for a qualifying contribution."

Section 12. Section 1-19A-5 NMSA 1978 (being Laws 2003, Chapter 14, Section 5) is amended to read:

"1-19A-5. SEED MONEY.--

A. An applicant candidate may collect seed money from individual donors and political action committees in amounts of no more than one hundred dollars ($100) per donor or committee; provided that a certified legislative candidate as defined in the Level Playing Field Act shall not accept a contribution from a person who does business with the state of New Mexico. An applicant candidate may contribute an amount of seed money from [his] the applicant candidate's own funds up to the limits specified in Subsection H of this section.

B. An applicant candidate may collect and spend seed money during the sixty days immediately preceding the qualifying period and throughout the qualifying period.

C. An applicant candidate may not collect seed money from a corporation, association or partnership formed under state law or from labor organizations.

D. An applicant candidate may not collect or spend seed money for any purpose after certification and before the end of the election cycle for which the candidate was certified, but after the election cycle may carry forward to the next election cycle any unspent seed money to be used as seed money.

E. If a certified candidate is defeated or is elected and decides not to run again as an applicant candidate, any unspent seed money shall be forfeited to the fund.

F. After becoming an applicant candidate and prior to certification, an applicant candidate shall not accept contributions, except for seed money or qualifying contributions.

G. An incumbent elected prior to 2006 who was not an applicant candidate when elected but [declares his] who files a declaration of intent to become an applicant candidate in accordance with the Voter Action Act may transfer from [his] the applicant candidate's campaign fund for use as seed money up to the limits for contributions and expenditures specified in Subsection H of this section.

H. An applicant candidate shall limit seed money contributions and expenditures to five thousand dollars ($5,000)."

Section 13. Section 2-3-12 NMSA 1978 (being Laws 1951, Chapter 182, Section 6, as amended) is amended to read:

"2-3-12. DUTIES OF DIRECTOR--ADDITIONAL EMPLOYEES.--

A. The director of the legislative council service shall recommend to the New Mexico legislative council the appointment of such technical, clerical and stenographic assistants as may be necessary to carry out the provisions of [this act] Chapter 2, Article 3 NMSA 1978, and the legislative council, upon concurring in such appointments, shall fix the compensation of each employee within the appropriations made by the legislature for the use of the legislative council. [Such] Employees shall be appointed without regard to party affiliation and solely on ground of fitness to perform the duties of the position for which they are hired. [For a period commencing approximately one month prior to each session and until approximately fifteen days after the final adjournment thereof, at any regular or special session, the director may employ, subject to the approval of the legislative council, at a compensation to be fixed by the council within its budget allowance, such extra stenographic and emergency assistants, including expert legal draftsmen qualified to aid the legislators in the preparation and drafting of bills for introduction into the legislature, as may be necessary to expeditiously handle the work of the council service immediately prior to, during and immediately after the legislative sessions.]

B. The director of the legislative council service shall receive application for and recommend to the New Mexico legislative council the appointment of nonpolitical personnel to serve for each elected legislator as staff to carry out the duties of the legislative office."

Section 14. 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 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; and

(5) the compensation to be paid the lobbyist for lobbying services, whether on contract or through salary.

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 12

termination of the lobbyist's employment as a lobbyist before the end of the calendar year, the lobbyist shall notify the secretary of state 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 15. Section 2-11-6 NMSA 1978 (being Laws 1977, Chapter 261, Section 6, as amended) is amended to read:

"2-11-6. EXPENDITURE AND COMPENSATION REPORT TO BE

FILED--CONTENTS--REPORTING PERIODS.--

A. Each lobbyist or lobbyist's employer who receives compensation for lobbying services or 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 and compensation report with the secretary of state on a prescribed form or in an electronic format approved by the secretary of state. The expenditure and compensation 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;

(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;

(4) in a report filed by a lobbyist, the compensation received by the lobbyist from each of the lobbyist's employers or clients; and

(5) in a report filed by a lobbyist's employer or client, the total compensation paid each lobbyist by the employer for lobbying services.

B. If the expenditure and compensation 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 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, 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 compensation received and 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 compensation received and 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 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 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 on a prescribed form."

Section 16. Section 2-11-7 NMSA 1978 (being Laws 1977, Chapter 261, Section 7, as amended) is amended to read:

"2-11-7. EACH REGISTRATION [AND EXPENDITURE] STATEMENT AND EACH EXPENDITURE AND COMPENSATION REPORT--PRESERVATION AS PUBLIC RECORD.--Each registration [and expenditure] statement and each expenditure and compensation report as required by the Lobbyist Regulation Act shall be preserved by the secretary of state 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 17. Section 10-16-4.1 NMSA 1978 (being Laws 1993, Chapter 46, Section 38) is amended to read:

"10-16-4.1. HONORARIA PROHIBITED.--

A. No [legislator] public officer or employee may request or receive an honorarium for a speech or service rendered that relates to the performance of public duties. For the purposes of this [section] subsection, "honorarium" means payment of money, or any other thing of value in excess of one hundred dollars ($100), but does not include reasonable reimbursement for meals, lodging or actual travel expenses incurred in making the speech or rendering the service, or payment or compensation for services rendered in the normal course of a private business pursuit.

B. No legislator may request or receive an honorarium for a speaker service rendered that relates to the performance of public duties. For purposes of this subsection, "honorarium" means payment of money or any other thing of value and includes reimbursement for meals, lodging, travel expenses, payment or compensation for services rendered in the normal course of a private business pursuit."

Section 18. REPEAL.--Section 2-1-3 NMSA 1978 (being Laws 1943, Chapter 18, Section 1, as amended) is repealed.

Section 19. CONTINGENT EFFECTIVE DATE.--The provisions of Sections 4 and 5 of the Level Playing Field Act shall become effective upon certification by the secretary of state that the constitution of New Mexico has been amended as proposed by a joint resolution of the first session of the forty-eighth legislature entitled "PROPOSING AN AMENDMENT TO ARTICLE 4, SECTION 10 OF THE CONSTITUTION OF NEW MEXICO TO PROVIDE FOR LEGISLATIVE SALARIES".

Section 20. CONTINGENT EFFECTIVE DATE.--The provisions of Section 8 of the Level Playing Field Act shall become effective upon certification by the secretary of state that the constitution of New Mexico has been amended as proposed by a joint resolution of the first session of the forty-eighth legislature entitled "A JOINT RESOLUTION PROPOSING AN AMENDMENT TO ARTICLE 4, SECTION 10 OF THE CONSTITUTION OF NEW MEXICO TO PROVIDE AN ANNUAL DISTRIBUTION TO MEMBERS OF THE LEGISLATURE FOR EXPENSES DIRECTLY RELATED TO THE DUTIES OF THEIR OFFICE IN AN AMOUNT NOT TO EXCEED FIFTEEN PERCENT OF THE ANNUAL SALARY PROVIDED FOR JUSTICES OF THE NEW MEXICO SUPREME COURT".

Section 21. EFFECTIVE DATE.--The effective date of the provisions of Sections 1 through 3, 6, 7 and 9 through 17 of this act is July 1, 2009.

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