SENATE BILL 296

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

INTRODUCED BY

Dede Feldman

AN ACT

RELATING TO PROCUREMENT; REQUIRING DISCLOSURE OF CAMPAIGN CONTRIBUTIONS BY PROSPECTIVE AND CURRENT STATE AND LOCAL CONTRACTORS; PROVIDING FOR ON-LINE ACCESS OF DISCLOSURE STATEMENTS; REPEALING AND ENACTING SECTIONS OF THE NMSA 1978.

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

     Section 1. A new section of Chapter 13, Article 1 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] STATE AND LOCAL CONTRACTS--CAMPAIGN CONTRIBUTION DISCLOSURE AND PROHIBITION.--

          A. A prospective state contractor shall disclose all campaign contributions given by a principal of the prospective state contractor to a state public officer during the two years prior to the date the prospective state contractor responds to a solicitation by a state agency to enter into a state contract if the aggregate total of contributions from a principal to a public officer exceeds two hundred fifty dollars ($250) over the two-year period.

          B. A prospective local contractor shall disclose all campaign contributions given by a principal of the prospective local contractor to a local public officer during the two years prior to the date the prospective local contractor responds to a solicitation by a local public body to enter into a contract with the local public body if the aggregate total of contributions from the principal to a local public officer exceeds two hundred fifty dollars ($250) over the two-year period.

          C. The disclosure shall indicate the date, the amount and the nature of the contribution and the person receiving the contribution. The disclosure statement shall be on a form developed and made available on-line by the department of finance and administration. Prospective state and local contractors shall complete the disclosure statement on-line, and the department shall post the disclosure statements on the department's web site.

          D. A prospective contractor not required to file a disclosure statement pursuant to Subsection A or B of this section shall file a statement affirming that no principal of the prospective contractor made contributions to a relevant public officer in excess of two hundred fifty dollars ($250) over the two-year period.

          E. If a principal of a state contractor gives a campaign contribution to or solicits a campaign contribution for the benefit of a state public officer or if a principal of a local contractor does so for the benefit of a local public officer during the pendency of the procurement process or term of the respective state contract or local contract, the respective state or local contractor shall file an updated disclosure statement with the department of finance and administration within thirty days of the contribution or solicitation.

          F. A solicitation for or proposed award of a contract may be canceled or a contract that is executed may be ratified or terminated if it is in the best interests of the state or local public body when a prospective state or local contractor or a state or local contractor fails to submit a fully completed disclosure statement pursuant to this section.

          G. As used in this section:

                (1) "local public body" means the governing authority of a political subdivision of the state;

                (2) "local contractor" means a person, business entity or nonprofit organization that enters into a local contract, which shall be deemed to be a local contractor until the termination of the contract. "Local contractor" does not include a municipality or any other political subdivision of the state or an employee in the executive, legislative or judicial branch of state government, political subdivision of the state or an instrumentality of the state, whether full- or part-time, in that person's capacity as an employee of the state, a political subdivision of the state or an instrumentality of the state;

                (3) "local public officer" means a person elected to an office, or a person appointed to complete a term of an elected office, in the political subdivision of the state where the local public body is seeking to contract with a local contractor;

                (4)  "pendency of the procurement process" means the time period commencing on the day of the initial solicitation for a state or local contract by the state agency or local public body and ending with the award of the contract or the cancellation of the solicitation;

                (5) "principal of a prospective state or local contractor" means:

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

                     (b) a person who is employed by a prospective state or local contractor that is a business entity, as president, treasurer or executive or senior vice president;  

                     (c) a person who is the chief executive officer of a prospective state or local contractor that is not a business entity;

                     (d) an employee of any prospective state or local contractor who has managerial or discretionary responsibilities with respect to a state or local contract;

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

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

                     (g) a person who is compensated to seek or lobby for state or local public body contracts by a prospective state or local contractor; 

                (6) "prospective state or local contractor" means a person, business entity or nonprofit organization that submits a bid in response to a bid solicitation by the state, a state agency, a local public body or an instrumentality of the state, or a proposal in response to a request for proposals or other solicitation by the state, a state agency, local public body or an instrumentality of the state, until the contract has been entered into. "Prospective state or local contractor" does not include a municipality or any other political subdivision of the state or an employee in the executive, legislative or judicial branch of state government, political subdivision of the state or instrumentality of the state, whether full- or part-time, in such person's capacity as an employee of the state, a political subdivision of the state or an instrumentality of the state;

                (7) "state agency" means an office, department, board, council, commission, institution or other agency in the executive or legislative branch of state government or an instrumentality of the state;

                (8) "state contract" or "local contract" means an agreement or contract with the state or any state agency or instrumentality of the state, or local public body in the case of a local contract, having a value of fifty thousand dollars ($50,000) or more, or a combination or series of such agreements or contracts having a value of fifty thousand dollars ($50,000) or more in a fiscal year, for:

                     (a) the rendition of services, including professional services;

                     (b) the furnishing of any material, supplies or equipment;

                     (c) the construction, alteration or repair of any public building or public work;

                     (d) the acquisition, sale or lease of any land or building;

                     (e) a licensing arrangement; or

                     (f) a grant, loan or loan guarantee;

                (9) "state contractor" means a person, business entity or nonprofit organization that enters into a state contract, which shall be deemed to be a state contractor until the termination of the contract. "State contractor" does not include a municipality or any other political subdivision of the state or an employee in the executive, legislative or judicial branch of state government or an instrumentality of the state, whether full- or part-time, in that person's capacity as an employee of the state or instrumentality of the state; and

                (10) "state public officer" means a person elected to an office or a person appointed to complete a term of an elected office, in the executive or legislative branch of state government, a political committee established or controlled by or affiliated with a state public officer and any department secretary in the executive branch having an active candidate committee or political committee account."

     Section 2. REPEAL.--Section 13-1-191.1 NMSA 1978 (being Laws 2006, Chapter 81, Section 1, as amended) is repealed.

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