HOUSE BILL 310

52nd legislature - STATE OF NEW MEXICO - second session, 2016

INTRODUCED BY

Nora Espinoza and Cathrynn N. Brown

AN ACT

RELATING TO CAMPAIGN FINANCE; DEFINING ACCEPTABLE USE OF CAMPAIGN FUNDS FOR "EXPENDITURES OF THE CAMPAIGN" AND DEFINING PROHIBITED USES OF CAMPAIGN FUNDS FOR "PERSONAL EXPENSES".

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

     SECTION 1. 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 a candidate or 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, excluding personal expenses;

                (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 expenses and legislative session living expenses;

                (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 committee 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.

          D. As used in this section:

                (1) "expenditures of the campaign" means the promoting of the nomination or election of the candidate who established the campaign committee; provided that a candidate for lieutenant governor may use funds raised in the election cycle to support the candidate's joint candidacy for the offices of governor and lieutenant governor. "Expenditures of the campaign" includes:

                     (a) advertising in electronic and print media;

                     (b) any other form of printed advertising or communications, including "thank you" advertising after the election;

                     (c) campaign items, including brochures, leaflets, flyers, invitations, stationery, envelopes, reply cards, return envelopes, campaign business cards, direct mailings, postcards, palm cards, "thank you" notes, sample ballots and other similar items;

                     (d) political banners and billboards;

                     (e) political paraphernalia that is customarily given or sold to supporters, including campaign buttons, stickers, pins, pencils, pens, matchbooks, balloons, pads, calendars, magnets, key chains, hats, tee shirts, sweatshirts, Frisbees, potholders, jar openers and similar items;

                     (f) purchasing office supplies for campaign or political purposes, campaign photographs, permits required by law, fundraiser prizes, postage, express mail delivery services, bulk mail permits and computer supplies and services;

                     (g) banking service charges to maintain campaign and political accounts;

                     (h) subscriptions to newspapers and periodicals that enhance the candidacy of the candidate or party;

                     (i) lease or rental of office space for campaign or political purposes and related expenses, including furniture, parking, storage space, utilities and maintenance of vehicles for campaign use only;

                     (j) lease, rental or use charges of any ordinary and necessary campaign office equipment, including copy machines, telephones, postage meters, facsimile machines and computer hardware, software and printers;

                     (k) compensation for campaign or campaign committee staff, fringe benefits and payroll taxes; provided that the candidate and any member of the candidate's family shall not receive compensation;

                     (l) travel, meals and lodging expenses of speakers, campaign or campaign committee workers, the candidate and the candidate's spouse for political and campaign purposes;

                     (m) fundraising;

                     (n) reimbursements to candidates and campaign or campaign committee workers made in accordance with the provisions of this section for expenditures of the campaign for which a receipt is received by the treasurer;

                     (o) campaign or campaign committee services of attorneys, accountants, consultants or other professional persons for campaign activities, obtaining or contesting ballot status, nomination or election and compliance with the Election Code;

                     (p) auditing, accounting and filing of campaign finance reports;

                     (q) conducting polls concerning any political party, issue, candidate or individual;

                     (r) gifts to campaign or campaign committee workers or purchasing flowers or other commemorative items for political purposes not to exceed one hundred dollars ($100) to any one recipient in a calendar year or for the campaign;

                     (s) purchasing tickets or advertising from charities, inaugural committees or other civic organizations, if for a political purpose, for any candidate, a candidate's spouse, a member of a candidate's campaign staff or members of campaign committees;

                     (t) the inauguration of an elected candidate;

                     (u) hiring of halls, rooms, music and other entertainment for political meetings and events; and

                     (v) any other necessary routine and normally recognized campaign or political expense;

                (2) "family" means an individual's spouse, parents, children or siblings, by consanguinity or affinity; and

                (3) "personal expenses" means expenses for personal use, including:

                     (a) expenditures to defray normal living expenses for the candidate, the family of the candidate or any other individual and expenditures for the personal benefit of the candidate or any other individual having no direct connection with, or effect upon, the campaign of the candidate or the lawful purposes of the campaign committee;

                     (b) telephone, cell phone or internet services for the candidate or candidate's family having no direct connection with, or effect upon, the campaign of the candidate or the lawful purposes of the campaign committee;

                     (c) clothing, shoes, jewelry, watches or grooming for the candidate, including manicures, pedicures or hair styling; and

                     (d) medical expenses of the candidate or candidate's family, including all health care and alternative health care providers, eye care, glasses, contacts and exams, health insurance or deductibles, massages and gym or spa memberships."

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