HB0462

HOUSE BILL 462

53rd legislature - STATE OF NEW MEXICO - first session, 2017

INTRODUCED BY

Rod Montoya and Cathrynn N. Brown

AN ACT

RELATING TO PUBLIC ACCOUNTABILITY; ENACTING THE PUBLIC ACCOUNTABILITY ACT; CREATING THE NEW MEXICO ETHICS COMMISSION; PROVIDING FOR AN EXECUTIVE DIRECTOR; PROVIDING FOR THE ISSUANCE OF ADVISORY OPINIONS; REQUIRING PUBLICATION OF CERTAIN REPORTS; TRANSFERRING CERTAIN ACCOUNTABILITY AND ENFORCEMENT FUNCTIONS TO THE COMMISSION; PROVIDING FOR THE FILING, INVESTIGATION AND ADJUDICATION OF COMPLAINTS RELATED TO PUBLIC ACCOUNTABILITY; PROVIDING FOR CONFIDENTIALITY OF CERTAIN RECORDS; PROVIDING FOR A PERMANENT LEGISLATIVE ETHICS COMMITTEE; AMENDING, REPEALING AND ENACTING SECTIONS OF THE NMSA 1978.

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

SECTION 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 through 12 of this act may be cited as the "Public Accountability Act".

SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the Public Accountability Act:

A. "adjunct agency" means an agency, board, commission, office or other instrumentality, not assigned to an elected constitutional officer, that is excluded from any direct or administrative attachment to a department of state government and that retains policymaking and administrative autonomy separate from any other agency of state government;

B. "breach" means an action that is a violation of any of the laws listed in Section 6 of the Public Accountability Act;

C. "commission" means the New Mexico ethics commission;

D. "complainant" means a person who files a complaint with the commission;

E. "complaint" means a formal written assertion of a breach;

F. "director" means the executive director of the commission;

G. "instrumentality of the state" means the New Mexico exposition center authority, New Mexico finance authority, New Mexico industrial and agricultural finance authority, New Mexico lottery authority, New Mexico mortgage finance authority, New Mexico renewable energy transmission authority, New Mexico state fair and water quality control commission;

H. "lobbyist" means a person required to register as a lobbyist pursuant to the Lobbyist Regulation Act;

I. "public body" means a department, commission, council, committee or agency of the state; a political subdivision of the state; or an instrumentality of the state;

J. "public employee" means a person employed by a public body;

K. "public officer" means a person elected or appointed to an office of or position with a public body; but "public officer" excludes judges;

L. "qualified political party" means a political party that has been qualified in accordance with the provisions of the Election Code; and

M. "respondent" means a person whose conduct or alleged breach is the subject of a complaint.

SECTION 3. [NEW MATERIAL] NEW MEXICO ETHICS COMMISSION CREATED--MEMBERSHIP--TERMS--REMOVAL.--

A. The "New Mexico ethics commission" is created as an adjunct agency under the direction of seven commissioners, no more than three of whom may be members of the same political party, appointed as follows:

(1) three commissioners appointed by the governor, none of whom shall be of the same political party, with one commissioner appointed from each congressional district; and

(2) as certified by the chief clerks of the respective chambers:

(a) one commissioner appointed by the president pro tempore of the senate;

(b) one commissioner appointed by the minority floor leader of the senate;

(d) one commissioner appointed by the minority floor leader of the house of representatives.

B. A commissioner shall:

(1) be a qualified elector of the state;

(2) not change, or within two years prior to appointment shall not have changed, political party affiliation; and

(3) not be, or within the two years prior to appointment shall not have been, a state officer or employee in the executive or legislative branch of government, a registered lobbyist or a state contractor.

C. Commissioners shall be appointed for staggered terms of four years beginning July 1, 2019. The initial appointees shall draw lots to determine which two commissioners will serve an initial term of two years, which two commissioners shall serve an initial term of three years and which three commissioners shall serve an initial term of four years. Thereafter, all commissioners shall be appointed for four-year terms. Commissioners shall serve until their successors are appointed and qualified.

D. A person shall not serve as a commissioner for more than two consecutive terms. A vacancy on the commission shall be filled by appointment by the original appointing authority for the remainder of the unexpired term.

E. No action shall be taken by the commission unless at least five commissioners concur.

F. A commissioner may be removed only for incompetence, neglect of duty or malfeasance in office. A proceeding for the removal of a commissioner may be commenced by the commission or by the attorney general upon the request of the commission. The supreme court has exclusive jurisdiction over proceedings to remove commissioners, and its decision shall be final. A commissioner shall be given notice of hearing and an opportunity to be heard before the commissioner is removed.

SECTION 4. [NEW MATERIAL] COMMISSIONERS--QUALIFICATIONS-- LIMITATIONS.--

A. To qualify for appointment to the commission, a person shall:

(1) be a resident of New Mexico for at least four years; and

(2) not have changed political party affiliation as shown on the person's voter registration for at least two years prior to appointment.

B. Before entering upon the duties of the office of commissioner, each commissioner shall take the oath of office as provided in Article 20, Section 1 of the constitution of New Mexico and shall file that oath of office with the secretary of state.

C. A commissioner shall not:

(1) seek or hold an office in a political organization or a qualified political party;

(2) seek or hold an elective public office or an appointed public position;

(3) be a public employee, government contractor or lobbyist;

(4) be employed or contracted by a political committee required to file reports pursuant to the Campaign Reporting Act or a person in that person's capacity as a candidate for public office;

(5) publicly endorse or publicly oppose a candidate for public office;

(6) make speeches on behalf of a political committee required to file reports pursuant to the Campaign Reporting Act; or

(7) solicit funds for, pay an assessment to or make a contribution to a candidate or a political committee required to file reports pursuant to the Campaign Reporting Act.

D. A violation of Subsection C of this section may be found to constitute malfeasance in office in a removal proceeding pursuant to Subsection F of Section 3 of the Public Accountability Act.

SECTION 5. [NEW MATERIAL] COMMISSION--DUTIES AND POWERS.--

A. The commission shall:

(1) meet as necessary to carry out its duties;

(2) receive and investigate complaints;

(3) hold hearings when necessary to determine whether there has been a breach as alleged in a complaint;

(4) administer the applicable compliance provisions of the laws listed in Section 6 of the Public Accountability Act;

(5) promulgate rules necessary to implement and administer the provisions of the Public Accountability Act and the applicable compliance provisions of the laws listed in Section 6 of that act;

(6) compile, index, maintain and provide access to all advisory opinions and reports required to be made public pursuant to the Public Accountability Act;

(7) compile, maintain and provide access to all codes of conduct filed with the commission in accordance with Section 10-16-11 NMSA 1978;

(8) draft a proposed code of public accountability and submit the proposed code to each elected public officer and public body for adoption;

(9) appoint an executive director;

(10) contract for professional services as necessary to carry out its duties;

(11) have the authority to accept federal funds and other public or private grants to perform duties consistent with the Public Accountability Act; and

(12) prepare an annual report of its activities.

B. The commission is limited in its authority to those powers granted by the Public Accountability Act or expressly granted in another applicable statute. In carrying out its responsibilities pursuant to the Public Accountability Act, the commission may:

(1) sue and be sued;

(2) initiate complaints;

(3) issue advisory opinions as provided in Section 9 of the Public Accountability Act; and

(4) designate committees of the commission to make recommendations for action to the commission.

SECTION 6. [NEW MATERIAL] COMMISSION JURISDICTION--COMPLIANCE PROVISIONS.--

A. The commission shall enforce the applicable civil compliance provisions of the:

(1) Campaign Reporting Act;

(2) Financial Disclosure Act;

(3) Gift Act;

(4) Lobbyist Regulation Act;

(5) Voter Action Act;

(6) Governmental Conduct Act; and

(7) Public Accountability Act.

B. The commission shall file any court action to enforce the civil compliance provisions of an act listed in Subsection A of this section in the district court of the county in which the defendant resides.

SECTION 7. [NEW MATERIAL] EXECUTIVE DIRECTOR-- APPOINTMENT--DUTIES--POWERS--LIMITATIONS.--

A. The director shall be:

(1) knowledgeable about state laws related to public accountability;

(2) appointed without regard to qualified political party affiliation; and

(3) appointed, retained and reappointed solely on the grounds of fitness to perform the duties of the office.

B. The director shall hold office for a term commencing on the date of appointment through December 31 of the fourth even-numbered year following the director's appointment.

C. Prior to the end of the director's term of office, the director may only be removed by the commission for cause and with the concurrence of at least five commissioners.

D. The director shall:

(1) take the oath of office required by Article 20, Section 1 of the constitution of New Mexico and file that oath of office with the secretary of state;

(2) devote the director's entire professional time and attention to the duties of that office;

(3) prepare an annual budget for the commission and submit it to the commission for approval;

(4) make recommendations to the commission of

proposed rules or legislative changes needed to provide better administration of the Public Accountability Act;

(5) publish the commission's advisory opinions and annual reports and a list of persons who failed to file a report of expenditures and contributions or a statement of no activity or to pay a penalty imposed by the commission; and

(6) at every meeting of the commission, report on the status of all open investigations and investigations closed since the commission's last meeting.

E. The director may:

(1) hire a general counsel and additional personnel necessary to enable the commission to carry out its duties; and

(2) enter into contracts and agreements on behalf of the commission.

F. The director shall not:

(1) seek or hold an office in a qualified political party; or

(2) seek or hold an elected public office or an appointed public position.

G. A director who seeks or holds an office or position as prohibited in Subsection F of this section is deemed to have resigned as director.

SECTION 8. [NEW MATERIAL] COMMISSIONERS--RECUSAL--DISQUALIFICATION.--

A. A commissioner shall recuse from and not participate in a commission proceeding in which the commissioner cannot render a fair and impartial judgment.

B. The commission may disqualify a commissioner who has not recused from a proceeding in which the commissioner cannot render a fair and impartial judgment with the concurrence of at least five commissioners.

C. The commission's disqualification of a commissioner shall serve as an automatic initiation of proceedings to remove the commissioner.

D. If two or more commissioners have recused themselves or are disqualified from participating in a proceeding, the remaining commissioners shall request the appointment of temporary commissioners from the original appointing authorities that appointed the recused or disqualified commissioners. Appointing authorities shall appoint temporary commissioners within twenty days of the request for appointment.

SECTION 9. [NEW MATERIAL] ADVISORY OPINIONS.--

A. The commission may issue advisory opinions on matters related to the laws listed in Section 6 of the Public Accountability Act. Advisory opinions shall:

(1) be requested in writing;

(2) present a question regarding whether the requester's conduct would violate any of the laws listed in Section 6 of the Public Accountability Act;

(3) be issued within sixty days of receipt of the request, unless the commission notifies the requester in writing of the delay and the reason for the delay, and continues to notify the requester in writing every thirty days until the advisory opinion is issued, which in all cases shall be within one hundred eighty days of the request; and

(4) be published on the commission's website after omitting the requester's name and identifying information.

B. A request for an advisory opinion and the research conducted to formulate the advisory opinion are confidential.

C. Unless amended or revoked, an advisory opinion shall be binding on the commission in any subsequent commission proceedings concerning a person who acted in good faith and in reasonable reliance on the advisory opinion.

SECTION 10. [NEW MATERIAL] COMPLAINTS--JURISDICTION-- INVESTIGATIONS--SUBPOENAS.--

A. A complaint alleging a breach may be filed with the commission by any person.

B. The complainant shall set forth in detail the specific allegations against the respondent and the facts that support the allegations. The complainant shall submit any available evidence that supports the complaint, including documents, records, names of witnesses and other evidence. The complaint shall be in writing, signed and sworn by the complainant and notarized.

C. Failure to satisfy a nonsubstantive requirement for filing a complaint does not invalidate the complaint.

D. The commission shall not accept or consider a complaint unless the complaint is filed within two years from the last date on which the alleged breach occurred or from the last date on which a reasonable person would have discovered the facts upon which the complaint is based.

E. The director shall determine whether the conduct alleged in the complaint is within the civil enforcement jurisdiction of the commission and warrants investigation.

F. The director shall recommend that the commission dismiss a complaint that is frivolous, unfounded or outside the commission's civil enforcement jurisdiction.

G. The commission shall issue findings if it dismisses a complaint as frivolous or unfounded and in all cases of dismissal shall notify the complainant and respondent of the dismissal.

H. If the director determines that there is sufficient cause to proceed with an investigation, the director shall seek a response from the respondent and investigate the complaint. The complaint and response, if any, shall be made public within fifteen days after the director's determination. The director may request that the district court issue subpoenas requiring the attendance of witnesses or the production of books, records, documents or other evidence reasonably related to the investigation. If a person fails to comply with the subpoena, the director may apply to a district court for an order enforcing the subpoena and compelling compliance. The director may interview witnesses and examine books, records, documents and other evidence reasonably related to the complaint. A public employee or public official who is a respondent and was acting in an official capacity shall be entitled to representation by the risk management division of the general services department, a local risk management entity or other appropriate insurance carrier.

I. Within sixty days of the initiation of an investigation, the director shall, at a public meeting of the commission, recommend that the commission dismiss the complaint or schedule a hearing to adjudicate the complaint.

J. No later than July 1 of each even-numbered year, the chief justice of the supreme court shall appoint an active or pro tempore district judge to consider the issuance and enforcement of subpoenas provided for in this section. The appointment shall end on June 30 of the next even-numbered year after appointment.

K. The procedures provided in this section and Section 11 of the Public Accountability Act shall be used if those procedures conflict with the procedures provided by any of the laws listed in Section 6 of that act.

SECTION 11. [NEW MATERIAL] PRE-HEARING DISPOSITION-- COMMISSION HEARINGS--FINDINGS AND CONCLUSIONS--DISCLOSURE-- APPEAL OF DISMISSAL.--

A. Upon the director's recommendation, the commission may:

(1) dismiss a complaint and notify the complainant and the respondent of the dismissal; or

(2) set a public hearing, as soon as practicable.

B. At any time before or during a hearing provided for in Subsection A of this section, the commission may, at a public meeting of the commission, approve a disposition of a complaint agreed to by the director and the respondent.

C. The hearing provided for in Subsection A of this section shall be pursuant to the rules of evidence that govern proceedings in the state's courts. The respondent has the right to be represented by counsel. The parties may present evidence and testimony, compel the presence of witnesses and examine and cross-examine witnesses.

D. The commission shall issue a written report that shall include findings of fact and conclusions of law. If the commission finds by clear and convincing evidence that the respondent's conduct constituted a breach, the report may include a public reprimand or censure of the respondent or recommendations for disciplinary action against the respondent, and if at least five commissioners find that the respondent's conduct constituted a willful breach, the commission shall impose any fines provided for by law.

E. The commission shall publicly disclose a report issued pursuant to Subsection D of this section. If the report concerns a willful breach, the commission shall provide the report, along with all evidence presented to the commission, to the respondent and the:

(1) speaker and majority and minority floor leaders of the house of representatives if the respondent is a public official who is subject to impeachment;

(2) appropriate legislative body if the respondent is a member of the legislature;

(3) respondent's appointing authority if the respondent is an appointed public official;

(4) appropriate public body if the respondent is a public employee; or

(5) respondent's employer if the respondent is a lobbyist.

F. The commission shall promulgate rules establishing procedures for hearings.

SECTION 12. [NEW MATERIAL] CONFIDENTIALITY OF RECORDS.--

A. Except as otherwise provided in the Public Accountability Act, all records and communications collected or generated by the director are confidential, unless:

(1) disclosure is necessary at a hearing or meeting of the commission;

(2) disclosure is required pursuant to the provisions of the Public Accountability Act; or

(3) they are offered into evidence at a judicial, legislative or administrative proceeding.

B. Information and reports containing information made confidential by law or that are exempt from disclosure pursuant to the Inspection of Public Records Act shall not be disclosed by the commission or its director, staff or contractors.

SECTION 13. Section 1-19-32 NMSA 1978 (being Laws 1979, Chapter 360, Section 8, as amended) is amended to read:

"1-19-32. INSPECTION OF PUBLIC RECORDS.--

A. Each of the following documents is a public record open to public inspection during regular office hours in the office in which the document was filed or from which the document was issued:

(1) a statement of [exception] no activity;

(2) a report of expenditures and contributions;

(3) an advisory opinion issued by the [secretary of state] New Mexico ethics commission;

(4) a document specified as a public record in the Campaign Reporting Act; and

(5) [an arbitration decision issued by an arbitration panel and filed with the secretary of state] a decision issued by a hearing officer and filed with the New Mexico ethics commission.

B. Each public record described in Subsection A of this section shall be retained by the state for five years and may be destroyed five years after the date of filing unless a legal action or prosecution is pending that requires the preservation of the public record.

C. The secretary of state shall provide for electronic access to reports of expenditures and contributions and statements of [exception] no activity submitted electronically by reporting individuals. Electronic access shall include access via the internet and shall be in an easily searchable format."

SECTION 14. Section 1-19-32.1 NMSA 1978 (being Laws 1981, Chapter 331, Section 9, as amended) is amended to read:

"1-19-32.1. REPORTS EXAMINATION--FORWARDING OF

REPORTS.--

A. The [secretary of state] New Mexico ethics commission shall conduct a thorough examination of at least ten percent of all reports filed during a year by reporting individuals, selected at random at least forty days after the general election and ten days after the April reports are filed in a non-election year, to determine compliance with the provisions of the Campaign Reporting Act. The examination may include an investigation of any discrepancies, including a cross-reference to reports filed by any other reporting individual. A reporting individual shall be notified in writing if a discrepancy is found in the report filed and shall be permitted to file a written explanation for the discrepancy within ten [working] days of the date of the notice. The notice, penalty and [arbitration] independent hearing officer provisions set forth in Section 1-19-34.4 NMSA 1978 shall apply to examinations conducted under this section.

B. After the date stated in the notice of final action for submission of a written explanation, the [secretary of state] New Mexico ethics commission shall prepare an annual report of any unresolved discrepancies found after examination of the random sample provided for in Subsection A of this section. [A copy of this report shall be transmitted to the attorney general for enforcement pursuant to the provisions of Section 1-19-36 NMSA 1978.] This report is a public record open to public inspection and subject to the retention and destruction provisions set forth in Section 1-19-32 NMSA 1978."

SECTION 15. Section 1-19-34.4 NMSA 1978 (being Laws 1993, Chapter 46, Section 15, as amended) is amended to read:

"1-19-34.4. EDUCATION AND VOLUNTARY COMPLIANCE--INVESTIGATIONS--[BINDING ARBITRATION] HEARINGS--REFERRALS FOR ENFORCEMENT.--

A. The secretary of state shall advise and seek to educate all persons required to perform duties under the Campaign Reporting Act of those duties. This includes advising all known reporting individuals at least annually of that act's deadlines for submitting required reports and statements of [exception] no activity. The [secretary of state in consultation with the attorney general] New Mexico ethics commission shall issue advisory opinions, when requested in writing to do so, on matters concerning that act. All prescribed forms prepared shall be clear and easy to complete.

B. [The secretary of state may initiate investigations to determine whether any provision of the Campaign Reporting Act has been violated. Additionally] Any person who believes that a provision of [that] the Campaign Reporting Act has been violated may file a written complaint with the [secretary of state] New Mexico ethics commission any time prior to ninety days after an election, except that no complaints from the public may be filed within eight days prior to an election. The [secretary of state] commission shall adopt procedures for issuing advisory opinions and processing complaints and notifications of violations.

C. The [secretary of state] New Mexico ethics commission shall at all times seek to ensure voluntary compliance with the provisions of the Campaign Reporting Act. If the [secretary of state] commission determines that a provision of that act for which a penalty may be imposed has been violated, the [secretary of state] commission shall by written notice set forth the violation and the fine imposed and inform the reporting individual that [he] the individual has ten [working] days from the date of the letter to correct the matter and to provide a written explanation, under penalty of perjury, stating any reason why the violation occurred. If a timely explanation is filed and the [secretary of state] commission determines that good cause exists to waive the fine imposed, the [secretary of state] commission may by a written notice of final action partially or fully waive any fine imposed for any late, incomplete or false report or statement of [exception] no activity. A written notice of final action shall be sent by certified mail.

D. Upon receipt of the notice of final action, the person against whom the penalty has been imposed may protest the [secretary of state's] New Mexico ethics commission's determination, including an advisory opinion, by submitting on a prescribed form a written request for [binding arbitration to the secretary of state] a hearing within ten [working] days of the date of the notice of final action. The hearing shall be conducted by an independent hearing officer appointed pursuant to the Administrative Hearings Office Act. Any fine imposed shall be due and payable within ten [working] days of the date of notice of final action. [No additional fine shall accrue pending the issuance of the arbitration decision. Fines paid pursuant to a notice of final action that are subsequently reduced or dismissed shall be reimbursed with interest within ten working days after the filing of the arbitration decision with the secretary of state. Interest on the reduced or dismissed portion of the fine shall be the same as the rate of interest earned by the secretary of state's escrow account to be established by the department of finance and administration.

E. An arbitration hearing shall be conducted by a single arbitrator selected within ten days by the person against whom the penalty has been imposed from a list of five arbitrators provided by the secretary of state. Neither the secretary of state nor a person subject to the Campaign Reporting Act, Lobbyist Regulation Act or Financial Disclosure Act may serve as an arbitrator. Arbitrators shall be considered to be independent contractors, not public officers or employees, and shall not be paid per diem and mileage.

F.] E. The [arbitrator] hearing officer shall conduct the hearing within thirty days of the request [for arbitration. The arbitrator] and may impose any penalty [the secretary of state is authorized to impose] provided for in the Campaign Reporting Act. The [arbitrator] hearing officer shall state the reasons for [his] the decision in a written document that shall be a public record. [The decision shall be final and binding.] The decision shall be issued and filed with the [secretary of state] New Mexico ethics commission within thirty days of the conclusion of the hearing. [Unless otherwise provided for in this section or by rule or regulation adopted by the secretary of state, the procedures for the arbitration shall be governed by the Uniform Arbitration Act. No arbitrator shall be subject to liability for actions taken pursuant to this section.

G. The secretary of state may refer a matter to the attorney general or a district attorney for a civil injunctive or other appropriate order or for criminal enforcement.]"

SECTION 16. Section 1-19-34.6 NMSA 1978 (being Laws 1995, Chapter 153, Section 19) is amended to read:

"1-19-34.6. CIVIL PENALTIES.--

[A. If the secretary of state reasonably believes that a person committed, or is about to commit, a violation of the Campaign Reporting Act, the secretary of state shall refer the matter to the attorney general or a district attorney for enforcement.

B. The attorney general or district attorney]

A. The New Mexico ethics commission may institute a civil action in district court for any violation of the Campaign Reporting Act or to prevent a violation of that act that involves an unlawful solicitation or the making or acceptance of an unlawful contribution. An action for relief may include a permanent or temporary injunction, a restraining order or any other appropriate order, including a civil penalty of two hundred fifty dollars ($250) for each violation not to exceed five thousand dollars ($5,000), and forfeiture of any contribution received as a result of an unlawful solicitation or unlawful contribution. Each unlawful solicitation and each unlawful contribution made or accepted shall be deemed a separate violation of the Campaign Reporting Act.

[C. The attorney general or district attorney]

B. The New Mexico ethics commission may institute a civil action in district court if a violation has occurred or to prevent a violation of any provision of the Campaign Reporting Act other than that specified in Subsection [B] A of this section. Relief may include a permanent or temporary injunction, a restraining order or any other appropriate order, including an order for a civil penalty of fifty dollars ($50.00) for each violation not to exceed five thousand dollars ($5,000)."

SECTION 17. Section 1-19-34.7 NMSA 1978 (being Laws 2009, Chapter 68, Section 1) is amended to read:

"1-19-34.7. CONTRIBUTION LIMITATIONS--CANDIDATES--POLITICAL COMMITTEES.--

A. The following contributions by the following persons are prohibited:

(1) from a person, not including a political committee, to a:

(a) candidate for nonstatewide office, including the candidate's campaign committee, in an amount that will cause that person's total contributions to the candidate to exceed two thousand three hundred dollars ($2,300) during the primary election or two thousand three hundred dollars ($2,300) during the general election;

(b) candidate for statewide office, including the candidate's campaign committee, in an amount that will cause that person's total contributions to the candidate to exceed five thousand dollars ($5,000) during the primary election or five thousand dollars ($5,000) during the general election; or

(c) political committee in an amount that will cause that person's total contributions to the political committee to exceed five thousand dollars ($5,000) during a primary election or five thousand dollars ($5,000) during a general election; and

(2) from a political committee to:

(a) a candidate for office, including the candidate's campaign committee, in an amount that will cause the political committee's total contributions to the candidate to exceed five thousand dollars ($5,000) during the primary election or five thousand dollars ($5,000) during the general election; or

(b) another political committee in an amount that will cause that political committee's total contributions to the political committee to exceed five thousand dollars ($5,000) during a primary election or five thousand dollars ($5,000) during a general election.

B. All contributions made by a person to a candidate, either directly or indirectly, including contributions that are in any way earmarked or otherwise directed through another person to a candidate, shall be treated as contributions from the person to that candidate.

C. A person, including a political committee, shall not knowingly accept or solicit a contribution, directly or indirectly, including a contribution earmarked or otherwise directed or coordinated through another person, including a political committee, that violates the contribution limits provided for in this section.

D. On the day after each general election, the contribution amounts provided in Subsection A of this section shall be increased by the percentage of the preceding two calendar [year's] years' increase of the consumer price index for all urban consumers, United States city average for all items, published by the United States department of labor. The amount of the increase shall be rounded to the nearest multiple of one hundred dollars ($100). The secretary of state shall publish by October 1 before each general election the adjusted contribution limits that shall take effect the day after the following general election.

E. All contributions in excess of the limits imposed by the provisions of this section shall be deposited in the public election fund upon a finding by the [secretary of state] New Mexico ethics commission that the contribution limits have been exceeded.

F. The limitation on contributions to a candidate provided for in Subsection A of this section shall not apply to a candidate's own contribution from the candidate's personal funds to the candidate's own campaign.

G. For the purposes of this section:

(1) "primary election" means the period beginning on the day after the general election for the applicable office and ending on the day of the primary for that office; and

(2) "general election" means the period beginning on the day after the primary for the applicable office and ending on the day of the general election for that office."

SECTION 18. Section 1-19-35 NMSA 1978 (being Laws 1979, Chapter 360, Section 11, as amended) is amended to read:

"1-19-35. REPORTS AND STATEMENTS--LATE FILING

PENALTY--FAILURE TO FILE.--

A. Except for the report required to be filed and delivered the Thursday prior to the election and any supplemental report, as required in Paragraph (5) of Subsection B of Section 1-19-29 NMSA 1978, that is due prior to the election, and subject to the provisions of Section 1-19-34.4 NMSA 1978, if a statement of no activity or a report of expenditures and contributions contains false or incomplete information or is filed after any deadline imposed by the Campaign Reporting Act, the responsible reporting individual or political committee, in addition to any other penalties or remedies prescribed by the Election Code, shall be liable for and shall pay to the [secretary of state] New Mexico ethics commission fifty dollars ($50.00) per day for each regular working day after the time required by the Campaign Reporting Act for the filing of statements of no activity or reports of expenditures and contributions until the complete or true statement or report is filed, up to a maximum of five thousand dollars ($5,000).

B. If any reporting individual files a false, intentionally incomplete or late report of expenditures and contributions due on the Thursday prior to the election, the reporting individual or political committee shall be liable for and pay to the [secretary of state] New Mexico ethics commission five hundred dollars ($500) for the first working day and fifty dollars ($50.00) for each subsequent working day after the time required for the filing of the report until the true and complete report is filed, up to a maximum of five thousand dollars ($5,000).

C. If a reporting individual fails to file or files a late supplemental report of expenditures and contributions as required in Paragraph (5) of Subsection B of Section 1-19-29 NMSA 1978, the reporting individual or political committee shall be liable for and pay to the [secretary of state] New Mexico ethics commission a penalty equal to the amount of each contribution received or pledged after the Tuesday before the election that was not timely filed.

D. All sums collected for the penalty shall be deposited in the [state general] current school fund. A report or statement of [exception] no activity shall be deemed timely filed only if it is received by the proper filing officer by the date and time prescribed by law.

E. Any candidate who fails or refuses to file a report of expenditures and contributions or statement of no activity or to pay a penalty imposed by the [secretary of state] New Mexico ethics commission as required by the Campaign Reporting Act shall not, in addition to any other penalties provided by law:

(1) have the candidate's name printed upon the ballot if the violation occurs before and through the final date for the withdrawal of candidates; or

(2) be issued a certificate of nomination or election, if the violation occurs after the final date for withdrawal of candidates or after the election, until the candidate satisfies all reporting requirements of the Campaign Reporting Act and pays all penalties owed.

F. The New Mexico ethics commission shall maintain on its website a list of persons who failed or refused to file a report of expenditures and contributions or a statement of no activity or to pay a penalty imposed by the commission and have not remedied the failure or refusal.

[F.] G. Any candidate who loses an election and who failed or refused to file a report of expenditures and contributions or a statement of no activity or to pay a penalty imposed by the [secretary of state] New Mexico ethics commission as required by the Campaign Reporting Act shall not be, in addition to any other penalties provided by law, permitted to file a declaration of candidacy or nominating petition for any future election until the candidate satisfies all reporting requirements of that act and pays all penalties owed."

SECTION 19. Section 1-19A-16 NMSA 1978 (being Laws 2003, Chapter 14, Section 16) is amended to read:

"1-19A-16. APPEALS.--The procedure for challenging a certification decision by the secretary is as follows:

A. a person aggrieved by a certification decision or a decision regarding the distribution of matching funds may appeal to the [secretary] New Mexico ethics commission within three days of the decision. The appeal shall be in writing and shall set forth the reasons for appeal;

B. within five days after an appeal is properly made, and after due notice is given to the parties in dispute, the [secretary] New Mexico ethics commission shall hold a hearing [whereby] in which:

(1) the appellant has the burden of providing evidence to demonstrate that the secretary's decision was improper; and

(2) the [secretary] commission shall rule on the appeal within three days after the completion of the hearing;

C. the parties in dispute may appeal the decision of the [secretary] New Mexico ethics commission by commencing an action in district court; and

D. certified candidates whose certification is revoked on appeal shall return to the secretary any unspent money distributed from the fund. If the [secretary] New Mexico ethics commission or court finds that an appeal was made frivolously or to result in delay or hardship, the [secretary] commission or court may sanction the moving party by requiring the party to pay costs of the administrative hearing, the court hearing and the opposing parties."

SECTION 20. Section 1-19A-17 NMSA 1978 (being Laws 2003, Chapter 14, Section 17) is amended to read:

"1-19A-17. PENALTIES.--

A. In addition to other penalties that may be applicable, a person who violates a provision of the Voter Action Act is subject to a civil penalty of up to ten thousand dollars ($10,000) per violation. In addition to a fine, a certified candidate found in violation of that act may be required to return to the fund all amounts distributed to the candidate from the fund. If the [secretary] New Mexico ethics commission makes a determination that a violation of that act has occurred, the [secretary] commission shall impose a fine or transmit the finding to the attorney general for prosecution. In determining whether a certified candidate is in violation of the expenditure limits of that act, the [secretary] commission may consider as a mitigating factor any circumstances out of the candidate's control.

B. A person who willfully or knowingly violates the provisions of the Voter Action Act or rules of the secretary or knowingly makes a false statement in a report required by that act is guilty of a fourth degree felony and, if [he] the person is a certified candidate, shall return to the fund all money distributed to that candidate."

SECTION 21. Section 2-11-2 NMSA 1978 (being Laws 1977, Chapter 261, Section 2, as amended) is amended to read:

"2-11-2. DEFINITIONS.--As used in the Lobbyist Regulation Act:

A. "compensation" means any money, per diem, salary, fee or portion thereof or the equivalent in services rendered or in-kind contributions received or to be received in return for lobbying services performed or to be performed;

B. "expenditure" means a payment, transfer or distribution or obligation or promise to pay, transfer or distribute any money or other thing of value but does not include a lobbyist's own 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;

C. "legislative committee" means a committee created by the legislature, including interim and standing committees of the legislature;

D. "lobbying" means attempting to influence:

(1) a decision related to any matter to be considered or being considered by the legislative branch of state government or any legislative committee or any legislative matter requiring action by the governor or awaiting action by the governor; or

(2) an official action;

E. "lobbyist" means any individual who is compensated for the specific purpose of lobbying; is designated by an interest group or organization to represent it on a substantial or regular basis for the purpose of lobbying; or in the course of [his] employment, is engaged in lobbying on a substantial or regular basis. "Lobbyist" does not include:

(1) an individual who appears on [his] the individual's own behalf in connection with legislation or an official action;

(2) [any] an elected or appointed officer of the state or its political subdivisions or an Indian nation, tribe or pueblo acting in [his] the officer's official capacity;

(3) an employee of the state or its political subdivisions, specifically designated by an elected or appointed officer of the state or its political subdivision, who appears before a legislative committee or in a rulemaking proceeding only to explain the effect of legislation or a rule on [his] the designated employee's agency or political subdivision; provided that the elected or appointed officer of the state or its political subdivision keeps for public inspection and files with the [secretary of state] New Mexico ethics commission such designation;

(4) [any] a designated member of the staff of an elected state official; provided that the elected state official keeps for public inspection and files with the [secretary of state] New Mexico ethics commission such designation;

(5) a member of the legislature, the staff of [any] a member of the legislature or the staff of [any] a legislative committee when addressing legislation;

(6) [any] a witness called by a legislative committee or administrative agency to appear before that legislative committee or agency in connection with legislation or an official action;

(7) an individual who provides only oral or written public testimony in connection with a legislative committee or in a rulemaking proceeding and whose name and the interest on behalf of which [he] the individual testifies have been clearly and publicly identified; or

(8) a publisher, owner or employee of the print media, radio or television, while gathering or disseminating news or editorial comment to the general public in the ordinary course of business;

F. "lobbyist's employer" means the person whose interests are being represented and by whom a lobbyist is directly or indirectly retained, compensated or employed;

G. "official action" means the action or nonaction of a state official or state agency, board or commission acting in a rulemaking proceeding;

H. "person" means an individual, partnership, association, committee, federal, state or local governmental entity or agency, however constituted, public or private corporation or any other organization or group of persons who are voluntarily acting in concert;

I. "political contribution" means a gift, subscription, loan, advance or deposit of [any] money or other thing of value, including the estimated value of an in-kind contribution, that is made or received for the purpose of influencing a primary, general or statewide election, including a constitutional or other question submitted to the voters, or for the purpose of paying a debt incurred in any such election;

J. "prescribed form" means a form prepared and prescribed by the secretary of state;

K. "rulemaking proceeding" means a formal process conducted by a state agency, board or commission for the purpose of adopting a rule, regulation, standard, policy or other requirement of general applicability and does not include adjudicatory proceedings; and

L. "state public officer" means a person holding a statewide office provided for in the constitution of New Mexico."

SECTION 22. Section 2-11-8.2 NMSA 1978 (being Laws 1977, Chapter 261, Section 4, as amended) is amended to read:

"2-11-8.2. COMPLIANCE WITH ACT--ENFORCEMENT OF ACT--

[BINDING ARBITRATION] HEARINGS--CIVIL PENALTIES.--

A. The secretary of state shall advise and seek to educate all persons required to perform duties pursuant to the Lobbyist Regulation Act of those duties. This includes advising all registered lobbyists at least annually of the Lobbyist Regulation Act's deadlines for submitting required reports. The [secretary of state, in consultation with the attorney general] New Mexico ethics commission shall issue advisory opinions, when requested to do so in writing, on matters concerning the Lobbyist Regulation Act. All prescribed forms prepared shall be clear and easy to complete.

B. The [secretary of state] New Mexico ethics commission may conduct thorough examinations of reports and initiate investigations to determine whether the Lobbyist Regulation Act has been violated. Additionally, any person who believes that a provision of that act has been violated may file a written complaint with the [secretary of state] commission. The [secretary of state] commission shall adopt procedures for issuing advisory opinions, processing complaints and notifications of violations.

C. The [secretary of state] New Mexico ethics commission shall at all times seek to ensure voluntary compliance with the provisions of the Lobbyist Regulation Act. If the [secretary of state] commission determines that a provision of that act for which a penalty may be imposed has been violated, the [secretary of state] commission shall by written notice set forth the violation and the fine imposed and inform the person that [he] the person has ten [working] days to provide a written explanation, under penalty of perjury, stating any reason the violation occurred. If a timely explanation is filed and the [secretary of state] commission determines that good cause exists, the [secretary of state] commission may by a written notice of final action partially or fully waive any fine imposed. A written notice of final action shall be sent by certified mail.

D. If the person charged disputes the [secretary of state's] New Mexico ethics commission's determination, including an advisory opinion, the person charged may request [binding arbitration] a hearing within ten [working] days of the date of the final action. The hearing shall be conducted by an independent hearing officer appointed pursuant to the Administrative Hearings Office Act. Any penalty imposed shall be due and payable within ten [working] days of the date of the notice of final action. [No additional penalty shall accrue pending issuance of the arbitration decision. Fines paid pursuant to a notice of final action that are subsequently reduced or dismissed shall be reimbursed with interest within ten working days after the filing of the arbitration decision with the secretary of state. Interest on the reduced or dismissed portion of the fine shall be the same as the rate of interest earned by the secretary of state's escrow account to be established by the department of finance and administration.

E. An arbitration hearing shall be conducted by a single arbitrator selected within ten days by the person against whom the penalty has been imposed from a list of five arbitrators provided by the secretary of state. Neither the secretary of state nor a person subject to the Lobbyist Regulation Act, Campaign Reporting Act or Financial Disclosure Act may serve as an arbitrator. Arbitrators shall be considered to be independent contractors, not public officers or employees, and shall not be paid per diem and mileage.

F.] E. The [arbitrator] independent hearing officer shall conduct the hearing within thirty days of the request and may impose any penalty and take any action [the secretary of state is] authorized [to take] by the Lobbyist Regulation Act. The [arbitrator] hearing officer shall state the reasons for [his] the decision in a written document that shall be a public record. [The decision shall be final and binding.] The decision shall be issued and filed with the [secretary of state] New Mexico ethics commission within thirty days of the conclusion of the hearing. [Unless otherwise provided for in this section, or by rule or regulation adopted by the secretary of state, the procedures for the arbitration shall be governed by the Uniform Arbitration Act. No arbitrator shall be subject to liability for actions taken pursuant to this section.

G. Any] F. A person who files a report after the deadline imposed by the Lobbyist Regulation Act, or [any] a person who files a false or incomplete report, shall be liable for and shall pay to the secretary of state fifty dollars ($50.00) per day for each regular working day after the time required for the filing of the report until the complete report is filed, up to a maximum of five thousand dollars ($5,000).

[H. The secretary of state may refer a matter to the attorney general or a district attorney for a civil injunctive or other appropriate order or enforcement.]"

SECTION 23. Section 2-15-7 NMSA 1978 (being Laws 1993, Chapter 46, Section 52) is amended to read:

"2-15-7. [INTERIM] LEGISLATIVE ETHICS COMMITTEE--CREATION--APPOINTMENT.--

A. [An "interim] The "legislative ethics committee", appointed by the New Mexico legislative council, is created as a permanent committee with authority to meet during the interim and the legislative session. Members of the New Mexico legislative council shall be allowed to serve on the [interim] legislative ethics committee.

B. All matters [arising in the interim] pertaining to legislative ethics shall be referred to [this special interim] the legislative ethics committee.

C. The committee shall be appointed by the New Mexico legislative council so as to give the two major political parties in each house equal representation on the committee. In appointing the members to the committee, the New Mexico legislative council shall adopt the recommendations of the respective floor leaders of each house.

D. The New Mexico legislative council shall name the [interim] legislative ethics committee at the beginning of each interim, but the committee shall convene [the committee] only upon the receipt of a complaint, a request for an advisory opinion or a referral."

SECTION 24. Section 2-15-8 NMSA 1978 (being Laws 1993, Chapter 46, Section 53) is amended to read:

"2-15-8. [INTERIM] LEGISLATIVE ETHICS COMMITTEE--DUTIES.--

A. The [interim] legislative ethics committee is authorized to:

[A.] (1) issue advisory opinions on the interpretation and enforcement of ethical principles as applied to the legislature and that are not under the jurisdiction of the New Mexico ethics commission;

[B.] (2) investigate complaints from another member of the legislature or a member of the public alleging misconduct of a legislator;

[C.] (3) investigate referrals made to the [co-chairmen] co-chairs of the New Mexico legislative council from the New Mexico ethics commission, the attorney general, the secretary of state or a district attorney;

[D.] (4) hire special counsel or independent hearing officers as necessary; and

[E.] (5) make recommendations to the respective houses [by the end of the first full week of the next convened regular session] regarding proposed sanctions for ethical misconduct.

B. The legislative ethics committee shall issue an annual report no later than the first day of May of each year regarding its activities during the previous twelve months, including a listing of the number of complaints received, the disposition of the complaints that have been resolved and the advisory opinions issued.

C. The legislative ethics committee shall maintain a webpage on the legislature's website."

SECTION 25. Section 2-15-9 NMSA 1978 (being Laws 1993, Chapter 46, Section 54) is amended to read:

"2-15-9. [INTERIM] LEGISLATIVE ETHICS COMMITTEE--PROCEDURES--CONFIDENTIALITY.--

A. [Except as provided in this section] The New Mexico legislative council shall develop procedures to carry out the provisions of this section [in accordance with the existing procedures in the house and senate rules].

B. A member of the [interim] legislative ethics committee [shall be] is ineligible to participate in any matter relating directly to that member's conduct. In any such case, a substitute member to the committee shall be appointed from the same house from the same political party by the appropriate appointing authority. A member may seek to be disqualified from any matter brought before the legislative ethics committee on the grounds that the member cannot render a fair and impartial decision. Disqualification [must] shall be approved by [a majority vote of the remaining members of the committee] the appropriate appointing authority. In any such case, a substitute member to the committee shall be appointed from the same political party as provided in this section.

C. The [interim] legislative ethics committee is authorized to issue advisory opinions on matters relating to ethical conduct [during the interim]. Any question relating to the interpretation and enforcement of ethical principles as applied to the legislature may be submitted in writing to the [New Mexico] director of the legislative council service by a legislator describing a real or hypothetical situation and requesting an advisory opinion establishing an appropriate standard of ethical conduct for that situation. The question shall be referred to the [joint interim] legislative ethics committee.

D. To initiate any action [during the interim on alleged] alleging misconduct, [any] a legislator or member of the public may file with the director of the legislative council service a written, sworn complaint setting forth, with specificity, the facts alleged to constitute unethical conduct.

E. A complaint [shall be] filed with the [New Mexico] director of the legislative council service shall be forwarded to the appropriate co-chair of the legislative ethics committee. Upon receipt of [the] a complaint, the [co-chairmen] appropriate co-chair shall convene the [interim] legislative ethics committee.

[E.] F. The [interim] legislative ethics committee shall maintain rules of confidentiality. [unless] The legislator against whom a complaint is filed [waives] may waive the rules or any part of them in writing. The confidentiality rules shall include the following provisions:

(1) [the complainant] the committee and its staff shall not publicly disclose any information relating to the filing or investigation of a complaint, including the identity of the complainant or respondent, until after a finding of probable cause has been made that a violation has occurred;

(2) the identity of the complainant shall be released to the respondent immediately upon request; and

(3) no member of the committee or its staff may knowingly disclose any confidential information except as authorized by the committee.

G. Any hearing of the legislative ethics committee in which the committee considers or recommends sanctions against a legislator shall be open to the public, and any documents introduced as evidence in the hearing shall be public records."

SECTION 26. Section 2-15-10 NMSA 1978 (being Laws 1993, Chapter 46, Section 55) is amended to read:

"2-15-10. CRIMINAL SANCTIONS.--If the [interim] legislative ethics committee determines that, in addition to recommending that sanctions be imposed by the respective house on the member, the conduct involves criminal activity, the [interim] legislative ethics committee may refer the matter to the district attorney of the first judicial district, the district attorney of the judicial district where the member resides or the attorney general."

SECTION 27. Section 2-15-11 NMSA 1978 (being Laws 1993, Chapter 46, Section 56) is amended to read:

"2-15-11. LEGISLATIVE ETHICS COMMITTEE--STAFF.--The staff for the [interim] legislative ethics committee shall be provided by the legislative council service, but the committee is authorized to hire such special counsel or independent hearing officers, or to request the appointment of an independent hearing officer, as provided for in the Administrative Hearings Office Act, as necessary to assist the [legislative ethics] committee when it is convened."

SECTION 28. Section 2-15-12 NMSA 1978 (being Laws 1993, Chapter 46, Section 57) is amended to read:

"2-15-12. [NEW MEXICO] LEGISLATIVE [COUNCIL] ETHICS COMMITTEE--BUDGET.--The New Mexico legislative council shall annually provide an amount sufficient to carry out the duties and mandate of the [interim] legislative ethics committee."

SECTION 29. Section 7-1B-6 NMSA 1978 (being Laws 2015, Chapter 73, Section 6) is amended to read:

"7-1B-6. HEARING OFFICER CODE OF CONDUCT--INDEPENDENCE.--

A. The chief hearing officer shall:

(1) adopt and promulgate a hearing officer code of conduct; and

(2) periodically evaluate each hearing officer's performance for competency, efficiency and professional demeanor in [accord] accordance with relevant legal standards and the hearing officer code of conduct.

B. The chief hearing officer shall ensure that each hearing officer has decisional independence; however, the chief hearing officer may:

(1) consult with a hearing officer about a genuine question of law; and

(2) review with a hearing officer any issue on appeal addressed by a court of this state.

C. The administrative hearings office shall:

(1) hear all tax protests pursuant to the provisions of the Tax Administration Act;

(2) hear property tax protests pursuant to the provisions of the Property Tax Code;

(3) hear all certificate-denial protests pursuant to the provisions of Section 13-1-22 NMSA 1978;

(4) conduct all adjudicatory hearings pursuant to the Motor Vehicle Code;

(5) conduct all driver's license revocation hearings pursuant to the provisions of the Implied Consent Act;

(6) conduct hearings related to decisions of the New Mexico ethics commission;

[(6)] (7) make and preserve a complete record of all proceedings; and

[(7)] (8) maintain confidentiality regarding taxpayer information as required by the provisions of Section 7-1-8 NMSA 1978.

D. In hearings conducted pursuant to the Tax Administration Act, Section 13-1-22 NMSA 1978 and the Motor Vehicle Code:

(1) the rules of evidence that govern proceedings in the state's courts do not apply. The hearing officer may require reasonable substantiation of statements or records tendered, the accuracy or truth of which is in reasonable doubt, to rule on the admissibility of evidence. A taxpayer or the taxation and revenue department may request a written ruling on a contested question of evidence in a matter in which the taxpayer has filed a written protest and for which that protest is pending. The administrative hearings office shall issue a copy of its written ruling to the taxation and revenue department at the time the ruling is issued to the taxpayer;

(2) the Rules of Civil Procedure for the District Courts do not apply. The hearing officer shall conduct a hearing to allow the ample and fair presentation of complaints and defenses. The hearing officer shall hear arguments, permit discovery, entertain and dispose of motions, require written expositions of the case as the circumstances justify and render a decision in accordance with the law and the evidence presented and admitted. A taxpayer or the taxation and revenue department may request a written ruling on a contested question of procedure in a matter in which the taxpayer has filed a written protest and for which that protest is pending. The administrative hearings office shall issue a copy of its written ruling to the taxation and revenue department at the time the ruling is issued to the taxpayer; and

(3) the hearing officer may administer oaths and issue subpoenas for the attendance of witnesses and the production of relevant books and papers, and for hearings conducted for a license suspension pursuant to Section 66-5-30 NMSA 1978, the hearing officer may require a reexamination of the licensee."

SECTION 30. Section 10-16-11 NMSA 1978 (being Laws 1967, Chapter 306, Section 11, as amended) is amended to read: "10-16-11. CODES OF CONDUCT.--

A. [By January 1, 1994] Each elected statewide executive branch public officer shall adopt a general code of conduct for employees subject to [his] the officer's control. The New Mexico legislative council shall adopt a general code of conduct for all legislative branch employees. The general codes of conduct shall be based on the principles set forth in the Governmental Conduct Act.

B. Within thirty days after the general codes of conduct are adopted, they shall be given to and reviewed with all executive and legislative branch officers and employees. All new public officers and employees of the executive and legislative branches shall review the employees' general code of conduct prior to or at the time of being hired.

C. The head of every executive and legislative agency and institution of the state may draft a separate code of conduct for all public officers and employees in that agency or institution. The separate agency code of conduct shall prescribe standards, in addition to those set forth in the Governmental Conduct Act and the general codes of conduct for all executive and legislative branch public officers and employees, that are peculiar and appropriate to the function and purpose for which the agency or institution was created or exists. The separate codes, upon approval of the responsible executive branch public officer for executive branch public officers and employees or the New Mexico legislative council for legislative branch employees, govern the conduct of the public officers and employees of that agency or institution and, except for those public officers and employees removable only by impeachment, shall, if violated, constitute cause for dismissal, demotion or suspension. The head of each executive and legislative branch agency shall adopt ongoing education programs to advise public officers and employees about the codes of conduct. All codes shall be filed with the [secretary of state] New Mexico ethics commission and are open to public inspection.

D. Codes of conduct shall be reviewed at least once every four years. An amended code shall be filed as provided in Subsection C of this section.

E. All legislators shall attend a minimum of two hours of ethics continuing education and training developed and provided by the New Mexico ethics commission biennially."

SECTION 31. Section 10-16-13.1 NMSA 1978 (being Laws 1993, Chapter 46, Section 35) is amended to read:

"10-16-13.1. EDUCATION AND VOLUNTARY COMPLIANCE.--

A. The secretary of state shall advise and seek to educate all persons required to perform duties under the Governmental Conduct Act of those duties. This includes advising all those persons at least annually of that act's ethical principles.

B. The [secretary of state] New Mexico ethics commission shall seek first to ensure voluntary compliance with the provisions of the Governmental Conduct Act. A person who violates that act unintentionally or for good cause shall be given ten days' notice to correct the matter. Referrals for civil enforcement of that act shall be pursued only after efforts to secure voluntary compliance with that act have failed."

SECTION 32. Section 10-16-14 NMSA 1978 (being Laws 1967, Chapter 306, Section 14, as amended) is amended to read:

"10-16-14. ENFORCEMENT PROCEDURES.--

[A. The secretary of state may refer suspected violations of the Governmental Conduct Act to the attorney general, district attorney or appropriate state agency or legislative body for enforcement. If a suspected violation involves the office of the secretary of state, the attorney general may enforce that act. If a suspected violation involves the office of the attorney general, a district attorney may enforce that act.

B.] A. Violation of the provisions of the Governmental Conduct Act by any legislator is grounds for discipline by the appropriate legislative body.

[C.] B. If the [attorney general] New Mexico ethics commission determines that there is sufficient cause to file a complaint against a public officer removable only by impeachment, [he] the commission shall refer the matter to the house of representatives of the legislature. If within thirty days after the referral the house of representatives has neither formally declared that the charges contained in the complaint are not substantial nor instituted hearings on the complaint, the [attorney general] commission shall make public the nature of the charges, but [he] the commission shall make clear that the merits of the charges have never been determined. Days during which the legislature is not in session shall not be included in determining the thirty-day period.

[D.] C. Violation of the provisions of the Governmental Conduct Act by any public officer or employee, other than those covered by Subsection [C] B of this section, is grounds for discipline, including dismissal, demotion or suspension. Complaints against executive branch employees may be filed with the [agency head] New Mexico ethics commission and reviewed pursuant to the procedures provided in the Personnel Act. Complaints against legislative branch employees may be filed with and reviewed pursuant to procedures adopted by the New Mexico legislative council. Complaints against judicial branch employees may be filed and reviewed pursuant to the procedures provided in the judicial personnel rules.

[E.] D. Subject to the provisions of this section, the provisions of the Governmental Conduct Act may be enforced by the [attorney general. Except as regards legislators or statewide elected officials, a district attorney in the county where a person resides or where a violation occurred may also enforce that act] New Mexico ethics commission. Enforcement actions may include seeking civil injunctive or other appropriate orders."

SECTION 33. Section 10-16-18 NMSA 1978 (being Laws 1995, Chapter 153, Section 23) is amended to read:

"10-16-18. ENFORCEMENT--CIVIL PENALTIES.--[A.] If the [secretary of state] New Mexico ethics commission reasonably believes that a person committed, or is about to commit, a violation of the Governmental Conduct Act, the [secretary of state] commission shall [refer the matter to the attorney general or a district attorney for enforcement.

B. The attorney general or a district attorney may] institute a civil action in district court if a violation has occurred or to prevent a violation of [any] a provision of the Governmental Conduct Act. Relief may include a permanent or temporary injunction, a restraining order or any other appropriate order, including an order for a civil penalty of two hundred fifty dollars ($250) for each violation not to exceed five thousand dollars ($5,000)."

SECTION 34. Section 10-16A-1 NMSA 1978 (being Laws 1993, Chapter 46, Section 39) is amended to read:

"10-16A-1. SHORT TITLE--FINANCIAL DISCLOSURE ACT.--[Sections 39 through 45 of this act] Chapter 10, Article 16A NMSA 1978 may be cited as the "Financial Disclosure Act"."

SECTION 35. Section 10-16A-5 NMSA 1978 (being Laws 1993, Chapter 46, Section 43) is amended to read:

"10-16A-5. EDUCATION AND VOLUNTARY COMPLIANCE.--

A. The secretary of state shall advise and seek to educate all persons required to perform duties under the Financial Disclosure Act of those duties. This includes providing timely advance notice of the required financial disclosure statement and preparing forms that are clear and easy to complete.

B. The [secretary of state] New Mexico ethics commission shall seek first to ensure voluntary compliance with the provisions of the Financial Disclosure Act. A person who violates that act unintentionally or for good cause shall be given ten days' notice to correct the matter [before fines are imposed. Referrals for civil enforcement of the Financial Disclosure Act shall be pursued only after efforts to secure voluntary compliance with that act have failed]."

SECTION 36. Section 10-16A-6 NMSA 1978 (being Laws 1993, Chapter 46, Section 44, as amended) is amended to read:

"10-16A-6. INVESTIGATIONS--[BINDING ARBITRATION] HEARING--FINES--ENFORCEMENT.--

A. [The secretary of state may conduct thorough examinations of statements and initiate investigations to determine whether the Financial Disclosure Act has been violated.] Any person who believes that the Financial Disclosure Act has been violated may file a written complaint with the [secretary of state] New Mexico ethics commission. The [secretary of state] commission shall adopt procedures for processing complaints and notifications of violations.

B. If the [secretary of state] New Mexico ethics commission determines that a violation has occurred for which a penalty should be imposed, the [secretary of state] commission shall so notify the person charged and impose the penalty. If the person charged disputes the [secretary of state's] commission's determination, the person charged may request [binding arbitration.

C. The arbitration decision shall be decided by a single arbitrator selected within ten days by the person against whom the penalty has been imposed from a list of five arbitrators provided by the secretary of state. No arbitrator may be a person subject to the Financial Disclosure Act, Campaign Reporting Act or Lobbyist Regulation Act. Arbitrators shall be considered to be independent contractors, not public officers or employees, and shall not be paid per diem and mileage] a hearing. The hearing shall be conducted by an independent hearing officer appointed pursuant to the Administrative Hearings Office Act.

[D.] C. The [arbitrator] independent hearing officer shall conduct the hearing within thirty days of the request and may take any action [the secretary of state is] authorized [to take] by the Financial Disclosure Act. The [arbitrator] independent hearing officer shall state the reasons for [his] the decision in a written document that shall be a public record. [The decision shall be final and binding.] The decision shall be issued and filed with the New Mexico ethics commission within thirty days of the conclusion of the hearing. [Unless otherwise provided for in this section, or by rule or regulation adopted by the secretary of state, the procedures for the arbitration shall be governed by the Uniform Arbitration Act. No arbitrator shall be subject to liability for actions taken pursuant to this section.

E. Any] D. A person who files a statement or report after the deadline imposed by the Financial Disclosure Act, or [any] a person who files a false or incomplete statement or report, [is] shall be liable for and shall pay to the secretary of state, at or from the time initially required for the filing, fifty dollars ($50.00) per day for each regular working day after the time required for the filing of the statement or report until the complete report is filed, up to a maximum of five thousand dollars ($5,000).

[F. The secretary of state may refer a matter to the attorney general or a district attorney for a civil injunctive or other appropriate order or enforcement.]"

SECTION 37. Section 10-16A-8 NMSA 1978 (being Laws 1995, Chapter 153, Section 25) is amended to read:

"10-16A-8. ENFORCEMENT--CIVIL PENALTIES.--[A.] If the [secretary of state] New Mexico ethics commission reasonably believes that a person committed, or is about to commit, a violation of the Financial Disclosure Act, the [secretary of state] commission shall [refer the matter to the attorney general or a district attorney for enforcement.

B. The attorney general or a district attorney may] institute a civil action in district court if a violation has occurred or to prevent a violation of [any] a provision of the Financial Disclosure Act. Relief may include a permanent or temporary injunction, a restraining order or any other appropriate order, including an order for a civil penalty of two hundred fifty dollars ($250) for each violation not to exceed five thousand dollars ($5,000)."

SECTION 38. REPEAL.--Sections 2-15-1 through 2-15-6 NMSA 1978 (being Laws 1993, Chapter 46, Sections 46 through 51) are repealed.

SECTION 39. APPLICABILITY.--The provisions of the Public Accountability Act apply to conduct that occurs on or after July 1, 2019.

SECTION 40. EFFECTIVE DATE.--

A. The effective date of the provisions of Section 1 through 5 and 7 of this act is January 1, 2019.

B. The effective date of the provisions of Sections 6 and 8 through 39 of this act is July 1, 2019.

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