HOUSE BILL 140

54th legislature - STATE OF NEW MEXICO - first session, 2019

INTRODUCED BY

Elizabeth "Liz" Thomson and Jeff Steinborn

AN ACT

RELATING TO LOBBYIST REGULATION; AMENDING REPORTING REQUIREMENTS; REQUIRING ESTIMATED LOBBYING EXPENSE REPORTS TO BE FILED BY LOBBYISTS' EMPLOYERS; REQUIRING REPORTS TO BE POSTED ONLINE.

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

     SECTION 1. A new section of the Lobbyist Regulation Act is enacted to read:

     "[NEW MATERIAL] ESTIMATED LOBBYING EXPENSE REPORTS TO BE FILED BY LOBBYISTS' EMPLOYERS.--

          A. No later than January 15 of each year, a lobbyist's employer that incurs lobbying expenses shall file an estimated lobbying expense report with the secretary of state on a prescribed form or in an electronic format approved by the secretary of state. The estimated lobbying expense report shall include:

                (1) a sworn statement that sets forth the total estimated lobbying expenses that will be incurred from January 1 through April 25 of the current year; and

                (2) a sworn statement setting forth the amount of total lobbying expenses actually incurred from April 26 through December 31 of the preceding year; provided that no statement is required pursuant to this paragraph unless:

                     (a) the total lobbying expenses actually incurred from April 26 through December 31 of the preceding year differ by more than ten percent from the amount of lobbying expenses estimated for that period; or

                     (b) lobbying expenses were actually incurred from April 26 through December 31 of the preceding year and no report was filed estimating lobbying expenses for that period.

          B. No later than May 1 of each year, a lobbyist's employer that incurs lobbying expenses shall file an estimated lobbying expense report with the secretary of state on a prescribed form or in an electronic format approved by the secretary of state. The estimated lobbying expense report shall include:

                (1) a sworn statement that sets forth the total estimated lobbying expenses that will be incurred from April 26 through December 31 of the current year; and

                (2) a sworn statement setting forth the amount of total lobbying expenses actually incurred from January 1 through April 25 of the current year; provided that no statement is required pursuant to this paragraph unless:

                     (a) the total lobbying expenses actually incurred from January 1 through April 25 of the current year differ by more than ten percent from the amount of lobbying expenses estimated for that period; or

                     (b) lobbying expenses were actually incurred from January 1 through April 25 of the current year and no report was filed estimating lobbying expenses for that period.

          C. After the initial employment or retention of a lobbyist and before the lobbyist engages in lobbying:

                (1) the lobbyist's employer shall amend the amount of total estimated lobbying expenses stated in any report filed pursuant to Subsection A or B of this section for the period in which the lobbyist is initially employed or retained; or

                (2) if the lobbyist's employer has not filed a report for the period pursuant to Subsection A or B of this section, the lobbyist's employer shall file an initial report for the remainder of the reporting period in which the lobbyist is initially employed or retained.

          D. If the estimated lobbying expense report is filed electronically, the report shall be electronically authenticated by 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's employer that is required to file the report.

          E. As used in this section, "lobbying expenses" means an aggregate total of:

                (1) expenditures paid by a lobbyist that are reimbursed by the lobbyist's employer;

                (2) the political contributions made by a lobbyist that are reimbursed by the lobbyist's employer;

                (3) other expenses incurred by a lobbyist that are reimbursed by the lobbyist's employer, including living expenses, expenses for maintaining an office and other expenses incidental to lobbying;

                (4) all compensation paid to a lobbyist for lobbying;

                (5) the salary paid to the lobbyist for the time that the lobbyist is engaged in lobbying if a lobbyist is an employee of the lobbyist's employer; and

                (6) any other lobbying expenditures made by the lobbyist's employer and not included in Paragraphs (1) through (5) of this subsection."

     SECTION 2. Section 2-11-6 NMSA 1978 (being Laws 1977, Chapter 261, Section 6, as amended) is amended to read:

     "2-11-6. EXPENDITURE REPORT TO BE FILED--CONTENTS--REPORTING PERIODS.--

          A. Each lobbyist who receives compensation or lobbyist's employer [who] that makes or incurs expenditures or makes 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 report with the secretary of state using an electronic reporting system approved by the secretary of state in accordance with Section 2-11-7 NMSA 1978. The expenditure report shall include a sworn statement that sets forth:

                (1) each expenditure of one hundred dollars [($100.00)] ($100) or more made or incurred by the employer or lobbyist during the covered reporting period indicating the amount spent and a description of the expenditure. The list shall be separated into the following categories:

                     (a) meals and beverages;

                     (b) other entertainment expenditures; and

                     (c) other expenditures;

                (2) each political contribution made, and whether the contribution is from the lobbyist's employer or the lobbyist on the lobbyist's own behalf, identified by amount, date and name of the candidate or ballot issue supported or opposed; and

                (3) the names, addresses, employers 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 to a candidate, a campaign committee or anyone authorized by a candidate to receive funds on the candidate's behalf.

          B. The expenditure report shall be filed electronically and 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, 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. A lobbyist who accepts compensation for lobbying but does not incur expenditures or make political contributions during a reporting period may file a statement of no activity in lieu of a full report for that period in accordance with the reporting schedule in Subsection E of this section.

          E. The reports required pursuant to the provisions of the Lobbyist Regulation Act shall be filed:

                (1) by [11:59 p.m.] midnight on January 15 for 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;

                (3) by [11:59 p.m.] midnight on the first Wednesday after the first Monday in May for all expenditures and political contributions made or incurred through the first Monday in May of the current year and not previously reported; and

                (4) by [11:59 p.m.] midnight on the first Wednesday after the first Monday in October for all expenditures and political contributions made or incurred through the first Monday in October of the current year and not previously reported.

          F. Except as may be required by Section 1 of this 2019 act, 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.

          G. 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.

          H. A lobbyist's employer [who] shall comply with the provisions of Section 1 of this 2019 act, and a lobbyist's employer that also engages in lobbying shall also comply with the provisions of this section. A lobbyist and the lobbyist's employer shall coordinate their reporting to ensure that the contributions and expenditures that each have reported are not duplicative.

          I. An organization of two or more persons, including an individual who 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] that 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, employers and occupations of the contributors, to the secretary of state on a prescribed form."

     SECTION 3. Section 2-11-7 NMSA 1978 (being Laws 1977, Chapter 261, Section 7, as amended) is amended to read:

     "2-11-7. REGISTRATION AND EXPENDITURE REPORT--LOBBYING EXPENSE REPORT--PRESERVATION AS PUBLIC RECORD--ONLINE REPORTS.--

          A. Each registration and expenditure report and each lobbying expense report as required by the Lobbyist Regulation Act shall be archived and accessible on the secretary of state's lobbyist disclosure website for a period of at least ten 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] a report or statement, it may be destroyed ten years after the date of filing.

          B. Lobbyist registrations, lobbying expense reports and expenditure reports shall be:

                (1) kept and maintained on the secretary of state's lobbyist disclosure website and shall be available in searchable and downloadable formats; and

                (2) posted on the website within forty-eight hours of receipt, except that each statement and report received during a legislative session shall be posted within twenty-four hours of receipt.

          C. With respect to the secretary of state's lobbyist disclosure website, all items in the records shall be easily searchable, sortable and downloadable by the public to the extent technically practicable.

          D. The secretary of state shall ensure that contributions reported by persons pursuant to the Lobbyist Regulation Act are reported in a manner that is nonduplicative and as consistent as practicable with the reporting requirements of the Campaign Reporting Act. To the extent possible, the electronic reporting system used for registration and reporting required by the Lobbyist Regulation Act shall be integrated with the electronic reporting system used for compliance with the Campaign Reporting Act.

          E. Reporting individuals under the Campaign Reporting Act shall receive automatic electronic notice of the contributions to them reported by lobbyists and lobbyists' employers within twenty-four hours of the filing of each expenditure report."

     SECTION 4. EFFECTIVE DATE.--The effective date of the provisions of this act is December 15, 2019.

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