HB0491

HOUSE BILL 491

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Joseph Cervantes

AN ACT

RELATING TO ELECTIONS; REQUIRING PERSONS WHO MAKE ELECTIONEERING COMMUNICATIONS TO REPORT CERTAIN CONTRIBUTIONS AND EXPENDITURES; INCREASING THE AMOUNT OF CONTRIBUTIONS AND EXPENDITURES A POLITICAL COMMITTEE MAY RECEIVE OR EXPEND BEFORE BEING REQUIRED TO REGISTER AND REPORT; INCREASING PENALTIES FOR MAKING OR RECEIVING CONTRIBUTIONS MADE BY ONE PERSON IN THE NAME OF ANOTHER PERSON; PROHIBITING THE ACCEPTANCE OF CONTRIBUTIONS FROM PERSONS WHO MAKE ELECTIONEERING COMMUNICATIONS THAT DO NOT DISCLOSE THE SOURCE OF CONTRIBUTIONS; PROHIBITING FINANCIAL TRANSACTIONS DESIGNED TO CONCEAL THE SOURCE OF CERTAIN CONTRIBUTIONS; PROVIDING FOR PENALTIES; RECONCILING MULTIPLE AMENDMENTS TO THE SAME SECTION OF LAW IN LAWS 2009; AMENDING, REPEALING AND ENACTING SECTIONS OF THE NMSA 1978.

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

SECTION 1. A new section of the Campaign Reporting Act is enacted to read:

"[NEW MATERIAL] ELECTIONEERING COMMUNICATIONS--REPORTING REQUIREMENTS.--A person who makes a payment for or a promise to pay for any electioneering communication of two thousand three hundred dollars ($2,300) or more that is not otherwise required to be reported as an expenditure by a candidate, campaign committee or political committee shall:

A. establish a bank account consisting only of money used for or contributed to the person for the purpose of making electioneering communications;

B. only use money from the bank account established pursuant to this section to pay for electioneering communications;

C. be considered a reporting individual for the purposes of the Campaign Reporting Act and provide all information required of reporting individuals by that act, except that:

(1) only contributions deposited in and expenditures made from the bank account established pursuant to this section are subject to the reporting requirements of the Campaign Reporting Act; provided that if an organization uses general treasury funds for the communication, that entity shall report the name and address of any person who has donated one thousand dollars ($1,000) or more to the organization, and for donors who are individuals, that entity shall report the occupation and employer of the donor; and

(2) the person may file a statement of no activity instead of a full report if there is less than five hundred dollars ($500) contributed to or expended from the bank account since the last report was filed;

D. not accept a contribution from an entity that does not publicly disclose the source of its contributions that are used to make an electioneering communication; and

E. be subject to all civil and criminal penalties of the Campaign Reporting Act for violating the reporting requirements of that act."

SECTION 2. A new section of the Campaign Reporting Act is enacted to read:

"[NEW MATERIAL] CONCEALING THE SOURCE OF CONTRIBUTIONS PROHIBITED--CRIMINAL PENALTY--CIVIL PENALTY.--

A. It is unlawful for a person to intentionally conduct, structure, engage in or participate in a financial transaction that involves a contribution if the person knows that the financial transaction is designed in whole or in part to:

(1) avoid or evade the contribution limitations in the Campaign Reporting Act; or

(2) conceal or disguise the source of the contribution to avoid a reporting requirement under the Campaign Reporting Act.

B. It is unlawful for any person to create, establish or organize more than one organization with the intent to:

(1) avoid or evade the contribution limitations in the Campaign Reporting Act; or

(2) conceal or disguise the source of the contribution to avoid a reporting requirement under the Campaign Reporting Act.

C. A person who violates any provision of Subsection A or B of this section is guilty of a:

(1) second degree felony if the total contribution involves more than one hundred thousand dollars ($100,000);

(2) third degree felony if the total contribution involves more than fifty thousand dollars ($50,000) but not more than one hundred thousand dollars ($100,000);

(3) fourth degree felony if the total contribution involves more than ten thousand dollars ($10,000) but not more than fifty thousand dollars ($50,000); or

(4) misdemeanor if the total contribution involves ten thousand dollars ($10,000) or less.

D. In addition to any criminal penalty, a person who violates any provision of Subsection A or B of this section is subject to a civil penalty of three times the value of the contribution involved in the transaction."

SECTION 3. Section 1-19-26 NMSA 1978 (being Laws 1979, Chapter 360, Section 2, as amended by Laws 2009, Chapter 67, Section 1 and by Laws 2009, Chapter 68, Section 2) is amended to read:

"1-19-26. DEFINITIONS.--As used in the Campaign Reporting Act:

A. "advertising campaign" means an advertisement or series of advertisements used for a political purpose and disseminated to the public either in print, by radio or television broadcast or by any other electronic means, including telephonic communications, and may include direct or bulk mailings of printed materials;

B. "anonymous contribution" means a contribution the contributor of which is unknown to the candidate or the candidate's agent or the political committee or its agent who accepts the contribution;

C. "bank account" means an account in a financial institution located in New Mexico;

D. "campaign committee" means [two] one or more persons authorized by a candidate to raise, collect or expend contributions on the candidate's behalf for the purpose of electing the candidate to office;

E. "candidate" means an individual who seeks or considers an office in an election covered by the Campaign Reporting Act, including a public official, who either has filed a declaration of candidacy or nominating petition or:

(1) for a non-statewide office, has received contributions or made expenditures of one thousand dollars ($1,000) or more or authorized another person or campaign committee to receive contributions or make expenditures of one thousand dollars ($1,000) or more for the purpose of seeking election to the office; or

(2) for a statewide office, has received contributions or made expenditures of two thousand five hundred dollars ($2,500) or more or authorized another person or campaign committee to receive contributions or make expenditures of two thousand five hundred dollars ($2,500) or more for the purpose of seeking election to the office or for candidacy exploration purposes in the years prior to the year of the election;

F. "contribution" means a gift, subscription, loan, advance or deposit of money or other thing of value, including the estimated value of an in-kind contribution, [that is made or received for a political purpose] including payment of a debt incurred in an election campaign, but "contribution" does not include the value of services provided without compensation or unreimbursed travel or other personal expenses of individuals who volunteer a portion or all of their time on behalf of a candidate or political committee [nor does it include the administrative or solicitation expenses of a political committee that are paid by an organization that sponsors the committee];

G. "deliver" or "delivery" means to deliver by certified or registered mail, telecopier, electronic transmission or facsimile or by personal service;

H. "election" means any primary, general or statewide special election in New Mexico and includes county and judicial retention elections but excludes municipal, school board and special district elections;

I. "electioneering communication":

(1) means any communication conveyed by radio, television, cable, satellite or electronic broadcast; any print advertisement, including direct or bulk mailing; or any other means of mass communication that:

(a) refers to a candidate;

(b) is made during an election year for the office sought by the candidate; and

(2) does not include:

(a) a voter guide allowed by the federal Internal Revenue Code of 1986 for Section 501(c)(3) organizations;

(b) a communication from an organization to its own members or to persons who have requested the organization to send them information, including information conveyed on an organization's web site;

(c) a communication appearing in a news story, commentary or editorial distributed through the print media or the facilities of any broadcasting station, unless such facilities or print media are owned or controlled by any political party, political committee or candidate; or

(d) a communication made during the period beginning January 1 prior to any regular session of the legislature or, in the case of a special session, after the proclamation has been issued, and ending on the twentieth day following the adjournment of the regular or special session;

[I.] J. "election year" means an even-numbered year in which an election covered by the Campaign Reporting Act is held;

[J.] K. "expenditure" means a payment, transfer or distribution or obligation or promise to pay, transfer or distribute any money or other thing of value [for a political purpose], including payment of a debt incurred in an election campaign or pre-primary convention; [but does not include the administrative or solicitation expenses of a political committee that are paid by an organization that sponsors the committee;

K.] L. "person" means an individual or entity;

[L. "political committee" means two or more persons, other than members of a candidate's immediate family or campaign committee or a husband and wife who make a contribution out of a joint account, who are selected, appointed, chosen, associated, organized or operated primarily for a political purpose; and "political committee" includes:

(1) political parties, political action committees or similar organizations composed of employees or members of any corporation, labor organization, trade or professional association or any other similar group that raises, collects, expends or contributes money or any other thing of value for a political purpose;

(2) a single individual whose actions represent that the individual is a political committee; and

(3) a person or an organization of two or more persons that within one calendar year expends funds in excess of five hundred dollars ($500) to conduct an advertising campaign for a political purpose;]

M. "political committee" means an association of two or more persons, other than a candidate or campaign committee, a major purpose of which is to receive contributions or make expenditures for the nomination, election or defeat of a candidate or the passage or defeat of a ballot measure;

[M.] N. "political purpose" means influencing or attempting to influence an election or pre-primary convention, including a constitutional amendment or other question submitted to the voters;

[N.] O. "prescribed form" means a form or electronic format prepared and prescribed by the secretary of state;

[O.] P. "proper filing officer" means either the secretary of state or the county clerk as provided in Section 1-19-27 NMSA 1978;

[P.] Q. "public official" means a person elected to an office in an election covered by the Campaign Reporting Act or a person appointed to an office that is subject to an election covered by that act; and

[Q.] R. "reporting individual" means every public official, candidate or treasurer of a campaign committee and every treasurer of a political committee."

SECTION 4. Section 1-19-26.1 NMSA 1978 (being Laws 1993, Chapter 46, Section 2, as amended) is amended to read:

"1-19-26.1. POLITICAL COMMITTEES--REGISTRATION--DISCLOSURES.--

A. It is unlawful for [any] a political committee that receives, contributes or expends in excess of [five hundred dollars ($500) in any calendar year] two thousand three hundred dollars ($2,300) during the primary election or two thousand three hundred dollars ($2,300) during the general election to continue to receive or make [any] a contribution or expenditure [for a political purpose] unless that political committee appoints and maintains a treasurer and registers with the secretary of state.

B. A political committee shall register with the secretary of state within ten days of receiving, contributing or expending in excess of [five hundred dollars ($500)] two thousand three hundred dollars ($2,300) by paying a filing fee of fifty dollars ($50.00) and filing a statement of organization under oath on a prescribed form showing:

(1) the full name of the political committee, which shall fairly and accurately reflect the identity of the committee, including any sponsoring organization, and its address;

(2) a statement of the purpose for which the political committee was organized;

(3) the name, address and relationship of any connected [or associated organization or entity] person;

(4) the names and addresses of the officers of the committee; and

(5) an identification of the bank used by the committee for all expenditures or contributions made or received.

C. The provisions of this section do not apply to a political committee that is located in another state and is registered with the federal election commission if the political committee reports on federal reporting forms filed with the federal election commission all expenditures for and contributions made to reporting individuals in New Mexico and files with the secretary of state, according to the schedule required for the filing of forms with the federal election commission, a copy of either the full report or the cover sheet and the portions of the federal reporting forms that contain the information on expenditures for and contributions made to reporting individuals in New Mexico."

SECTION 5. Section 1-19-34.3 NMSA 1978 (being Laws 1993, Chapter 46, Section 14, as amended) is amended to read:

"1-19-34.3. CONTRIBUTIONS IN ONE NAME GIVEN FOR ANOTHER PROHIBITED--PENALTY.--

A. It is unlawful for a person to make a contribution in the name of another person, and no person shall knowingly accept a contribution made by one person in the name of another person.

B. Any person violating the provisions of this section is guilty of a fourth degree felony."

SECTION 6. REPEAL.--Section 1-19-36 NMSA 1978 (being Laws 1979, Chapter 360, Section 12, as amended) is repealed.

SECTION 7. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2011.