SENATE BILL 401

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

INTRODUCED BY

Linda M. Lopez

AN ACT

RELATING TO ELECTIONS; LIMITING THE AMOUNT OF CAMPAIGN CONTRIBUTIONS CONTRACTORS AND PROSPECTIVE CONTRACTORS MAY CONTRIBUTE IN AN ELECTION CAMPAIGN; PROVIDING FOR PENALTIES.

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

     SECTION 1. A new section of the Election Code is enacted to read:

     "[NEW MATERIAL] CAMPAIGN CONTRIBUTIONS--LIMITS ON CONTRACTORS.--

          A. As used in this section:

                (1) "contract" means an agreement or transaction with a state or local government agency having a value of fifty thousand dollars ($50,000) or more, or a combination or series of such agreements or transactions having a value of fifty thousand dollars ($50,000) or more, in an election cycle for:

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

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

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

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

                     (e) a licensing arrangement;

                     (f) a loan or loan guarantee; or

                     (g) the purchase of financial securities or instruments;

                (2) "contractor" means a person that enters into a contract with a state or local government agency. "Contractor" does not include a state agency or a political subdivision of the state or an employee of a state agency or political subdivision of the state, whether full- or part-time, in that person's capacity as an employee of the state or political subdivision of the state or a health care professional providing services under a medicaid provider agreement;

                (3) "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 to promote the election or defeat of a candidate in an election, including payment of a debt incurred in an election campaign;

                (4) "election cycle" means the period beginning on the day after an election for an office and ending on the day of the next election for that office;

                (5) "general election" means the period beginning the day after the primary election for an office and ending on election day for that office;

                (6) "local government agency" means an agency of a political subdivision of the state;

                (7) "pendency of the procurement process" means the time period commencing on the day of the initial solicitation for a contract and ending with the award of the contract or the cancellation of the solicitation;

                (8) "primary election" means the period beginning the day after the general election is held for an office and ending on the day the primary election is held for that office;

                (9) "principal of a contractor" or "principal of a prospective contractor" means, in addition to the contractor or prospective contractor itself:

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

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

                     (c) a person who is the chief executive officer of a contractor;

                     (d) the spouse or a dependent child of a person described in Subparagraphs (a) through (c) of this paragraph;

                     (e) an agent, including a lobbyist subject to the Lobbyist Regulation Act, seeking a contract for a contractor or prospective contractor; or

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

                (10) "prospective contractor" means a person that submits a bid in response to a bid solicitation by a state or local government agency, a proposal in response to a request for proposals or a response to any other solicitation by a state or local government agency until the contract has been entered into. "Prospective contractor" does not include a state agency or a political subdivision of the state or an employee of a state agency or political subdivision of the state, whether full- or part-time, in that person's capacity as an employee of the state or political subdivision of the state or a health care professional providing services under a medicaid provider agreement;

                (11) "solicitation" means a request to enter into a contract for services, personal property, real property or any other thing of value; and

                (12) "state agency" means an office, department, board, council, commission, institution or other agency in the executive, judicial or legislative branch of state government, including an institution of the state.

          B. A principal of a contractor that has, or prospective contractor that is seeking, a contract with a state agency shall not contribute to a candidate for a state office in the branch of government in which that state agency is located, including the candidate's campaign committee, an amount that will cause that principal's total contributions to the candidate to exceed fifty dollars ($50.00) during the primary election or fifty dollars ($50.00) during the general election.

          C. Except as provided in Subsections D and E of this section, a principal of a contractor that has, or prospective contractor that is seeking, a contract with a local government agency shall not contribute to a candidate for an elective office of the political subdivision of which the local government agency is a part, including the candidate's campaign committee, an amount that will cause that person's total contributions to the candidate to exceed fifty dollars ($50.00) during the primary election or fifty dollars ($50.00) during the general election.

          D. If a political subdivision of the state does not hold a primary election for nominations to an elective office of the political subdivision, a principal of a contractor that has, or prospective contractor that is seeking, a contract with a local government agency of that political subdivision shall not contribute to a candidate for that elective office of that political subdivision, including the candidate's campaign committee, an amount that will cause that principal's total contributions to the candidate to exceed fifty dollars ($50.00) during the election cycle for that office.

          E. The provisions of this section shall not apply to elections in a political subdivision that has imposed a contribution limit on contractors equal to or less than the amount imposed by this section.

          F. If a principal of a prospective contractor or principal of a contractor inadvertently makes a contribution in excess of the limits imposed by this section, the principal may request, and the recipient shall make, a full reimbursement of the contribution, and, if reimbursement is received within thirty days after the date on which the contribution was made, the contractor shall be eligible to receive a contract or shall no longer be in violation, as appropriate. Any contribution made during the pendency of the procurement process shall be presumed not to be made inadvertently.

          G. A solicitation for or proposed award of a contract may be canceled, or a contract that is executed may be terminated, if it is in the best interests of the state or political subdivision of the state when a prospective contractor or a contractor makes a contribution in excess of the limits imposed by this section and does not request reimbursement within thirty days of making the contribution."

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