TITLE
1 GENERAL GOVERNMENT
ADMINISTRATION
CHAPTER 10 ELECTIONS AND ELECTED OFFICIALS
PART
13 CAMPAIGN FINANCE
1.10.13.1 ISSUING AGENCY: Office of the Secretary of State
[1.10.13.1 NMAC - N, 10/10/2017]
1.10.13.2 SCOPE: This rule applies to all persons, candidates
and committees covered by the Campaign Reporting Act, Sections 1-19-25 through
1-19-37 NMSA 1978.
[1.10.13.2 NMAC - N, 10/10/2017; A, 3/22/2022]
1.10.13.3 STATUTORY AUTHORITY:
This rule is authorized by Section 1-2-1 NMSA 1978 and Section 1-19-26.2 of the
Campaign Reporting Act, Sections 1-19-25 through 1-19-37 NMSA 1978.
[1.10.13.3 NMAC - N, 10/10/2017]
1.10.13.4 DURATION: Permanent
[1.10.13.4 NMAC - N, 10/10/2017]
1.10.13.5 EFFECTIVE DATE: October 10, 2017, unless a later date is
cited at the end of a section.
[1.10.13.5 NMAC - N, 10/10/2017]
1.10.13.6 OBJECTIVE: The objective of this rule is to provide
clear guidance regarding the application and implementation of the provisions
of the Campaign Reporting Act, Sections 1-19-25 through 1-19-36 NMSA 1978 to
affected parties while also providing for clear and specific guidance to the
secretary of state in administering and enforcing the law.
[1.10.13.6 NMAC - N, 10/10/2017; A, 10/29/2019; A, 3/22/2022]
1.10.13.7 DEFINITIONS:
A. “Agent” means a person with express or
implied authorization to engage in campaign related activities on behalf of a
candidate or committee.
B. “Aggregate contributions” means the sum
total of all contributions given to a candidate, campaign committee, or
political committee by the same donor in [the same] a primary or general
election cycle. Aggregate contributions
may not exceed contribution limits.
C. "Clearly identified" means: (1) the name of the
candidate or ballot question appears; (2) a photograph or drawing of the
candidate appears; or (3) the identity of the candidate or ballot question is
otherwise apparent by unambiguous reference.
D. “Committee” means a political committee
or campaign committee covered under the Campaign Reporting Act.
E. “Contribution
or coordination political committee”
means a type of political committee that makes contributions or coordinated
expenditures to candidates or committees.
F. “Debt”
means an outstanding expenditure or loan which is not fully paid at the time it
is reported in the campaign finance information system and is therefore
reported as unpaid debt.
G. “Donor”
means contributor.
H. “Earmarking”
means making a contribution in which the original donor expresses an intention
for the contribution to pass through some other person to a specific candidate
or committee or to be used for a specific purpose, such as funding independent
expenditures.
I. “Expressly advocate” means that the
communication contains a phrase including, but not limited to, "vote
for," "re-elect," "support," "cast your ballot
for," "candidate for elected office," "vote against,"
"defeat," "reject," or "sign the petition for,"
or a campaign slogan or words that in context and with limited reference to
external events, such as the proximity to the election, can have no reasonable
meaning other than to advocate the election, passage, or defeat of one or more
clearly identified ballot questions or candidates.
J. “Final
report” means the last report electronically filed under the Campaign
Reporting Act in accordance with Subsection F of Section 1-19-29 NMSA 1978
indicating that:
(1) there
are no outstanding campaign debts;
(2) all
money has been expended in accordance with the provisions of Section 1-19-29.1
NMSA 1978; and
(3) the
bank accounts have been closed.
K. “Finding”
means a determination made by the secretary of state based upon an
administrative examination or inquiry.
L. “Foreign nationals” means an individual
who is not a citizen or a national of the United States (as defined in 8 U.S.C.
§1101(a)(22)) and who is not lawfully admitted for permanent
residence, as defined by 8 U.S.C. §1101(a)(20).
M. “In-kind contributions”
means goods or services or anything of value contributed to a candidate or
committee other than money. The
provision of any goods or services without charge or at a charge that is less
than the usual and normal charge for such goods or services is an in-kind
contribution. Examples of such goods or
services include, but are not limited to: securities, facilities, equipment,
supplies, personnel, advertising services, membership lists, and mailing lists.
N. “Legislative Caucus
Committee” means a political committee established by the members of a
political party in a chamber of the legislature pursuant to the provisions of
Subsection O of Section 1-19-26 NMSA 1978 and Section 2-21-1 NMSA 1978. A legislative caucus committee is also a
political committee pursuant to Subsection Q of Section 1-19-26 NMSA 1978.
O. “Loan” means an extension of credit to
a candidate or committee by any person, including the candidate themselves, for
use as monies spent toward the election of a candidate or other political
purpose.
P. “Members” means all persons who are
currently satisfying the requirements for membership in a membership
organization, affirmatively accept the membership organization's invitation to
become a member, and either:
(1) have some financial attachment to the membership organization;
or
(2) pay membership dues at least annually, of a specific amount
predetermined by the organization; or
(3) have an organizational attachment to the membership
organization that includes: affirmation of membership on at least an annual basis
and direct participatory rights in the governance of the organization. For example, such rights could include the
right to vote directly or indirectly for at least one individual on the
membership organization's highest governing board; the right to vote on policy
questions where the highest governing body of the membership organization is
obligated to abide by the results; the right to approve the organization's
annual budget; or the right to participate directly in similar aspects of the
organization's governance.
Q. “Membership
organization” means
an unincorporated association, trade
association, cooperative, corporation without capital stock, or a local,
national, or international labor organization that:
(1) is composed of members;
(2) expressly states the qualifications and requirements for
membership in its articles, bylaws, constitution or other formal organizational
documents;
(3) makes its articles, bylaws, constitution or other formal
organizational documents available to its members;
(4) expressly solicits persons to become members;
(5) expressly acknowledges the acceptance of membership, such as
by sending a membership card or including the member's name on a membership
newsletter list; and
(6) is not organized primarily for the purpose of influencing
the nomination for election, or election, of any individual for offices covered
under the Campaign Reporting Act.
R. “Mixed purpose political committee”
means a type of political committee that makes independent expenditures and coordinated
expenditures or contributions
and that segregates funds used for
coordinated expenditures and contributions subject to contribution limits into
a separate bank account from funds used for independent expenditures.
S. “Pledge” means a promise from a
contributor to send or deliver a contribution by a specified time.
T. “Primary purpose” means the purpose for
which an entity or committee:
(1) was
created, formed or organized; or
(2) has made more
than fifty percent of its expenditures during the current election cycle
exclusive of salaries and administrative costs; or
(3) has devoted
more than fifty percent of the working time of its personnel during the current
election cycle.
U. “Relevant electorate” means the
constituency eligible to vote for the candidate or ballot question.
V. “Solicit” means to ask that another
person make a contribution, donation, transfer of funds, or otherwise provide
anything of value, whether it is to be made or provided directly to the
candidate or committee, or through a conduit or intermediary.
W. “Sponsoring organization” means an
organization that has provided more than twenty-five percent of the total
contributions to a political committee as of the time the committee is required
to register under this rule.
X. “Special event” means a barbeque, tea, coffee,
dinner, reception, dance, concert or similar fundraiser where tickets costing
twenty-five dollars ($25) or less are sold and no more than one thousand dollars
($1,000) net contributions are received.
Y. “Statement of no activity” means the
prescribed form used by a reporting individual to indicate that no
contributions were raised or expenditures were made during a particular
reporting period.
Z. “Treasurer” means an individual
explicitly designated by a candidate or committee to authorize disbursements,
receive contributions, maintain a proper record of the campaign finances, and
who, along with the candidate, is personally liable for discrepancies in the
finances and reports of the committee.
AA. “Unresolved discrepancy” means a finding of an actual or
perceived inconsistency, conflict, or contradiction that is not resolved after
attempts to seek voluntary compliance.
[1.10.13.7 NMAC - N, 10/10/2017; A, 10/29/2019; A, 3/22/2022]
1.10.13.8 CANDIDATE CAMPAIGN COMMITTEE REGISTRATIONS:
A. A candidate
for a non-statewide office shall register the candidate’s campaign committee
with the secretary of state within 10 days of receiving contributions or expending
one thousand dollars ($1,000) or more for campaign expenditures or filing a
declaration of candidacy; whichever occurs earlier.
B. A candidate
for statewide office shall register the candidate’s campaign committee with the
secretary of state within 10 days of receiving contributions or expending three
thousand dollars ($3,000) or more or filing a declaration of candidacy;
whichever occurs earlier.
C. All
candidates shall complete a campaign committee registration online via the
registration process in the campaign finance information system (CFIS).
Following acceptance of the campaign committee registration form, the secretary
of state will create a user account for the candidate in CFIS and will issue
the candidate a unique CFIS user identification.
D. A candidate is responsible for
entering accurate and current contact information in CFIS, including mailing
address and email address. Failure to
provide accurate or current contact information does not limit the candidate’s
liability regarding fines and civil actions against the candidate or public
official related to campaign reporting.
E. Section 1-19-27 NMSA 1978 requires that all campaign
finance reports be filed electronically with the secretary of state’s
office. In order to file electronically,
the candidate must, at all times, maintain a valid email address on file with
the secretary of state.
F. A
candidate may serve as the candidate’s own treasurer. If the candidate does not serve as the
candidate’s own treasurer, then the candidate shall appoint a treasurer who
shall be jointly responsible as a reporting individual with the candidate for
the campaign committee.
G. If the
candidate does not serve as the candidate’s own treasurer, in the event of a
vacancy in the position of treasurer, the candidate shall appoint a successor
treasurer within 10 days of the vacancy by updating the information
electronically in CFIS.
H. The candidate is deemed to have
authorized and approved each report entry submitted to CFIS.
I. A candidate may only have one campaign committee at a
time unless the candidate is seeking public financing and must keep a previous
campaign account open and separated.
J. A
candidate seeking re-election to the same office is not required to submit a
new campaign committee registration form if the candidate already has an open
campaign account.
K. A
candidate seeking election to a new office covered by the campaign reporting
act than what the candidate previously registered is required to submit a new
campaign committee registration form. If
a new candidate campaign committee registration form is submitted by a
candidate with an open campaign committee for a new office, the candidates
shall expend all funds in accordance with the Campaign Reporting Act or
transfer any remaining funds from the old campaign committee to the new
campaign committee and file a final report to close the old campaign committee
within ten days from the date the registration form is accepted by the
secretary of state unless the candidate is seeking public financing and must
keep a previous campaign account open and separated.
[1.10.13.8 NMAC - N, 10/10/2017; A,
10/29/2019; A, 3/22/2022]
1.10.13.9 WITHDRAWING
FROM CANDIDACY: If a candidate files a statement of
withdrawal, the candidate must file a final report in CFIS no later than the
next report deadline or continue to file CFIS reports pursuant the schedule
defined by Section 1-19-29 NMSA 1978.
[1.10.13.9 NMAC - N, 10/10/2017]
1.10.13.10 POLITICAL COMMITTEE REGISTRATIONS:
A. Registration.
(1) Prior to receiving or making any
contribution or expenditure for a political purpose. All political
committees shall complete a political committee registration form/statement of organization
online via the registration process in CFIS and submit the completed form,
along with a fifty dollar ($50) filing fee, to the secretary of state. The form shall include:
(a) the full
name of the political committee, which shall fairly and accurately reflect the
identity of the committee, including any sponsoring organization;
(b) the physical
address of the political committee, a mailing address if different from the
physical address, and an email address;
(c) a statement
of the purpose for which the political committee was organized; under this
section, the committee shall designate the type of expenditures it will be
making; the committee will have the option of registering as:
(i) an
independent expenditure political committee;
(ii) a
contribution or coordination political committee; or
(iii) a mixed
purpose political committee.
(d) the names
and addresses of the officers of the committee;
(e) an identification of the bank(s)
used by the committee for all expenditures or contributions made or received;
this shall include the name of the bank(s), business address(es) of the branch
office(s) where the account(s) was/were opened, and telephone number for the
bank(s); and
(f) the
treasurer’s name, mailing address, email address, and contact information.
(2) Following
acceptance of the political committee registration form, the secretary of state
will issue the treasurer a unique CFIS user identification.
(3) 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
(FEC). If the political committee is
located in another state and reports to the FEC, the committee shall file 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 with the secretary of
state within 10 days of filing the report to the FEC.
(4) If a political
committee is located in another state and is making contributions and
expenditures to New Mexico reporting individuals, but is not registered with
the FEC, then the out-of-state political committee must register and report its
New Mexico contributions and expenditures in accordance with the provisions of
the Campaign Reporting Act and this rule.
(5) If
a political committee is located in New Mexico and is required to register as a
political committee under this rule, the political committee must register with
the secretary of state even if it is also registered with the FEC.
(6) The
political committee’s treasurer is responsible for carrying out the duties
described in the Campaign Reporting Act and this rule and may be personally
liable if he or she knowingly and willfully violates the Campaign Reporting
Act.
(7) An individual who resigns as treasurer of a political
committee shall submit a resignation statement on a form prescribed by the
secretary of state. An individual’s
resignation is not effective until a replacement treasurer is appointed, and
the treasurer’s information is updated electronically in CFIS.
(8) A
political committee shall not continue to receive or make any contributions or
expenditures unless the name of the current treasurer is on file with the
secretary of state by updating the information in CFIS.
(9) A
political committee is responsible for entering accurate and current contact
information in CFIS, including mailing address and email address. Failure to provide accurate or current
contact information does not limit the political committee’s liability
regarding fines and civil actions related to campaign reporting.
(10) Any
changes to the information provided in the registration form/statement of
registration shall be filed in CFIS within 10 days.
B. Section 1-19-27 NMSA 1978 requires that all campaign
finance reports be filed electronically with the secretary of state’s
office. In order to file electronically,
the political committee must maintain a valid email address on file with the
office.
C. Political party registration: Qualified political parties that file rules in
accordance with Article 7 of the Election Code with the secretary of state or
county clerk are required to complete and file the political committee
registration form with the secretary of state and must adhere to the provisions
of the Campaign Reporting Act and this rule.
D. Legislative caucus committee registration: a legislative caucus committee is required to complete
and file the political committee registration form with the secretary of state
and must adhere to the provisions of the Campaign Reporting Act.
E. Notice of cancellation:
(1) A political committee, other than a political party
or a legislative caucus committee, that has not received any contribution or
made any coordinated or independent expenditures for a continuous period of at
least one year pursuant to Subsection G of Section 1-19-29 NMSA 1978 shall be
advised of their right to cancel the political committee’s registration without
obligation to file a final report. The
political committee shall notify the secretary of state of the political
committee’s intention to remain active or will otherwise be marked as inactive
by January 1 of the next even numbered year.
(2) A political committee that has
cancelled its registration pursuant to Subsection G of Section 1-19-29 NMSA
1978, shall submit a new registration. A
new registration shall include:
(a) current bank account balance(s);
and
(b) a
certification that no contributions have been received or any expenditures made
for a political purpose during the period wherein the political committee’s
registration was cancelled pursuant to Subsection G or Section 1-19-29 NMSA
1978.
[1.10.13.10 NMAC - N, 10/10/2017; A, 10/29/2019; A, 3/22/2022]
1.10.13.11 REPORTING OF INDEPENDENT EXPENDITURES:
A. A person reporting an independent expenditure [under
this section] that is not otherwise required to register as a political committee
or report under the Campaign Reporting Act shall complete the online
registration process in CFIS for setting up an account as an independent
expenditure filer.
B. Time requirements: An
independent expenditure is considered to be made on the first date on which the
communication or advertisement is published, broadcast or otherwise publicly
disseminated.
C. No person may make contributions or expenditures with an
intent to conceal the names of persons who are the true source of funds used to
make independent expenditures, or the true recipients of the expenditure.
D. Both
a person who makes an independent expenditure pursuant to Section 1-19-27.3
NMSA 1978 or a registered political committee that files reports in accordance
with Section 1-19-29 NMSA 1978 is required to disclose the candidate(s) or
ballot question(s) being supported or opposed by each independent expenditure
made.
E. If a person declines to identify a
contributor pursuant to Paragraph 2 of Subsection D of Section 1-19-27.3 NMSA
1978 on the basis that the contributor requested in writing that the
contribution not be used to fund independent or coordinated expenditures or to
make contributions to a candidate, campaign committee, or political committee,
the person making the independent expenditure shall, contemporaneously with the
filing of the report required under this Section and Section 1-19-27.3 NMSA
1978, submit to the secretary of state a statement under penalty of perjury
that:
(1) a
contributor requested that a contribution not be used to fund independent or
coordinated expenditures or to make contributions to a candidate, campaign
committee, or political committee; and
(2) the
person making the independent expenditure, coordinated expenditures, or
contributions to a candidate, campaign committee or political committee did not
use any of the funds received from the contributor for those purposes.
[1.10.13.11 NMAC - N, 10/10/2017; A, 10/29/2019; A, 3/22/2022]
1.10.13.12 GENERAL REPORTING RULES:
A. Candidate campaign committees.
(1) All campaign
committees shall file reports according to the schedule set forth in Section
1-19-29 NMSA 1978. Reports shall be
accepted until midnight mountain time on the date of filing without penalty. In the event that a filing deadline falls on
a state holiday, the report shall be made on the following day. Beginning after 12:01 a.m. mountain time on
the day after the due date of the report, penalties for late filing shall begin
to accrue.
(2) Campaign
committees shall report all contributions, in-kind contributions known to the
campaign committee, loans, expenditures, loan repayments, and debt forgiven by
the lender.
(3) Coordinated
expenditures made on behalf of the candidate or campaign committee shall be
reported by the campaign committee as in-kind contributions received from the
coordinating political committee and are subject to contribution limits. Any committee reporting an expenditure that
is in-kind to another committee registered pursuant to the Campaign Reporting
Act is required to disclose the name of the committee benefiting from the
in-kind contribution.
(4) Candidates must file all required
reports while they are an active candidate and continue to file timely reports
until such time as they meet the requirements to file a final report. For example, a primary election candidate
that loses the primary election must file all reports included in the primary
election cycle and continue to file reports until the candidate files a final
report. Losing an election does not
terminate a candidate’s requirement to file under the Campaign Reporting Act.
(5) A
candidate’s personal funds spent in support of a candidate’s own campaign are
considered a contribution and shall be disclosed by filing the required reports
in CFIS; however, these funds are not subject to contribution limits.
(6) Upon
request by the secretary of state, the campaign committee shall provide a copy
of bank statements, for all accounts, for any reporting period.
(7) Candidates
benefiting from independent expenditures or in-kind contributions the candidate
has no knowledge of have no obligation to report the item as a contribution to
the candidate’s campaign committee.
B. Political committees.
(1) Political
committees shall file reports according to the schedule set forth in Section
1-19-29 NMSA 1978. Reports shall be
accepted until midnight on the date of filing deadline without penalty. In the event that a filing deadline falls on
a state holiday, the report shall be made on the following day. Beginning after 12:01 a.m. mountain time on
the date after the filing deadline of the report, penalties for late filing
shall begin to accrue.
(2) Political
committees shall report all contributions, in-kind contributions known to the
political committee, loans, expenditures, loan repayments, and debt forgiven by
the lender.
(3) In
addition to disclosing the information required by the Campaign Reporting Act
for expenditures, a political committee making coordinated expenditures, including
in-kind, shall also disclose the name of the candidate, campaign committee, or
political committee with whom the expenditure is being coordinated or is
benefitting.
(4) Upon request
by the secretary of state, the political committee shall provide a copy of bank
statements, for all accounts, for the political committee for any reporting
period.
C. Hardship
waivers.
(1) All
reports required by these rules shall be filed electronically in the manner and
on forms as prescribed by the secretary of state. Reporting individuals required to file
reports may apply to the secretary of state for exemption from electronic
filing in case of hardship by submitting a hardship waiver request form
prescribed by the secretary of state.
The secretary of state may approve or deny this request. Approval may be granted at the discretion of
the secretary of state only if the reporting individual has no way to access
CFIS.
(2) Upon
approval of a hardship waiver, the reporting individual shall submit the report
on a prescribed paper form. Approval of
a hardship waiver by the secretary of state, authorizes the secretary of state
to enter the report into the electronic system on behalf of the reporting
individual. A copy of the electronic
report entered by the secretary of state will be mailed to the reporting
individual once it has been entered into CFIS.
(3) Submission
of a hardship waiver request does not constitute meeting the reporting
requirements including the statutory reporting deadlines. Failure to adhere to a report deadline may
still result in fines pursuant to Section 1-19-35 NMSA 1978. Reporting individuals shall make arrangements
for hardship approval with the secretary of state in advance of report deadlines
to ensure timely filing.
[1.10.13.12 NMAC - N, 10/10/2017; A, 10/29/2019; A, 3/22/2022]
1.10.13.13 NO ACTIVITY:
A. All
candidates are required to register and file reports in CFIS according to the
reporting schedule outlined in the Campaign Reporting Act once a declaration of
candidacy has been filed, even if the candidate does not raise or spend any
funds. Candidates who have collected no
contributions and made no expenditures shall file a statement of no activity.
B. Candidates
who do not raise funds are not required to open a campaign bank account.
C. Receiving
funds as a publicly financed candidate pursuant to the Voter Action Act is
considered raising funds for the purpose of this rule.
D. Candidates who maintain a zero
balance in CFIS for the duration of a primary or general election cycle shall
be administratively closed by the secretary of state.
[1.10.13.13 NMAC - N, 10/10/2017; A, 3/22/2022]
1.10.13.14 SUPPLEMENTAL REPORTS:
A. Certain
candidates must report in CFIS contributions and pledges to contribute that are
received beginning the Thursday before an election through the election in CFIS
using supplemental reports in accordance with Subparagraph 5 of Subsection B of
Section 1-19-29 NMSA 1978.
B. If a
candidate receives a pledge during the time period specified in Subparagraph 5
of Subsection B of Section 1-19-29 NMSA 1978 but does not receive the
contribution as pledged, the candidate may later amend the campaign committee’s
supplemental report.
[1.10.13.14 NMAC - N, 10/10/2017]
1.10.13.15 LATE FILING OF REPORTS:
A. If a reporting
individual or person required to file a report pursuant to Section 1-19-27.3
NMSA 1978 fails to timely file a report in CFIS, or fails to file a report, a
written notice will be sent by the secretary of state to the reporting
individual or person required to file a report explaining the violation and the
fine imposed.
B. The
reporting individual or person required to file a report is afforded 10 working
days from the date of the written notice to file, if needed, and provide a
written explanation within CFIS indicating why the violation occurred.
C. If a timely
explanation is provided and the report is filed within the timeframe provided
by the notice, the secretary of state will make a determination whether good cause
exists to fully or partially waive the fine.
D. If
the reporting individual or person required to file the report fails to provide
a written response or fails to file a report within the timeframe provided by
the notice, the secretary of state shall issue a notice of final action
requiring the reporting individual or person required to file the report to
file the late report, provide a written explanation of why the violation
occurred, and pay the fine owed.
E. Fines
for late filing will accrue beginning the day after the filing deadline until
the report is filed at the statutory rate of fifty dollars ($50) per day up to
a maximum fine pursuant to Subsection H of Section 1-19-35 NMSA 1978 per
report. Candidates required to file
supplemental reports are subject to additional fines pursuant to Subsection C
of Section 1-19-35 NMSA 1978.
F. If a reporting individual or person
required to file a report desires to come into voluntary compliance after a
notice of final action has been issued but prior to a referral pursuant to
Section 1-19-34.6 NMSA 1978, the secretary of state may, at the secretary of
state’s sole discretion, file a petition with the court requesting the court to
waive fines for good cause.
G. Failure
to respond to the notice of final action shall result in a referral to the
state ethics commission.
[1.10.13.15 NMAC - N, 10/10/2017; A, 10/29/2019; A, 3/22/2022]
1.10.13.16 LOANS:
A. All loans
made to a candidate or committee, including loans sourced from a candidate’s
own personal funds must be reported.
B. Contribution
limits apply to loans unless the loan is sourced from the candidate’s own
personal funds in accordance with Subsection H of Section 1-19-34.7 NMSA 1978.
C. If
a spouse of a candidate co-signs a commercial loan to a candidate pledging
community assets as collateral, it is not considered a contribution from the
spouse to the candidate as long as the candidate’s interest in the community
asset meets or exceed the amount of the loan.
D. Loan
repayments and forgiven loans must be reported separately from other
expenditures within the loan module of CFIS.
[1.10.13.16 NMAC - N, 10/10/2017; A, 10/29/2019]
1.10.13.17 CAMPAIGN DEBTS:
A. Campaign
debts may not exceed available campaign funds unless the debt is a loan. Loans from a third party must conform to
contribution limits.
B. Following
the date of the primary or general election, if a candidate has outstanding
debts after expending all available campaign funds, the candidate may collect
contributions for the sole purpose of paying those debts.
C. The
contributions will apply to the primary or general election cycle for which the
campaign debt was incurred for purposes of computing allowable contribution
limits.
D. A candidate
who does not have net outstanding campaign debt may not collect contributions
for a primary or general election cycle that has ended.
E. A candidate
may not transfer funds collected specifically to satisfy campaign debt to a
subsequent primary or general election cycle. Accordingly, contributions collected
for the purpose of paying off outstanding campaign debts may not exceed the
amount of the outstanding debts.
[1.10.13.17 NMAC - N, 10/10/2017]
1.10.13.18 IN-KIND CONTRIBUTIONS:
A. In-kind
contributions must be reported with the actual value of the contribution. If an actual value is not available, an
estimated value of the contribution may be used.
B. Coordinated
expenditures are treated as in-kind contributions and must be reported as such.
C. If a
committee or person makes an in-kind contribution that benefits multiple
candidates, each candidate must report the estimated benefit received per
person.
D. Goods, such
as facilities, equipment, or supplies, are valued at the price the item or
facility would have cost, given its age and condition, at the time the
contribution was made.
E. If goods or services are provided at
less than the usual and normal charge, the amount of the in-kind contribution
is the difference between the usual and normal charge for the goods or services
at the time of the contribution and the amount charged to the candidate or
committee.
F. The value of
in-kind contributions from a political party or legislative caucus committee to
a candidate nominated by that party in a general election cycle do not apply to
the limitations on contributions to candidates or campaign committees.
G. If
a committee makes an expenditure that is reported as coordinated or in-kind to
another campaign or political committee, the committee making the expenditure
must disclose the candidate or political committee that is benefitting from the
expenditure.
[1.10.13.18 NMAC - N, 10/10/2017; A, 10/29/2019; A, 9/28/2021; A,
3/22/2022]
1.10.13.19 VOLUNTEERS:
A. Volunteer
work performed for a candidate or committee is not considered a
contribution. An individual may
volunteer his or her own personal services to a campaign or candidate if the
services are not compensated by the candidate, campaign or any other person. If a third party pays a person to volunteer
for a candidate or committee, the payment constitutes an in-kind contribution
to the campaign committee which must be reported by the campaign committee.
B. Individuals
may use their own homes, recreation or meeting rooms of complexes, or other
facilities to conduct volunteer activities for a campaign committee without
reporting the rental value of the premises as a contribution.
C. Candidates
and campaigns may reimburse volunteers for out of pocket expenses other than
the value of their time. Any expense
reimbursed by the candidate or committee must be reported by the candidate or
committee.
[1.10.13.19 NMAC - N, 10/10/2017]
1.10.13.20 CONTRIBUTIONS:
A. The entire
amount paid by a donor to attend a political fundraiser or other political event
or to purchase a fundraising item sold by a candidate is a contribution and
counts against the donor’s limit for political contributions, except for
special events pursuant to Subsection C of Section 1-19-34 NMSA 1978.
B. Contributions
received as a result of special events shall be reported cumulatively on the
special events form in CFIS. Reporting
individuals shall report the sponsor of the event, the amount received (gross
proceeds), the expenditures incurred, the estimated number of persons in attendance,
and the net amount received after deducting the expenditures incurred in
conducting the event (net proceeds).
C. For all
other fundraising events at which the price of admission exceeds twenty five
dollars ($25), or which raise more than one thousand dollars ($1,000) in net
proceeds, the reporting individual must report each individual contribution
pursuant to Section 1-19-31 NMSA 1978.
D. No single
anonymous contribution may be accepted in excess of one hundred dollars
($100). No more than five hundred
dollars ($500) may be accepted in aggregate anonymous contributions for any
non-statewide candidate in a primary or general election cycle. No more than two thousand dollars ($2000) may
be accepted in aggregate anonymous contributions for any statewide campaign
committee or political committee in a primary or general election cycle.
E. A
candidate’s spouse and family are subject to the same contribution limits to
the candidate’s campaign as other contributors, provided, however, that a
candidate may contribute from a joint account with a spouse or family member
without limit if the funds would otherwise be available to the candidate in the
regular course of business, or as community property or as a joint tenant.
F. The
personal funds of a candidate include:
(1) assets which
the candidate has the legal right of access to or control over, and which he or
she has legal title to or an equitable interest in, at the time of candidacy;
(2) income from
employment, including self-employment;
(3) dividends
and interest from, and proceeds from, sale or liquidation of stocks, real
estate or other investments;
(4) income from
trusts, if established before the commencement of a primary or general election
cycle;
(5) bequests
to the candidate, if established before the commencement of a primary or
general election cycle;
(6) personal
gifts that have been customarily received by the candidate prior to the
commencement of a primary or general election cycle; and
(7) proceeds
from lotteries or games of chance.
G. The
reporting individual is responsible for ensuring that all contributions are
lawful. If the reporting individual has
reason to suspect that a contribution is excessive or prohibited, he or she
must, within 10 days of receiving the contribution, validate the legality of
the contribution and correct any discrepancy, if necessary, in order to comply
with the law.
[1.10.13.20 NMAC - N, 10/10/2017; A, 10/29/2019]
1.10.13.21 [RESERVED]
[1.10.13.21 NMAC - N, 10/10/2017; Repealed, 3/22/2022]
1.10.13.22 EXCESSIVE OR PROHIBITED
CONTRIBUTIONS:
A. Excessive
or prohibited contributions shall be returned to the donor upon receipt,
without penalty to the reporting individual.
However, if the secretary of state discovers a discrepancy or otherwise
makes a finding that an excessive or illegal contribution has been received by
a candidate or committee, the candidate or committee shall forfeit the
excessive or illegal contribution in accordance with Subsection G of Section
1-19-34.7 NMSA 1978. A candidate or
political committee shall disclose refunds of contributions or expenditures to
the public election fund in CFIS in the reporting period in which the refund
was made.
B. Excess anonymous funds pursuant
to Subsections B and C of Section 1-19-34 NMSA 1978 shall be donated pursuant
to the requirements of Subsection D of Section 1-19-34 NMSA 1978. The candidate or political committee shall
disclose the details of the disbursement of excess anonymous funds in CFIS in
the reporting period in which the disbursement was made.
C. The
reporting individual must check committee records regularly to reasonably
ensure that aggregate contributions from one contributor do not exceed the
contribution limits of the Campaign Reporting Act.
D. When
an excessive contribution is made via written instrument with more than one
individual's name on it, but only has one signature, the permissible portion
may be attributed to the signer and the excessive portion may be attributed to
the other individual whose name is printed on the written instrument, without
obtaining a second signature. This may
be done so long as the reattribution does not cause the other contributor to
exceed any contribution limit.
E. An
excessive contribution which is not designated for either the primary or
general election cycle, and which is made after the primary, but before the
general election, may be applied to the outstanding debts from the primary
election cycle if the campaign committee has more net debts outstanding from
the primary election cycle than the excessive portion of the contribution. The re-designation must not cause the
contributor to exceed any contribution limits.
F. Contributions
and donations may not be solicited, accepted, received from, or made directly
or indirectly by, foreign nationals who do not have permanent residence in the
United States.
[1.10.13.22 NMAC - N, 10/10/2017; A, 10/29/2019; A, 3/22/2022]
1.10.13.23 DATE CONTRIBUTION IS MADE VS DATE
OF RECEIPT:
A. A
contribution is "made" by the contributor when the contributor
relinquishes control over it. If the
contributor hand delivers a contribution, the contribution is made on the
delivery date. If mailed, a contribution
is made on the date of the postmark. An
in-kind contribution is made on the date that the goods or services are
provided by the contributor. A
contribution made via the internet is considered made on the date the
contributor electronically confirms the transaction.
B. The
date of receipt is the date the candidate, committee or person acting on the
committee's behalf, actually receives the contribution. This is the date that shall be used to report
the contribution. The date of deposit is
not used for reporting or contribution limit purposes.
C. When
a contribution is received through debit or credit card charges, the date of
receipt is the date on which the contributor’s signed or electronic
authorization to charge the contribution is received by the candidate,
committee or a person acting on the committee’s behalf.
D. The date of
receipt of in-kind contributions is the date the goods or services are provided
to the recipient.
[1.10.13.23 NMAC - N, 10/10/2017]
1.10.13.24 EARMARKING:
A. It is
unlawful for a person to make a contribution in the name of another person and no
reporting entity shall knowingly accept a contribution from one person in the
name of another person.
B. A reporting
individual shall not knowingly accept a contribution which was earmarked by an
original donor for contribution from a subsequent donor to the candidate or
committee unless the original donor is disclosed in the committee’s reporting.
C. All
contributions made by a person, either directly or indirectly, including
contributions that are in any way earmarked or otherwise directed through another
person, shall be treated as contributions from the person who originally made
the contribution.
[1.10.13.24 NMAC - N, 10/10/2017]
1.10.13.25 CANDIDATE EXPENDITURES:
A. Candidates
who use the candidate’s own personal funds for expenditures of the campaign
committee must report the funds as either contributions to the campaign
committee, which cannot be repaid to the candidate, or as loans to the campaign
committee, which can be repaid from other campaign contributions received by
the campaign committee. A candidate may
also pay for expenditures of the campaign committee out of personal funds and
obtain reimbursement from the campaign committee, but the campaign committee
must itemize the expenditures reimbursed and otherwise comply with the
disclosure requirements of Section 1-19-31 NMSA 1978 including disclosure of
the original payee. A candidate may not,
for instance, report a single payment to a credit card in lieu of reporting
each individual expenditure paid for out of personal funds. Use of a credit card specifically designated
for campaign expenses is permissible but expenditures must be itemized when
reported.
B. Permissible Expenditures.
(1) Use of
campaign funds must be in accordance with Section 1-19-29.1 NMSA 1978. Candidates and committees must provide a
purpose or description detailed enough to associate the expense to the
campaign. For example, an expense of
“taxi” is not appropriately descriptive to determine that it is related to a
campaign. Such an expense should be
reported as “taxi for travel to campaign meeting.”
(2) Expenditures
that are reasonably attributable to the candidate’s campaign and not to
personal use or personal living expenses are permissible campaign
expenditures. Personal use of campaign funds
is any use of funds in a campaign account to fulfill a commitment, obligation
or expense of any candidate or legislator that would exist regardless of the
candidate's campaign or responsibilities as a legislator. If the expense would exist even in the
absence of the candidacy, or even if the legislator were not in office, then it
is not considered to be a campaign-related expenditure. The following is a non-exhaustive list of
items considered to be per se personal use and are, therefore, not allowable
expenditures:
(a) household food items or supplies;
(b) funeral, cremation, or burial
expenses except those incurred for a candidate or an employee or volunteer of
an authorized committee whose death arises out of, or in the course of,
campaign activity;
(c) clothing, other than items of de
minimis value that are used in the campaign, such as campaign t-shirts or camps
with campaign slogans;
(d) tuition payments, other than those
associated with training campaign staff;
(e) mortgage, rent or utility payments:
(1) for any part of any personal
residence of the candidate or a member of the candidate’s family; or
(2) for real or personal property that is
owned by the candidate or a member of the candidate’s family and is used for
campaign purposes, to the extent the payments exceed the fair market value of
the property usage.
(f) admission to a sporting event,
concert, theater or other form of entertainment, unless part of a specific
campaign or officeholder activity;
(g) dues, fees, or gratuities at a
country clubs, health club, recreational facility or other nonpolitical
organizations, unless they are part of the costs of a specific fundraising
event that takes place on the organization’s premises;
(h) payments to candidate’s family unless
the family member is providing a bona fide service to the campaign. If a family member provides bona fide
services to the campaign, any salary payment in excess of the fair market value
of the services provided is personal use; and
(i) a vacation.
(3) Legal
expenses reasonably attributable to the candidate’s campaign are permissible
campaign expenditures.
(4) Candidates
and political committees may use campaign funds to [pay fines and penalties
imposed by the secretary of state] satisfy fines and other non-criminal
penalties as a result of violating a provision of the Campaign Reporting Act.
(5) Wear
and tear on a vehicle is a permissible expense of the campaign and candidates
shall claim mileage rather than actual repairs for travel solely related to the
campaign. Mileage shall be calculated at
no more than the published rate pursuant to the Mileage and Per Diem Act. Candidates must keep a log for the candidate’s
own records regarding miles traveled for campaign purposes and calculate the
per diem based on this log. Mileage
rates are meant to account for both wear and tear on a vehicle as well as costs
for gas; therefore, candidates may not charge for both gas and mileage.
[1.10.13.25 NMAC - N, 10/10/2017; A, 3/22/2022]
1.10.13.26 CHARITABLE DONATIONS:
A. Donations to
charity from campaign funds permitted under Paragraph 4 of Subsection A of
Section 1-19-29.1 NMSA 1978 may be paid only to organizations recognized as tax
exempt under Section 501(c)(3) of the Internal Revenue Code of 1986.
B. The
candidate or committee making a charitable donation is responsible for
determining whether the charity has the permissible tax status prior to making
the donation.
[1.10.13.26 NMAC - N, 10/10/2017]
1.10.13.27 [RESERVED]
[1.10.13.27 NMAC - N, 10/10/2017; A, 04/24/2018; Repealed,
10/29/2019]
1.10.13.28 COORDINATED EXPENDITURES:
A. A
coordinated expenditure shall be treated as an in-kind contribution from the person
who made the expenditure to the candidate or committee at whose request or
suggestion, or in cooperation, consultation or concert with whom, the
expenditure was made, and shall be subject to all the limits, prohibitions and
reporting requirements that are applicable to such contributions under the
Campaign Reporting Act.
B. Candidates
for office may endorse other candidates.
Endorsements do not constitute a coordinated expenditure unless the
endorser pays for an advertisement that constitutes a coordinated expenditure.
C. A
candidate's or committee’s response to an inquiry or questionnaire about that
candidate's positions on legislative or policy issues, which does not include
discussion of campaign plans, projects, activities or needs, does not constitute
a coordinated expenditure.
D. Persons may
use publicly available information and materials in creating, producing, or
distributing an advertisement, and such use does not, in and of itself,
constitute coordination with the candidate or campaign. However, expenditures funding the
republication of materials produced by a candidate’s campaign shall be reported
as coordinated expenditures subject to contribution limits. The following is a non-exhaustive list of
factors which will be considered in determining whether an expenditure shall be
treated as a coordinated expenditure:
(1) whether the
person making the expenditure is also an agent of the candidate or committee
receiving the contribution;
(2) whether
any person authorized to accept receipts or make expenditures for the person
making the expenditure is also an agent of the candidate or committee receiving
the contribution;
(3) whether the
person making the expenditure has been established, financed, maintained, or
controlled by any of the same persons that have established, financed,
maintained, or controlled a political committee authorized by the candidate;
(4) whether the
reporting individual shares or rents space for a campaign-related purpose with
or from the person making the expenditure;
(5) whether
the reporting individual, or any public or private office held, or entity
controlled by the reporting individual, including any governmental agency,
division, or office, has retained the professional services of the person
making the expenditure or a principal member or professional or managerial
employee of the entity making the expenditure, during the same election cycle,
either primary or general, in which the expenditure is made; or
(6) whether
the reporting individual and the person making the expenditure have each
consulted or otherwise been in communication with the same third party or
parties if the reporting individual knew or should have known that the
reporting individual’s communication or relationship to the third party or
parties would inform or result in expenditures to benefit the reporting
individual.
[1.10.13.28 NMAC - N, 10/10/2017; A, 10/29/2019]
1.10.13.29 RECORDS RETENTION:
A. A reporting
individual shall obtain and preserve all records, including bank statements and
receipts, necessary to substantiate the campaign finance reports required
pursuant to the Campaign Reporting Act for a period of two years from the date
of the filing of the report containing such items.
B. A reporting
individual shall make such records available to the secretary of state, state
ethics commission, attorney general or district attorney upon written request.
[1.10.13.29 NMAC - N, 10/10/2017; A, 3/22/2022]
1.10.13.30 RANDOM REPORT SELECTION AND REPORT
REVIEW PROCESS:
A. Pursuant
to Section 1-19-32.1 NMSA 1978, a randomly selected list of current and past
candidates and political committees is computer generated by the secretary of
state.
B. The
secretary of state conducts a review of the reports filed during the election
year or reporting period being reviewed for compliance with 1.10.13 NMAC and
the Campaign Reporting Act. Areas of
review during the report examination include:
(1) Campaign
committees or political committees who fail to register or fail to register
timely.
(2) Contributions,
including loans and anonymous contributions, which exceed allowable
contribution limits.
(3) Expenditures
that may not be permissible.
(4) To
the extent possible, cross checking with other reporting entities including
those filing under the Lobbyist Regulation Act.
(5) Other report errors such as
incomplete reporting or failure to disclose the originating donor of a
contribution.
C. Pursuant
to Section 1-19-32.1 NMSA 1978, the secretary of state shall notify potential
violators that a possible discrepancy has been found and allow the candidates
or committees 10 working days from the date of the notice to submit a written
explanation and come into voluntary compliance.
D. After
the secretary of state deems efforts at voluntary compliance have been
exhausted and upon completion of the random review, the secretary of state
shall prepare a report that includes the committees included in the random
examination, the outcome of voluntary compliance efforts, and any unresolved
discrepancies. The report shall be maintained and forwarded pursuant to the
requirements set forth in Subsection B of Section 1-19-32.1 NMSA 1978.
[1.10.13.30 NMAC - N, 10/10/2017; A, 3/22/2022]
1.10.13.31 Disclaimer
Notices on Advertisements:
A. The disclaimers on
campaign advertising mandated by Section 1-19-26.4 NMSA 1978 are required for:
(1) advertisements
that are disseminated by a candidate, a campaign committee, or a political
committee, including a legislative caucus committee, registered pursuant to 1.10.13.8
NMAC or at the request or suggestion of, or in cooperation, consultation or
concert with, a candidate, a candidate’s campaign committee or a political
committee, including a legislative caucus committee registered pursuant to
1.10.13.8 NMAC; and,
(2)
advertisements that are disseminated by a person who has made independent
expenditures in an aggregate amount exceeding one thousand dollars ($1,000)
during the current election cycle, and that either:
(a)
expressly advocate the election or defeat of a clearly identified candidate or
the passage or defeat of a clearly identified ballot question, or
(b)
refer to a clearly identified candidate or ballot question and are disseminated
to the relevant electorate within 30 days before the primary election or 60
days before the general election at which the candidate or ballot question is
on the ballot.
B. The requirements
of Subsection A of this section do not apply to the following:
(1) bumper
stickers, pins, buttons, pens and similar small items upon which the disclaimer
cannot be conveniently printed; or
(2)
skywriting, water towers, wearing apparel or other means of displaying an
advertisement of such a nature that the inclusion of a disclaimer would be
impractical.
C. The disclaimer
statements required by Subsection A of this section shall be set forth legibly
on any advertisement that is disseminated or displayed by visual media. If the advertisement is transmitted by audio
media, the statement shall be clearly spoken during the advertisement. If the advertisement is transmitted by
audiovisual media, the statement shall be both written legibly and spoken
clearly during the advertisement.
D. The disclaimer
statements required for advertisements described in Paragraph A of this section
shall clearly state the name of the candidate, committee or other person who
authorized and paid for the advertisement.
E. Any printed
disclosure statement described in Subsection D of this section shall:
(1) be
of sufficient type size to be clearly readable by the recipient of the
communication;
(2) be
contained in a printed box set apart from the other contents of the
communication; and
(3) be
printed with a reasonable degree of color contrast between the background and
the printed statement.
F. Any disclosure
statement described in Subsection D of this section which is transmitted
through radio shall include, in addition to the requirements of that paragraph,
an audio statement that identifies the candidate by name and clearly states the
name of the candidate, committee or other person who authorized and paid for
the advertisement and if applicable, states that the candidate has approved the
communication.
G. Any disclosure
described in Subsection D of this section which is transmitted through television
shall include, in addition to the requirements of that paragraph, a statement
that identifies the candidate by name and if applicable, states that the
candidate has approved the communication. Such statement shall be conveyed by:
(1) an
unobscured, full-screen view of the candidate making the statement, or
(2) the
candidate in voice-over, accompanied by a clearly identifiable photographic or
similar image of the candidate; and
(3) shall
also appear in writing at the end of the communication in a clearly readable
manner with a reasonable degree of color contrast between the background and
the printed statement, for a period of at least 4 seconds.
[1.10.13.31 NMAC - N, 10/10/2017; A, 10/29/2019]
1.10.13.32 LEGISLATIVE
CAUCUS COMMITTEE:
A. Only one
legislative caucus committee may exist for the majority and minority of each
legislative chamber.
B. The speaker and
the minority floor leader of the house of representatives and the majority
floor leader and the minority floor leader of the senate shall be the
designated leaders of the legislative caucus committees for the members of
their political party in their legislative chamber unless:
(1)
two-thirds of the members of a political party in a legislative chamber vote to
designate a different leader from among their members; and
(2) the
results of that vote are recorded with the secretary of state.
C. A legislative
caucus committee must comply with all statutes and rules applicable to political
committees, with the exception of in-kind contributions from a legislative
caucus committee to a candidate nominated by that party in a general election
cycle, which do not apply to limitation on contributions.
D. No funds
belonging to a legislative caucus committee shall be expended by the committee
unless a current designated leader of the committee is on file with the
secretary of state using the campaign registration form prescribed by the
secretary of state.
E. Funds belonging
to a legislative caucus committee shall be managed by the designated leader or
the leader’s designee as designated on the campaign registration form
prescribed by the secretary of state.
F. A legislative
caucus committee cannot be dissolved or cancel its registration as a political
committee pursuant to Subsection G of Section 1-19-29 NMSA 1978.
[1.10.13.32 NMAC – N, 10/29/2019; A,
3/22/2022]
1.10.13.33 PROHIBITED
PERIOD: Candidates and officeholders impacted by the prohibited
period pursuant to Section 1-19-34.1 NMSA 1978 are not required to cancel or
pause automatic recurring contributions that were solicited and established
prior to the start of the prohibited period.
[1.10.13.33 NMAC – N, 3/22/2022]
HISTORY
OF 1.10.13 NMAC: [RESERVED]