TITLE 1 GENERAL GOVERNMENT ADMINISTRATION
CHAPTER
10 ELECTIONS AND ELECTED OFFICIALS
PART
31 FINANCIAL DISCLOSURE REPORTING PROCEDURES
1.10.31.1 ISSUING
AGENCY:
Office of the Secretary of State
[1.10.31.1
NMAC - N, 1/1/2022]
1.10.31.2 SCOPE: The rule applies to
all persons required to file financial disclosure statements in accordance with
the Financial Disclosure Act, Chapter 10, Article 16A NMSA 1978.
[1.10.31.2
NMAC - N, 1/1/2022]
1.10.31.3 STATUTORY
AUTHORITY: This rule is authorized by Section 10-16A-9 NMSA 1978.
[1.10.31.3
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1.10.31.4 DURATION: Permanent
[1.10.31.4
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1.10.31.5 EFFECTIVE
DATE:
January 1, 2022, unless a later date is cited at the end of a section.
[1.10.31.5
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1.10.31.6 OBJECTIVE: The objective of the
rule is to establish uniform procedures for the filing of financial disclosure
statements and clarify undefined terms.
[1.10.31.6
NMAC - N, 1/1/2022]
1.10.31.7 DEFINITIONS:
A. “Business interest” means any
direct or indirect financial interest or financial obligation of $10,000 or
more such as an owner, member, partner, lessor, investor, or shareholder in a
business or where the filer is at risk of losing $10,000 or more.
B. “Consulting” means giving
expert advice in professional, technical, financial, legal, and business
matters.
C. “Employer” means a person or
organization that hires and pays another person in exchange for work.
D. “External complaint” means a complaint
filed by a person and not instituted by either the secretary of state or the
state ethics commission.
E. “Filer” means the person obligated to file
a financial disclosure statement.
F. “Financial disclosure statement (FDS)” means the pdf form prescribed by the secretary of state that
is generated upon a filer filing a report in the electronic system provided by
the secretary of state.
G. “Income” means money that a person receives in
exchange for working, producing a product or service, or investing
capital. For purposes of financial
disclosure statements, per diem is considered income when it is deemed taxable
by the Internal Revenue Service.
H. “Income source” means the broad categories as
described pursuant Paragraph (2) of Subsection D of Section 10-16A-3 NMSA 1978.
I. “Internal
compliance violation” means a
violation of the Financial Disclosure Act identified by the secretary of state
or the state ethics commission based on incomplete, misleading, false, or
incorrect financial disclosure statement.
J. “Major
areas of specialization” means the areas of law or consulting for which a
person concentrates to earn an income.
K. “State agency head” means the principal officer of
any executive or legislative agency receiving an annual appropriation in either
Section 4 of the General Appropriations Act or an annual appropriations bill
appropriating funds to legislative agencies.
L. “Title” means the name given to a position of
employment by an employer.
M. “Professional license”
means an official process, administered by a state-level authority, that is
required by law for an individual to practice or work in a regulated
profession.
N. “Voluntary compliance” means a filer’s correction of
all violations alleged in a complaint or a notification from the secretary of
state or the state ethics commission of an internal compliance violation.
[1.10.31.7
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1.10.31.8 REQUIRED DISCLOSURES
A. The proper
filing officer for filing a FDS is the secretary of state. The secretary of state has prescribed the use
of an electronic filing system which shall be used by all persons required to
file a FDS. Paper form submissions will
not be accepted.
B. Contact
information (Section 1). The filer shall
disclose the filer’s full name, residential address, and mailing address on the
FDS. If a filer is currently married,
the filer shall disclose the full name of the filer’s spouse on the FDS.
C. Current filing status (Section 2). The FDS shall disclose:
(1) if the filer is a candidate or public
official, the name of the office held or sought and the start date of the first
term of office held or sought;
(2) if the filer is a state agency head,
the name of the agency and the first day the filer held the position of state
agency head;
(3) if the filer is a member of a board
or commission, the name of the board or commission and the first day the filer
held the position as a board or commission member;
(4) if the filer is a member of the
insurance nominating committee or member of the state ethics commission, the
name of the commission and the first day the filer held the position on the
commission; or
(5) if the filer is an employee of the
state and is required to file pursuant to Subsection A of Section 10-16A-4 NMSA
1978, the name of the state agency and the first day the filer held a position
at the state agency.
D. Employer
information (Section 3). The filer shall
disclose the employer’s name, phone number, address, title, and nature of
business or occupation for every employer of the filer on the FDS. The filer shall include the filer’s current
employer(s) and any previous employer(s) from the prior calendar year.
E. Spouse’s
employer information (Section 4). If the
filer is married, the filer shall disclose the employer’s name, phone number,
address, title, and nature of business or occupation for every employer of the
filer’s spouse on the FDS. The filer
shall include the current employer(s) and any previous employer(s) from the
prior calendar year.
F. Sources of
gross income over $5,000 (Section 5).
The filer shall disclose all sources of gross income over $5,000 during
the prior calendar year for the filer and the filer’s spouse listed by income
source and whether the income was earned by the filer or the filer’s spouse on
the FDS. For example, if the filer makes
over $5,000 on two different real estate holdings, the filer must list the
income source category of “real estate” once.
If both the filer and the filer’s spouse each earn an income source from
the same category, the filer shall list one line item for each, the filer and
the filer’s spouse. In the case that a
single income source is earned jointly, the filer shall list the income source
once and list the filer as the income holder.
G. Law
practice, consulting operation, or similar business (Section 6). If a filer or filer’s spouse is employed as
an attorney or a consultant, the filer shall describe each major area of
specialization for the filer and filer’s spouse. Using the general term of “law” or
“consulting” is not descriptive enough for this section of the FDS. The filer shall use the income sources listed
pursuant to Paragraph (2) of Subsection D of Section 10-16A-3 NMSA 1978 or a
description that is equally or more descriptive.
H. Lobbying
clients (Section 7). If a filer, filer’s
spouse, or other person associated with a business interest of the filer or
filer’s spouse is a registered lobbyist in the current or prior calendar year,
the filer shall disclose the following on the FDS:
(1) the name of the lobbyist; and
(2) the name and address of the client
represented by the lobbyist.
I. Real
estate owned in New Mexico (Section 8).
The filer shall disclose a general description of the type of property
and the county in which it is located for all real estate owned by the filer
and the filer’s spouse in New Mexico other than the filer’s personal
residence. If a property is owned
jointly with other persons, the filer shall list the owner as the filer on the
FDS. The use of “house,” “farmland,” or
“vacant lot” are acceptable examples of a general description pursuant to this
section.
J. Other New
Mexico business interests over $10,000 (Section 9). The filer shall disclose all business
interests not already listed in another section of the FDS for the filer and
the filer’s spouse. The information
required for a business interest is the name of the business, the position held
by the filer or filer’s spouse, a description of the business purpose, and
whether the business interest is that of the filer or the filer’s spouse. If both the filer and the filer’s spouse hold
a business interest in the same business, the filer shall make an entry for
each person on the FDS for that business.
K. For-profit
board membership (Section 10). The filer
shall disclose the name of all for-profit business(es) for which the filer or
the filer’s spouse are a board member regardless of any financial interest.
L. New Mexico
professional licenses (Section 11). The
filer shall disclose the type of license(s) held at the time the FDS is filed
by the filer or the filer’s spouse.
M. Goods or
services to state agency over $5,000 (Section 12). The filer shall disclose the name of every
state agency that the filer or filer’s spouse provided over $5,000 in goods or
services in the prior calendar year.
N. State
agency representation (Section 13). The
filer shall disclose the name of every state agency, other than a court, in
which a person listed on the FDS either represented or assisted clients in the
course of the filer’s employment in the prior calendar year.
O. General
information/memo field (Section 14). The
filer may provide further details regarding any financial or business interests
not otherwise disclosed on the FDS.
P. This rule shall not be construed to prohibit a filer
from disclosing more information than is required on their FDS.
Q. The FDS shall be electronically signed by the filer under
penalty of perjury that the information provided is true, accurate and complete
to the best of the filer’s knowledge.
[1.10.31.8
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1.10.31.9 TIME OF FILING
A. A filer
shall filed an amended FDS at any time to reflect a significant change in the
filer’s or filer’s spouse’s business and financial interests in the current
calendar year.
B. A person
holding a legislative or statewide office shall file a FDS in January of every
year by January 31 at midnight.
C. A candidate
for legislative or statewide office, that has not already filed a FDS in the
same year, shall file a FDS with the secretary of state within three days of
filing a declaration of candidacy.
Pursuant to Subsection H of Section 10-16A-2 NMSA 1978, a candidate for
legislative or statewide offices who does not file a FDS before the date for
qualification of the person as a candidate shall be disqualified by the proper
filing officer as a candidate.
D. A state
agency head or board or commission member required to file a FDS, shall file
within 30 days of being hired or appointed and by January 31 at midnight each
year thereafter as long as the filer holds the same position.
E. A person
who is required to file a FDS for more than one reason, for example the filer
is appointed to multiple boards, shall only file one FDS upon the filer’s first
appointment and in January each year thereafter for as long as the filer
maintains at least one position that requires a FDS. The filer shall list all positions held or
offices sought on the filer’s FDS.
[1.10.31.9
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1.10.31.10 RESPONSIBILITIES OF THE SECRETARY
OF STATE
A. The
secretary of state shall maintain training materials regarding compliance with
the Financial Disclosure Act and the use of the electronic filing system used
to file a FDS on the secretary of state’s website.
B. If the
secretary of state receives an external complaint about a person required to file
under the Financial Disclosure Act or otherwise becomes aware of a potential
violation or discrepancy, the secretary of state shall provide the filer ten
business days to come into voluntary compliance with the Financial Disclosure
Act before referring the matter to the state ethics commission.
C. The secretary of state shall notify
the filer of an internal compliance violation and provide the person ten
business days to correct the matter. If the filer responsible for the internal
compliance violation does not correct the matter within ten business days of
receiving a notice from the secretary of state, the secretary of state shall
notify the state
ethics commission and transmit to the state ethics commission any documents related to the internal compliance violation.
D. The secretary of state shall conduct annual reviews for
compliance with the Financial Disclosure Act.
[1.10.31.10
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HISTORY of 1.10.31 NMAC: [RESERVED]