What is Campaign Finance?

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Political Committees

Series 2 of 4, Political Committees
By Greg Gallegos I December 2, 2021

Campaign Finance applies to Candidates, Political Committees, Financial Disclosure Filers, and Lobbyist

When do Political Committees Register in CFIS?

A political committee must register in the Campaign Information System if they are defined as a political committee per 1-19-26.1 (Q) NMSA 1978 as a political party, a legislative caucus committee, or an association that consists of two or more persons whose primary purpose is to make contributions to candidates, campaign committees, or political committees or makes coordinated expenditures or any combination thereof, or an association that consists of two or more persons whose primary purpose is to make independent expenditures and that has received more than five thousand dollars ($5,000) in contributions or made independent expenditures of more than five thousand dollars ($5,000) in the election cycle.

This means if you’re an organization that is making expenditures in support or opposition of a candidate or ballot measure then you must register a political committee in CFIS.

To register a political committee in CFIS you will need to have the following information

1. Committee type
2. Committee purpose
3. Officers (a treasurer is required)
4. Committee Name and contact info
5. Financial Institution info (must have an open bank account under the Political committee’s name)

What are the different types of Political Committees?

Per 1.10.13.10 (c) the following types of political committees are:

1. Contribution or Coordination – Make contributions to Campaigns
2. Independent Expenditure – cannot make contributions to campaigns
3. Legislative Caucus Committee – only 1 allowed per party per house
4. Mixed (independent Expenditure & Contribution/Coordination) – must maintain 2 separate bank accounts

When do Political Committees file reports?

There will be two (2) reports due in a biannual year, which means the years between the election years, and eight (8) reports due during the year the election is in. There is a $50/day fine for all late reports.

2020 Election Cycle Report Dates

Report Name	Period Start	Period End	Report Due
1st Bi-Annual Report	01/01/2021	04/05/2021	04/12/2021
2nd Bi-Annual report	04/06/2021	10/04/2021	10/11/2021
First Primary Report	10/05/2021	04/04/2022	04/11/2022
Second Primary Report	04/05/2022	05/02/2022	05/09/2022
Third Primary Report	05/03/2022	05/31/2022	06/02/2022
Fourth Primary Report	06/01/2022	07/02/2022	07/07/2022
First General Report	07/03/2022	09/05/2022	09/12/2022
Second General Report	09/06/2022	10/03/2022	10/11/2022
Third General Report	10/04/2022	11/01/2022	11/03/2022
Fourth General Report	11/02/2022	12/31/2022	01/09/2023

There are NO supplemental reports due for political committees

When can a Political Committee Inactivate or Close the CFIS Account?

A Political Committee can close a CFIS account at any time if the account balance is $0, there are no outstanding debts, and no fines are due.

What are the Fundraising Limits?

2022 Election Cycle

OFFICE	Primary	General	Total
Contribution or Coordination	$5,200	$5,200	$10,400
Independent Expenditure	No limit	No limit	No limit
Mixed (independent Expenditure & Contribution/Coordination	$5,200	$5,200	$10,400
Legislative Caucus Committee	$26,000	$26,000	$52,000

Campaign Reporting Act

The Campaign Practices Chapter 1 Article 19 of NMSA 1978 encompass sections 1-19-25 through 1-19-36 NMSA, also known as the “Campaign Reporting Act”. You can find the link to download the Election Handbook of the State of New Mexico, 2021 edition at https://www.sos.state.nm.us/candidate-and-campaigns/how-to-become-a-candidate/nm-election-handbook/. Campaign finance is a method of tracking candidates’ contributions and expenditures, and the NM Secretary of State’s office facilitates this process utilizing a web-based Campaign Finance Information system (CFIS) that was released July 2020. There are NM Administrative Rules that govern multiple aspects with campaign finance’s primary rule being 1.10.13 NMAC. You can find NM Administrative Rules at https://www.sos.state.nm.us/legislation-and-lobbying/legal-resources/nm-administrative-rules/.

Additionally,

There are many more rules on usage of campaign funds, disclaimer on advertisements, contribution limitations, late filings fines, penalties to include civil and criminal penalties. The new CFIS system clearly indicates a candidate that is not compliant and lists all late reports and fines due. Well, it seems the CFIS application is in constant development, there seems to be the wish for a more transparent and a higher standard for accountability. This can be overwhelming when running a campaign and KGH Strategies can help.

Political Landscape

The political compliance landscape in New Mexico is changing following significant law changes in the past few years. In addition, the New Mexico State Ethics Commission was established and is now in operation. If your business works with government officials in the legislative and executive branches of government, then our job is to help you comply with state laws.

Whether for a corporation, nonprofit organization, advocacy group, other entities, or individuals. KGH Strategies can help you maneuver through a maze of compliance requirements and see how laws apply to your business so you can keep moving forward.

We will be continuing the with Series 3 Financial Disclosure Filer.