It’s that time of year again my friends…legislatures across the country are looking for ways to make up their budget shortfalls. Unfortunately, affiliate marketing is again squarely in their crosshairs. New Mexico HB 50 was introduced on January 15 by Democrat Eleanor Chavez and redefines the concept of nexus in New Mexico to include affiliate marketing relationships.

Bill excerpt:

A person with a business with no physical presence in New Mexico is presumed to be engaging in business in New Mexico and has nexus with the state for purposes of due process and interstate commerce if:
(1) that person enters into an agreement with a resident of the state under which the resident, for a commission or other consideration, directly or indirectly refers potential customers, whether by link or an internet web site or otherwise, to that person; and
(2) the cumulative gross receipts from sales by that person to customers in the state who are referred to that person by all residents with an agreement described in this subsection are in excess of ten thousand dollars ($10,000) during the preceding twelve-month period ending on June 30 of any year.
D. The presumption of nexus established in Subsection C of this section may be rebutted by proof that the resident made no solicitation in the state that would satisfy the nexus requirements of the United States constitution on behalf of the person presumed to be engaging in business in New Mexico.”

If you live in Ms. Chavez’ district, I would suggest getting in touch with her office and respectfully explaining how this sort of bill will negatively impact your business.

As I hear more information, I will continue to provide updates.

Happy Selling!
~Karen

Thanks to Melanie Seery from Affiliate Advocacy for the heads up!