Money in Politics

Money in politics transparency nears finish as legislative session winds down

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An effort to close a significant loophole in New Mexico’s campaign disclosure laws and  bar campaign contributions from lobbyists and political committees to lawmakers during legislative sessions has a tailwind heading into the final week of the legislative session. 

And at a key committee Monday night before heading to the House floor, lawmakers added new provisions to Senate Bill 42 to give the public more timely information about who is giving to campaigns. Those additions come from a bill sponsored by Rep. Matthew McQueen, D-Galisteo, that’s unlikely to clear the Legislature, having passed the House but not the Senate with five days left in the legislative session. 

The newly combined bill, sponsored by Sen. Majority Leader Peter Wirth, D-Santa Fe, Sen. Katy Duhigg, D-Albuquerque, and McQueen, adds new requirements to prevent tactics used by a nonprofit group in 2020 to avoid disclosing who contributed hundreds of thousands of dollars to support a ballot referendum on converting the Public Regulation Commission from an elected to an appointed body. 

The non-profit argued it followed the letter of the law by not disclosing contributors who put in writing that their money should not be used for politics, even though the nonprofit spent that money on the ballot measure. The measure the nonprofit campaigned for passed but the public still doesn’t know who was behind their deluge of advertising. 

Senate bill 42 would change the letter of the law, requiring groups such as the nonprofit that spent on the 2020 campaign that want to avoid disclosing certain donors to deposit those contributions in a separate bank account that isn’t used to pay for political activity.   

The bill also bars lawmakers, the governor and other statewide elected officials from accepting donations from lobbyists or political committees during the legislative session. 

The bill would require candidates who loan their own money to their political campaigns to offer proof they actually made the loan, and they wouldn’t be allowed to charge interest on the loan. Candidates often loan their campaigns money, especially when running for office for the first time, and can later pay the loan back from future campaign contributions. This provision would prevent a scenario in which a candidate made money off interest on a loan they carried on their books over many years. 

New additions to Senate bill 42 from McQueen’s other bill, House Bill 103, would require more timely reporting of campaign contributions so the public has more complete information just before elections and just before the legislative session each year.

Money in Politics

Powerhouse lobbyists on tap for alcohol industry

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ALBUQUERQUE, NEW MEXICO: The alcohol department at an Albuquerque grocery store. CREDIT: Adria Malcolm for New Mexico In Depth

A proposal to raise New Mexico’s alcohol tax to a flat 25-cents per drink in a bid to curb the state’s exceptionally high rate of alcohol-induced deaths has disappeared behind closed doors. 

Both House Bill 230 and its companion in the Senate were tabled by their respective tax committees, leaving them in legislative limbo, even while lawmakers said they’d be considered for inclusion in a larger tax bill in the late hours of the session. 

From the start, the legislation faced a rocky path. In a year when the state is swimming in oil and gas money, opponents questioned raising alcohol taxes at all, even if public health experts say the primary reason to do so in this case is not to raise revenue but to hike the price of excess drinking in order to deter it. Others wondered if the bill would hurt small brewers, distilleries and wineries or would impoverish low-income New Mexicans who don’t cut back on drinking.But another factor weighs on the measure: the alcohol industry itself and the lobbyists it employs to make its case. They have attended every hearing, sometimes muddying the discussion about whether raising alcohol taxes can save lives, as most scientific evidence suggests.

Money in Politics

Lawmakers seek to close big transparency gap

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Senate Bill 42 would add a new requirement for when outside groups can not report their donors. There were bound to be gaps in a 2019 revision to New Mexico’s dense elections transparency law that sought to force independent groups who aren’t required to register as political committees to disclose the money they spend in elections. 

The changes were quickly put to the test the next year, during the 2020 election cycle, when a new independent expenditure group found a loophole so big it evaded reporting who donated hundreds of thousands of dollars it spent on political advertising. 

Under the current law, if a group crosses a spending threshold for political advertising, it must report all of its donors who’ve given more than $5,000 – with one exception. If a donor puts in writing that their donation can’t be used for politics, the group isn’t required to disclose in its campaign finance reports who that donor is or how much they contributed. 

That provision was exploited by a nonprofit formed in May of 2020, called the Committee to Protect New Mexico Consumers. 

To get around reporting its donors, the group claimed that because it had it in writing from its donors that their funds couldn’t be spent on politics, it didn’t have to report the amount given or by whom.  

Never mind that the group went ahead and spent the money on political advertising anyway, despite the written instructions. They followed the letter of the law even if they flouted its spirit. The group initially argued it didn’t have to report its spending, as well, because advertising in support of a ballot measure to transform the state’s Public Regulation Commission from an elected to an appointed body was educational, not political.

Money in Politics

Lawmakers want more timely reporting of campaign cash

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In the final week of the 2022 general election, almost $350 thousand dollars went to candidates that wasn’t reported until this month when the election was long over. 

That’s because smaller cash contributions in the final days of a New Mexico general election aren’t reported under New Mexico law until two months later when “no one cares because we’re off to other things,” said Rep. Matthew McQueen, D-Galisteo, who with Sen. Bill Tallman, D-Albuquerque, is sponsoring a bill that would speed up the reporting cycle.  

Under their bill, the campaign reporting period would end on election day, for both the primary and general elections, and a report would be due a week later. 

“Lawmakers should file their reports when the public is paying attention,” McQueen told members of the House Government, Elections and Indian Affairs Committee Friday morning.  

The legislation cleared the committee on a 7 to 2 vote. It now heads to the House Judiciary Committee.House bill 103 makes several other changes, as well, that would lead to more timely disclosure of money collected by certain public officials. It speeds up the timeline for reporting money contributed during legislative sessions. 

Currently, certain elected officials are prohibited from soliciting donations from Jan. 1 through the end of the legislative session when they’re making or changing laws.

Push for lawmaker pay coming to Santa Fe

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It’s been more than 30 years since the last time New Mexicans voted against paying state lawmakers a salary, first in 1990 and again in 1992. 

Now, some lawmakers think the mood has shifted and it’s time to ask voters again. The need has grown, they say, while the Legislature remains hobbled by volunteer lawmakers who lack paid staff and in many cases must juggle outside work in order to live. 

They’re betting that voters have come around. A poll conducted last year by New Mexico-based Research & Polling, Inc., found not only that 64% of likely New Mexico voters support the idea, but that almost 40% already believe lawmakers make a salary. 

They don’t. However, one can understand why voters might think that. From the outside, the life of a legislator looks like full-time work. 

The state’s short legislative sessions each year — 30 days in even years, 60 days in odd years — require almost round-the-clock work from lawmakers, especially in the final weeks.

2022 Election

Big donors giving most of the cash for governor’s race

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New Mexico lawmakers in 2019 doubled campaign contribution limits for those seeking seats in the Legislature or running for governor, arguing they needed more money to compete against a deluge of outside spending. 

Now, in the first gubernatorial election since 2019, those higher limits appear to have paid off for incumbent governor Michelle Lujan Grisham, a Democrat, and her Republican challenger, Mark Ronchetti. 

They’ve both already raised more than candidates raised in 2014 and 2018 during the same time period under the previous, lower contribution limits. Lujan Grisham raised by the first week of September as much as she did for the entire 2018 election. 

But there’s another difference too, one that if it was foreseen wasn’t mentioned when lawmakers in years past debated increasing the limits: the majority of the cash used by Lujan Grisham and Ronchetti to run for office this year comes, so far, from a small set of well-heeled groups of individuals and businesses, unlike the previous two gubernatorial elections. 

Campaign finance reports reveal multiple instances of tens of thousands of dollars coming from groups of people related through business or family connections, such as spouses, children, and parents.  

The higher limits mean such groups can collectively give a much greater amount than before, and in turn garner the greater access and influence that potentially follows. 

It’s unclear if one person acts as a “bundler” of such donations, because New Mexico doesn’t require people to disclose the fundraising they do among friends, family or colleagues to support particular candidates. 

But groups of related businesses or families  and the amounts they’ve given can be identified by examining  information reported by candidates, particularly the physical or mailing addresses of donors. 

Sixty percent of around $10 million raised by Lujan Grisham through the first week in September has come from donors at just 357 of the more than 13,000 donor addresses provided in her reports. 

And 53% of the almost $6.5 million Ronchetti has raised comes from donors at just 206 of the 9,112 addresses in his reports. 

From each address in those small groups, the candidates gathered at least $10,000. In many cases there is one donor at the address giving the maximum of $20,800 (half for the primary, half for the general election), but there are many instances in which the total given by multiple people or businesses sharing an address is double that individual legal limit or much higher. The giving reported so far spans the entire primary election cycle, which began Jan. 1, 2021, plus general election donations through early September.

2022 Election

Oil and Gas: Big giving, Big statehouse influence

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Big questions loom as the 2022 primary election nears. Who will Democrats nominate for Attorney General, State Auditor Brian Colón or Bernalillo County District Attorney Raul Torrez? Who among a lengthy list of Republicans will challenge Gov. Michelle Lujan Grisham this fall? Will a concerted effort by conservative forces to unseat a group of progressive Democratic incumbents succeed? I would add, will the oil and gas industry feel like a winner after the election?

2022 Election

Local redistricting efforts highlight tough choices

Gwyneth Doland, New Mexico In Depth By |

Screen capture of the Albuquerque Citizens Redistricting Committee meeting on April 27, 2022

At a recent Zoom meeting of the Albuquerque Citizens Redistricting Committee, members furrowed their brows and squinted into their computer monitors, examining a newly drafted map that would balance population in each of nine City Council districts. 

Member Travis Kellerman, a self-described data-obsessed futurist, had asked the committee’s consultants to find a way to empower voters by dividing the council districts in a way that didn’t pack so many socioeconomically vulnerable residents into two districts in the city’s southern half. The new concept cut the city’s International District in half vertically, combining each piece with wealthier neighborhoods north of I-40. Residents of the condos around Uptown Mall would be in the same district as a large swath of lower-income southeast neighborhoods. 

Members asked longtime consultant Brian Sanderoff for some help interpreting what the changes would mean. 

“The International District could end up with two members or zero members [representing them on the Council] and that’s a risk that one takes,” he said. “So you need to ask what’s most important, to preserve the communities of interest or to unpack the socioeconomically vulnerable areas.” 

That debate demonstrates the tough choices that face residents and politicians this spring. Months after the New Mexico Citizens Redistricting Committee and the state Legislature wrapped up their work redrawing boundaries for legislative and congressional districts, smaller governmental bodies are tackling the tricky and politically charged task, with mixed results.

From our blog

ABQ city councilor’s political group steps up to PAC

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Another political season. Another new political group with a forgettable but vaguely feel-good name.In March, a new entity registered with the Secretary of State: Working Together New Mexico. Albuquerque City Councilor Louie Sanchez, who represents part of the city’s westside, has said its purpose is to support the campaigns of particular candidates. Sanchez didn’t file a report last week saying how much the group has raised and spent despite a state deadline. Nor did he file a no activity report, a minimum requirement of groups that register with the Secretary of State under the campaign reporting act. Yesterday, six candidates in the June 7, 2022 Democratic primary wrote Secretary of State Maggie Toulouse Oliver to request an immediate investigation of Working Together New Mexico for not filing a report. “This PAC has developed a website, launched a PR campaign, raised funds, and retained a prominent consultant…to say they haven’t spent $1,000 yet just doesn’t pass the smell test,” Tara Jaramillo, running for State House District 38 in central and southern New Mexico, stated in the press release sent out by campaign consultant, Neri Holguin. This analysis originally appeared in our Friday newsletter.

From our blog

It’s time for lawmakers to embrace transparency (Updated)

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Update: Shortly after publishing the following newsletter on Friday, Senate President Pro Tem Mimi Stewart, D-Albuquerque, wrote in an email to New Mexico in Depth that lawmakers would include transparency in a revised junior bill during an upcoming special session. She said lawmakers would use as a model new transparency measures passed last year for capital outlay allocations. “I wish we had done this originally but we think we have an answer to how to make those changes,” she wrote. Later on Friday, Gov. Michelle Lujan Grisham and legislative leaders announced a special session of the Legislature would convene on April 5, to take up a revised junior bill and consider measures they can take to help New Mexicans in the face of rising inflation. After sending out our newsletter last week about lawmakers’ outrage over the governor vetoing their dark spending bill, I had a moment of deja vu.