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

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.

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.

capital outlay

Latest corruption scandal points to need for greater transparency

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We are digesting the news this week that investigators at the Attorney General’s office suspect Democratic House Majority Leader Sheryl Williams Stapleton of Albuquerque funneled almost a million dollars of public money out of Albuquerque Public Schools, her employer, to benefit herself. 

To learn that a trusted champion of under-served communities and one of the most powerful lawmakers in the state may have orchestrated a long-running scheme to grab a slice of public money for herself, is sad news. We are holding out hope that it’s not true, not one more tragic episode in the annals of corrupt New Mexico leaders. The investigation is laid out in a 32-page search warrant, centered on discoveries of money from a company with a sole source contract with the school district going to organizations or businesses she appears to have substantial control over. 

Buried among the details in the damning search warrant is $50,000 in state capital outlay money that in 2007 Williams Stapleton directed to the New Mexico Office of African American Affairs to purchase and equip vans for the African American Performing Arts Center at the State Fairgrounds in Albuquerque. In a 2008 email between Williams Stapleton and Expo New Mexico, she explained the vans were for programs at the center. Their upkeep would be the responsibility of the Charlie Morrisey Education Center and a company called Robotics Learning Management Systems. 

The search warrant makes the case that the Charlie Morrisey Education Center is an organization that Stapleton had substantial influence over, and that she directed capital outlay money to it.

2021 Legislative Session

Lawmakers continue secret spending

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Government transparency is more than good, it’s essential. The dark corners of government make it difficult for the people (as in, all of us) to exercise our right and our duty to ensure those we elect are governing in our best interest. 

In a cash-strapped state like New Mexico, transparency in how elected officials spend public money is even more important. For that reason, we applaud the publication of a list of how individual lawmakers spent public infrastructure funds under their control. Lawmakers have long resisted making that information public, but finally relented this year after sustained public pressure. We’ll be able to see the so-called capital outlay spending of individual lawmakers from now on.

2021 Legislative Session

Legislature shines light on itself

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The Legislature concluded today, which also happens to be the final day of Sunshine Week, so it’s only fitting that we review a couple of transparency measures taken up by the Legislature. 

In short: it’s a mixed bag. One prominent measure five years in the making passed, and if the governor signs the bill, lawmakers will no longer be able to allocate public works dollars in secret. But another measure that sought to fix a loophole in campaign finance disclosure laws was dead in the water. 

Lawmakers shine light on themselves

Once a contentious measure among lawmakers, a bill that requires a list of how lawmakers allocate public infrastructure dollars be published on the legislative website sailed through the 2021 session. It’s momentous, considering the long history of secrecy surrounding how lawmakers decide what projects to fund. The public list will only pertain to projects this year and in the future.

2021 Legislative Session

New Mexico Senate passes capital outlay transparency bill

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The Senate passed a measure Wednesday that would enable New Mexicans for the first time to see how each lawmaker spends public infrastructure money under their control. 

Should House members agree with Senate amendments, and Gov. Michelle Lujan Grisham sign it into law, the measure would require legislative staff to automatically publish a list 30 days after the session ends that details how individual lawmakers spend millions of dollars in most years — a far cry from the secrecy that has surrounded such decision making at the Roundhouse for as long as people can remember. 

House Bill 55, sponsored by Rep. Matthew McQueen, D-Galisteo, and a bipartisan group of lawmakers, sailed through the Senate after some debate, a much different outcome than in previous years. 

In 2015, New Mexico In Depth discovered that such information was a secret after filing a public information request for a list of individual lawmaker’s infrastructure spending allocations and finding out that information wasn’t subject to public scrutiny. That’s because of a long established statute that makes confidential any communication between individual lawmakers and legislative staff. That statute still stands, but now, if the measure becomes law, details about lawmakers’ individual spending choices will be exempt from the rule. 

During the February House floor debate on the bill, McQueen said it’s important to make the information readily available to everyone who’s interested. Sen. Jeff Steinborn, D-Las Cruces, said during Wednesday floor debate in the Senate that making the allocations public was long overdue and “fundamentally the right thing to do.” He listed three reasons: it’s public money that the public has the right to see; making it public prevents fraud; and transparency will result in money better spent. 

Since 2016 when the first bills were introduced by McQueen and former senator Sander Rue, R-Albuquerque, the transparency measure has been hotly debated, with opposition largely hinging on the political costs to lawmakers if their spending decisions are known to the public. This concern has been voiced largely by rural lawmakers who represent multiple counties, who say they must juggle many more funding requests from their constituents than they can possibly fill. 

But a 2019 investigation by New Mexico In Depth found the issue wasn’t a cut-and-dried example of a so-called rural/urban divide. 

That year, we asked every lawmaker to give legislative staff permission to share their capital outlay allocations with the public.

2021 Legislative Session

Lawmakers running for Congress don’t have to disclose fundraising during session. We asked them to.

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Legislators are barred from soliciting campaign contributions while the Roundhouse is in session– unless they happen to be running for Congress. 

During the state’s prohibited fundraising period, lasting from January 1st to the end of the session, lawmakers may not solicit any campaign contributions and lobbyists may not donate to any state campaigns. But federal campaigns aren’t subject to state law. This means four Democratic state lawmakers running for an open congressional seat may fundraise at the same time they’re conducting state business during the 2021 legislative session. New Mexicans won’t officially know who contributed to them until after the session. 

“The original intent of having a prohibited period for state lawmakers was so that the public wouldn’t have the perception that lobbyists were literally giving our elected officials money for their state campaigns while they’re in the middle of a legislative session,” said Heather Ferguson, executive director of Common Cause New Mexico. On Wednesday, the Senate Rules Committee unanimously endorsed a bill sponsored by Sen. Jacob Candelaria, D-Albuquerque, that would require state elected officials running for federal office to disclose their donors every ten days during the prohibited period.

2021 Legislative Session

Lawmaker, advocates pursue greater sunshine from lobbyists

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Lobbying at the Roundhouse is a little bit different from other states. Put a crop of unpaid “citizen legislators” and well-paid professional lobbyists in a building together, and a certain culture develops in which lobbyists become key sources of information for lawmakers. “When I have colleagues that come in here from other states, or from the national level, they’re amazed at the degree of access that folks have here, and it’s more of an informal kind of a situation than it is at a lot of other venues,” said Dan Weaks, a professional lobbyist. In contrast to unpaid, understaffed legislators, lobbyists—many of whom have significant monetary resources at their disposal—can play an outsized role in the policymaking process, said Sen. Jeff Steinborn, D-Las Cruces, who has witnessed employers hire as many as 10 lobbyists for a single issue. 

“They had a lobbyist posted at every elevator.”

Another senator didn’t mince words. The system we have “empowers lobbyists over the people’s elected representatives, and that’s a pretty dysfunctional system, in my view,” said Sen. Jacob Candelaria, D-Albuquerque.