by Marjorie Childress, New Mexico In Depth
The New Mexico State Ethics Commission voted during its meeting Monday to make a “demand, and if necessary, file a civil action,” against New Chapter New Mexico to enforce the state’s Campaign Reporting Act.
New Chapter is a political committee that spent heavily in legislative primary elections. A phone call to the group’s treasure was not returned Monday afternoon.
New Mexico In Depth previously reported that New Chapter New Mexico formed in early May, filed reports that it raised $414,000 through May 12, and spent $316,000 before the primary elections in early June.
But who funded the group’s political advertising is a mystery. Its sole donor was reported as a nonprofit set up last July that shares its name and mailing address.
State Ethics Commission staff during the meeting referred to the two groups — the nonprofit and the political committee — as one and the same: “…against New Chapter New Mexico in its capacity of a political committee and a nonprofit.”
Commissioners discussed the case in an executive session closed to the public. When they returned, they voted on the measure without describing what demand the commission is making of the group.
The Campaign Reporting Act is a state law that regulates campaign finance by establishing rules for political contributions, expenditures, disclosure, and reporting. When filing required campaign finance reports, groups often report a mix of contributors that may include individuals, companies or nonprofits. These types of contributors are not, in turn, required to file their own reports disclosing where the funds they donated came from.
But the Campaign Reporting Act also prohibits people from making political contributions in someone else’s name or knowingly accepting such contributions. It also bars people from giving or spending money with the intent to hide who originally provided the funds or who ultimately received them.
New Chapter was one of several political organizations during the primary election that accepted large contributions from nonprofits that were recently created and variously shared mailing addresses, directors or treasurers, or even names with political committees they funded, raising questions about whether the groups created nonprofits for the purpose of hiding the identities of their donors.
The State Ethics Commission has authority to issue subpoenas and file civil court cases in district court to enforce compliance with the Campaign Reporting Act. In past cases, the commission has sent “demand” letters offering settlements to groups who’ve run afoul of the law, rather than immediately suing them in district court.
This story was originally published by New Mexico In Depth.