Cowboys For Trump, Inc. v. Toulouse Oliver

CourtDistrict Court, D. New Mexico
DecidedDecember 30, 2020
Docket2:20-cv-00587
StatusUnknown

This text of Cowboys For Trump, Inc. v. Toulouse Oliver (Cowboys For Trump, Inc. v. Toulouse Oliver) is published on Counsel Stack Legal Research, covering District Court, D. New Mexico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cowboys For Trump, Inc. v. Toulouse Oliver, (D.N.M. 2020).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW MEXICO

COWBOYS FOR TRUMP, INC., et al.,

Plaintiffs,

v. Civ. No. 20-587 GJF/SMV

MAGGIE TOULOUSE OLIVER, in her official capacity as Secretary of State of New Mexico,

Defendant.

MEMORANDUM OPINION AND ORDER THIS MATTER is before the Court upon Defendant Maggie Toulouse Oliver’s (in her official capacity as the Secretary of State of New Mexico) “Motion for Judgment on the Pleadings” [ECF 14] (“Motion”). The Motion is fully briefed. ECF 23 (response); ECF 25 (reply). For the following reasons, the Court will GRANT IN PART AND DENY IN PART AS MOOT Defendant’s Motion and DISMISS THE COMPLAINT WITHOUT PREJUDICE WITH LEAVE TO AMEND. I. BACKGROUND1 Plaintiffs Cowboys for Trump, LLC (“C4T”),2 Couy Griffin, and Karyn Griffin3 “engage in educational advocacy in New Mexico and around the country in support” of President Donald

1 The following facts are taken directly from Plaintiffs’ “Complaint for Civil Rights Violations Seeking Declaratory and Injunctive Relief” [ECF 1]. For the purposes of this Motion, the Court accepts all of the Complaint’s factual allegations as true.

2 The record reflects that the caption erroneously identifies C4T as a corporation instead of correctly reflecting that it is a limited liability company. See, e.g., ECF 15 at 1 (“Plaintiff[s] intend[] to file: [a] motion to correct the case caption to remove ‘Inc.’”).

3 The Court notes that the Complaint spells Karyn’s name two different ways but will employ the spelling used in the caption. See, e.g., ECF 1 ¶ 16 (“Plaintiff Karen K Griffin is a resident of the State of Colorado, [sic] a former member of Cowboys for Trump, LLC.”) (emphasis added). J. Trump and his policies. ECF 1 ¶ 8. In doing so, Plaintiffs promote “the causes of secure borders, the unborn’s protection from abortion, and the Second Amendment.” Id. ¶ 31. To conduct its mission, C4T accepts contributions from supporters and plans “to continue doing so for the duration of President Trump’s time in office.” Id. ¶ 15. Plaintiff Karyn Griffin is a former C4T member, id. ¶ 16, while Plaintiff Couy Griffin is an Otero County Commissioner and C4T’s

founder. Id. ¶ 17. In their Complaint, Plaintiffs challenge certain reporting, disclosure, and disclaimer provisions of the New Mexico Campaign Reporting Act (“CRA”). See generally N.M. Stat. §§ 1-19-26, 1-19-26.1, 1-19-26.4, 1-19-27.3, 1-19-34.4, 1-19-34.6, 1-19-36.4 Under the CRA, C4T (as a “political committee”)5 is required to register a “statement of organization” with Defendant. ECF 1 ¶ 26; N.M. Stat. § 1-19-26.1(B)-(C). That requirement obligates C4T to identify to Defendant its name, a statement of purpose for which it was organized, the names and addresses of its officers, and the bank account used to “receive or make contributions or make expenditures.” N.M. Stat. § 1-19-26.1(C)(1)-(4). At the heart of the dispute are the disclosure requirements triggered by certain threshold

amounts of “independent expenditures.” The New Mexico Legislature defined an “independent expenditure” as one that is: (1) made by a person other than a candidate or campaign committee;

4 In their Response, Plaintiffs voluntarily dismissed “Count I." ECF 23 at 1. Based on the arguments the Plaintiffs made therein, however, the Court assumes that Plaintiffs intended instead to drop Count III. See id. at 2–7. Accordingly, the Court does not discuss and expresses no opinion as to Plaintiff’s allegations regarding Defendant’s promulgation of 1.10.13 et seq. NMAC. See, e.g., ECF 1 ¶¶ 19–23.

5 The term “political committee” includes (1) political parties; (2) legislative caucus committees; (3) associations consisting of “two or more persons whose primary purpose is to make contributions to candidates, campaign committees or political committees or make coordinate expenditures or any combination thereof;” and (4) associations consisting 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.” N.M. Stat. § 1-19-26(Q)(1)-(4). C4T alleges that Defendant “made a final determination that Cowboys for Trump, LLC[,] qualifies as a political committee.” ECF 1 ¶ 3. The parties appear to agree that this determination was upheld in binding arbitration. ECF at 14 at ECF 1–2; ECF 23 at 6–7; see generally N.M. Stat. § 1-19-34.4(D) (providing that Defendant’s determinations with respect to the application of the CRA may be disputed via “binding arbitration”). (2) not a coordinated expenditure as defined in the Campaign Reporting Act; and (3) made to pay for an advertisement that: (a) expressly advocates for the election or defeat of a clearly identified candidate or the passage or defeat of a clearly identified ballot question; (b) is susceptible to no other reasonable interpretation than as an appeal to vote for or against a clearly identified candidate or ballot question; or (c) refers to a clearly identified candidate or ballot question and is published and disseminated to the relevant electorate in New Mexico within thirty days before the primary election or sixty days before the general election at which the candidate or ballot question is on the ballot.

N.M. Stat. § 1-19-26(N). Persons who make independent expenditures of less than $3,000 in “nonstatewide” elections or $9,000 in statewide elections must disclose the identity of (and amount contributed by) each donor who contributed more than $200 toward the independent expenditure. N.M. Stat. § 1-19-27.3(C). Persons who make independent expenditures of more than $3,000 in “nonstatewide” elections or $9,000 in statewide elections are subject to additional disclosure requirements. See N.M. Stat. § 1-19-27.3(D). Persons who make independent expenditures for advertisements in an amount greater than $1,000 must “ensure that the advertisement contains the name of the candidate, committee or other person who authorized and paid for the advertisement.” N.M. Stat. § 1-19-26.4. Defendant publishes all of these disclosures online. ECF 1 ¶ 29; Rio Grand Found. v. Oliver, No. Civ. 1:19-cv-01174-JCH-JFR, 2020 WL 6063442, at *3 (D.N.M. Oct. 14, 2020); Secretary of State Independent Expenditure, https://portal.sos.state.nm.us/IESearch/ (last visited Dec. 15, 2020). Noncompliance is punishable by fine, one year in jail, or both. See, e.g., N.M. Stat. §§ 1-19-34.6(B), 1-19-36(A). “C4T receives support from a variety of sources” to fund its general operations and pay for its “educational efforts.” ECF 1 ¶¶ 31–32. Plaintiffs fear that the CRA’s disclosure requirements could drive away donors, thereby reducing C4T’s fundraising. Id. ¶¶ 34–35. At the same time, however, Plaintiffs maintain that they “have not and will not make independent expenditures.” Id. ¶ 8; see also id. ¶ 13 (“Cowboys for Trump has not expended a single penny on independent expenditures in support of or in opposition to any candidate for office, much less a state office.”).6 Nonetheless, Plaintiffs “bring this pre-enforcement challenge on behalf of themselves and their donors,” challenging the CRA’s disclosure regime as violating the First and Fourteenth Amendments as well as being preempted by the Federal Election Campaign Act. Id. ¶¶ 36, 39–46, 55–57 (citing Susan B. Anthony List v. Driehaus, 573 U.S. 149 (2014)); see generally 52 U.S.C. §

30143(a) (stating that “the provisions of [the Federal Election Campaign Act], . . . supersede and preempt any provision of State law with respect to election to Federal office.”).7 II. ISSUE The primary issue raised by the Motion before the Court is whether any of the plaintiffs has standing, in their own right, to contest the validity of the CRA. ECF 14 at 12–13; ECF 23 at 4–5; ECF 25 at 4–7.

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