Gonzales v. Watson

545 P.3d 1190
New Mexico Court of Appeals·Decided January 23, 2024·No. A-1-CA-39971·Published·Cited by 3 cases

Opinion

Office of the New Mexico Director Compilation Commission 2024.03.22 '00'06- 13:28:19 IN THE COURT OF APPEALS OF THE STATE OF NEW MEXICO

Opinion Number: 2024-NMCA-033

Filing Date: January 23, 2024

No. A-1-CA-39971

MANUEL GONZALES III, a candidate for Mayor of Albuquerque,

Appellant-Respondent,

v.

ETHAN WATSON, in his official capacity as Albuquerque City Clerk,

Appellee-Petitioner.

APPEAL FROM THE DISTRICT COURT OF BERNALILLO COUNTY Bryan Biedscheid, District Court Judge

Harrison, Hart & Davis, LLC Carter B. Harrison IV Daniel J. Gallegos Albuquerque, NM

for Respondent

Peifer, Hanson, Mullins & Baker, P.A. Mark T. Baker Matt M. Beck Matthew E. Jackson Albuquerque, NM

for Petitioner

OPINION

BUSTAMANTE, Judge, retired, sitting by designation.

{1} This case presents an issue of first impression concerning the administration of the City of Albuquerque’s (the City) public campaign financing ordinance. The City appeals from the district court’s ruling that candidates have a due process right to a hearing before the City Clerk enters a decision denying them public financing. Concluding that a predecision hearing was not constitutionally required, and that the post-decision hearings provided here were sufficient, we reverse.

BACKGROUND

{2} Then Bernalillo County Sheriff Manny Gonzales III (Sheriff Gonzales) filed as a candidate in the City’s 2021 mayoral election. As part of his filing, Sheriff Gonzales opted to apply for public financing 1 pursuant to City’s Open and Ethical Elections Code (OEEC). Albuquerque, N.M., Charter of the City of Albuquerque, Open and Ethical Elections Code, art. XVI (2021, amended 2023). 2 On April 4, 2021, Sheriff Gonzales signed and delivered two forms required by the City as part of its public financing process. The first form was the “Candidate Acknowledgment of Familiarity with Codes and Required Disclosures” in which Sheriff Gonzales acknowledged that he was familiar with the City’s Election Code, the rules and regulations of the Board of Ethics and Campaign Practices for the Election Code, the OOEC and the Code of Ethics of the Charter of the City, and the 2021 regulations promulgated by the City Clerk. The second form was the “Designation of Representatives” in which he agreed that he was “fully responsible for the statements made and materials submitted by [three listed] representatives on behalf of [his] campaign.”

{3} Sheriff Gonzales signed and filed his “Application for Certification as a Participating Candidate for the Office of Mayor” (the Application) on June 19, 2021. The Application required him to “swear or affirm” that he had complied with all requirements of the OEEC and had met all of the City’s requirements with regard to raising qualifying contributions.

{4} On July 9, 2021, the City Clerk denied the Application, citing two complaints he had received from an opposing candidate asserting improprieties on the part of Sheriff Gonzales’s campaign in connection with its handling of qualifying contributions.

{5} The first complaint—filed June 7, 2021—asserted that, at a meeting with Salvation Army Advisory Board members, Sheriff Gonzales personally solicited a five- dollar qualifying contribution from a person, asked the person to sign the qualifying contribution book, but then told the person, “we[ will] cover that,” when asked by the person if he “needed to give five dollars?” (the Salvation Army incident). Sheriff Gonzales signed the qualifying contribution book as the collecting representative. The complaint asserted that Sheriff Gonzales’s actions were contrary to the OEEC Regulations that require that qualifying contributions be paid by the contributor and stipulates that if “funds are provided by any person other than the contributor who is listed on the receipt, the [q]ualifying [c]ontribution will be deemed fraudulent.” See 2021 Regulations of the Albuquerque City Clerk for the Open and Ethical Elections Code (OEEC Regulations), Part C(6.), at 7-8, https://www.cabq.gov/vote/documents/2021- regulations-for-the-open-and-ethical-election-code.pdf. The complaint also asserted that

1Sheriff Gonzales’s actual declaration is not included in the record provided to this court. 2All references in this opinion to the Charter of the City of Albuquerque are to the 2021 version of the charter. Sheriff Gonzales’s actions were contrary to other, more general provisions prohibiting campaign contributions by one person in the name of another person. NMSA 1978, § 1- 19-34.3(A) (2019); OEEC Regulations, Part C(6.).

{6} The City Clerk forwarded the complaint to Sheriff Gonzales on June 9, 2021, and notified him that the complaint had been referred to the Board of Ethics. The Board of Ethics—created in Article XII of the City’s charter—is charged with receiving and investigating complaints regarding possible violations of the OEEC and rules promulgated by the “Board and/or City Clerk.” Albuquerque, N.M., Charter of the City of Albuquerque, Code of Ethics, art. XII § 3(c).

{7} The second complaint—filed on June 29, 2021—asserted that a number of the qualifying contribution receipts submitted by Sheriff Gonzales’s campaign included forged contributor signatures. The City Clerk forwarded this complaint to Sheriff Gonzales on the same day he received the complaint, and again informed Sheriff Gonzales that this complaint had also been referred to the Board of Ethics. 3

{8} On July 11, 2021, Sheriff Gonzales appealed the City Clerk’s July 9, 2021 denial of certification. On July 15, 2021, in accordance with the City’s Charter, a City hearing officer (the Hearing Officer) held a full day hearing (the July 15 Hearing), during which Sheriff Gonzales and the City Clerk presented documentary evidence and live testimony through direct and cross-examination. See Albuquerque, N.M., Charter of the City of Albuquerque, Open and Ethical Elections Code, art. XVI, § 18(B). Neither party makes any argument here that they were prevented from presenting any evidence or argument, or that the July 15 Hearing was otherwise inadequate. The parties submitted written closing arguments on July 16, 2021, and the Hearing Officer issued his ruling on July 18, 2021. The Hearing Officer upheld the City Clerk’s decision, rejecting Sheriff Gonzales’s arguments across the board. The Hearing Officer specifically noted that Sheriff Gonzales admitted that many of the signatures on the qualifying contribution receipts were forgeries. The Hearing Officer also found that the Salvation Army incident occurred as asserted in the June 7, 2021 complaint, and evidenced “direct knowledge of fraud and falsification” on the part of Sheriff Gonzales.

{9} Invoking Rule 1-074 NMRA, Sheriff Gonzales filed a notice of appeal from the City Clerk’s decision in the district court on July 19, 2021. Sheriff Gonzales’s statement of appellate issues included a number of arguments that the district court summarized into three primary issues: “(1) whether [the City Clerk’s] certification denial decision was procedurally improper; (2) whether substantial evidence existed to warrant the certification denial decision; and[] (3) whether the regulations on which the certification denial decision was made were ultra vires.”

{10} The district court concluded that the City Clerk “failed to provide [Sheriff] Gonzales with minimum due process protections before declining certification” and

3Though not referenced in the City Clerk’s July 9, 2021 letter, another campaign submitted an additional 100 or so qualifying contribution receipts originally filed by the Sheriff’s campaign that assertedly also included forged contributor signatures. reversed the Hearing Officer’s decision on that basis alone. As such, the district court did not address the other two issues.

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