N.M. Fams. Forward v. N.M. State Ethics Comm'n

CourtNew Mexico Court of Appeals
DecidedApril 1, 2025
DocketA-1-CA-40852
StatusPublished

This text of N.M. Fams. Forward v. N.M. State Ethics Comm'n (N.M. Fams. Forward v. N.M. State Ethics Comm'n) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
N.M. Fams. Forward v. N.M. State Ethics Comm'n, (N.M. Ct. App. 2025).

Opinion

Office of the New Mexico Director Compilation Commission 2025.07.07 '00'06- 10:56:46 IN THE COURT OF APPEALS OF THE STATE OF NEW MEXICO

Opinion Number: 2025-NMCA-016

Filing Date: April 1, 2025

No. A-1-CA-40852

NEW MEXICO FAMILIES FORWARD,

Petitioner-Appellee,

v.

NEW MEXICO STATE ETHICS COMMISSION,

Respondent-Appellant.

APPEAL FROM THE DISTRICT COURT OF BERNALILLO COUNTY Daniel E. Ramczyk, District Court Judge

Sara Berger Law Sara Berger Portland, OR

Rodey, Dickason, Sloan, Akin & Robb, P.A. Linda M. Vanzi Albuquerque, NM

for Appellee

State Ethics Commission Jeremy Farris Walker Boyd Albuquerque, NM

for Appellant

Office of Secretary of State Peter S. Auh, General Counsel Santa Fe, NM

for Amicus Curiae

OPINION YOHALEM, Judge.

{1} The New Mexico State Ethics Commission (the Commission) appeals the district court’s grant of a writ of mandamus ordering the Commission to “cease all proceedings” and “dismiss the action against [New Mexico Families Forward (NMFF)] for lack of jurisdiction.” We conclude that the district court did not abuse its discretion in refusing to require NMFF to exhaust administrative remedies before the Commission under the circumstances in this case, and did not otherwise err in exercising its jurisdiction in mandamus, see NMSA 1978, §§ 44-2-1 to -14 (1884, as amended through 1899). On the merits of NMFF’s claim that organizations engaged in lobbying advertising campaigns are not subject to the Commission’s jurisdiction, we note that this appeal marks the first time this Court has been asked to construe the State Ethics Commission Act (ECA), §§ 10-16G-1 to -16 (2019, as amended through 2023). 1 Construing the ECA as a whole, together with Article V, Section 17 of the New Mexico Constitution—the constitutional provision creating the Commission—and considering the history and purpose of these provisions, as we must, we conclude that the Legislature intended to grant the Commission broad jurisdiction to enforce all of the registration and reporting requirements of the Lobbyist Regulation Act (LRA), NMSA 1978, §§ 2-11-1 to -10 (1977, as amended through 2023)2, including the requirements of Section 2-11-6(I) for organizations, such as NMFF, which are engaged in lobbying advertising campaigns. We, therefore, reverse and remand to the district court with direction to quash the writ and return this case to the Commission for adjudication.

BACKGROUND

{2} Before getting into the procedural background of this case, we first set out the statutory provisions relevant to our discussion. We then proceed with a description of the administrative proceedings undertaken by the Secretary of State (the Secretary) and the Commission that preceded the filing of NMFF’s petition for writ of mandamus in the district court. Our review of the administrative proceedings is based on the documents presented by the parties to the district court in support of their positions in the writ proceedings, and is not intended to be a full record of the proceedings before the Commission.

A. Statutory Background

{3} This appeal requires this Court to interpret several interlocking statutes. The primary statute at issue is the ECA. The ECA creates an independent commission charged with investigating and enforcing New Mexico statutes that impose ethical requirements on government officials, and on those running for government office, lobbying government officials, or contracting with the government. The ethics statutes that are included within the jurisdiction of the Commission are generally of two types—

1The ECA in effect when the petition was filed was last amended in 2021. Therefore, we rely on that version of the ECA and do not consider the 2023 amendments. 2The LRA in effect when the petition was filed was last amended in 2021. We therefore do not consider the 2023 amendments. statutes that directly require ethical conduct and prohibit fraud or other abuses, and statutes that impose reporting and disclosure requirements, thereby ensuring government transparency.

{4} This appeal focuses on the authority of the Commission to enforce the LRA, the statute requiring reporting and disclosure of lobbying activities in New Mexico. The LRA requires certain persons engaged in attempting to influence government action to register with the Secretary, and to disclose the identity and interests of those who compensate them or otherwise fund the lobbying activity. The issue on appeal concerns the jurisdiction of the Commission to enforce Section 2-11-6(I) of the LRA, a provision requiring reporting and disclosure by organizations that conduct lobbying advertising campaigns, but do not otherwise lobby. That section reads as follows:

An organization of two or more persons, . . . that within one calendar year expends funds in excess of two thousand five hundred dollars ($2,500) not otherwise reported under the [LRA] to conduct an advertising campaign for the purpose of lobbying shall register with the [S]ecretary . . . within forty-eight hours after expending two thousand five hundred dollars ($2,500). . . . Within fifteen days after a legislative session, the organization shall report the contributions, pledges to contribute, expenditures and commitments to expend for the advertising campaign for the purpose of lobbying, including the names, addresses, employers and occupations of the contributors, to the [S]ecretary . . . on a prescribed form.

{5} Section 10-16G-9(A) of the ECA, a provision describing the Commission’s jurisdiction, states as follows:

The [C]ommission has jurisdiction to enforce the applicable civil compliance provisions for public officials, public employees, candidates, persons subject to the Campaign Reporting Act [(CRA), NMSA 1978, §§ 1-19-25 to -37 (1979, as amended through 2021)], government contractors, lobbyists and lobbyists’ employers of

....

(4) the [LRA].

(Emphasis added.)

{6} The final statutory section at issue in this appeal is Section 2-11-8.3(A)(1) (2019, amended 2021), another provision addressing the Commission’s jurisdiction, this time a provision codified as part of the LRA: [T]he [C]ommission shall have jurisdiction to investigate and adjudicate a complaint alleging a civil violation of a provision of the [LRA] in accordance with the provisions of that act.

B. Procedural Background

1. Petitioner NMFF

{7} NMFF is a domestic nonprofit organization organized exclusively for social welfare purposes, within the meaning of § 501(c)(4) of the Internal Revenue Code, see 26 U.S.C. § 501(c)(4). NMFF was incorporated in New Mexico on June 22, 2021, eight months before it conducted the February 2022 lobbying advertising campaign at issue in this appeal. One of NMFF’s purposes is “[t]o advocate for issues important to New Mexicans such as healthcare reform, tax policy, economic justice, and strengthening our democracy.” Unlike § 501(c)(3) nonprofits, which are limited to an insubstantial amount of lobbying, organizations with a § 501(c)(4) status are permitted to engage in lobbying, including advertising lobbying campaigns, without endangering their tax- exempt status. See § 501(c)(3), (c)(4).

{8} NMFF was not registered as a lobbyist or lobbyist’s employer under Section 2- 11-6(A) of the LRA because it did not employ a lobbyist or engage in traditional lobbying by directly contacting legislators. The sole complaint before the Commission concerned NMFF’s compliance with the registration and disclosure requirements of Section 2-11- 6(I) for organizations that engage in lobbying advertising campaigns.

2.

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Bluebook (online)
N.M. Fams. Forward v. N.M. State Ethics Comm'n, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nm-fams-forward-v-nm-state-ethics-commn-nmctapp-2025.