Ortiz y Pino v. Toulouse Oliver

CourtDistrict Court, D. New Mexico
DecidedOctober 28, 2024
Docket1:24-cv-00240
StatusUnknown

This text of Ortiz y Pino v. Toulouse Oliver (Ortiz y Pino 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
Ortiz y Pino v. Toulouse Oliver, (D.N.M. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW MEXICO

GERALD ORTIZ Y PINO,

Plaintiff,

v. Case No. 1:24-cv-00240-MIS-JFR MAGGIE TOULOUSE OLIVER, in her Official Capacity as Secretary of State,

Defendant.

ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFF’S MOTION FOR PRELIMINARY INJUNCTION

THIS MATTER is before the Court on Plaintiff Gerald Ortiz y Pino’s Motion for Preliminary Injunction, ECF No. 10, filed May 16, 2023. Defendant Maggie Toulouse Oliver, in her official capacity as New Mexico Secretary of State, filed a Response on May 30, 2024, ECF No. 12, to which Plaintiff filed a Reply on June 7, 2024, ECF No. 16. The Parties filed supplemental briefs on August 21, 2024. ECF Nos. 21, 22. The Court held a hearing on the Motion on August 28, 2024. See ECF No. 24. Upon review of the Parties’ submissions, the record, and the relevant law, the Court will GRANT IN PART AND DENY IN PART the Motion. I. Background Plaintiff Gerald Ortiz y Pino (“Senator Ortiz y Pino”) is a New Mexico State Senator. ECF No. 1 ¶ 4. Defendant Maggie Toulouse Oliver (“Secretary Toulouse Oliver”) is the New Mexico Secretary of State. Id. ¶ 5. On January 19, 2021, Senator Ortiz y Pino used his campaign funds to make a $200 donation to high school student Ariana Alvarado “to support her academic endeavors so she could participate in a week-long, out-of-state summer workshop . . . for high school students.” Id. ¶ 7. Pursuant to the Campaign Reporting Act (“CRA”), Senator Ortiz y Pino reported this expenditure to the Secretary of State’s office. Id. ¶ 8. Secretary Toulouse Oliver concluded that this donation is prohibited by N.M. Stat. Ann. § 1-19-29.1(A)(4), id. ¶ 9, which restricts a political candidate’s use of campaign funds for charitable donations to “donations to an organization to which a federal income tax deduction would be permitted under Subparagraph (A) of Paragraph (1) of Subsection (b) of Section 170 of the Internal Revenue Code of 1986, as amended[,]” N.M. Stat. § 1-19- 29.1(A)(4). The Parties appear to agree that under this statute, a political candidate may use

campaign funds to make charitable donations only to non-profit organizations under Section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3). As such, the statute effectively prohibits charitable donations to individuals. On September 15, 2023, Secretary Toulouse Oliver’s Office sent Senator Ortiz y Pino a letter stating that Senator Ortiz y Pino must replace the campaign funds he used for the donation to Ms. Alvarado with non-campaign money. ECF No. 1 ¶ 11; Letter from Anastacio F. Trujillo, Disclosure Auditor, Bureau of Elections, Sec’y of State, to Gerald Ortiz y Pino (Sept. 15, 2023), ECF No. 1-1. The September 15, 2023 Letter requests “voluntary compliance” and states that Senator Ortiz y Pino’s failure to reimburse his campaign funds would “be included on an annual report and forwarded to the State Ethics Commission and the Attorney General for further

enforcement.” ECF No. 1-1 at 2; see also ECF No. 1 ¶ 11. On September 25, 2023, Senator Ortiz y Pino’s attorney, Phillip Baca, sent a letter to Secretary Toulouse Oliver stating that he believed Section 1-19-29.1(A)(4) violated the First Amendment to the U.S. Constitution because it constitutes a content-based restriction on speech, and, as such, Secretary Toulouse Oliver’s “threatened enforcement action against him is unconstitutional.” Letter from Phillip Baca to Maggie Toulouse Oliver, Sec’y of State (Sept. 25, 2023), ECF No. 1-2; see also ECF No. 1 ¶ 12. He also threatened to file a lawsuit against Secretary Toulouse Oliver if she continued with the enforcement action.1 ECF No. 1-2 at 1. He invited Secretary Toulouse Oliver to provide legal authority establishing the constitutionality of Section 1-19-29.1(A)(4). Id.; see also ECF No. 1 ¶ 14. Finally, he requested that Secretary Toulouse Oliver take no action against him until they discussed the matter further. ECF No. 1-2 at 1; see also ECF No. 1 ¶ 15. On February 20, 2024, Secretary Toulouse Oliver’s Office sent Senator Ortiz y Pino a letter

stating that her office had reviewed “all the information [Senator Ortiz y Pino] provided” and determined that his donation to Ms. Alvarado is “not allowed under the New Mexico Campaign Finance Law, § 1-19-29.1(A)(1-7).” Letter from Anastacio F. Trujillo, Disclosure Auditor, Bureau of Elections, Sec’y of State, to Gerald Ortiz y Pino (Feb. 20, 2024), ECF No. 1-3. It further states: “We view the inaction to our requests as non-compliance with the Campaign Reporting Act” and “pursuant to the requirements in [N.M. Stat. Ann. § 1-19-32.1(B)], we have prepared an annual report that includes this unresolved discrepancy and have forwarded the information to the State Ethics Commission and the Attorney General for Enforcement.” Id. According to the Complaint, criminal violations of the Campaign Reporting Act are governed by a three-year statute of limitations, ECF No. 1 ¶¶ 23-24 (citing N.M. Stat. Ann. § 30-

1-8(H)), which has expired with regard to Senator Ortiz y Pino’s donation to Ms. Alvarado, id. ¶ 23. Furthermore, the State Ethics Commission has informed Senator Ortiz y Pino that the

1 Mr. Baca threatened that if Senator Ortiz y Pino were to prevail in any such lawsuit Secretary Toulouse Oliver’s Office “will be paying my attorney’s fees at $550 per hour.” ECF No. 1-2 at 1. The September 25, 2023 Letter further states that Mr. Baca “wrote the 2009 amendments to the Campaign Reporting Act, and lobbied those amendments through the Legislature.” Id. at 2. He also made this representation at the August 28, 2024 hearing on the Motion for Preliminary Injunction. However, Mr. Baca did not explain why he failed to amend Section 1-19-29.1(A)(4), the law he now claims is unconstitutional. specific circumstances surrounding the expenditure [to Ms. Alvarado], including the timing and amount of the contested expenditure, in addition to the fact that Senator Ortiz y Pino is not seeking reelection, together do not support the use of the Commission’s resources and personnel to commence a civil action related to this expenditure.

Letter from Jeremy Farris, Exec. Dir., State Ethics Comm’n, to Phillip Baca (Mar. 13, 2024), ECF No. 10-2. On March 8, 2024, Senator Ortiz y Pino initiated this lawsuit by filing a one-count Complaint seeking, inter alia, a declaratory judgment that N.M. Stat. Ann. § 1-19-29.1(A)(4) violates the First Amendment to the U.S. Constitution and an injunction prohibiting Secretary Toulouse Oliver from enforcing Section 1-19-29.1(A)(4)’s restrictions on political expenditures for charitable purposes. ECF No. 1 at 8. On April 2, 2024, Secretary Toulouse Oliver filed an Answer and affirmative defenses. ECF No. 4. On May 16, 2024, Senator Ortiz y Pino filed the instant Motion for Preliminary Injunction, clarifying that he is asserting a “facial constitutional challenge to Section 1-19-29.1(A)(4).” ECF No. 10 at 6. Secretary Toulouse Oliver filed a Response, ECF No. 12, to which Senator Ortiz y Pino filed a Reply, ECF No. 16. At the Court’s invitation, the Parties filed supplemental briefs on August 21, 2024. ECF Nos. 21, 22. On August 28, 2024, the Court held a hearing on the Motion. See ECF No. 24. II. Legal Standard “A preliminary injunction is an extraordinary remedy; it is the exception rather than the rule.” GTE Corp. v. Williams, 731 F.2d 676, 678 (10th Cir. 1984). As such, it “may only be awarded upon a clear showing that the [movant] is entitled to such relief.” Winter v. Nat. Res. Def. Council, Inc., 555 U.S. 7, 22 (2008). See also Planned Parenthood of Kan. v. Andersen, 882 F.3d 1205, 1223 (10th Cir. 2018) (“Preliminary injunctions are extraordinary remedies requiring that the movant’s right to relief be clear and unequivocal.”).

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