Settlement reached on disclosure of donors, expenditures of Latino election group

New Mexicans will find out as early as next week the identities of the individuals and organizations that contributed to a political committee aimed at combating the influence of progressive Democrats in this year’s legislative elections.

The political committee, The New Mexico Project, and one of its founders, Jeff Apodaca, agreed on Monday to settle a months-long legal battle over the project’s failure to comply with state campaign reporting laws.

In a settlement with the state Ethics Commission, The New Mexico Project registered with the Secretary of State on Monday and promised to disclose its contributions and expenditures by Oct. 2.

Apodaca, a former Democratic gubernatorial candidate, said in a statement, “The New Mexico Project (TNMP) has never been a Dark Money PAC. We are a 501(4) organization committed to advocating for First Amendment rights, with a focus on amplifying Latino voices and ensuring our votes matter. It is crucial that our community, which is predominantly moderate and conservative, is heard.”

The independent Ethics Commission went to court in May after notifying Apodaca that The New Mexico Project was violating state law by refusing to provide financial information about the political group, which backed 15 state Legislature candidates this year.

The commission’s lawsuit cited a radio interview Apodaca gave May 1, during which he reportedly said, “We can go raise as much money as we want. We don’t have to disclose our donors. So that’s why people, companies (and) organizations don’t have to worry about them being attacked.”

The commission notified Apodaca before the June 4 primary election that his group was violating state campaign laws and subsequently went to court in May for a preliminary injunction to compel compliance. The case was filed in state court, then was removed by Apodaca to federal court, which on July 19 found no basis for hearing the matter.

After that delay, the lawsuit was revived in state court in August. Most recently, the commission had sought to hold Apodaca and the group in civil contempt of court for missing two court-imposed deadlines to file the campaign finance information.

On Monday, the commission said in a statement, “The settlement, which enforces The New Mexico Project’s compliance with New Mexico’s Campaign Reporting Act, ensures that TNMP Inc. will fulfill its legal obligations to disclose information relating to its donors and expenditures, providing New Mexicans with necessary information regarding who is attempting to influence their votes.”

A. Blair Dunn, attorney for Apodaca and The New Mexico Project, had argued that the Ethics Commission was violating the group’s First Amendment rights and due process protections.

“We appreciate that we have been able to have the State Ethics Commission hear our concerns for constitutional considerations regarding how Commission staff interacts with members of the public,” Dunn said in a press release on Monday. “We hope that litigating this matter has shed important light on the needs for due process versus a rush to judgment coupled with statements to the media to attack citizens and will push needed First Amendment reforms in all state agencies.”

Apodaca said during one radio interview that nearly $1 million had been raised so far, but Dunn on Monday said the expected financial support had been dampened by the negative publicity over the Ethics Commission’s enforcement action.

Regarding the settlement, Apodaca stated that, “TNMP will continue to stand up for Latino voters across our cities and state, challenging the attacks from these ultra-liberal progressives who target our Latino political leaders — leaders who truly represent our interests.” He went on to state that, “In good faith, we have agreed to register our organization with the state of New Mexico, and we hope the SEC and Secretary of State will do the same with the progressive PACs.”

The commission’s press release stated that TNMP Inc. had to register as a political committee by Monday, and file all required reports of its expenditures and contributions by Oct. 2. At that time TNMP Inc. had to pay $1,000 to the state as a civil penalty for violating the Campaign Reporting Act, and pay another $3,000 related to the “unreasonable removal” of the case to federal court.

“The commission’s commitment to disclosure and to the rule of law is independent of and irrespective of the content and viewpoint of political speech,” said Jeremy Farris, executive director of the Ethics Commission in a statement. He said the settlement reinforces the “importance of transparency in New Mexico’s political process. The Commission will continue to work for protect the public’s right to know who is funding effort to influence New Mexico’s elections.”