New Mexico House Judiciary Committee Considers Bill Requiring Nonprofits to Provide List of Donors if Participate in Electioneering

The New Mexico Independent reports that the New Mexico House Judiciary Committee is considering a new bill that would require nonprofits to list donors who give more than $1,000 if the nonprofits participate in “electioneering.”  Electioneering is defined as the naming of a political candidate in a piece of literature or a broadcast ad that targets the candidate’s constituency in the three months prior to a primary election and in the three months prior to the general election.  The nonprofits would have to provide a list of donors to the Secretary of State’s office.  Rep. Paul Bandy (R-Aztec) sponsored the legislation, which is also supported by House Majority Leader Ken Martinez (D-Grants) and Senate Majority Leader Michael Sanchez (D-Belen).

The committee’s unwillingness to pass the legislation with days to go in the 2009 session means the bill’s chances for passage are between unlikely and nigh impossible.  House Judiciary Committee Chairman Rep. Al Park (D-Albuquerque) said that lawmakers have too many questions to let the bill out of committee.

Nonprofits have vocally opposed the bill for several reasons, including a concern that such a measure would abridge their right to free speech if they were required to list donors.  Nathan Bush, a lobbyist for the American Cancer Society, told lawmakers sitting on the House Judiciary Committee that attorneys for the society had “never seen a state try to take away our tax exempt status and give it back to us conditionally. We understand the intent of this legislation. We don’t appreciate the punitive nature of the bill.”

Supporters for the legislation point to what happened last year when nonprofits sent out fliers months before the 2008 primary and general elections. Several incumbents lost their elections, and three ousted lawmakers unsuccessfully sued the organizations. Those legislators and others — as well as State Attorney General Gary King — characterized the fliers as political campaigning.  The bill’s backers also link it to the push for ethics reform that would encompass state lawmakers.  One prominent ethics proposal being considered this year would limit the amount of money political candidates could accept from individuals, political committees, and political parties. Some lawmakers say if they have to live with limits, nonprofits should have to disclose who their donors are.  Federal law does not require nonprofits to disclose donors.  The Attorney General’s Office has said that it is Attorney General Gary King’s conviction that the bill will survive judicial muster because it does not link “electioneering” to the state’s campaign reporting act, but to the state’s tax law.

Representative Bandy said Wednesday he might attempt one last legislative maneuver to save his bill. That would call for adding his bill as an amendment to another piece of legislation that would limit campaign contributions to political candidates.  Currently, there are two campaign contribution limits bills in the House. One is a bill the Senate passed and sent over.  It is unclear if or when either will come up on the House floor before Saturday, when the Legislature adjourns.

SS