10th Circuit Reverses New Mexico Campaign Finance Law: No Broad Ban on Donations

• A case challenging New Mexico's campaign finance law, *Ortiz y Pino v. Toulouse Oliver*, is currently pending before the 10th Circuit Court of Appeals, following a district court ruling that granted summary judgment to the defendant and denied a permanent injunction against the law's provisions regarding campaign fund donations to individuals.
• The court found that the statute's prohibition on donations to non-501(c)(3) organizations or individuals facially implicates expressive activity and is subject to First Amendment scrutiny.
• Lawyers advising clients on campaign finance regulations will need to reassess their compliance with the CRA, particularly with regards to donations to non-501(c)(3) organizations or individuals.
• The 10th Circuit's decision sets a precedent for other states with similar campaign finance laws and highlights the importance of applying First Amendment scrutiny to campaign finance regulations.

Yet, we cannot rely on 'faith in government representations of prosecutorial restraint' to rewrite unconstitutional laws.

A case challenging New Mexico's campaign finance law, *Ortiz y Pino v. Toulouse Oliver*, is currently pending before the 10th Circuit Court of Appeals, following a district court ruling that granted summary judgment to the defendant and denied a permanent injunction against the law's provisions regarding campaign fund donations to individuals. At the heart of the case is a $200 donation made by former state senator Jerry Ortiz y Pino to a student attending a summer college and career workshop in 2021. The donation was seen as a potential violation of the Campaign Reporting Act (CRA), which prohibits campaign fund donations to non-501(c)(3) organizations or individuals. However, the 10th Circuit panel found that this prohibition is too broad and facially implicates expressive activity, subjecting it to First Amendment scrutiny.

The court's decision was not a surprise given the growing trend of courts nationwide to apply stricter scrutiny to campaign finance laws. In recent years, there has been an increasing recognition of the importance of political expression and donations in the democratic process. The 10th Circuit's ruling is a significant development in this area, as it sets a precedent for other states with similar campaign finance laws.

The impact of the decision will be felt far beyond New Mexico, as lawyers advising clients on campaign finance regulations will need to reassess their compliance with the CRA, particularly with regards to donations to non-501(c)(3) organizations or individuals.

The 10th Circuit's ruling is based on a statutory ban on campaign fund donations to non-501(c)(3) organizations or individuals. This prohibition is found in the Campaign Reporting Act, which limits political donations using campaign funds to donations to other candidates or political committees, the state general fund, or 501(c)(3) organizations. The secretary of state argued that any funds spent for the purpose of conveying the political viewpoints of a candidate or publicizing their candidacy are permissible 'expenditures of the campaign.' However, the 10th Circuit panel found this interpretation to be flawed and subject to First Amendment scrutiny.

The court's decision was not based on the specific facts of the case, but rather on the facial implications of the statute. The panel suggested that any expenditure prohibited by the statute could be construed as political expression, such as a tuition payment to a non-campaign-affiliated student or a candidate buying an American-made car.

The 10th Circuit's ruling is significant because it sets a precedent for other states with similar campaign finance laws. It also highlights the importance of applying First Amendment scrutiny to campaign finance regulations.

The 10th Circuit's decision has significant implications for New Mexico's campaign finance law and beyond. The ruling means that lawyers advising clients on campaign finance regulations will need to reassess their compliance with the CRA, particularly with regards to donations to non-501(c)(3) organizations or individuals. This is a critical issue in the democratic process, as political expression and donations are essential components of free speech.

The 10th Circuit's ruling also highlights the importance of applying First Amendment scrutiny to campaign finance regulations. This trend is likely to continue nationwide, as courts increasingly recognize the importance of protecting political expression and donations. The impact of this decision will be felt far beyond New Mexico, as it sets a precedent for other states with similar campaign finance laws.

Lawyers advising clients on campaign finance regulations in New Mexico should be aware that the 10th Circuit's ruling may require them to reassess their compliance with the Campaign Reporting Act, particularly with regards to donations to non-501(c)(3) organizations or individuals.

Source: Original reporting via Courthouse News