‘Dark money’ may get new rules

SANTA FE — Independent “dark-money” groups that spend to influence New Mexico’s elections would face new requirements to disclose their donors under a bill adopted by the state Senate on Wednesday.

The proposal now moves to the House — where Brian Egolf’s election as speaker has given supporters new hope that it will win approval there, too. Egolf is a Democrat from Santa Fe.

The proposal, Senate Bill 96, would also raise the limit on donations to candidates to $5,000 for each combined primary and general election cycle. That’s twice what legislative candidates can now accept and a small decrease from the $5,400 limit to statewide candidates.

Senate Majority Leader Peter Wirth, D-Santa Fe, has led the push for years to “fix” loopholes in New Mexico’s campaign finance law, parts of which have been struck down in court.

“We’ve got a mess on our hands right now,” Wirth said Wednesday.

Under the current system, independent groups that spend on elections — but for whom electioneering isn’t a primary purpose — don’t have to disclose where they’re getting their money and what they’re using it for. Nonprofit groups, unions and business associations fall into this category, though some do file reports voluntarily.

The bill proposes that when there’s independent spending above a certain threshold near an election, the group would have to report the spending and the source of any contributions used to make it.

“This is a way to make our Campaign Reporting Act constitutional while protecting everyone’s free speech rights,” said Viki Harrison of Common Cause New Mexico, a nonpartisan group.

The bill, co-sponsored by Wirth and Rep. James Smith, R-Sandia Park, won approval on a 36-6 vote in the Senate. Most of the “no” votes were from Republicans — some of whom expressed technical concerns about whether it would be too confusing to enforce.

Wirth said the bill is aimed at making the rules more clear, not less. It would require campaign finance disclosures by independent groups in certain circumstances; define some technical terms, including what it means for a committee to “coordinate” with a candidate; and update the Campaign Reporting Act, he said.

The bill now heads to the House, where similar ideas have failed to gain traction in past sessions. It would also need approval from Republican Gov. Susana Martinez to become law.

The proposal is partly a response the U.S. Supreme Court’s Citizens United decision in 2010, which cleared the way for unlimited spending by some political action committees.

The proposed $5,000 limit on contributions would apply to donations from people or political committees.