SANTA FE — One of the most powerful lawmakers in the New Mexico Legislature is confronting a formal ethics complaint following the release of state records suggesting he communicated with a transportation engineer on behalf of a road paving company established by his two sons.
State Sen. George Muñoz, a Gallup Democrat who serves as the chairman of the Senate Finance Committee, has defended his actions, stating that he followed guidance provided by the State Ethics Commission and maintained appropriate boundaries. The five-term lawmaker stated in an interview that he derives no financial benefit from his sons' commercial enterprise and has insisted that he did not breach state ethical standards.
The complaint was formally submitted to the State Ethics Commission by Jacob Candelaria, a former state senator who currently practices law as an attorney in Albuquerque. In his filing, Candelaria targeted not only Muñoz but also the New Mexico Department of Transportation alongside three individual agency staff members, alleging potential violations of state conflict-of-interest statutes.
At the core of the controversy is Prestigious Paving, a business founded in Gallup in 2019 by Muñoz’s two sons. Since its creation, the paving enterprise has seen substantial financial growth, collecting more than $18.8 million in state payments over the course of the past four-plus years through various government contracts.
The ethics complaint focuses heavily on internal agency correspondence, including a November 2022 email composed by NMDOT district engineer Lisa Boyd Vega and sent to a high-ranking state transportation official. In the message, Boyd Vega documented receiving a phone call from Sen. Muñoz concerning road striping specifications, noting that Prestigious Paving was pursuing administrative authorization for an adjustment to project plans under its state contract.
Subsequent internal records highlighted in the complaint indicate that transportation officials ultimately approved the requested project changes. Along with that authorization, the state awarded an additional $175,000 in funding to finance the road striping operations along U.S. 550.
Although the formal complaint stops short of alleging criminal conduct, Candelaria raised serious questions regarding whether the interactions violated key provisions within the state Governmental Conduct Act. Those statutory clauses place strict limits on nepotism, address how state agreements may be awarded to firms tied to lawmakers or their families, and regulate the circumstances under which sitting legislators can represent private entities before executive agencies.
Muñoz has maintained that he took proactive measures to ensure compliance with New Mexico law, explaining that he sought counsel from the State Ethics Commission in 2022. While acknowledging that he previously leased commercial storage space to his sons' enterprise, the senator affirmed that he severed all other connections with the business before it began securing state highway contracts, adding that he does not recall the phone discussion referenced in the agency email.
Candelaria, however, challenged the senator's explanation, arguing that claiming a lack of memory regarding the communication strains common sense when considered alongside the paving company’s rapid commercial expansion with the state. The former lawmaker maintained that the public deserves a comprehensive accounting of how such contracts and modifications were facilitated.
In response to the allegations, NMDOT spokeswoman Kristine Mihelcic emphasized that the transportation department adheres strictly to established procurement procedures and the Governmental Conduct Act. Mihelcic stated that while certain agency employees might have individual awareness of family ties, the department does not operate an internal database tracking the relatives of private vendors or sitting lawmakers, nor does it grant preferential treatment to any contractor.
Beyond filing the matter with state ethics regulators, Candelaria expanded the scope of his inquiry by sending referral files to New Mexico Attorney General Raúl Torrez and First Assistant U.S. Attorney for New Mexico Ryan Ellison for potential investigation. Candelaria has frequently engaged in public disputes with Gov. Michelle Lujan Grisham’s administration and former legislative colleagues since his departure from the Senate in 2022.
In tandem with the ethics filing, Candelaria’s legal practice initiated a lawsuit against the New Mexico General Services Department. The legal action asserts that the department failed to properly fulfill public records requests seeking procurement materials, project bids, and documentation related to Prestigious Paving’s highway work.
The allegations carry considerable political significance given Muñoz’s prominent role in the Roundhouse, where he has helmed the Senate Finance Committee since 2021. From that post, Muñoz exercises substantial authority over the allocation of New Mexico's state budget, which currently stands at $11.1 billion for the fiscal year, and has collaborated with Gov. Lujan Grisham on signature initiatives such as universal childcare legislation and behavioral health system overhauls.
The situation has also triggered criticism across the political aisle, with Senate Republican Floor Leader William Sharer of Farmington seizing on the filing to accuse the legislative majority of persistent self-dealing. While Sharer affirmed that Muñoz has the right to a full and fair inquiry into the allegations, he asserted that the controversy reflects broader institutional issues within state government administration.
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