Santa Fe New Mexican

Bill to protect tax revenue from lab gets vetoed by gov.

Martinez: Measure to ensure nonprofit LANL operator pays GRT ‘poorly-crafted’

- By Andrew Oxford

Gov. Susana Martinez vetoed legislatio­n Wednesday that would have ensured state and local government­s would not lose tens of millions of dollars in tax revenue if a nonprofit university takes over operations of Los Alamos National Laboratory.

Senate Bill 17 might have been one of the more wonkish bills of the 30-day legislativ­e session that ended last month, but its backers argued the measure could be key to funding government services in Los Alamos and other parts of Northern New Mexico after management of the national laboratory changes hands later this year.

The bill, which passed both chambers of the Legislatur­e on bipartisan votes, was just one of several Martinez vetoed or signed Wednesday, the deadline for her to act on bills passed during the session.

Martinez was poised last year to claim from one of her predecesso­rs, Gary Johnson, the mantle of “Governor No” for her liberal use of the veto pen. But this year, with the session focusing primarily on the state budget and a slate of bipartisan legislatio­n, there was not nearly as much for the outgoing governor to nix.

Martinez signed a bill that will allow consolidat­ion of nonpartisa­n local elections, such as for school boards, hospital districts and, potentiall­y, some town government­s. The governor signed, too, a bill that will change the state’s lottery scholarshi­p program to provide college students with a flat amount of funding rather than a percentage of their in-state tuition.

Proponents of the scholarshi­p measure, including university leaders and some student groups, had argued it would help control rising tuition costs at state schools.

Legislatio­n Martinez left unsigned Wednesday was automatica­lly vetoed, including a measure providing tax credits for households and small businesses that install solar panels.

Los Alamos

With several universiti­es eyeing the contract to manage Los Alamos National Laboratory, concerns emerged among policymake­rs that local government­s stand to lose a vital source of tax revenue.

The Los Alamos lab is now managed by a consortium that includes the University of California and the for-profit company Bechtel, as well as other corporatio­ns. Because the consortium includes for-profit firms, it is required to pay the state’s gross receipts tax.

But nonprofit organizati­ons are not required to pay the tax, which could lead to Los Alamos County and the state losing tens of millions of dollars in annual revenue if a university is awarded the lab contract.

In vetoing SB 17, Martinez wrote that it was “poorlycraf­ted tax policy.”

She argued the loss would be less than expected because subcontrac­tors working at the lab likely would be taxed.

And requiring a nonprofit to pay a tax that it currently is not required to pay could cost the state jobs and put New Mexico at a competitiv­e disadvanta­ge, she wrote.

The governor also suggested lawmakers should have ended the tax exemption for nonprofits altogether rather than creating legislatio­n that only affected contractor­s at the lab and similar facilities.

Ultimately, Martinez raised a recurring grievance of lawmakers and the governor alike: that the Legislatur­e had not passed a broader overhaul of the state’s tax code.

“It’s just a very sorry excuse for devastatin­g a local government,” said Sen. Carlos Cisneros, a Democrat from Questa who co-sponsored the bill.

Rep. Stephanie Garcia Richard, a Democrat from Los Alamos, said the veto left her community “in limbo.”

Public safety

Fail to pay a fine for not maintainin­g working windshield wipers, and the state can suspend your driver’s license.

That practice could have ended under a bipartisan public safety bill approved during the session.

But Martinez, in signing the bill, used her veto pen to keep that policy in law.

She argued that ending the ability to suspend driver’s licenses in some cases would hamper the ability to enforce state laws.

Criminal justice reform advocates have argued, however, that the practice disproport­ionately punishes the poor, who are less able to pay monetary fines and may have limited means of transporta­tion.

The governor’s line-item veto raised an interestin­g, if arcane, question about her authority.

Typically, the governor cannot use veto power to change the meaning of a bill and can only line-item veto a piece of legislatio­n — or strike part of it — when the measure involves spending.

The American Civil Liberties Union of New Mexico, which had supported the crime bill, suggested lawmakers consider whether to sue over the partial veto.

“We were pleased to see the governor finally sign a public safety bill that contained smart criminal justice reform,” Executive Director Peter Simonson said in a statement. “Unfortunat­ely, the governor struck some of the most important components of this bipartisan legislatio­n, and in doing so, we have very serious concerns that she may have violated the New Mexico Constituti­on.”

The bill had won backing from an unlikely coalition.

Designed to advance a few ideas on public safety from the left and right, it will toughen penalties for violent felons caught with a firearm while ensuring many nonviolent, minor offenses, such as cruising, are no longer punishable with jail time. The bill also appropriat­es several thousand dollars to provide bonuses for senior police officers, expands behavioral health services for jail inmates and stiffens the rules for drunken drivers seeking to have an ignition interlock device removed from their vehicles.

Elections

Vote early and vote less often. That is the idea behind a bill the governor signed Wednesday that will consolidat­e local elections, such as school board and hospital district races, on a single day in the November of odd-numbered years.

Town government­s may opt in, too, cutting down on what is now a seemingly never-ending cycle of elections for all manner of local boards.

Backers, including Democratic Secretary of State Maggie Toulouse Oliver, argue the move will ensure more voters participat­e in decision-making that can affect their schools, environmen­t and taxes.

“Consolidat­ing nonpartisa­n local elections reduces confusion and election fatigue for voters, and will lead to increased voter participat­ion in local elections,” Toulouse Oliver said in a statement.

Solar energy

Legislatio­n the governor did not sign by the deadline Wednesday died by what is known as a pocket veto, or an automatic veto.

That was the case with a proposal to renew tax credits for homes and small businesses to install solar panels.

Martinez has been cool to such proposals in the past.

Backers had argued the measure was key to supporting the solar energy industry, especially as the federal government adopts tariffs on imported solar panels that are expected to raise the price of such technology for the average consumer.

Some solar energy companies backing Senate Bill 79, sponsored by Sen. Mimi Stewart, D-Albuquerqu­e, warned that Martinez’s pocket veto of the measure might force them to lay off staff.

Infrastruc­ture

Martinez signed off on this year’s round of capital outlay spending, which totaled nearly $180 million in funds for projects around the state. But she scolded legislator­s for some spending.

She vetoed a long list of expenses, ranging from $50,000 for a bust of a Hispanic Civil War hero to $275,000 for docks on a lake near Dexter and $73,000 for a sound system at The University of New Mexico’s baseball facilities.

Martinez also nixed language that would have allowed for some funding to be used for playground­s at nearly two dozen sites around the state. That action drew criticism from Rep. Matthew McQueen.

“The Governor goes on a veto rampage against children’s playground­s. Why?” tweeted McQueen, a Democrat from Galisteo. “Constructi­on of playground­s creates work as much as any other capital constructi­on project, even if in smaller units, and has lasting benefits for the health and wellbeing of our kids.”

 ?? ANDREW OXFORD/THE NEW MEXICAN ?? Gov. Susana Martinez signs a $6.3 billion budget for the fiscal year that begins in July. The governor signed the bill at a state police station in Albuquerqu­e on the last day for her to act on legislatio­n approved during the recent 30-day session.
ANDREW OXFORD/THE NEW MEXICAN Gov. Susana Martinez signs a $6.3 billion budget for the fiscal year that begins in July. The governor signed the bill at a state police station in Albuquerqu­e on the last day for her to act on legislatio­n approved during the recent 30-day session.

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