Senator, governor settling lawsuit involving State Fair

Barry Massey

Friday, July 1, 2005 | 9:56 a.m.

SANTA FE -- Gov. Bill Richardson's administration and a Democratic state senator have agreed to settle a lawsuit before the state's highest court that challenged the governor's veto powers.

The state Supreme Court had been scheduled to hear arguments Wednesday from lawyers in a lawsuit brought by Sen. Shannon Robinson, D-Albuquerque. The hearing was canceled at the request of Robinson and the administration.

Robinson said Wednesday that final language of the settlement is being negotiated and drafted by the governor's office.

"Once we were able to decide not to fight, a lot of agreement could take place," Robinson said in a telephone interview.

The deal, he said, will prevent development of a new casino independent of facilities at the State Fair and ensure that no state pari-mutuel tax revenues will be used for a new or remodeled casino at the fairgrounds.

Gilbert Gallegos, a spokesman for the governor, said he could not comment because negotiations were confidential.

The lawsuit remains pending before the court, but Robinson said he expected it would be withdrawn or dismissed once the agreement is made final and public.

Robinson filed the lawsuit last year. He contended that Richardson illegally vetoed restrictions approved by the Legislature in 2004 that would have blocked use of state pari-mutuel tax revenues for remodeling or building a new casino at the state fairgrounds.

Lawyers for the governor and the State Fair, in written arguments to the court, have defended the governor's line-item vetoes as proper.

At issue in the case were constitutional issues about the scope of a governor's line-item veto power as well the ability of the Legislature to impose restrictions on state agencies such as the State Fair.

Underlying the legal dispute was a public policy question over whether state tax money should be used to finance racetrack casino improvements.

In the lawsuit, Robinson contended that Richardson illegally vetoed language from a measure that earmarked half of yearly pari-mutuel tax collections -- about _$1.2 million annually -- for capital improvements at the state fairgrounds.

A vetoed provision would have prohibited use of the tax money for improvements to the racetrack casino operated by the Downs at Albuquerque at the fairgrounds. The fair leases state facilities to the track and casino operator.

Robinson had asked the court to nullify the governor's line-item veto. He contended that Richardson's veto was unconstitutional because it expanded the purpose of the bill and allowed what legislators were trying to stop -- use of tax revenues for casino improvements.

The governor's lawyers countered that the veto was proper and protected the "executive's core managerial function." The Legislature, according to the governor's lawyers, exceeded its authority by trying to impose the restriction on the executive branch.

Part of the settlement between Robinson and the governor appears to mirror a policy decision already made by the State Fair Commission.

Fred Peralta, general manager of the State Fair, said Wednesday he didn't know the provisions of the lawsuit settlement between Robinson and the governor.

However, he said that the commission had decided in 2004 that no pari-mutuel tax revenues would be used for any possible casino improvements.