State of NM ex rel. Stewart v. Martinez

2011 NMSC 45, 2011 NMSC 045, 1 N.M. Ct. App. 65
CourtNew Mexico Supreme Court
DecidedDecember 14, 2011
Docket33,028
StatusPublished
Cited by4 cases

This text of 2011 NMSC 45 (State of NM ex rel. Stewart v. Martinez) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State of NM ex rel. Stewart v. Martinez, 2011 NMSC 45, 2011 NMSC 045, 1 N.M. Ct. App. 65 (N.M. 2011).

Opinion

I attest to the accuracy and integrity of this document New Mexico Compilation Commission, Santa Fe, NM '00'05- 08:31:49 2011.12.22

IN THE SUPREME COURT OF THE STATE OF NEW MEXICO

Opinion Number: 2011-NMSC-045

Filing Date: December 14, 2011

Docket No. 33,028

STATE OF NEW MEXICO ex rel. HON. MIMI STEWART, HON. BEN LUJAN, HON. ELEANOR CHAVEZ, HON. ANTONIO LUJAN, HON. MIGUEL GARCIA, and HON. CISCO McSORLEY, members of the New Mexico Legislature and citizens of New Mexico,

Petitioners,

v.

HON. SUSANA MARTINEZ, Governor of the State of New Mexico, HON. DIANNA J. DURAN, Secretary of State of New Mexico, and HON. CELINA BUSSEY, Secretary of New Mexico Department of Workforce Solutions,

Respondents,

and

HON. GARY KING, Attorney General of the State of New Mexico,

Intervenor.

ORIGINAL PROCEEDING Freedman Boyd Hollander Goldberg Ives & Duncan, P.A. Joseph Goldberg John W. Boyd Michael L. Goldberg Albuquerque, NM

for Petitioners

1 General Counsel, Office of the Governor Jessica M. Hernandez Jennifer L. Padgett Matthew J. Stackpole Santa Fe, NM

General Counsel, Department of Finance & Administration Gregory S. Shaffer Santa Fe, NM

General Counsel Workforce Solutions Department Marshall J. Ray Albuquerque, NM

for Respondents

Gary K. King, Attorney General Mark Reynolds, Assistant Attorney General Scott Fuqua, Assistant Attorney General Santa Fe, NM

for Intervenor

OPINION

CHÁVEZ, Justice.

I. INTRODUCTION

{1} The New Mexico Legislature passed House Bill 59 during the 2011 legislative session. H.B. 59, 50th Leg., 1st Sess. (N.M. 2011) [hereinafter H.B. 59]. House Bill 59 sought to amend five different sections of the Unemployment Compensation Law (the Act), NMSA 1978, §§ 51-1-1 to -59 (1936, as amended through 2010), in order to address the impending insolvency in the unemployment compensation fund. In addition to reducing benefits to the unemployed, House Bill 59 increased employer contributions to the unemployment compensation fund over the contributions that would be made in 2011. H.B. 59, § 51-1-11(I)(6). Governor Susana Martinez partially vetoed House Bill 59 by striking one of the variables in Section 51-1-11(I)(6) that was necessary to calculate employer contributions beginning on January 1, 2012. The Petitioners, each of whom are legislators, seek a writ of mandamus invalidating Governor Martinez’s partial veto. Because the effect of the partial veto was to exempt most employers from making what would otherwise be mandatory contributions to the unemployment compensation fund for calendar year 2012,

2 we hold that the partial veto was invalid. We therefore issue a writ of mandamus ordering that House Bill 59 be reinstated as passed by the Legislature.

II. BACKGROUND

A. The Unemployment Compensation Law

{2} When the Legislature first enacted the Act in 1936, the legislators found it worthwhile to include “[a]s a guide to the interpretation and application” of the Act, a “declaration of state public policy.” 1936 N.M. Laws (Special Session), ch. 1, § 2. The declaration stated that

[e]conomic insecurity due to unemployment is a serious menace to the health, morals, and welfare of the people of this State. . . . The achievement of social security requires protection against this greatest hazard of our economic life. This can be provided by encouraging employers to provide more stable employment and by the systematic accumulation of funds during periods of employment to provide benefits for periods of unemployment, thus maintaining purchasing power and limiting the serious social consequences of poor relief assistance. The legislature, therefore, declares that in its considered judgment the public good, and the general welfare of the citizens of this State requires the enactment of this measure, for the compulsory setting aside of unemployment reserves to be used for the benefit of persons unemployed through no fault of their own.

Id. (restated as NMSA 1978, § 51-1-3) (emphasis added). The Act establishes an unemployment compensation fund and the parameters for unemployment benefit eligibility. See generally NMSA 1978, §§ 51-1-1 to -59. In relevant part to this Opinion, the Act establishes employers’ rates of contribution to the unemployment compensation fund based on “benefit experience.” See NMSA 1978, § 51-1-11 (2010). Less-established employers, who have not yet had “accounts chargeable” for thirty-six months, are charged a flat rate of two percent. Id. Subsection F. More-established employers, on the other hand, which have “accounts chargeable” with benefits for the preceding thirty-six months, contribute to the unemployment compensation fund on the basis of (1) the employer’s record, and (2) the condition of the fund, according to Section 51-1-11(I). See § 51-1-11(F). There are exceptions to this framework for certain employers that have recently acquired other “employing units,” see § 51-1-11(F)(1), and for certain employers conducting business outside New Mexico, see § 51-1-11(F)(2).

{3} Section 51-1-11(I) of the Act provides that the more-established employers’ annual contribution rates are determined by the combined effect of two variables, a reserve rate (“Reserve Rate”) assigned to each employer and an annual contribution rate schedule (“Contribution Schedule”). Section 51-1-11(I)(4) provides a chart called the “table of employer reserves and contribution rate schedules,” which determines an employer’s

3 contribution rate based on the intersection of the row representing the employer’s Reserve Rate and the column representing the Contribution Schedule. See § 51-1-11(I)(4). The Reserve Rate is dependent on a particular employer’s unemployment record; it is calculated “by the excess of the employer’s total contributions over total benefit charges computed as a percentage of the employer’s average payroll reported for contributions.” Section 51-1- 11(I)(1).

{4} In any given year, the Contribution Schedule is the same for all established employers. The Contribution Schedule ranges from Schedule 0 to Schedule 6. See § 51-1- 11(I)(2)(a)-(g). Determining the relevant Contribution Schedule has varied over the years. During some years a statutory formula was applied to determine the relevant schedule, while during other years the Legislature specified which schedule would be applied for a given year. When determined by formula, the Contribution Schedule is inversely related to the condition of the unemployment compensation fund. Section 51-1-11(I)(2). The Contribution Schedule increases when the unemployment fund, as a percentage of total payrolls, decreases. Id. Likewise, when the amount in the fund becomes a larger proportion of total payrolls (i.e., the fund becomes healthier), the Contribution Schedule decreases, lowering employers’ annual contribution rates. Id. Prior to House Bill 59, Section 51-1- 11(I) of the Act provided that “for each calendar year after 2011,” the Contribution Schedule to be applied depended on a calculation based on a statutory formula. Section 51-1-11(I)(2) (2010) (emphasis added). House Bill 59 amended Section 51-1-11(I)(2) by changing the effective date for calculating the Contribution Schedule by formula to “each calendar year after 2012.” H.B. 59, § 51-1-11(I)(2) (emphasis added).

{5} In addition to delaying the onset of a formula-based Contribution Schedule, House Bill 59 set a fixed Contribution Schedule for the year 2012, making the variable independent from the relative health of the unemployment fund. See H.B.

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Bluebook (online)
2011 NMSC 45, 2011 NMSC 045, 1 N.M. Ct. App. 65, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-of-nm-ex-rel-stewart-v-martinez-nm-2011.