The bill would expand an existing law, named Katie’s Law, that currently requires DNA to be taken for arrests in violent felonies. Twelve states mandate the taking of DNA from those arrested for all felonies, and a number of others, including New Mexico, mandate it for certain felonies.

State Sen. Vernon Asbill, R-Carlsbad, who is carrying the legislation in the Senate along with Sen. Mary Kay Papen, D-Las Cruces, says that 37 of the 42 Senators have signed on to support the law.

Martinez held a press conference yesterday with legislators from both parties in support of the bill.

But the American Civil Liberties Union of New Mexico told the Santa Fe Reporter that it doubts the constitutionality of the legislation.

“It takes a foundational legal principle, innocent until proven guilty, and turns it on its head,” ACLU-New Mexico Communications Specialist Micah McCoy tells SFR. “DNA is more than a fingerprint. DNA contains your entire code; DNA is you: This is your entire genetic information that they are seizing from people, many of whom are presumably innocent.”

The ACLU sued against a similar law in California, and that lawsuit may be on track to reach the Supreme Court.

Katie’s Law is named after Katie Sepich, a New Mexico State University student who was attacked, raped and murdered in 2003. Sepich’s mother, Jayann Sepich, asked Martinez for the expansion of the law.

The whistleblower law – House Bill 165, sponsored by Rep. Joseph Cervantes, D-Las Cruces – allows government employees to sue their employers if they’re retaliated against for reporting government corruption, testifying before a public body or refusing to participate in unlawful activity.

Richardson signed three other bills while in Las Cruces:

• Senate Bill 279, sponsored by President Pro Tem Tim Jennings, D-Roswell, and Mary Kay Papen, D-Las Cruces, which creates an annual fund of $10 million that is designed to ensure that residents of colonias get assistance for infrastructure improvements.

• House Bill 112, sponsored by Antonio Lujan, D-Las Cruces, which gives the City of Las Cruces the authority to issue $8 million in TIDD bonds to redevelop downtown.

• Senate Bill 9, sponsored by Papen, which would require that paying space travelers sign a waiver agreeing to hold companies harmless before they pay those companies to take them into space from Spaceport America in Southern New Mexico.

“My opinion is that they should have judged her on her professional qualifications,” the Governor said.

Holguin’s nomination got caught in the crosshairs of an internal fight over control of the Democratic Party and controversy over state environmental regulations.

Holguin managed the 2008 political campaigns of Sens. Tim Keller and Eric Griego. The duo knocked off then-Democratic Sens. Shannon Robinson and James Taylor a the June primary election that was considered a victory for progressive voters. In November of that year Tim Eichenberg defeated Republican Diane H. Snyder.

The political upheaval split Democratic lawmakers into rival fractions. And incumbent lawmakers from both political parties charged that several nonprofits had improperly influenced the legislative elections.

The losing lawmakers sued the nonprofits, a complaint later dismissed by state courts. Meanwhile, the state filed a lawsuit to force the nonprofits to disclose the origin of the money that had paid for what they said were educational mailers critical of the state lawmakers who later lost. A federal judge shot down the state’s lawsuit last year, and the state has appealed.

Holguin in an e-mail expressed surprise and disappointment at Tuesday’s vote.

“Since July, I’ve served on the Environmental Improvement Board in a thoughtful and principled manner,” she said in the e-mail. “I have a long track record of working on conservation in New Mexico. I will continue to advocate for the responsible stewardship of our natural resources and the public health, safety and welfare of New Mexicans.”

A tally sheet of the Senate vote shows that 10 Democrats joined 15 Republicans to reject Holguin’s nomination.

They were Linda Lopez, David Ulibarri, John Arthur Smith, John Sapien, Bernadette Sanchez, John Pinto, Mary Kay Papen, George Munoz, Howie Morales and Richard Martinez.

Bernadette Sanchez, in particular, spoke out in opposition to Holguin’s nomination on the Senate floor.

Sanchez’s constituents in 2008 received educational mailers sent out by the nonprofits before that year’s primary election. Sanchez did not face an opponent.

All 15 Republicans voted against Holguin’s nomination too.

It’s hard to discern what led to that, but also in play in Holguin’s nomination is an ongoing battle over state environmental regulations.

An organization has requested that the Environmental Improvement Board roll back New Mexico’s emissions to 25 percent below their 1990 levels by 2020 — far below anything being considered at the federal level and something critics say would devastate the state’s economy.

Martinez didn’t name names, though he threatened to release to the media a list of Democratic and Republican colleagues he said collect per diem checks for interim legislative committee meetings that they barely attend. He made a pointed reference to Sen. Linda Lopez, D-Albuquerque and a candidate for lieutenant governor, who was presiding over the Senate at the time of his rant.

“There’s a lot of members of this body that go to into the interim committees just before lunch, sign the voucher, stay for the free lunch, and then book. You never see them again. …  If we want to save money, let’s stop abusing the system,” Martinez said.

“I could name names. I’ve got lists. Believe me, in nine years I’ve collected a list,” Martinez said. “And it would be very embarrassing if I let go of that list to the media. Are you listening madam president (referring to Lopez)? Because you’re on several committees with me too!”

Lopez did not respond.

Martinez also added that some freshman lawmakers have quickly become “really good” at abusing the system, but again, he didn’t name names.

Asked by NMI to name names following the outburst on the Senate floor, Martinez declined.

Ultimately, the Senate, on a voice vote, tabled the resolution from Sen. Mary Kay Papen, D-Las Cruces, calling on all lawmakers to voluntarily reduce their per diem reimbursements by at least 10 percent for the remainder of the special session.

Martinez made it clear that he needs the money for expenses including hiring a caretaker for his 94-year-old mother and boarding his dog every time he has to travel to an interim committee meeting in another part of the state.

Senate President Pro Tem Tim Jennings, D-Roswell, was among those expressing concern about Papen’s proposal. He said some lawmakers might not be able to afford a 10 percent cut.

Papen countered that the intent was for lawmakers to make a sacrifice along with everyone else. She said it could be 1 percent or 20 percent – whatever each could afford.

The debate over pay and per diem

Lawmakers currently receive $159 per day in per diem when they’re working. New Mexico is one of a few states where legislators aren’t paid a salary. For years, there’s been a debate about whether lawmakers should be paid (disclosure: I have said they should get a salary).

There’s also been a debate about how per diem should be used. Sen. Cisco McSorley, D-Albuquerque, has collected per diem (from taxpayer dollars) for travel, then also reimbursing his expenses from his campaign account – a practice that has earned him the criticism of some who accuse him of double dipping.

McSorley has said, according to the Albuquerque Journal, that he “has done nothing wrong and that he doesn’t consider the per diem he receives from the state to be an allowance for lodging, meals and incidental expenses.”

“That is supposed to be trying to make up for what I lost at home” while away from work, the Journal quoted McSorley as saying.

Sen. Garcia a top per diem collector

Wondering which lawmakers collect the most per diem from the state? Often at or near the top of the annual list is Sen. Mary Jane Garcia, D-Doña Ana. I’ve written before that she collected $26,000 in per diem in 2005, more than any other lawmaker that year. And I’ve written about the myriad of lawmakers, other politicians and political watchers who have told me that Garcia has often barely attended the meetings she’s been paid to attend.

Garcia has said she works hard for the per diem she receives.

Update, 8:40 p.m.

Lopez released this statement:

“Sen. Martinez’s reference to abusing per diem is unfounded. While there may be some of my colleagues who do not stay for the full committee hearing for which they are being paid per diem for, as a part-time, citizen Legislature, some may need to step out of a committee hearing to deal with business, constituent or other types of ‘fires’ that need to be dealt with.”

The Independent’s Gwyneth Doland contributed to this report.

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Papen’s legislation asks that legislators in both chambers “voluntarily reduce their per diem reimbursement by a minimum of ten percent for the remainder of the forty-ninth legislature.”

The per diem reduction would need to be voluntary because, as Papen notes in the resolution, “the rate of per diem reimbursement for legislators is set in the constitution of New Mexico.”

The relevant section of the New Mexico constitution, (Article IV, section 10, paragraph A) says:

per diem at the internal revenue service per diem rate for the city of Santa Fe for each day’s attendance during each session of the legislature and the internal revenue service standard mileage rate for each mile traveled in going to and returning from the seat of government by the usual traveled route, once each session

Legislators don’t get paid for their work in the state legislature and the per diems are designed to offset food and board for the legislators.

Sen. Mary Kay Papen, D-Las Cruces, said Richardson’s help will follow a $20,000 gift to Jardin de los Niños made by Stan Fulton, the owner of Sunland Park Racetrack and Casino. Jardin was in danger of closing because of a lack of funding, Papen said, but the aid from Fulton and the governor will help the organization keep its doors open for several months until other cash comes in.

Papen said the governor will make the announcement Monday at noon at the nonprofit’s facility, located at 999 W. Amador Ave.

“We’re very grateful both to Sunland Park racetrack and to the governor for helping this organization stay alive,” Papen said.

The governor’s office did not respond to a request for confirmation and has not released Richardson’s public schedule for the week. In fact, the governor hasn’t responded to any request for comment I’ve made in the last two weeks or so.

But Papen should be in a position to know what’s happening. Her daughter is the president of Jardin’s board of directors.

The nonprofit received another donation recently — about $2,000 worth of computer equipment from Sitel, according to the Las Cruces Sun-News. In the newspaper’s article, Jardin Executive Director Shirley Jacquez described the effect the struggling economy has had on the nonprofit.

“Request for services is way up and our funding is down,” Jacquez was quoted by the Sun-News as saying.

Arnold-Jones, an Albuquerque Republican, and Sen. Mary Kay Papen, a Las Cruces Democrat, are among those who have previously expressed fear that political considerations could lead to the case being buried.

Arnold-Jones said today’s indictments are a “glimmer of hope” that the law can win out over politics.

“In order to make your laws mean something and in order for government or individuals to be accountable, they have to be held accountable by the authorities whose job it is to hold them accountable. This is the first step in that direction,” Arnold-Jones said.

An indictment is only the first step in the formal process of government prosecutors attempting to convict those it accuses of crimes. In this case, the indictments of former state legislator and Region III Housing Authority Director Vincent “Smiley” Gallegos and three others were three years in the making. The scandal first captured headlines in 2006 when the Albuquerque-based Region III authority defaulted on $5 million in bonds it owed the state.

The State Investment Council (SIC) and state auditor have found widespread misuse of the bond money, which was supposed to be spent on affordable housing.

Gallegos has been a close ally of House Speaker Ben Lujan and, as a lobbyist, spent a lot of time in the speaker’s office during legislative sessions before the scandal broke in 2006. Their relationship — and alleged attempts by Lujan and his allies to kill reform of the housing authority system during the 2007 legislative session — were the basis for the fear expressed by many that the investigation might never lead to indictments.

Attorney General Gary King never publicly addressed such fear, as it’s his office’s policy to not comment on pending investigations. Even after the probe moved past the “pending” stage today, his office refused to comment beyond providing the names of those who were indicted.

‘It’s a good day for New Mexico’

But today’s action goes a long way toward putting such fear to rest, said Frances Williams, a former board member of the Las Cruces-based Region VII authority and the whistleblower who first exposed the problems that led to the collapse of much of the housing authority system three years ago.

“I am elated that the attorney general has gotten an indictment against Vincent ‘Smiley’ Gallegos, and I want to thank him and his staff for their hard work,” Williams said, adding that “true justice will only be served if Gallegos is convicted.”

Papen said in an interview that she is also pleased.

“It’s a good day for New Mexico,” she said. “…I’m happy, and I really want to thank the attorney general. I’ve been really hard on him about getting this done.”

Lt. Gov. Diane Denish said in an interview that she believes the indictments “are the result of a very long and thorough investigation by the AG.”

“This is absolutely unacceptable, this kind of behavior with public money,” Denish said. “New Mexicans deserve better.”

State Auditor Hector Balderas, whose recent audits of the housing authority system led to his office’s aiding the AG’s case, said in a prepared statement that he “strongly believed” following the release of his audits, “as I do now, that there was evidence of gross mismanagement. We have since fully cooperated with the Attorney General’s Office in their investigation of this serious matter and trust that the justice system will handle the matter appropriately.”

What about Lujan?

Williams said she won’t be entirely satisfied even if Gallegos and the others who were indicted today are convicted. She called it a “shame” that Lujan, “who vehemently defended Mr. Gallegos as being a decent and honorable man who had done nothing wrong,” is still the powerful House speaker and “has the support of elected officials who are in his hip pocket.”

Lujan could not immediately be reached for comment.

Even before today’s indictments, some action had been taken in response to the scandal. The AG obtained court orders to boot three tenants from homes owned by Region III because they didn’t qualify for affordable housing — two employees of the authority and a board member. A judge was disciplined for a conflict of interest related to the scandal. And the SIC sued Gallegos and Albuquerque bond attorney Robert Strumor in an attempt to recover public money that was lost when Region III defaulted on the bonds. That lawsuit is pending.

Gallegos, Strumor and former Region III accountant Dennis M. Kennedy are facing felony charges including fraud and money laundering. The fourth defendant, former Region III employee David N. Hernandez, is charged with tampering with evidence.

A man who answered Strumor’s phone said Strumor was not available for comment. Attorneys for Gallegos and Kennedy could not be reached for comment.

Ryan Villa, an attorney for Hernandez, said his client is “totally innocent.”

“We’re eager for our day in court where we can show that,” he said. “I think this is a very politically driven case, and he’s caught up in the fray. I don’t think he did anything criminal.”

Strumor also politically connected

Gallegos isn’t the only defendant in the case with political ties. Strumor, a well-known bond attorney who has done work for government agencies in New Mexico, has given a number of campaign contributions over the years, mostly to Democrats.

For example, Strumor and his law firm have given $4,000 over the last several years to Denish, and in 2006 gave $2,060 to Gov. Bill Richardson and $1,000 to Secretary of State Mary Herrera.

Strumor and his firm also contributed to some now-disgraced politicians, including $2,550 former Senate President Manny Aragon, $10,000 to former state Treasurer Robert Vigil and $1,600 to former Treasurer Michael Montoya. All three are serving time in federal prison after being convicted of felony crimes in public corruption cases.

Photo by Heath Haussamen

Attorney General Gary King will take his investigation into the housing authority scandal before a grand jury Friday with the intent of securing indictments, a source with knowledge of the situation has confirmed.

The source provided no other details about how long the grand jury will meet or who might be targeted by the AG. King’s office did not immediately respond to a request for comment, but it typically does not comment on or acknowledge grand jury proceedings, which are secret.

This marks the second time King has scheduled a grand jury in the drawn-out investigation of the scandal in the state’s affordable housing system. After subpoenaing multiple witnesses to appear before a grand jury in February, King called it off. His office, which never confirmed that grand jury in the first place, would not say why it was delayed.

At the time, one state lawmaker who has played a prominent role in reforming the housing authority system, Sen. Mary Kay Papen, D-Las Cruces, said she feared King was not treating the investigation as a priority. She’s one of many who has publicly questioned whether the case would ever lead to criminal charges.

The scandal first captured headlines in 2006 when the Albuquerque-based Region III Housing Authority defaulted on $5 million in bonds it owed the state. The State Investment Council (SIC) and state auditor have found widespread misuse of the bond money, which was supposed to have been spent on housing.

The misuse included a $300,000 loan the housing authority made to a private company owned by former Region III Director Vincent “Smiley” Gallegos, the man at the center of the scandal, under the guise of purchasing more than 30 lots in Las Cruces — lots that had already been purchased by the authority. Gallegos repaid the loan before he resigned in 2006.

There has been some action in response to the scandal. The AG obtained court orders to boot three tenants from homes owned by Region III because they didn’t qualify for affordable housing — two employees of the authority and a board member. A judge was disciplined for a conflict of interest related to the scandal. And the SIC is suing Gallegos and Albuquerque bond attorney Robert Strumor in an attempt to recover public money that was lost when Region III defaulted on the bonds.

But Papen and others have said they are hoping someone will be held criminally liable for what happened.

The housing authority case is one of three public corruption probes by the AG that are known publicly. King’s office recently indicted Public Regulation Commissioner Jerome Block Jr. and his father on charges related to abuse of the state’s public financing system. King’s office is also investigating the spending of voter education funds under former Secretary of State Rebecca Vigil-Giron.

NMSU Interim President Waded Cruzado

LAS CRUCES — The resignation of New Mexico State University Interim President Waded Cruzado is in the works, a move that has angered some powerful state legislators who believe the Board of Regents and the Richardson administration are forcing the change.

Cruzado is going to return to the job she previously held, executive vice president and provost, a number of sources with direct knowledge of the situation confirmed. Three powerful legislators — Senate Finance Committee Chairman John Arthur Smith, President Pro Tem Tim Jennings and Finance Committee member Mary Kay Papen — are all upset by the move, saying they believe the Richardson administration is behind it.

“I’m a fan of hers,” Smith said of Cruzado. “I think she’s tried to do what is right, and I will certainly lead a charge in the New Mexico Legislature on a vote of ‘no confidence’ on the entire board of regents and whoever else is involved.”

Cruzado and most members of the NMSU regents could not immediately be reached for comment. Student Regent Chris Anaya referred questions to Chairman Blake Curtis, who was not available.

Jennings said that in dealing with Cruzado in this year’s legislative session, he found her to be “somebody who was up front and wasn’t going to tell you what you wanted to hear. She was going to do what was in the best interest of New Mexico State University and the students, and that’s what I want.”

“We need stability. We don’t need to create more confusion and suspicion about what’s going on,” Jennings said. “Here’s a lady who was up front, she was doing what was right, and now she’s going to get dumped. I hate to see her get dumped.”

It’s not immediately clear when Cruzado’s resignation will be announced or who will replace her. The regents plan to meet in executive session this afternoon and hold a public meeting on Friday.

Will Cruzado re-apply?

Cruzado was named interim president last summer after Michael Martin left to be chancellor at Louisiana State University’s main campus in Baton Rouge. After spending $90,000 on the search to replace Martin, the regents scrapped the process late last year, saying a state law that required them to publicly name five finalists hampered the process.

Gov. Bill Richardson responded by replacing three of five regents.

The new board has said it plans to restart the search later this year. Though she was interim president, the regents have said Cruzado could apply for the permanent job, a move that angered some who didn’t want the appearance of a done deal. Cruzado hasn’t said whether she plans to apply for the permanent position.

But Cruzado is popular among students and faculty, and there has been a movement on campus to make her the permanent president. That popularity was one of many positives about Cruzado cited by Papen.

“She’s a double minority. She’s a woman and a Hispanic. She is like a bulldog for the university, and the legislators have been very pleased with her. The faculty I’ve talked to and the students I’ve talked to have all been extremely pleased with her,” Papen said.

‘Fed up with this administration’

Smith agreed with Papen’s praise for Cruzado, and said he’s upset by what he sees as the administration’s meddling in the higher education system.

“Quite frankly, I am fed up with this administration. Even though they deny the fact that they get involved, our higher education system, everywhere you turn, has the indication of the executive branch micromanaging,” Smith said.

The governor’s office said it had no involvement in Cruzado’s resignation from the interim president job.

“If that’s the decision (the regents) are going to make, then they’re making it without any input from the governor’s office or, my understanding, the higher education department,” said Richardson spokeswoman Alarie Ray-Garcia.

Smith said a vote of no confidence in the regents would be “very embarrassing” for the university and might also affect its credibility.

“If they’re whimsical on personnel, then the finance committees have to assume they’re whimsical on the budget,” he said. “We’re going to do what’s right because the concern is the students.”

Jennings said he also believes the Richardson administration is directing the regents. If a no-confidence resolution is introduced, he said, “it would probably have a good chance of passing.”

There was no ceremony to celebrate the signing of Senate Bill 20, sponsored by state Sen. Mary Kay Papen, D-Las Cruces. It was listed in a news release along with a number of other bills the governor signed today.

Among the reforms in the bill are the consolidation of seven regional authorities into three, the designation of an oversight agency to oversee regional operations, the strengthening of conflict-of-interest language, the permanent elimination of the authorities’ ability to issue bonds and the requirement that transactions of over $100,000 be reviewed and approved by the mortgage finance authority.

That builds on reforms approved in 2007 to include temporarily stripping the housing authorities’ bonding authority and give the Department of Finance and Administration and state treasurer roles in administering the agencies’ finances. The bill approved that year also funded audits the state auditor recently completed.

Most of the housing authority system collapsed in 2006 when the Albuquerque-based Region III Housing Authority defaulted on $5 million in bonds it owed the state. Soon thereafter the State Investment Council released a report that found widespread misuse of the bond money, which was supposed to be spent on houses. In January the state auditor released his office’s long-awaited reports.

Attorney General Gary King is investigating.