Tobacco bill vetoed

From the Alamogordo Daily News - SANTA FE For the second year in succession, Gov. Susana Martinez has vetoed a bill that would have forced a price increase on certain cigarettes produced by smaller companies. The bill was designed to make sure that all tobacco companies are reimbursing the state for medical costs related to smoking. Small companies selling cigarettes on tribal lands are not paying into the state escrow fund designated for smoking-related health expenses. Sen. Lynda Lovejoy, D-Crownpoint, sponsored Senate Bill 225 to end this disparity. She said allowing some companies to escape payment threatens New Mexico's 1998 master settlement with Big Tobacco companies. That agreement brings the state $35 million to $40 million a year. Martinez, in vetoing the bill Wednesday, said there was no pressing need to create the cigarette law. She vetoed a similar cigarette bill last year, calling it a tax increase. Martinez campaigned for governor on a promise not to increase any taxes. "While a credible argument can be made that escrow collection may or may not be a tax increase, my primary concern with this bill relates to ongoing arbitration between the state and major tobacco companies," Martinez said. Tobacco companies that signed the master agreement are challenging dozens of states on compliance issues. They hope to avoid or reduce annual payments to those states. "Because New Mexico is in compliance with the master settlement agreement, there is no need to amend the law at this time," Read more

Tobacco bill vetoed