Errors of Enchantment

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Albuquerque Journal LTE: Federal Deficit and the US economy

05.06.2013

My letter to the editor responding to a letter that appeared a few weeks before ran in today’s Albuquerque Journal business section. Full text below:

Deficit “deniers” like letter-writer Dan Metzger seem to believe that government, especially the US federal government, has magical powers. To them, federal debt and deficits are not a problem and in fact are good. How ridiculous!

For starters, Metzger seems to assume that research and development forms a large proportion of total federal spending. This is simply not the case. Total federal R&D spending is less than 5 percent of the overall budget. Far higher percentages go to transfer payments and other spending priorities that have no positive impact on economic growth.

Metzger is correct that the federal deficit has no “due date,” however interest payments on the ever-growing debt will kill economic growth if/when interest rates rise above their historically-low levels.

More importantly, the federal government simply wastes money on boondoggles costing millions or even billions of dollars including farm and ethanol subsidies (to name just two).

The economic problem we face today is not one of too little federal spending which has doubled since the end of the Clinton Administration; rather, it is too much spending which crowds out more efficient private sector investment and sustainable economic growth.

Exporting Liquefied Natural Gas Would be Immediate Economic Boon for New Mexico

05.06.2013

(Albuquerque) If the Obama Administration approves liquefied natural gas (LNG) exports to non-free trade nations (those that do not have separate trade agreements with the United States), New Mexico could see an immediate increase in economic output of $200 million and the addition of 2,000 jobs according to a new Rio Grande Foundation report.

The issue of whether or not to export a portion of America’s bounty of clean natural gas has generated heated debate pitting some environmentalists and manufacturers who oppose exports against producers and free trade supporters who wish to allow exports.

The Rio Grande Foundation has come down firmly on the side of free trade and those who wish to sell natural gas around the world.

Said Foundation President Paul Gessing, “Philosophically, this view flows directly from our support for free markets, but it also is a product of our desire to strengthen New Mexico’s economy by providing new markets for natural gas produced within our borders.”

To come to its conclusions regarding the jobs and economic input of natural gas exports, the Foundation relied on data available from IHS Global Insight which stated that “exports would create over 100,000 direct, indirect, and economy wide jobs and have an immediate impact resulting in between $3.6 and $5.2 billion in potential revenues.”

According to the US Energy Information Administration, New Mexico produces 5.3 percent of total US natural gas, thus making it likely that New Mexico would experience a similar ratio of economic benefits.

Continued Gessing, “The economic impact numbers outlined above are just a starting point in terms of economic impact, but 2,000 new jobs would be enough to qualify these new jobs as the 5th-largest private employer in New Mexico were they all at one company.”

In addition to New Mexico jobs, benefits of LNG exports include increasing tax revenues, reduced carbon emissions over other energy sources, reduced trade deficits, a display of principled support of free trade, and closer relations with foreign people and governments.

Concluded Gessing, “LNG exports are a true win-win-win policy, President Obama should act now.”

Gessing recently sat down with KNAT TV to discuss the issue of LNG exports. See that interview below:

Rio Grande Foundation president Paul Gessing discusses the potential for Liquefied Natural Gas Exports on Joy in Our Town from Paul Gessing on Vimeo.

New Mexico among slowest to release financial reports

05.03.2013

Check out the following chart:

It shows that New Mexico is among the slowest states in the nation when it comes to releasing financial reports. This chart comes to us from our friends at the Institute for Truth in Accounting which advocates for clear, honest, and transparent governmental accounting. Once aspect of their mission is to encourage states to release their reports in a timely fashion, on which account New Mexico is not faring too well.

While corporations have to file their 10-K’s within 90 days or less of their fiscal year end, in 2011 New Mexico took 356 days. This year is looking little better as it has been 298 days since the end of the fiscal year, and the state has yet to issue the report.

Additionally, on January 10, Governor Martinez issued her Executive Budget Recommendations. This means that she was making budgetary recommendations for 2014 without knowing for sure what took place in 2012—and she still doesn’t know!

Recently, the Institute highlighted the state which took the longest to release their financial reports in 2011. That is the chart shown above.

Is a virtual school right for your child?

05.03.2013

It has been well-publicized that I am on the board of a new, completely virtual charter school called New Mexico Connections Academy. Well, the proverbial “rubber is hitting the road” and enrollment is happening now as is a series of information sessions on the school itself.

Information sessions, both online and in-person (throughout the state) are going on over the next few weeks. If you think digital learning might be right for your child, grandchild, or the child of a friend (grades 4-12), now is the time to find out more and reserve a spot for that child (enrollment is limited by law). Again, click here for additional information.

Mora-ons against prosperity

05.02.2013

Contrary to New Mexico law which authorizes the Oil Conservation Division with the power to approve or deny drilling, the Mora County Commission has voted 2-1 to ban all drilling for oil and gas within its borders. Not ‘fracking’ which, while safe, has generated a great deal of concern among liberals and NIMBY types, but plain old oil and gas drilling.

This in a County where 23.8 percent of residents live in poverty and 15 percent of the County is unemployed. No jobs here!!!

Now, I honestly don’t have a moral problem with being against oil and gas drilling. It is illegal under New Mexico law and unfair even for, say 90% of the citizens of a given locality to tell the other 10% they can’t have a job, but it’s not inherently immoral. What is immoral is the fact that the folks in Mora County send their kids to schools that are funded largely by oil and gas, heat their homes and watch TV by the power of gas and/or some other nasty fossil fuel, drive on roads that have a petroleum base, and generally benefit from the fact that society around them embraces fossil fuels and oil and gas exploitation.

So, what can be done? First, it is time for our leaders to do everything possible to cut off severance tax dollars to the County. Secondly, I think Gov. Martinez and her Administration should do whatever they can to deny funding and services to the County. Need a pothole fixed or a road paved? Sorry, that requires petroleum…local welfare office or senior center not staffed appropriately…sorry, we just don’t have the money and you aren’t pulling your weight.

Freedom means responsibility. If Mora is free to deny basic economic activity on its hallowed land, then the leaders of the County should bear responsibility for those decisions and voters bear responsibility for allowing “Mora-ons” to represent them.

New England Journal of Medicine: Expanding Medicaid Didn’t Lead To Big Health Gains In Oregon

05.02.2013

Like it or not, New Mexico is heading down the expensive path of Medicaid expansion under ObamaCare. One of the concerns we expressed in opposing the expansion was related to some preliminary data from Oregon which seemed to show that Medicaid doesn’t really do much to improve the health of its recipients.

Well, the data are no longer preliminary, rather they are confirmed. According to a new report from the New England Journal of Medicine, indeed, having Medicaid newly available “did not lead to big health gains” in Oregon.”

In other words, Medicaid expansion will likely result in a lot of additional spending for very little in the way of results.

On a related note, I found this story very interesting. There is a pilot program in Medicare that, if replicated nationwide, would save an estimated $122 billion a year and improve patient lives through reduced hospitalizations (a 33% reduction). Rather than expanding this program, the Obama Administration is going to kill it.

Is the glass half-empty or half full on the film loan program?

05.01.2013

“Film Loans Fizzle.” That’s the headline of the front page story in today’s Albuquerque Journal. The rest of the story treats us to whining from the “usual suspects” on the difficulty of obtaining interest-free loans for film projects and their desire to alter the terms of such loans. It all sounds so sad…another government program that just isn’t being adequately funded.

The reality is much more optimistic, at least for taxpayers. After all, right there in the story is the explanation that the state made $1.4 million on loans totaling $240 million under the original, generous program, for a return of about 0.6 percent. Not exactly a stellar return on investment even in these low interest rate times. According to the story, the same $240 million invested in government treasuries instead of film productions would have generated more than $31 million over the same period. In other words, the changes to the program arguably saved taxpayers $30 million. This is GOOD NEWS!

Unfortunately, the author of the piece talked to film advocates, not taxpayer advocates, so the piece is gloomy in tone when it should be singing the praises of Gov. Martinez and the folks (like the Rio Grande Foundation) who advocated for these reforms.

Measure the impact of oil and gas in your community

04.30.2013

The Western Energy Alliance has put together a fascinating website that allows users to find out basic information about the impact of the oil and gas industries in their area whether that be congressional district or by county.

So, users can find for example that in San Juan County (which is located firmly in the oil/gas patch, the industry employs 3,656 workers directly in drilling and production with more than $288 million paid in wages in just those areas. When factoring in suppliers and other direct impacts of the industry, total jobs come to 4,618 with $348 million in wages paid.

Bernalillo County, on the other hand, is located outside of the oil/gas patch, but still has 86 jobs in drilling and production. Where Bernalillo County really benefits is in the follow-on impacts which came to 5,466 jobs and $260 million.

Fascinating stuff, available for every county and congressional district in the nation. New Mexico’s economy rests on two pillars: the extractive industries which are led by oil and gas and the federal government. Oil and gas are undergoing a technology-driven, transformative boom while the federal government tends to destroy wealth through taxation and regulation. I know which one I’d prefer to have here in the Land of Enchantment!

Abrams Tank Highlights Pentagon Waste

04.29.2013

Unlike some conservative organizations, the Rio Grande Foundation speaks openly and frequently about the need to cut all aspects of federal spending, including the military. This news article highlights just one case of Congress forcing the Pentagon to an extra $436 million on a weapon the experts explicitly say is not needed (the Abrams tank). As the article notes, “Keeping the Abrams production line rolling protects businesses and good paying jobs in congressional districts where the tank’s many suppliers are located.”

Are some areas of the Pentagon being negatively-impacted by the sequester? Undoubtedly. But the issue is not inadequate spending (after all, military spending has exploded over the past decade); it is poorly allocated spending. This problem is rampant throughout government and was recently highlighted by the FAA’s ill-advised attempt to squeeze air travelers by cutting service.

Sure, when it comes to the military, the “free market” is not likely to take over soon; the best we can do as citizens is to demand that our elected officials be reasonable with their military spending priorities. The Abrams tank seems to be yet another example of “pork” taking priority.

Internet taxes: why Democrats don’t like them

04.29.2013

The issue of “fairness” and taxation on sales made over the Internet is back in Congress with a bi-partisan group pushing for a new taxation scheme called the “Marketplace Fairness Act designed to collect taxes on ALL sales made over the Internet.

It sounds simple, but it’s not. Forcing mom-and-pop businesses and sellers on Ebay to collect taxes and fill out forms for 9,600 taxing jurisdictions is not simple and will inevitably kill jobs and economic growth…it’s not just about the taxes, rather it’s about the compliance costs….and the “Marketplace Fairness Act” doesn’t resolve these problems.

And, while some Republicans have joined many Democrats in supporting the scheme, some Democrats have also led the way in opposing the scheme (you can click here to share your opposition with Heinrich and Udall):

No report needed: New Mexico’s film subsidies are a waste

04.28.2013

Now that Gov. Martinez has seemingly jumped on the film subsidy bandwagon and will be pushing to complete a study of the program’s impact, some are wondering if we’ll finally have an answer to the question of whether the film subsidy program is an economic winner.

Of course, this implies that there is some great controversy over the economic impact of film subsidies, but there’s not. The programs are economic losers and there is plenty of information available to this effect. There’s a study by the lefty group Center for Budget and Policy Priorities.

There’s the fact that other states have been slashing their film subsidy programs.

There’s a column by liberal Michael Kinsley.

The Economist has written numerous articles including this one on the negative impact of film subsidies.

And Massachusetts is just one of many states that have found the subsidy programs provide a poor return on “investment.”

So, why have New Mexico film subsidy recipients been so successful at obtaining and keeping very generous subsidies?

1) They are Hollywood and are great at telling stories (fiction);
2) They are “cool.” Hanging out in the oil patch is not nearly as fun as meeting the cast of Breaking Bad or Jessica Simpson.
3) Classic economic case of concentrated benefits and dispersed costs. The film people know they are getting a sweet deal from the State and are organized to defend it (and obtain even more). Average taxpayers don’t see that they are getting hosed and are disorganized.

So, it is a pure political power play. What can be done to stop it? Average taxpayers need to tell their elected representatives that the film program is not a good deal and hold their Representatives and Senators (not to mention the Governor) accountable for their support of a program that takes tax dollars from average people and gives it to Hollywood studios.

Obama’s budget targets NM’s most important industry: where do Heinrich and Udall stand?

04.26.2013

Will energy-state senators Udall and Heinrich support provisions of Obama’s recently released budget that, once again, go after “Big Oil”? If their voting records are any indication, probably so, even though the oil and gas industry provides more than 13,000 direct jobs in New Mexico at an average annual salary of $64,000 and pours $2.5 billion a year into the government coffers of New Mexico.

“Big Oil” is paying a mere 41% in income taxes, compared to a wide array of other industries like “Big Computer” which are paying 25%. And whereas Apple Computer and most other industries receive a 9% tax deduction for “domestic production activities”, oil and gas companies get only a 6% deduction for those activities.

As the following chart illustrates, the oil and gas industries’ profit margins are lower than other major industries while it also pays higher taxes:

But Obama, along with Udall, Heinrich and others, thinks that is too generous and wants to incentivize one of the few industries that is actually creating jobs in America to move those jobs overseas. His recently released budget would remove current deductions and further penalize America’s largest oil and gas companies, four of which were in New Mexico’s top 10 producers as of 2011: Conoco Phillips, BP America, Exxon Mobile, and Chevron USA.

Energy-state senators Heinrich and Udall have repeatedly voted against the oil and gas industry and have pledged their support for taxes that target them, regardless of the negative impact on New Mexicans.

Studies estimate that a new energy tax will not only backfire by costing the U.S. Government $144 billion loss in revenue over 13 years, but will result in the loss of 170,000 direct and indirect jobs in the energy industry by 2014. Domestic oil production is also expected to decline by 700,000 barrels a day, a genius move when Americans are paying nearly $4.00 per gallon.

NM’s Graduation Rate Stagnant Relative to Other States

04.25.2013

Disclaimer: the following information is from the most recent “Diploma’s Count” which tracks the class of 2009. However, as the chart below illustrates, over the 10 years from 1999 to 2009, New Mexico’s graduation rate was both lower than and more stagnant than other states in our region (I threw Florida in to illustrate the success of the “Florida Model.”)

Interestingly, Arizona was as aggressive as any among these states in terms of school choice. Utah, which graduates students at a rate that is 10%-plus above New Mexico’s spends nearly $4,000 less on a per-pupil basis than does the Land of Enchantment. The Beehive State (Utah) had adopted a “universal voucher” for school choice until the unions succeeded in convincing voters to kill the reform before it got started.

And, as much as I want to believe that New Mexico has dramatically improved its education results with the modest reforms pushed by Gov. Martinez, I await validation of these results on national reports like Diplomas Count. We’ll see.

New Mexico’s Work Force Participation: low and falling

04.24.2013

There has been some reporting recently about New Mexico’s dropping labor participation rate. As this link shows, New Mexico is among the states in which people are leaving the work force at the fastest rate (a 4.4% drop since December of 2007).

While our unemployment rate is middle-of-the-road, our workforce participation rate is among the lowest in the nation and the lowest by far among the states bordering us AZ, UT, CO, OK, and TX. I am sure that the minimum wages adopted by Albuquerque and now Bernalillo County will help this situation….

One may quibble on the details, but economically it makes sense to have everyone who can possibly be engaged in productive activity, do so and for some support to be offered to ensure that the needy are brought up to certain minimum levels in terms of living standards. Allowing people to slip out of the work force entirely is not good.

See the chart below:

Petition to NM Supreme Court on Lawyer Reciprocity

04.23.2013

If you are an attorney licensed here in New Mexico and you support reciprocity, I encourage you to sign the following formal petition to the New Mexico Supreme Court. Please pass this along to other New Mexico attorneys.

If you or anyone wishes to sign the petition, please email us at: info@riograndefoundation.org

IN THE SUPREME COURT OF THE STATE OF NEW MEXICO

 

 

NO._________

 

IN THE MATTER OF A PETITION

TO THE SUPREME COURT OF THE

STATE OF NEW MEXICO TO MODIFY

RULES OF ADMISSION TO PERMIT

RECIPROCITY TO EXPERIENCED

MEMBERS OF OTHER STATE BARS

THAT GRANT RECIPROCITY TO

MEMBERS OF THE NEW MEXICO BAR

          COMES NOW the undersigned members of the New Mexico Bar to petition the Supreme Court of New Mexico, pursuant to its authority under Rule 15-103, NMRA 2012 to prescribe admission requirements for the practice of law in the State of New Mexico, and respectfully requests the Supreme Court to allow the admission of experienced practitioners by motion from other states that grant reciprocity to members of the State Bar of New Mexico.

This motion is in response to member demand for the adoption of a multijurisdictional practice system of admission, the policies of surrounding states that allows for admission by motion, as well as, for the best interests of the citizens of the State of New Mexico to receive the best quality legal services by allowing competent and ethical attorneys to move to New Mexico and compete and grow both the legal market and the economy of the State of New Mexico.  As grounds for this petition, the undersigned petitioner states as follows the following justification.

 

I. Changes in the Current System of Admissions and Reciprocity would benefit both clients and attorneys in the State of New Mexico

 

New Mexico is one of only eleven states that has not adopted any admission- by- motion procedure and still requires lawyers to take a bar examination regardless of experience and competence.  As a result, New Mexico attorneys applying to practice in other states are denied access to admission by motion in most other states.  The result is that New Mexico attorneys are denied the ability to effectively represent their clients, and their clients are denied the proper level of freedom to select their lawyers.

The practice of law is becoming a regional rather than local marketplace.

Attorneys in New Mexico are denied the ability in border- states to serve the needs of their clients.  Since all of the surrounding border-states, including most recently Arizona in 2010, have adopted admission-by-motion rules, New Mexico attorneys are left unable to compete with attorneys in surrounding states.

In addition, New Mexico attorneys are denied the ability to join the bars of other states if they and their families want or need to move to other states for personal or economic reasons.  In our increasingly mobile society in which people and businesses move with greater regularity than in previous years, it is essential that experienced attorneys have the ability to move to other jurisdictions without the fear of being impeded by their inability to move their law license   Despite many years and possibly decades of experience, competent attorneys with spotless ethical credentials are denied the simple right afforded attorneys from other states because New Mexico requires a bar examination.  It is common sense that studying for a bar examination is burdensome and sometime prohibitive in terms of time demands and the other sacrifices needed to be made by attorneys who have already been fully vetted by a proven  track record. The American Bar Association has commented in its Commission on Ethics that the effect of requiring attorneys already licensed and experienced in legal practice to take another bar exam is an “erection of an excessive barrier” that is “lengthy, expensive and burdensome”. In most other business endeavors such restraint would be actionable.

Businesses that desire to move to New Mexico are also constrained by the failure of the state to enact an admission-by-motion rule.  Corporations will continue to be hesitant to move to our state if their entire legal staff is forced to take the bar examination.  Most experienced corporate counsel will have no interest in taking another bar examination after years of practice, leaving their employers to have second thoughts before moving to a state with such restrictive admission policies.  While doctors and certified public accountants can move to our state without taking another exam, attorneys are not provided similar opportunities.  Pity that poor trailing spouse of the doctor, CPA, military member, FBI Agent, et al, who happens to be a lawyer and wishes to reunite the family in New Mexico, only to find themselves hit with costly, redundant, burdensome, further disruptions in their lives and livelihood.

II. Clients will receive ample protection if admission by motion is adopted

One of the concerns often expressed by opponents of reciprocity is that it would fail to protect the citizens of the State from what have been characterized as unqualified or unscrupulous lawyers because we would have to rely on other states’ processes of evaluation.  As has been demonstrated by the forty states which have adopted some form of admission by motion, such concerns are wholly unfounded and without substance. These are raised mostly by those who fear competition or else those who may be unable to compete with experienced competent attorneys with proven track records from other jurisdictions. The Court’s role should be to oversee the best and most cost effective legal services to New Mexico consumers of legal services, above maintaining a protectionist regimen for those who fear competition.

The American Bar Association Commission on Ethics has issued two major reports on admission by motion (2002 and 2012).  The 2012 report, adopted by the American Bar Association House of Delegates on August 6, 2012, found that there have been approximately 65,000 lawyers who have been admitted by motion in the forty states which have adopted such procedures in the last ten years, and “there is no evidence that lawyers admitted by motion . . . are more likely to be subject to discipline, disciplinary procedures, or malpractice suits than lawyers admitted through traditional procedures.” American Bar Association, Resolution 105E, ABA Model Rule for Admission on Motion, Report, p. 3, August, 2012 (see attachment A).  Evaluation processes of other states have not been shown to be defective in terms of ferreting out unethical attorneys.  One of the roles of the Board of Bar Examiners is to conduct additional background checks to thoroughly evaluate such applicants (and charge them for the cost) to alleviate such concerns.

If there were a real concern that New Mexico should not trust the evaluation processes of other states, we would not allow legal services lawyers to practice in our states without taking a bar examination.

Another argument is that competency in the practice of law requires an attorney to pass the bar exam of the state the attorney in which the attorney is to be licensed.  The ABA report states there is “no evidence from disciplinary counsel or any other source that these lawyers have been unable to identify and understand aspects of the new jurisdiction’s law that differ from the law of the jurisdiction where those lawyers were originally admitted.” Id.  Unique laws to the state of New Mexico, such as Indian Law or Community Property, are also no impediment to an out-of- state’s attorney’s competence and can be readily covered in CLE courses if one desires such expertise.  In fact, the ABA report concluded that attorneys with experience in another jurisdiction may actually be able to better identify and understand  local laws of states than a recent law school graduate who has passed the bar exam. Id. at 4.   While a bar examination tests an applicant on general legal knowledge, an attorney’s track record with the state’s disciplinary authority establishes competence through the actual practice of law.

III. New Mexico Attorneys are protected

There is a concern that attorneys from other states, particularly Texas, will rush over to our state and flood the market.  In fact, the experience of other states, as shown in the statistics of the National Conference of Bar Examiners, demonstrates that no such mass influx is likely to occur.  A good measuring stick to evaluate this claim is in bordering states of Arizona and Colorado, which have much larger populations.  Arizona, which instituted its admission-by-motion rule in 2010, admitted 234 attorneys in 2010 and 183 in 2011 by motion, while over 500 attorneys were admitted by exam.  In Colorado, which has had an admission- by- motion provision for many years, there were 130 attorney admitted by motion in 2010 and 155 in 2011 while over 1000 attorneys were admitted by exam each year. See, http://ncbex.org/assets/media-files/statistics/2011Statistics.pdf .

It is clear that some attorneys feel that admitting attorneys from other states runs against the self- interest of attorneys in New Mexico, and the current rules protect them from competition.  Economic protectionism is a concern heard throughout the state and was expressed in a meeting of the Board of Bar Examiners in 2007 when it rejected an attempt to pass an admission-by-motion rule.   Not only is the rationale an unconstitutional basis for requiring a bar examination under the Privileges and Immunities Clause, the benefits of adopting admission-by- motion far outweighs any perceived negative impact.  In any case, the focus of the Supreme Court should be on providing the highest quality legal services to the people of New Mexico rather than protecting attorneys who are fearful of increased competition.

In his successful petition to the Supreme Court of Arizona to adopt a similar rule, Timothy P. Burr, who is now a Professor of Law at Arizona State University, stated that “the adoption of the proposed rule would permit . . . attorneys to compete regionally and nationally, gain access to admission to other jurisdictions, gain access to larger legal markets, relocate to other states, and benefit from an increased ability to practice across state lines.” (Petition in Support of Revision of the Rules for Admission to the Bar of Arizona, filed October 2, 2006, Supreme Court No. R-06-0017, p. 7)

IV. Admission by Motion is Supported by the Majority of Attorneys in New

Mexico

 

While there undoubtedly has been interest group steadfastly opposed to opening our legal market to competent and ethical out of state attorneys, the majority of New Mexico lawyers support reciprocity or admission by motion.  In a poll conducted in 2011 by Research and Polling Inc. for the State Bar of New Mexico, 77 percent of lawyers supported the concept.    As attorneys in the State of New Mexico gain greater understanding of this issue, the number and intensity of support has risen.

V.    The Court Already Allows Other State Bar Members to Represent the Poor  in New Mexico as well as Grants Reciprocity to  Mexican Attorneys to Practice in New Mexico as Foreign Legal Consultants.

Court already permits experienced out of state lawyers to represent poor people in New Mexico via selected non-profits. (Rule 15-301.2)  Surely, we would not permit substandard representation there, so this is not about the competence of other state bar members, many of them coming from states that require higher MPRE (ethics) scores than New Mexico does. Similarly, the Court voted unanimously in November 2012, in its Case Number 33,702, to reverse the Board of Bar Examiners in the Huerta matter, thereby granting reciprocity to a Mexican Attorney under a Foreign Legal Consultant program. With that recent decision, it begs the question as to what Old Mexico bar members have that experienced American attorneys from other United States of America States do not?

VI. Conclusion

The petitioners urge the Court to promptly bring New Mexico into the mainstream by adopting reciprocity rules on this important and defining issue of the legal profession, joining the forty other states who have adopted a form of admission-by- motion.  The petitioners respectfully urge the Court to adopt the rule proposed and adopted by the Board of Bar Commissioners in 2007 called “limited reciprocity” that would allow certain attorneys from states which would accept New Mexico attorneys to be admitted when they have practiced law five of the last seven years with certain restrictions (for a complete discussion of the issue in 2007 as well as a copy of the proposed rule, see attachment B – New Mexico Lawyer, vol. 3, no. 1 (2008)).

VII. Proposed Rule

1. An applicant who meets the requirements of this rule hereafter as determined by the Board of Bar Examiners, may upon motion based on reciprocity, be admitted to this jurisdiction without examination

a. Have been admitted to practice law in at least one jurisdiction which will admit New Mexico attorneys to it’s Bar without examination under provisions similar to this rule.

b. Have been primarily engaged in the active practice of law in one or more states, territories or the District of Columbia for five of the seven years immediately preceding the date upon which the application is filed.

c. Hold a professional degree in law, J.D. or L.L.B. from a law school approved by the Council of the Section of Legal Education and Admission to the Bar of the American Bar Association at the time the applicant graduated;

d. Establish that the applicant is currently a good member in standing in all jurisdictions where admitted and an active member in the reciprocal jurisdiction;

e. Establish that the applicant is not currently subject to lawyer discipline or the subject of a pending disciplinary matter in any other jurisdiction; and

f. Establish that the applicant possesses the character and fitness to practice law in this jurisdiction pursuant to the rules governing admission to practice in the State of New Mexico whether by examination, motion or this rule.

2. For purposes of this section, “practice of law” shall mean:

a. private practice as a sole practitioner or for a law firm, legal services office, legal clinic or similar entity, provided such practice was subsequent to being admitted to the practice of law in the jurisdiction in which that practice occurred;

b. practice as an attorney for a corporation, partnership, trust, individual or other entity, provided such practice was subsequent to being admitted to the practice of law in the jurisdiction in which the practice occurred and involved the primary duties of furnishing legal counsel, drafting legal documents and pleadings, interpreting and giving advice regarding the law, or preparing, trying or presenting

cases before courts, executive departments, administrative bureaus, or agencies;

c. practice as an attorney for the federal or a state or local government, state or federal agency or bar-related programs, provided that such employment is available only to licensed attorneys;

d. employment as a judge, magistrate, referee, or similar official for the federal or state or local government, state or federal agency or bar-related programs, provided that such employment is available only to licensed attorneys;

e. full-time employment as a teacher of law at a law school approved by the American Bar Association, whether or not such law school is located in New Mexico; or

f. any combination of the above.

3. Upon completion of the admission process, applicants shall be admitted upon motion by the Supreme Court of New Mexico.  The fee shall be established by the Board of Law Examiners.  No fees are refundable.

4. Upon admission, the admittee shall immediately be subject to all rules of mandatory continuing legal education, professionalism, and the disciplinary rules of the Supreme Court of New Mexico and annual dues to be paid to the State Bar of New Mexico.

5. Any attorney admitted pursuant to this rule shall be subject to the same rules applicable to attorneys who take and pass the New Mexico Bar Examination, including but not limited to: IOLTA, pro bono and case assignments or appointments by the various judicial districts in the State of New Mexico.  Failure to comply with these rules or accept such appointments shall result in disciplinary action.

 

Respectfully Submitted:

 

 

___________________

Patrick J. Rogers

Patrick J. Rogers, LLC

P.O. Box 26748

Albuquerque, NM 87125

505-938-3335

patrogers@patrogerslaw.com

 

 

Attachments:

Resolution 105E and Report

ABA Model Rule for Admission by Motion

American Bar Association House of Delegates

August 6, 2012

New Mexico Lawyer

Vol. 3, no. 1 (2008)

Letters to Court from Concerned Citizen

2733 Words

US Carbon Emissions Decline; China’s Boom

04.22.2013

America’s natural gas boom has helped lead to a dramatic decline in carbon emissions in the United States. Rather than pursuing “green” energy technologies that are simply not ready for prime-time, the US government should just allow US suppliers to assist China with the transition to cleaner, more-efficient energy sources? After all, the free market incentivizes efficiency in ways that governments never can. Could China one day be buying large quantities of New Mexico natural gas?

Oil, gas, and WIPP

04.19.2013

The following letter appeared in the April 17-23 edition of the Santa Fe Reporter. The letter was in response to the article “WIPP it Good” which appeared in the previous edition of the paper.


I read with interest Laura Paskus’ article on WIPP. In particular, I noted her statement that the “oil and gas industry offers relatively few jobs.” This statement is highly inaccurate. According to the New Mexico Oil and Gas Association, the industry directly employs between 12 and 15 thousand New Mexicans. If those workers all worked for one company, that would be the largest private employer in our state by far (Intel, the next largest, employs approximately 3,000).

Now that we have cleared that up, it is worth discussing the issue of nuclear storage itself. Currently, high-level nuclear waste is stored on site at more than one hundred facilities nationwide, none of which were designed for the purpose of holding such waste. It is widely-acknowledged that this is not an optimal situation and that a site like Yucca Mountain or a facility designed for the purpose in the Carlsbad area would be a superior and safer option.

While the jobs and economic impact of such a facility were it to be located in our state would be welcome, safety issues must dominate. On that, Paskus and I would agree. I can hardly imagine she thinks the current situation is preferable.

New Report: Prosperity is Proportional to Economic Freedom along New Mexico’s Border

04.18.2013

(Albuquerque) Varying levels of economic freedom, both from country to country and state to state, have been widely studied by think tanks and government agencies alike. The strong trend is for economic freedom to be correlated with prosperity.

Nonetheless, few if any reports have directly compared the burden of government across often-arbitrary Western borders.

The new Rio Grande Foundation report, “Liberty, Opportunity, Prosperity along New Mexico’s Border,” is an attempt to localize the impact economic freedom has upon prosperity in New Mexico and border regions in neighboring states. (A summary of the report is available here) The report:

  • Defines economic freedom and explains how and why it varies across political borders that delineate the neighboring counties of New Mexico, Texas, Oklahoma, Colorado and Arizona;
  • Explains why economic freedom is relevant and statistically measures how it leads to prosperity;
  • Ranks economic freedom of New Mexico counties compared to their neighboring counterparts across state lines;
  • Explores the influence federal spending has on local economic freedom and, by extension, prosperity.

Said, Harry Messenheimer, PhD, author of the report, “Unfortunately New Mexico has a reputation is as an economically-unfree state, but on a county-by-county level, economic freedom varies widely.” Continued Messenheimer, “The borders between New Mexico, Arizona, Colorado, and Texas are straight and essentially arbitrary. For that reason neighboring counties along those borders provide a particularly useful laboratory for study of how differences in state/local economic freedom affect prosperity.”

Concluded Messenheimer, “economic freedom often varied a great deal among counties, and we uncovered yet another strong link between economic freedom and prosperity. Based on private earnings per worker as an indicator of prosperity, counties with mostly high economic freedom tended to be 75 percent more prosperous than those with low economic freedom. Moreover, more federal spending was associated with reduced prosperity.”

A Medicare Reform Left and Right can agree on?

04.17.2013

As we gear up for tonight’s big debate, I thought this was a very interesting article about how Medicare should be more like Social Security. Sure, Social Security’s finances are problematic and the system must be reformed, but they are not as bad as Medicare’s long-term.

One solution, as Michael Cannon of the Cato Institute points out, is to give Medicare recipients a sum of money to spend or save for their own health care. Again, it doesn’t solve the entire problem, but it starts us in the right direction.

Hobby Lobby Voluntarily Raises its “Minimum Wage”

04.16.2013

With Bernalillo County poised to raise its government-mandated minimum wage, I thought this story about Hobby Lobby  raising its starting wage for full-time workers to $14/hour and for part-time workers to $9.50/hour was very interesting. Why would an avowedly “conservative” company that has sued the Obama Administration over its “ObamaCare” health care law voluntarily raise its minimum wage? After all, aren’t these people cruel capitalists hoping for nothing more than to squeeze another dime out of its hapless employees?

Well, I can’t speak to the hearts of the folks at Hobby Lobby, but I can say that paying competitive wages can be good business. Henry Ford knew this 100 years ago and any worker today who earns more than the government-mandated wage can thank the basic economic law of supply and demand, their work ethic, and competency (not politicians) for their increased wage rate.

So, kudos to Hobby Lobby for being a successful business. If you are concerned about the minimum wage hike proposed for Bernalillo County, check out this petition and attend the County Commission hearing on Tuesday the 23rd to speak out against this misguided proposal.

 

 

 

New Mexico in the middle when it comes to higher ed tuition hikes

04.16.2013

There was a spate of coverage here and elsewhere last week over the steep tuition hikes enacted at the University of New Mexico. See full coverage here, here, and here. I found the following chart which illustrates the tuition hikes experienced by state four-year colleges and universities in the 50 states over the last few years. New Mexico appears squarely in the middle of the list. The truth is that higher education spending is out of control in most states across the nation. It is time to re-evaluate the system in its entirety.

Kudos to Albuquerque Public Schools for joining the digital learning revolution!

04.15.2013

I have to admit that I almost did not believe my eyes when I saw Sunday’s op-ed in the Albuquerque Journal by Donald Moya, CFO of the Albuquerque Public Schools (APS). It is great to see New Mexico’s largest school district (and several other districts) embracing digital learning, calling it “the way of the future.”

As a board member of one of two New Mexico virtual schools, Connections Academy,  which came under attack in the Legislature on multiple occasions during the legislative session (not the least of which included Hanna Skandera’s confirmation hearing), I am thrilled to have this endorsement of the basic learning model that we are working on supported so strongly by the traditional schools.

There can be no doubt that technology individualizes learning in ways that one teacher in front of 25 students cannot. APS has a real opportunity to be a national leader in both implementing digital reforms and in pushing the New Mexico Legislature to clear the way for such options, whether they be within the traditional school system, charters, or some other model that may be available. I hope they will seize upon this opportunity and perhaps consider some of the concepts in the 2012 edition of the “Digital Learning Now” 50 state report card as they move forward.