March 11, 1998

The Honorable Manny M. Aragon and

Members of the Senate

Executive-Legislative Building

Santa Fe, New Mexico 87503

Honorable President and Members of the Senate:

I have this day VETOED and am returning SENATE BILL 111 passed by the Forty-Third Legislature, Second Session, 1998.

This legislation was intended to provide for central reporting of industrial revenue bonds issued by local governments. Although the essential purpose of the bill is acceptable, the bill has been vetoed because it contains two flaws. The reporting requirements imposed on firms for which bonds are issued are excessive. Secondly, the bill requires only those bonds issued for "economic development projects" to be reported. This provision would exclude a significant number of bonds issued and, as a result, the value of the reporting program is limited. Perhaps in the next regular legislative session this legislation can be further refined.

Sincerely,

Gary E. Johnson

Governor

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