April 8, 1999

The Honorable Raymond G. Sanchez and

Members of the House of Representatives

Executive-Legislative Building

Santa Fe, New Mexico 87503

Honorable Speaker and Members of the House:

I have this day VETOED and am returning HOUSE TRANSPORTATION COMMITTEE SUBSTITUTE FOR HOUSE BILL 507, as amended, with certificate of correction,

enacted by the Forty-Fourth Legislature, First Session, 1999.

This legislation amends a section of our "Public Works Contracts" statutes to significantly change the definition and preference given to "Resident Contractors" of New Mexico. This legislation would allow "residency" to be established for highway contractors if a principal place of business is maintained in the state or if there is a staffed office of five employees and taxes have been paid for two years.

This type of special statutory carve-out defies the practical intent of the public works contract preference given today to resident New Mexico contractors whenever practicable. Adding more exceptions only detracts further from the laws intent.

Sincerely,

Gary E. Johnson

Governor