April 9, 1999

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 CORPORATIONS AND TRANSPORTATION COMMITTEE SUBSTITUTE FOR SENATE BILL 763, enacted by the Forty-Fourth Legislature, First Session, 1999.

This legislation amends the franchise provision of the Liquor Control Act to require a "successor supplier" to continue to provide the same brands of liquor to the same wholesaler who had those brands in the state.

This bill places unreasonable restriction on the ability of suppliers and wholesalers to freely contract with each other by mandating that any successor supplier use the wholesaler of the previous supplier.

Current law already prohibits a supplier from terminating a franchise agreement without "good cause." Furthermore, suppliers are currently prohibited from unilaterally transferring brands to another wholesaler without good cause or a violation of contract. Therefore, the restrictions of this bill are unnecessary.

Sincerely,

Gary E. Johnson

Governor