April 5, 2001

SENATE EXECUTIVE MESSAGE NO. 43

The Honorable Richard Romero 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, as amended, enacted by the Forty-Fifth Legislature, First Session, 2001.

This bill would change the basis for taxing the retail sale of electricity. It would become effective with the deregulation of the electricity industry.

Deregulation of the electricity industry has been delayed until 2007 under legislation I have already signed. Although Senate Bill 111 presents a plan to avoid possible loss of tax base due to deregulation, it is not necessary to enact this legislation now. We have time to learn from the experiences of other states. Another approach may prove superior.

Sincerely,

Gary E. Johnson

Governor

RECEIVED FROM THE OFFICE OF THE GOVERNOR:

Time: _____________________ By:_____________________________

Secretary of State

Date ______________________

Time:______________________

Date_______________________ By:_____________________________

Chief Clerk of the Senate semsb111v