March 10,1998

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 SIGNED HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE FOR HOUSE BILL 361 passed by the Forty-Third Legislature, Second Session, 1998, but have VETOED the following item or items, part or parts:

On page 9, I have vetoed all of lines 6 through 18. This veto removes the mandate for the Department of Insurance to establish a managed-care ombudsman office. This has been removed because it creates an additional level of bureaucracy, the necessity of which has yet to be demonstrated.

On page 20, I have vetoed all of lines 24 and 25 and on page 21, I have vetoed all of lines 1 through 6. The effect of this veto is to remove a $500,000 appropriation from the General Fund to the Insurance Department. This appropriation has been removed because its primary purpose, funding of the ombudsman office, has been eliminated by the previous veto. It should be noted that I am required by the principles of prudent fiscal management to veto a number of General Fund appropriations to balance the fiscal year 1999 recurring budget and to restore the General Fund Operating Reserve to an acceptable level.

Sincerely,

Gary E. Johnson

Governor

Date:______________________ h126pvh361