SB 153

                                1  SENATE BILL 153
                                2     57TH LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 2026
                                3  INTRODUCED BY
                                4  Michael Padilla
                                5
                                6
                                7
                                8
                                9
                                10  AN ACT
                                11   RELATING TO PROCUREMENT; REDUCING THE NUMBER OF TAXPAYING YEARS
                                12   REQUIRED FOR CERTAIN RESIDENT BUSINESSES AND CONTRACTORS;
                                13   ADDING THE DEFINITION OF "BEST OBTAINABLE PRICE"; CLARIFYING
                                14   THE DEFINITION OF "CENTRAL PURCHASING OFFICE"; ADDING THE
                                15   DEFINITION OF "NOTICE OF INVITATION FOR SOLICITATION"; ADDING
                                16   THE DEFINITION OF "NOTICE OF REQUEST FOR PROPOSALS"; AMENDING
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                                17   THE DEFINITION OF "SMALL BUSINESS" TO CONFORM TO THE DEFINITION
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                                18   IN FEDERAL LAW; REQUIRING THAT SEALED BIDS BE OPENED IN
                                19   ACCORDANCE WITH SECTION 13-1-107 NMSA 1978 (BEING LAWS 1984,
                                20   CHAPTER 65, SECTION 80); REQUIRING STATE AGENCIES AND LOCAL
                                21   PUBLIC BODIES TO PROVIDE UP TO TWO NAMES FOR CHIEF PROCUREMENT
                                22   OFFICERS; REQUIRING THAT A CHIEF PROCUREMENT OFFICER
                                23   CERTIFICATION PROGRAM BE MAINTAINED BY THE STATE PURCHASING
                                24   AGENT; ALLOWING APPROVED CONTINUING EDUCATION UNITS TO BE USED
                                25   FOR RECERTIFICATION; DEFINING "CONTINUING EDUCATION UNITS";
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                                1    REQUIRING EXEMPTION DETERMINATIONS TO INCLUDE THE FACTS RELIED
                                2    UPON IN THE DETERMINATION; INCREASING EXEMPTION MAXIMUM AMOUNTS
                                3    FOR CERTAIN PURCHASES; INCREASING SMALL PURCHASES AMOUNTS
                                4    EXCLUDED FROM REQUIRED PROCUREMENT BY THE STATE PURCHASING
                                5    AGENT; CHANGING INVITATION FOR BIDS POSTING AND PUBLICATION
                                6    REQUIREMENTS AND EXPENDITURE AMOUNTS; CLARIFYING HOW IDENTICAL
                                7    COMPETITIVE SEALED BIDS ARE AWARDED; REQUIRING THAT
                                8    PROFESSIONAL SERVICES CONTRACTS BE REVIEWED BY THE STATE
                                9    PURCHASING AGENT OR A GENERAL SERVICES DEPARTMENT DESIGNEE;
                                10   INCREASING THE AMOUNT FOR CERTAIN PURCHASES BY A CENTRAL
                                11   PURCHASING AGENT; LIMITING SOLE SOURCE CONTRACTS TO A TERM OF
                                12   FOUR YEARS, INCLUDING ALL EXTENSIONS AND RENEWALS; CHANGING
                                13   CERTAIN INTENT TO AWARD SOLE SOURCE CONTRACT REQUIREMENTS;
                                14   REQUIRING COST OR PRICING DATA BY PROSPECTIVE CONTRACTORS;
                                15   INCREASING MAXIMUM TERMS FOR PROFESSIONAL SERVICES CONTRACTS TO
                                16   EIGHT YEARS; PROVIDING PROCUREMENT PROCESS EXCEPTIONS FOR
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                                17   CERTAIN DISASTER-RELATED CONTRACTS PROCURED DURING A DECLARED
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                                18   STATE OF EMERGENCY; PROVIDING FOR PREPAYMENT OF CERTAIN CHILD
                                19   CARE ASSISTANCE SERVICES CONTRACTS.
                                20
                                21   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
                                22        SECTION 1.   Section 13-1-22 NMSA 1978 (being Laws 2012,
                                23   Chapter 56, Section 4, as amended) is amended to read:
                                24        "13-1-22.    RESIDENT BUSINESS AND RESIDENT CONTRACTOR
                                25   CERTIFICATION--NATIVE AMERICAN RESIDENT BUSINESS AND NATIVE
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                                1    AMERICAN RESIDENT CONTRACTOR CERTIFICATES--RESIDENT VETERAN
                                2    BUSINESS AND RESIDENT VETERAN CONTRACTOR CERTIFICATES.--
                                3  A.   To receive a resident business, Native American
                                4    resident business, resident veteran business or Native American
                                5    resident veteran business preference pursuant to Section
                                6    13-1-21 NMSA 1978 or a resident contractor, Native American
                                7    resident contractor, resident veteran contractor or Native
                                8    American resident veteran contractor preference pursuant to
                                9    Section 13-4-2 NMSA 1978, a business or contractor shall submit
                                10   with its bid or proposal a copy of a valid resident business,
                                11   Native American resident business, resident veteran business or
                                12   Native American resident veteran business certificate or valid
                                13   resident contractor, Native American resident contractor,
                                14   resident veteran contractor or Native American resident veteran
                                15   contractor certificate issued by the taxation and revenue
                                16   department.
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                                17  B.   An application for a resident business
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                                18   certificate shall include an affidavit from a certified public
                                19   accountant setting forth that the business is licensed to do
                                20   business in this state and that:
                                21  (1)   the business has paid property taxes or
                                22   rent on real property in the state and paid at least one other
                                23   tax administered by the state, excluding the motor vehicle
                                24   excise tax, in [each of the three years] the year immediately
                                25   preceding the submission of the affidavit;
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                                1  (2)   if the business is a new business, the
                                2    owner or majority of owners has paid property taxes or rent on
                                3    real property in the state and has paid at least one other tax
                                4    administered by the state, excluding the motor vehicle excise
                                5    tax, in [each of the three years] the year immediately
                                6    preceding the submission of the affidavit and has not applied
                                7    for a resident business or resident contractor certificate
                                8    pursuant to this section during that time period;
                                9  (3)   if the business is a relocated business,
                                10   at least eighty percent of the total personnel of the business
                                11   in the year immediately preceding the submission of the
                                12   affidavit were residents of the state and that, prior to the
                                13   submission of the affidavit, the business either leased real
                                14   property for ten years or purchased real property greater than
                                15   one hundred thousand dollars ($100,000) in value in the state;
                                16   or
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                                17  (4)   if the business is a previously certified
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                                18   business or was eligible for certification, the business has
                                19   changed its name, has reorganized into one or more different
                                20   legal entities, was purchased by another legal entity but
                                21   operates in the state as substantially the same commercial
                                22   enterprise or has merged with a different legal entity but
                                23   operates in the state as substantially the same commercial
                                24   enterprise.
                                25  C.   An application for a resident veteran business
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                                1    certificate shall include the affidavit required by Subsection
                                2    B of this section and:
                                3  (1)   verification by the United States
                                4    department of veterans affairs as being either a veteran-owned
                                5    small business or a service-disabled veteran-owned small
                                6    business; or
                                7  (2)   verification of veteran status as
                                8    indicated by the United States department of defense DD form
                                9    214 of release or discharge from active duty with an honorable
                                10   discharge or of service-disabled veteran status by the United
                                11   States department of veterans affairs and proof that a veteran
                                12   or veterans own a majority of the business.
                                13  D.   An application for a resident contractor
                                14   certificate shall include an affidavit from a certified public
                                15   accountant setting forth that the contractor is currently
                                16   licensed as a contractor in this state and that:
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                                17  (1)   the contractor has:
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                                18  (a)   registered with the state at least
                                19   one vehicle; and
                                20  (b)   in [each of the five years] the year
                                21   immediately preceding the submission of the affidavit:       1) paid
                                22   property taxes or rent on real property in the state and paid
                                23   at least one other tax administered by the state, excluding the
                                24   motor vehicle excise tax; and 2) paid unemployment insurance on
                                25   at least three full-time employees who are residents of the
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                                1    state; provided that if a contractor is a legacy contractor,
                                2    the requirement of at least three full-time employees who are
                                3    residents of the state is waived;
                                4  (2)   if the contractor is a new contractor, the
                                5    owner or majority of owners has paid property taxes or rent on
                                6    real property in the state and has paid at least one other tax
                                7    administered by the state, excluding the motor vehicle excise
                                8    tax, in [each of the five years] the year immediately preceding
                                9    the submission of the affidavit and has not applied for a
                                10   resident business or resident contractor certificate pursuant
                                11   to this section during that time period;
                                12  (3)   if the contractor is a relocated business,
                                13   at least eighty percent of the total personnel of the business
                                14   in the year immediately preceding the submission of the
                                15   affidavit were residents of the state and that, prior to the
                                16   submission of the affidavit, the contractor either leased real
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                                17   property for ten years or purchased real property greater than
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                                18   one hundred thousand dollars ($100,000) in value in the state;
                                19   or
                                20  (4)   if the contractor is a previously
                                21   certified contractor or was eligible for certification, the
                                22   contractor has changed its name, has reorganized into one or
                                23   more different legal entities, was purchased by another legal
                                24   entity but operates in the state as substantially the same
                                25   enterprise or has merged with a different legal entity but
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                                1    operates in the state as substantially the same commercial
                                2    enterprise.
                                3  E.   An application for a resident veteran contractor
                                4    certificate shall include the affidavit required by Subsection
                                5    D of this section and:
                                6  (1)   verification by the United States
                                7    department of veterans affairs as being either a veteran-owned
                                8    small business or a service-disabled veteran-owned small
                                9    business; or
                                10  (2)   verification of veteran status as
                                11   indicated by the United States department of defense DD form
                                12   214 of release or discharge from active duty with an honorable
                                13   discharge or of service-disabled veteran status by the United
                                14   States department of veterans affairs and proof that a veteran
                                15   or veterans own a majority of the business.
                                16  F.   An application for a Native American resident
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                                17   business certificate or a Native American resident contractor
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                                18   certificate shall include an affidavit from a notary public
                                19   setting forth that the business is:
                                20  (1)   operating on lands located on an Indian
                                21   nation, tribe or pueblo located in whole or in part on land
                                22   within New Mexico; and
                                23  (2)   at least fifty-one percent owned by an
                                24   Indian nation, tribe or pueblo located in whole or in part on
                                25   land within New Mexico; provided that:
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                                1  (a)   the Indian nation, tribe or pueblo
                                2    receives at least a majority of the net income from the
                                3    business; and
                                4  (b)   the management and daily operation
                                5    of the business are controlled by one or more individuals who
                                6    are members of a New Mexico Indian nation, tribe or pueblo; or
                                7  (3)    at least fifty-one percent owned by one or
                                8    more New Mexico residents who are members of a federally
                                9    recognized Indian nation, tribe or pueblo located in whole or
                                10   in part on land within New Mexico and that is established for
                                11   the purpose of profit; provided that:
                                12  (a)   the Native American owners receive
                                13   at least a majority of the net income from the business; and
                                14  (b)   the management and daily operation
                                15   of the business are controlled by one or more individuals who
                                16   are members of a New Mexico Indian nation, tribe or pueblo.
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                                17  G.    An application for a Native American resident
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                                18   veteran business certificate or a Native American resident
                                19   veteran contractor certificate shall include the affidavit
                                20   required by Subsection F of this section and, if the business
                                21   is not owned by an Indian nation, tribe or pueblo:
                                22  (1)    verification by the United States
                                23   department of veterans affairs that the business is either a
                                24   veteran-owned small business or a service-disabled veteran-
                                25   owned small business;
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                                1  (2)   verification of veteran status of a
                                2    majority of the owners of the business as indicated by the
                                3    United States department of defense DD form 214 of release or
                                4    discharge from active duty with an honorable discharge or of
                                5    service-disabled veteran status by the United States department
                                6    of veterans affairs; or
                                7  (3)   verification of veteran status of the
                                8    contractor as indicated by the United States department of
                                9    defense DD form 214 of release or discharge from active duty
                                10   with an honorable discharge or of service-disabled veteran
                                11   status by the United States department of veterans affairs.
                                12  H.   The taxation and revenue department shall
                                13   prescribe the form and content of the application and required
                                14   affidavit.    The taxation and revenue department shall examine
                                15   the application and affidavit and, if necessary, may seek
                                16   additional information to ensure that the business or
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                                17   contractor is eligible to receive the certificate pursuant to
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                                18   the provisions of this section.     If the taxation and revenue
                                19   department determines that an applicant is eligible, the
                                20   department shall issue a certificate pursuant to the provisions
                                21   of this section.     If the taxation and revenue department
                                22   determines that the applicant is not eligible, the department
                                23   shall issue notification within thirty days.     If no
                                24   notification is provided by the department, the certificate is
                                25   deemed approved.     A certificate is valid for three years from
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                                1    the date of its issuance; provided that if there is a change of
                                2    ownership of more than fifty percent, a resident business or
                                3    resident contractor shall reapply for a certificate.
                                4  I.   A business or contractor whose application for a
                                5    certificate is denied has fifteen days from the date of the
                                6    taxation and revenue department's decision to file an objection
                                7    with the taxation and revenue department.     The person filing
                                8    the objection shall submit evidence to support the objection.
                                9    The taxation and revenue department shall review the evidence
                                10   and issue a decision within fifteen days of the filing of the
                                11   objection.
                                12  J.   If, following a hearing and an opportunity to be
                                13   heard, the administrative hearings office finds that a business
                                14   or contractor provided false information to the taxation and
                                15   revenue department in order to obtain a certificate or that a
                                16   business or contractor used a certificate to obtain a resident
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                                17   business or resident contractor preference for a bid or
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                                18   proposal and the resident business or contractor did not
                                19   perform the percentage of the contract specified in the bid or
                                20   proposal, the business or contractor:
                                21  (1)   is not eligible to receive a certificate
                                22   or a preference pursuant to Section 13-1-21 or 13-4-2 NMSA 1978
                                23   for a period of five years from the date on which the taxation
                                24   and revenue department became aware of the submission of the
                                25   false information or the failure to perform the contract as
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                                1    specified in the bid or proposal; and
                                2  (2)   is subject to an administrative penalty of
                                3    up to fifty thousand dollars ($50,000) for each violation.
                                4  K.   In a decision issued pursuant to Subsection I or
                                5    J of this section, the taxation and revenue department or the
                                6    administrative hearings office shall state the reasons for the
                                7    action taken and inform an aggrieved business or contractor of
                                8    the right to judicial review of the determination pursuant to
                                9    the provisions of Section 39-3-1.1 NMSA 1978.
                                10  L.   The taxation and revenue department may assess a
                                11   reasonable fee for the issuance of a certificate not to exceed
                                12   the actual cost of administering the taxation and revenue
                                13   department's duties pursuant to this section.
                                14  M.   The state auditor may audit or review the
                                15   issuance or validity of certificates.
                                16  N.   For purposes of this section:
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                                17  (1)   "new business" means a person that did not
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                                18   exist as a business in any form and that has been in existence
                                19   for less than three years;
                                20  (2)   "new contractor" means a person that did
                                21   not exist as a business in any form and that has been in
                                22   existence for less than five years;
                                23  (3)   "legacy contractor" means a construction
                                24   business that has been licensed in this state for ten
                                25   consecutive years; and
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                                1  (4)   "relocated business" means a business that
                                2    moved eighty percent of its total domestic personnel from
                                3    another state to New Mexico in the past five years."
                                4  SECTION 2.    A new section of the Procurement Code, Section
                                5    13-1-31.1 NMSA 1978, is enacted to read:
                                6  "13-1-31.1.    [NEW MATERIAL] DEFINITION--BEST OBTAINABLE
                                7    PRICE.--"Best obtainable price" means the price at which
                                8    services or goods can be purchased that is most advantageous to
                                9    the purchasing entity.    The "best obtainable price" can be
                                10   found by obtaining quotes; provided that if only one quote is
                                11   received, negotiations between the vendor and the procuring
                                12   entity shall be documented and approved by the central
                                13   purchasing office."
                                14        SECTION 3.    A new section of the Procurement Code, Section
                                15   13-1-70.2 NMSA 1978, is enacted to read:
                                16        "13-1-70.2.    [NEW MATERIAL] DEFINITION--NOTICE OF
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                                17   INVITATION FOR SOLICITATION.--"Notice of invitation for
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                                18   solicitation" means a public announcement of a solicitation for
                                19   a procurement that shall be published at least once in no less
                                20   than two newspapers of general circulation or posted on the
                                21   central purchasing office's website."
                                22        SECTION 4.    A new section of the Procurement Code, Section
                                23   13-1-70.3 NMSA 1978, is enacted to read:
                                24        "13-1-70.3.    [NEW MATERIAL] DEFINITION--NOTICE OF REQUEST
                                25   FOR PROPOSALS.--"Notice of request for proposals" means a
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                                1    public announcement made by a central purchasing office to
                                2    solicit detailed proposals from potential offerors, including
                                3    suppliers, contractors or service providers, for a specific
                                4    project, product or service."
                                5  SECTION 5.    Section 13-1-88 NMSA 1978 (being Laws 1984,
                                6    Chapter 65, Section 61) is amended to read:
                                7  "13-1-88.     DEFINITION--SMALL BUSINESS.--"Small business"
                                8    means a business [not a subsidiary or division of another
                                9    business, having an average annual volume for the preceding
                                10   three fiscal years which does not exceed one million five
                                11   hundred thousand dollars ($1,500,000)] as defined in the
                                12   federal Small Business Act."
                                13        SECTION 6.    Section 13-1-95.1 NMSA 1978 (being Laws 2001,
                                14   Chapter 292, Section 7, as amended) is amended to read:
                                15        "13-1-95.1.    ELECTRONIC TRANSMISSIONS.--
                                16  A.     The state purchasing agent shall develop
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                                17   guidelines for central purchasing offices to use electronic
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                                18   media, including distribution of solicitations and acceptance
                                19   of sealed bids and competitive sealed proposals that include
                                20   electronic signatures.    The guidelines shall include:
                                21  (1)   appropriate security to prevent
                                22   unauthorized access to electronically submitted bids or
                                23   proposals prior to the date and time set for opening of bids or
                                24   the deadline set for receipt for proposals, including the
                                25   electronic bidding, approval and award process; and
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                                1  (2)   accurate retrieval or conversion of
                                2    electronic forms of information into a medium that permits
                                3    inspection and copying.
                                4  B.   A central purchasing office, in an invitation
                                5    for bids or a request for proposals, may require all or any
                                6    part of a sealed bid or a competitive sealed proposal to be
                                7    submitted electronically if the office determines that an
                                8    electronic submission will be advantageous to the procurement
                                9    process.   If electronic submission is required:
                                10  (1)   no hard copy documentation shall be
                                11   submitted to the central purchasing office prior to the award
                                12   of the contract, except as specifically identified in the
                                13   invitation for bids or the request for proposals;
                                14  (2)   the invitation for bids or request for
                                15   proposals shall specify an opening date and time, a fixed
                                16   closing date and time and an email account or other secure
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                                17   electronic location to which the electronic bid or proposal
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                                18   shall be submitted;
                                19  (3)   sealed bids submitted electronically shall
                                20   be opened [publicly] in [the presence of one or more witnesses
                                21   at the time and place designated in the invitation for bids.
                                22   The amount of each bid and each bid item, if appropriate, and
                                23   such other relevant information as may be specified by the
                                24   state purchasing agent or a central purchasing office, together
                                25   with the name of each bidder, shall be recorded, and the record
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                                1    and each bid shall be open to public inspection] accordance
                                2    with Section 13-1-107 NMSA 1978; and
                                3  (4)   for sealed proposals, the proposals shall
                                4    be opened, evaluated and the contract awarded as required in
                                5    the request for proposals and as otherwise provided in the
                                6    Procurement Code."
                                7  SECTION 7.    Section 13-1-95.2 NMSA 1978 (being Laws 2013,
                                8    Chapter 70, Section 3) is amended to read:
                                9  "13-1-95.2.     CHIEF PROCUREMENT OFFICERS--REPORTING
                                10   REQUIREMENT--TRAINING--CERTIFICATION.--
                                11  A.   [On or before January 1 of each year beginning
                                12   in 2014] Each year prior to certification expiration, and every
                                13   time a chief procurement officer is hired, each state agency
                                14   and local public body shall [provide] submit to the state
                                15   purchasing agent [the name of] no more than two names of
                                16   certified chief procurement officers for the state agency's or
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                                17   local public body's [chief procurement officer and information
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                                18   identifying the state agency's or local public body's] central
                                19   purchasing office [if applicable].
                                20  B.   The state purchasing agent shall maintain a list
                                21   of the names of the chief procurement officers reported to the
                                22   state purchasing agent by state agencies and local public
                                23   bodies.   The state purchasing agent shall make the list of
                                24   chief procurement officers available to the public through the
                                25   [web site] website of the purchasing division of the general
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                                1    services department and in any other appropriate form.
                                2  C.   The state purchasing agent shall offer a
                                3    certification training program for chief procurement officers
                                4    each year.
                                5  D.   [On or before January 1, 2015] The state
                                6    purchasing agent shall [establish] maintain a certification
                                7    program for chief procurement officers that includes initial
                                8    certification and recertification every two years for all chief
                                9    procurement officers.     In order to be recertified, a chief
                                10   procurement officer shall pass a recertification examination
                                11   approved by the secretary of general services.
                                12  E.   [On and after July 1, 2015] Only certified chief
                                13   procurement officers may do the following, except that persons
                                14   using procurement cards may continue to issue purchase orders
                                15   and authorize small purchases:
                                16  (1)   make determinations pursuant to the
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                                17   Procurement Code, including determinations regarding
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                                18   exemptions; [pursuant to the Procurement Code] provided that
                                19   the findings in an exemption determination shall include the
                                20   facts relied upon in the making of the determination;
                                21  (2)   issue purchase orders and authorize small
                                22   purchases pursuant to the Procurement Code; and
                                23  (3)   approve procurement pursuant to the
                                24   Procurement Code."
                                25        SECTION 8.     Section 13-1-98 NMSA 1978 (being Laws 1984,
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                                1    Chapter 65, Section 71, as amended by Laws 2023, Chapter 149,
                                2    Section 2 and by Laws 2023, Chapter 174, Section 1) is amended
                                3    to read:
                                4  "13-1-98.    EXEMPTIONS FROM THE PROCUREMENT CODE.--The
                                5    state purchasing agent or the central purchasing office that
                                6    makes an exemption determination shall include in the
                                7    determination the facts relied upon in the making of the
                                8    determination.    The provisions of the Procurement Code shall
                                9    not apply to:
                                10  A.   procurement of items of tangible personal
                                11   property or services by a state agency or a local public body
                                12   from a state agency, a local public body or external
                                13   procurement unit except as otherwise provided in Sections
                                14   13-1-135 through 13-1-137 NMSA 1978;
                                15  B.   procurement of tangible personal property or
                                16   services for the governor's mansion and grounds;
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                                17  C.   printing and duplicating contracts involving
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                                18   materials that are required to be filed in connection with
                                19   proceedings before administrative agencies or state or federal
                                20   courts;
                                21  D.   purchases of publicly provided or publicly
                                22   regulated gas, electricity, water, sewer and refuse collection
                                23   services;
                                24  E.   purchases of books, periodicals, instructional
                                25   materials and training materials in printed, digital or
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                                1    electronic format from the publishers, designated public-
                                2    education-department-approved instructional material
                                3    depositories or copyright holders thereof and purchases of
                                4    print, digital or electronic format library materials by
                                5    public, school and state libraries for access by the public;
                                6  F.   travel or shipping by common carrier or by
                                7    private conveyance or to meals and lodging;
                                8  G.   purchase of livestock at auction rings or to the
                                9    procurement of animals to be used for research and
                                10   experimentation or exhibit;
                                11  H.   contracts with businesses for public school
                                12   transportation services;
                                13  I.   procurement of tangible personal property or
                                14   services, as defined by Sections 13-1-87 and 13-1-93 NMSA 1978,
                                15   by the corrections industries division of the corrections
                                16   department pursuant to rules adopted by the corrections
[bracketed material] = delete
                                17   industries commission, which shall be reviewed by the
underscored material = new
                                18   purchasing division of the general services department prior to
                                19   adoption;
                                20  J.   purchases not exceeding [ten thousand dollars
                                21   ($10,000)] one hundred thousand dollars ($100,000) consisting
                                22   of magazine subscriptions, web-based or electronic
                                23   subscriptions, conference registration fees and other similar
                                24   purchases where prepayments are required;
                                25  K.   municipalities having adopted home rule charters
                                     .232917.6GLG
                                                                   - 18 -
                                1    and having enacted their own purchasing ordinances;
                                2  L.   the issuance, sale and delivery of public
                                3    securities pursuant to the applicable authorizing statute, with
                                4    the exception of bond attorneys and general financial
                                5    consultants;
                                6  M.   contracts entered into by a local public body
                                7    with a private independent contractor for the operation, or
                                8    provision and operation, of a jail pursuant to Sections 33-3-26
                                9    and 33-3-27 NMSA 1978;
                                10  N.   contracts for maintenance of grounds and
                                11   facilities at highway rest stops and other employment
                                12   opportunities, excluding those intended for the direct care and
                                13   support of persons with handicaps, entered into by state
                                14   agencies with private, nonprofit, independent contractors who
                                15   provide services to persons with handicaps;
                                16  O.   contracts and expenditures for services or items
[bracketed material] = delete
                                17   of tangible personal property to be paid or compensated by
underscored material = new
                                18   money or other property transferred to New Mexico law
                                19   enforcement agencies by the United States department of justice
                                20   drug enforcement administration;
                                21  P.   contracts for retirement and other benefits
                                22   pursuant to Sections 22-11-47 through 22-11-52 NMSA 1978;
                                23  Q.   contracts with professional entertainers;
                                24  R.   contracts and expenditures for legal
                                25   subscription and research services and litigation expenses in
                                     .232917.6GLG
                                                                 - 19 -
                                1    connection with proceedings before administrative agencies or
                                2    state or federal courts, including experts, mediators, court
                                3    reporters, process servers and witness fees, but not including
                                4    attorney contracts;
                                5  S.   contracts for service relating to the design,
                                6    engineering, financing, construction and acquisition of public
                                7    improvements undertaken in improvement districts pursuant to
                                8    Subsection L of Section 3-33-14.1 NMSA 1978 and in county
                                9    improvement districts pursuant to Subsection L of Section
                                10   4-55A-12.1 NMSA 1978;
                                11  T.   works of art for museums or for display in
                                12   public buildings or places;
                                13  U.   contracts entered into by a local public body
                                14   with a person, firm, organization, corporation or association
                                15   or a state educational institution named in Article 12, Section
                                16   11 of the constitution of New Mexico for the operation and
[bracketed material] = delete
                                17   maintenance of a hospital pursuant to Chapter 3, Article 44
underscored material = new
                                18   NMSA 1978, lease or operation of a county hospital pursuant to
                                19   the Hospital Funding Act or operation and maintenance of a
                                20   hospital pursuant to the Special Hospital District Act;
                                21  V.   purchases of advertising in all media, including
                                22   radio, television, print and electronic, but not including
                                23   purchases for marketing services that are broad strategic
                                24   activities, including market research, branding, campaign
                                25   planning or content development;
                                     .232917.6GLG
                                                                   - 20 -
                                1  W.    purchases of promotional goods intended for
                                2    resale by the tourism department;
                                3  X.    procurement of printing, publishing and
                                4    distribution services for materials produced and intended for
                                5    resale by the cultural affairs department;
                                6  Y.    procurement by or through the public education
                                7    department from the federal department of education relating to
                                8    parent training and information centers designed to increase
                                9    parent participation, projects and initiatives designed to
                                10   improve outcomes for students with disabilities and other
                                11   projects and initiatives relating to the administration of
                                12   improvement strategy programs pursuant to the federal
                                13   Individuals with Disabilities Education Act; provided that the
                                14   exemption applies only to procurement of services not to exceed
                                15   two hundred thousand dollars ($200,000);
                                16  Z.    procurement of services from community
[bracketed material] = delete
                                17   rehabilitation programs or qualified individuals pursuant to
underscored material = new
                                18   the State Use Act;
                                19  AA.    purchases of products or services for eligible
                                20   persons with disabilities pursuant to the federal
                                21   Rehabilitation Act of 1973;
                                22  BB.    procurement, by either the department of health
                                23   or Grant county or both, of tangible personal property,
                                24   services or construction that are exempt from the Procurement
                                25   Code pursuant to Section 9-7-6.5 NMSA 1978;
                                     .232917.6GLG
                                                                   - 21 -
                                1  CC.   contracts for investment advisory services,
                                2    investment management services or other investment-related
                                3    services entered into by the educational retirement board, the
                                4    state investment officer or the retirement board created
                                5    pursuant to the Public Employees Retirement Act;
                                6  DD.   the purchase for resale by the state fair
                                7    commission of feed and other items necessary for the upkeep of
                                8    livestock;
                                9  EE.   contracts entered into by the crime victims
                                10   reparation commission to distribute federal grants to assist
                                11   victims of crime, including grants from the federal Victims of
                                12   Crime Act of 1984 and the federal Violence Against Women Act of
                                13   1994;
                                14  FF.   procurement by or through the early childhood
                                15   education and care department of early pre-kindergarten and
                                16   pre-kindergarten services purchased pursuant to the Pre-
[bracketed material] = delete
                                17   Kindergarten Act;
underscored material = new
                                18  GG.   procurement of services of commissioned
                                19   advertising sales representatives for New Mexico magazine;
                                20  HH.   contracts entered into by the forestry division
                                21   of the energy, minerals and natural resources department to
                                22   distribute federal grants to nongovernmental entities and
                                23   individuals selected through an application process conducted
                                24   by the United States department of agriculture, the United
                                25   States department of the interior or any division or bureau
                                     .232917.6GLG
                                                                    - 22 -
                                1    thereof for programs for wildfire prevention or protection,
                                2    urban forestry, forest and watershed restoration and
                                3    protection, reforestation or economic development projects to
                                4    advance the use of trees and wood biomass for hazardous fuel
                                5    reduction; and
                                6  II.     procurements exempt from the Procurement Code
                                7    as otherwise provided by law."
                                8  SECTION 9.    Section 13-1-99 NMSA 1978 (being Laws 1984,
                                9    Chapter 65, Section 72, as amended) is amended to read:
                                10        "13-1-99.    EXCLUDED FROM CENTRAL PURCHASING THROUGH THE
                                11   STATE PURCHASING AGENT.--Excluded from the requirement of
                                12   procurement through the state purchasing agent but not from the
                                13   requirements of the Procurement Code are the following:
                                14  A.     procurement of professional services;
                                15  B.     small purchases having a value not exceeding
                                16   [one thousand five hundred dollars ($1,500)] ten thousand
[bracketed material] = delete
                                17   dollars ($10,000);
underscored material = new
                                18  C.     emergency procurement;
                                19  D.     procurement of highway construction or
                                20   reconstruction by the department of transportation;
                                21  E.     procurement by the judicial branch of state
                                22   government;
                                23  F.     procurement by the legislative branch of state
                                24   government;
                                25  G.     procurement by the boards of regents of state
                                     .232917.6GLG
                                                                   - 23 -
                                1    educational institutions named in Article 12, Section 11 of the
                                2    constitution of New Mexico;
                                3  H.   procurement by the state fair commission of
                                4    tangible personal property, services and construction under
                                5    twenty thousand dollars ($20,000);
                                6  I.   purchases of instructional materials;
                                7  J.   procurement by all local public bodies;
                                8  K.   procurement by regional education cooperatives;
                                9  L.   procurement by charter schools;
                                10  M.   procurement by each state health care
                                11   institution that provides direct patient care and that is, or a
                                12   part of which is, medicaid certified and participating in the
                                13   New Mexico medicaid program; and
                                14  N.   procurement by the public school facilities
                                15   authority."
                                16        SECTION 10.    Section 13-1-104 NMSA 1978 (being Laws 1984,
[bracketed material] = delete
                                17   Chapter 65, Section 77, as amended) is amended to read:
underscored material = new
                                18        "13-1-104.    COMPETITIVE SEALED BIDS--PUBLIC NOTICE.--
                                19  A.   An invitation for bids or a notice thereof shall
                                20   be published not less than ten calendar days prior to the date
                                21   set forth for the opening of bids.     In the case of purchases
                                22   made by the state purchasing agent or a central purchasing
                                23   office, the invitation or notice shall be published at least
                                24   once in [at least three] no less than two newspapers of general
                                25   circulation in this state; in addition, an invitation or notice
                                     .232917.6GLG
                                                                   - 24 -
                                1    may be published electronically on the state purchasing agent's
                                2    [web site that is maintained for that purpose.    In the case of
                                3    purchases made by other central purchasing offices, the
                                4    invitation or notice shall be published at least once in a
                                5    newspaper of general circulation in the area in which the
                                6    central purchasing office is located.    These requirements of
                                7    publication are in addition to any other procedures that may be
                                8    adopted by central purchasing offices to notify prospective
                                9    bidders that bids will be received, including publication in a
                                10   trade journal, if available.    If there is no newspaper of
                                11   general circulation in the area in which the central purchasing
                                12   office is located, such other notice may be given as is
                                13   commercially reasonable] website.
                                14  B.     Each central purchasing [offices] office shall
                                15   send copies of the notice or invitation for bids involving the
                                16   expenditure of more than [twenty thousand dollars ($20,000)]
[bracketed material] = delete
                                17   one hundred thousand dollars ($100,000) to those businesses
underscored material = new
                                18   that have signified in writing an interest in submitting bids
                                19   for particular categories of items of tangible personal
                                20   property, construction and services and that have paid any
                                21   required fees.    A central purchasing office may set different
                                22   registration fees for different categories of services,
                                23   construction or items of tangible personal property, but such
                                24   fees shall be related to the actual, direct cost of furnishing
                                25   copies of the notice or invitation for bids to the prospective
                                     .232917.6GLG
                                                                    - 25 -
                                1    bidders.   The fees shall be used exclusively for the purpose of
                                2    furnishing copies of the notice or invitation for bids of
                                3    proposed procurements to prospective bidders.
                                4  C.   A central purchasing office may satisfy the
                                5    requirement of sending copies of a notice or invitation for
                                6    bids by distributing the documents to prospective bidders
                                7    through electronic media.   Central purchasing offices shall not
                                8    require that prospective bidders receive a notice or invitation
                                9    for bids through electronic media.
                                10  D.   As used in this section, "prospective bidders"
                                11   includes persons considering submission of a bid as a general
                                12   contractor for the construction contract and persons who may
                                13   submit bids to a general contractor for work to be
                                14   subcontracted pursuant to the construction contract.     Central
                                15   purchasing offices shall make copies of invitations for bids
                                16   for construction contracts available to prospective bidders.       A
[bracketed material] = delete
                                17   central purchasing office may require prospective bidders who
underscored material = new
                                18   have requested documents for bid on a construction contract to
                                19   pay a deposit for a copy of the documents for bid.    The deposit
                                20   shall equal the full cost of reproduction and delivery of the
                                21   documents for bid.   The deposit, less delivery charges, shall
                                22   be refunded if the documents for bid are returned in usable
                                23   condition within the time limits specified in the documents for
                                24   bid, which time limits shall be no less than ten calendar days
                                25   from the date of the bid opening.     All forfeited deposits shall
                                     .232917.6GLG
                                                                  - 26 -
                                1    be credited to the funds of the applicable central purchasing
                                2    office."
                                3  SECTION 11.     Section 13-1-110 NMSA 1978 (being Laws 1984,
                                4    Chapter 65, Section 83) is amended to read:
                                5  "13-1-110.     COMPETITIVE SEALED BIDS--IDENTICAL BIDS.--When
                                6    competitive sealed bids are used and two or more of the bids
                                7    submitted are identical in price and are the low bid, the state
                                8    purchasing agent or a central purchasing office may:
                                9  A.    award pursuant to the multiple source award
                                10   provisions of Sections [126 and 127 of the Procurement Code]
                                11   13-1-153 and 13-1-154 NMSA 1978;
                                12  B.    award to a resident business pursuant to Section
                                13   13-1-21 NMSA 1978 if the identical low bids are submitted by a
                                14   resident business and a nonresident business;
                                15  [C.    award to a resident manufacturer if the
                                16   identical low bids are submitted by a resident manufacturer and
[bracketed material] = delete
                                17   a resident business;
underscored material = new
                                18  D.] C.    award by lottery to one of the identical low
                                19   bidders; or
                                20  [E.] D.    reject all bids and resolicit bids or
                                21   proposals for the required services, construction or items of
                                22   tangible personal property."
                                23        SECTION 12.     Section 13-1-118 NMSA 1978 (being Laws 1984,
                                24   Chapter 65, Section 91, as amended) is amended to read:
                                25        "13-1-118.     COMPETITIVE SEALED PROPOSALS--PROFESSIONAL
                                     .232917.6GLG
                                                                    - 27 -
                                1    SERVICES CONTRACTS--CONTRACT REVIEW.--[All] If required,
                                2    contracts for professional services with state agencies shall
                                3    be reviewed as to form, legal sufficiency and budget
                                4    requirements by the state purchasing agent or the state
                                5    purchasing agent's designee [the general services department if
                                6    required by the regulations of the department].   This section
                                7    does not apply to contracts entered into by the legislative
                                8    branch of state government, the judicial branch of state
                                9    government or the boards of regents of state educational
                                10   institutions named in Article 12, Section 11 of the
                                11   constitution of New Mexico."
                                12        SECTION 13.    Section 13-1-125 NMSA 1978 (being Laws 1984,
                                13   Chapter 65, Section 98, as amended) is amended to read:
                                14        "13-1-125.    SMALL PURCHASES.--
                                15  A.   A central purchasing office shall procure
                                16   services, construction or items of tangible personal property
[bracketed material] = delete
                                17   having a value not exceeding [sixty thousand dollars ($60,000)]
underscored material = new
                                18   one hundred thousand dollars ($100,000), excluding applicable
                                19   state and local gross receipts taxes, in accordance with the
                                20   applicable small purchase rules adopted by the secretary, a
                                21   local public body or a central purchasing office that has the
                                22   authority to issue rules.
                                23  B.   Notwithstanding the requirements of Subsection A
                                24   of this section, a central purchasing office may procure
                                25   professional services having a value not exceeding [sixty
                                     .232917.6GLG
                                                                    - 28 -
                                1    thousand dollars ($60,000)] one hundred thousand dollars
                                2    ($100,000), excluding applicable state and local gross receipts
                                3    taxes, except for the services of landscape architects or
                                4    surveyors for state public works projects or local public works
                                5    projects, in accordance with professional services procurement
                                6    rules promulgated by the general services department or a
                                7    central purchasing office with the authority to issue rules.
                                8  C.     Notwithstanding the requirements of Subsection A
                                9    of this section, a state agency or a local public body may
                                10   procure services, construction or items of tangible personal
                                11   property having a value not exceeding [twenty thousand dollars
                                12   ($20,000)] sixty thousand dollars ($60,000), excluding
                                13   applicable state and local gross receipts taxes, by issuing a
                                14   direct purchase order to a contractor based upon the best
                                15   obtainable price.
                                16  D.     Procurement requirements shall not be
[bracketed material] = delete
                                17   artificially divided so as to constitute a small purchase under
underscored material = new
                                18   this section."
                                19        SECTION 14.     Section 13-1-126 NMSA 1978 (being Laws 1984,
                                20   Chapter 65, Section 99, as amended) is amended to read:
                                21        "13-1-126.     SOLE SOURCE PROCUREMENT.--
                                22  A.     A contract may be awarded without competitive
                                23   sealed bids or competitive sealed proposals regardless of the
                                24   estimated cost when the state purchasing agent or a central
                                25   purchasing office determines, in writing, that:
                                     .232917.6GLG
                                                                    - 29 -
                                1  (1)   there is only one source for the required
                                2    service, construction or item of tangible personal property;
                                3  (2)   the service, construction or item of
                                4    tangible personal property is unique and this uniqueness is
                                5    substantially related to the intended purpose of the contract;
                                6    and
                                7  (3)   other similar services, construction or
                                8    items of tangible personal property cannot meet the intended
                                9    purpose of the contract.
                                10  B.   The state purchasing agent or a central
                                11   purchasing office shall use due diligence in determining the
                                12   basis for the sole source procurement, including reviewing
                                13   available sources and consulting the using agency, and shall
                                14   include its written determination in the procurement file.
                                15  C.   The state purchasing agent or a central
                                16   purchasing office shall conduct negotiations, as appropriate,
[bracketed material] = delete
                                17   as to price, delivery and quantity in order to obtain the price
underscored material = new
                                18   most advantageous to the state agency or a local public body.
                                19  D.   A contract for the purchase of research
                                20   consultant services by institutions of higher learning
                                21   constitutes a sole source procurement.
                                22  E.   The state purchasing agent or a central
                                23   purchasing office shall not circumvent this section by narrowly
                                24   drafting specifications so that only one predetermined source
                                25   would satisfy those specifications.
                                     .232917.6GLG
                                                                  - 30 -
                                1  F.   A sole source contract shall not exceed a term
                                2    of four years, including all extensions and renewals."
                                3  SECTION 15.    Section 13-1-126.1 NMSA 1978 (being Laws
                                4    2013, Chapter 40, Section 6, as amended) is amended to read:
                                5  "13-1-126.1.     SOLE SOURCE CONTRACTS--NOTICE--PROTEST.--
                                6  A.   At least [thirty] fifteen days before it awards
                                7    a sole source contract, the state purchasing agent shall post
                                8    notice of its intent to award the contract on its website.     At
                                9    least [thirty] fifteen days before it awards a sole source
                                10   contract, a central purchasing office shall post notice of its
                                11   intent to award the contract on its website, if it maintains
                                12   one, and shall transmit the notice to the state purchasing
                                13   agent for posting on the state purchasing agent's website.     In
                                14   each case, the notice shall identify, at a minimum:
                                15  (1)    the parties to the proposed contract;
                                16  (2)    the nature and quantity of the service,
[bracketed material] = delete
                                17   construction or item of tangible personal property being
underscored material = new
                                18   contracted for; and
                                19  (3)    the contract amount.
                                20  B.   Any qualified potential contractor that was not
                                21   selected for a proposed sole source contract may protest the
                                22   selection in writing, within fifteen calendar days after the
                                23   notice of intent to award the contract was posted by the state
                                24   purchasing agent or central purchasing office, by submitting
                                25   the protest to the state purchasing agent or central purchasing
                                     .232917.6GLG
                                                                    - 31 -
                                1    office, as appropriate.   The state purchasing agent or central
                                2    purchasing office shall then reconsider its selection."
                                3  SECTION 16.    Section 13-1-138 NMSA 1978 (being Laws 1984,
                                4    Chapter 65, Section 111) is amended to read:
                                5  "13-1-138.    COST OR PRICING DATA REQUIRED.--When required
                                6    by the state purchasing agent or a central purchasing office, a
                                7    prospective contractor shall submit cost or pricing data [when
                                8    the contract is expected to exceed twenty-five thousand dollars
                                9    ($25,000) and is to be awarded by a method other than
                                10   competitive sealed bids]."
                                11        SECTION 17.    Section 13-1-150 NMSA 1978 (being Laws 1984,
                                12   Chapter 65, Section 123, as amended) is amended to read:
                                13        "13-1-150.    MULTI-TERM CONTRACTS--SPECIFIED PERIOD.--
                                14  A.   A multi-term contract for items of tangible
                                15   personal property, construction or services except for
                                16   professional services, in an amount under twenty-five thousand
[bracketed material] = delete
                                17   dollars ($25,000), may be entered into for any period of time
underscored material = new
                                18   deemed to be in the best interests of the state agency or a
                                19   local public body not to exceed [four] eight years; provided
                                20   that the term of the contract and conditions of renewal or
                                21   extension, if any, are included in the specifications and funds
                                22   are available for the first fiscal period at the time of
                                23   contracting.   If the amount of the contract is twenty-five
                                24   thousand dollars ($25,000) or more, the term shall not exceed
                                25   ten years, including all extensions and renewals, except that
                                     .232917.6GLG
                                                                   - 32 -
                                1    for a contract entered into pursuant to the Public Facility
                                2    Energy Efficiency and Water Conservation Act, the term shall
                                3    not exceed twenty-five years, including all extensions and
                                4    renewals.   Payment and performance obligations for succeeding
                                5    fiscal periods shall be subject to the availability and
                                6    appropriation of funds therefor.    If the contract is pursuant
                                7    to a public-private partnership agreement pursuant to the Trade
                                8    Ports Development Act, the contract term shall not exceed
                                9    thirty years, including all extensions and renewals.
                                10  B.   A contract for professional services may not
                                11   exceed [four] eight years, including all extensions and
                                12   renewals, except for the following:
                                13  (1)   services required to support or operate
                                14   federally certified medicaid, financial assistance and child
                                15   support enforcement management information or payment systems;
                                16  (2)   services to design, develop or implement
[bracketed material] = delete
                                17   the taxation and revenue information management systems project
underscored material = new
                                18   authorized by Laws 1997, Chapter 125;
                                19  (3)   a multi-term contract for the services of
                                20   trustees, escrow agents, registrars, paying agents, letter of
                                21   credit issuers and other forms of credit enhancement and other
                                22   similar services, excluding bond attorneys, underwriters and
                                23   financial advisors with regard to the issuance, sale and
                                24   delivery of public securities, may be for the life of the
                                25   securities or as long as the securities remain outstanding;
                                     .232917.6GLG
                                                                    - 33 -
                                1  (4)   services relating to the implementation,
                                2    operation and administration of the Education Trust Act;
                                3  (5)   services relating to measurement and
                                4    verification of conservation-related cost savings and utility
                                5    cost savings pursuant to the Public Facility Energy Efficiency
                                6    and Water Conservation Act;
                                7  (6)   services relating to the design and
                                8    engineering of a state public works project:
                                9  (a)   for a period not to exceed the
                                10   requisite time for project completion and a subsequent warranty
                                11   period; and
                                12  (b)   upon approval of the secretary of
                                13   finance and administration;
                                14  (7)   services relating to the design and
                                15   engineering of a regional water project with an estimated cost
                                16   of more than five hundred million dollars ($500,000,000):
[bracketed material] = delete
                                17  (a)   for a period not to exceed the
underscored material = new
                                18   requisite time for project completion and a subsequent warranty
                                19   period; and
                                20  (b)   upon approval of the secretary of
                                21   finance and administration; and
                                22  (8)   a contract for services pursuant to a
                                23   public-private partnership agreement pursuant to the Trade
                                24   Ports Development Act, which contract shall not exceed thirty
                                25   years, including all extensions and renewals."
                                     .232917.6GLG
                                                                   - 34 -
                                1  SECTION 18.    Section 13-1-154.1 NMSA 1978 (being Laws
                                2    2007, Chapter 312, Section 1, as amended) is amended to read:
                                3  "13-1-154.1.     MULTIPLE SOURCE CONTRACTS--ARCHITECTURAL AND
                                4    ENGINEERING SERVICES CONTRACTS--INDEFINITE QUANTITY
                                5    CONSTRUCTION CONTRACTS.--
                                6  A.   A state agency or local public body may procure
                                7    multiple architectural or engineering services contracts for
                                8    multiple projects under a single qualifications-based request
                                9    for proposals; provided that the total amount of multiple
                                10   contracts and all renewals for a single contractor does not
                                11   exceed seven million five hundred thousand dollars ($7,500,000)
                                12   over [four] eight years and that a single contract, including
                                13   any renewals, does not exceed two million dollars ($2,000,000).
                                14  B.   A state agency or local public body may procure
                                15   multiple indefinite quantity construction contracts pursuant to
                                16   a price agreement for multiple projects under a single request
[bracketed material] = delete
                                17   for proposals; provided that the total amount of all contracts
underscored material = new
                                18   and all renewals does not exceed thirty million dollars
                                19   ($30,000,000) in a period of no more than ten years and the
                                20   contract provides that any one purchase order under the
                                21   contract may not exceed seven million dollars ($7,000,000).
                                22  C.   A state agency or local public body may make
                                23   procurements in accordance with the provisions of Subsection A
                                24   or B of this section if:
                                25  (1)    the advertisement and request for
                                     .232917.6GLG
                                                                    - 35 -
                                1    proposals states that multiple contracts may or will be
                                2    awarded, states the number of contracts that may or will be
                                3    awarded and describes the services or construction to be
                                4    performed under each contract;
                                5  (2)   there is a single selection process for
                                6    all of the multiple contracts, except that for each contract
                                7    there may be a separate final list and a separate negotiation
                                8    of contract terms; and
                                9  (3)   each of the multiple contracts for
                                10   architectural or engineering services has a term not exceeding
                                11   [four] eight years, or for construction, has a term not
                                12   exceeding [three] ten years, each including all extensions and
                                13   renewals.
                                14  D.   A contract to be awarded pursuant to this
                                15   section to a firm that is currently performing under a contract
                                16   issued pursuant to this section shall not cause the total
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                                17   amount of all contracts issued pursuant to this section to that
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                                18   firm to exceed:
                                19  (1)   fifteen million dollars ($15,000,000) in
                                20   any [four-year] eight-year period for architectural or
                                21   engineering services; or
                                22  (2)   thirty million dollars ($30,000,000) in
                                23   any ten-year period for construction.
                                24  E.   Procurement pursuant to this section is subject
                                25   to the limitations of Sections 13-1-150 through 13-1-154 NMSA
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                                1    1978.
                                2  F.   A state agency and a local public body, not
                                3    including an agency of the legislative or judicial branch of
                                4    state government, shall report to the legislative finance
                                5    committee on an annual basis and to the purchasing division of
                                6    the general services department on, at minimum, a quarterly
                                7    basis the aggregate amount of contracts for each contractor and
                                8    the corresponding amounts to be spent under each multiple
                                9    source contract pursuant to this section.    The general services
                                10   department may promulgate rules regarding reporting to the
                                11   department pursuant to this subsection.
                                12  G.   Notwithstanding the provisions of Subsections A
                                13   through F of this section:
                                14  (1)   a state agency or local public body may
                                15   exceed the monetary limitations for multiple source contracts,
                                16   architectural and engineering services contracts or indefinite
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                                17   quantity construction contracts when:
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                                18  (a)    the governor has declared a state of
                                19   emergency or disaster pursuant to the Public Health Emergency
                                20   Response Act, the All Hazard Emergency Management Act or other
                                21   applicable law or executive powers;
                                22  (b)    the procurement is directly related
                                23   to disaster response, recovery or relief efforts, including
                                24   infrastructure repair, temporary facilities, essential public
                                25   services or mitigation measures; and
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                                1  (c)   the state agency or local public
                                2    body documents the necessity for exceeding statutory limits,
                                3    obtains written approval from the state purchasing agent prior
                                4    to executing a contract pursuant to this subsection and reports
                                5    the procurement to the state purchasing agent within thirty
                                6    days of executing the contract; and
                                7  (2)   unless otherwise authorized by law,
                                8    contracts executed under this subsection shall remain in effect
                                9    only for the duration of the declared emergency and the
                                10   emergency's recovery period, not to exceed twenty-four months
                                11   following the termination of the emergency declaration."
                                12        SECTION 19.    Section 13-1-155 NMSA 1978 (being Laws 1984,
                                13   Chapter 65, Section 128, as amended) is amended to read:
                                14        "13-1-155.    PROCUREMENT OF USED ITEMS--APPRAISAL
                                15   REQUIRED--[COUNTY] ROAD EQUIPMENT EXCEPTION FOR AUCTIONS.--
                                16  A.   A central purchasing office, when procuring used
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                                17   items of tangible personal property the estimated cost of which
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                                18   exceeds five thousand dollars ($5,000), shall request bids as
                                19   though the items were new, adding specifications that permit
                                20   used items under conditions to be outlined in the bid
                                21   specifications, including but not limited to requiring a
                                22   written warranty for at least ninety days after date of
                                23   delivery and an independent "certificate of working order" by a
                                24   qualified mechanic or appraiser.
                                25  B.   Notwithstanding the provisions of Subsection A
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                                1    of this section, [the] a purchasing office [for a county] may
                                2    purchase, at public or private auctions conducted by
                                3    established, recognized commercial auction companies, used
                                4    heavy equipment having an estimated cost that exceeds five
                                5    thousand dollars ($5,000) for use in construction and
                                6    maintenance of [county] streets, roads and highways, subject to
                                7    the following provisions:
                                8  (1)   the commercial auction company shall have
                                9    been in business for at least three years preceding the date of
                                10   purchase and shall conduct at least five auctions annually;
                                11  (2)   the value of each piece of equipment shall
                                12   be appraised prior to the auction by a qualified disinterested
                                13   appraiser retained and paid by the [county] central purchasing
                                14   office, who shall make a written appraisal report stating the
                                15   basis for the appraisal, including the age, condition and
                                16   comparable sales, and stating that the appraiser has exercised
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                                17   [his] independent judgment without prior understanding or
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                                18   agreement with any person as to a target value or range of
                                19   value;
                                20  (3)   an independent "certificate of working
                                21   condition" shall be obtained prior to the auction from a
                                22   qualified mechanic who shall have made a detailed inspection of
                                23   each major working or major functional part and certified the
                                24   working condition of each; and
                                25  (4)   the price paid, including all auction fees
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                                1    and buyer's surcharges, shall not exceed the appraised value."
                                2  SECTION 20.    Section 13-1-158 NMSA 1978 (being Laws 1984,
                                3    Chapter 65, Section 131, as amended by Laws 1997, Chapter 104,
                                4    Section 1 and by Laws 1997, Chapter 222, Section 1) is amended
                                5    to read:
                                6  "13-1-158.    PAYMENTS FOR PURCHASES.--
                                7  A.   No warrant, check or other negotiable instrument
                                8    shall be issued in payment for any purchase of services,
                                9    construction or items of tangible personal property:
                                10  (1)   unless the central purchasing office or
                                11   the [using agency] chief procurement officer certifies that the
                                12   services, construction or items of tangible personal property
                                13   have been received and meet specifications; [or]
                                14  (2)   unless prepayment is permitted under
                                15   Section 13-1-98 NMSA 1978 by exclusion of the purchase from the
                                16   Procurement Code; or
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                                17  (3)   unless the purchase is for child care
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                                18   assistance services and the central purchasing office or the
                                19   chief procurement officer certifies in writing that, due to
                                20   customary business practices or specific facts demonstrating
                                21   undue hardship or special operational needs of the person
                                22   providing the child care assistance services prepayment is
                                23   necessary because the services cannot be reasonably obtained
                                24   without prepayment.     Any contract requiring prepayment pursuant
                                25   to this paragraph shall:
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                                1  (a)   include provisions to protect state
                                2    money, including refund provisions or other contractual
                                3    remedies appropriate to the nature of the services;
                                4  (b)   be applied uniformly to any
                                5    similarly situated person; and
                                6  (c)   not be used to confer a competitive
                                7    advantage or preference.
                                8  B.   Unless otherwise agreed upon by the parties or
                                9    unless otherwise specified in the invitation for bids, request
                                10   for proposals or other solicitation, within fifteen days from
                                11   the date the central purchasing office or using agency receives
                                12   written notice from the contractor that payment is requested
                                13   for services or construction completed or items of tangible
                                14   personal property delivered on site and received, the central
                                15   purchasing office or using agency shall issue a written
                                16   certification of complete or partial acceptance or rejection of
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                                17   the services, construction or items of tangible personal
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                                18   property.
                                19  C.   Except as provided in Subsection A or D of this
                                20   section, upon certification by the central purchasing office or
                                21   the using agency that the services, construction or items of
                                22   tangible personal property have been received and accepted,
                                23   payment shall be tendered to the contractor within thirty days
                                24   of the date of certification.    If payment is made by mail, the
                                25   payment shall be deemed tendered on the date it is postmarked.
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                                1    After the thirtieth day from the date that written
                                2    certification of acceptance is issued, late payment charges
                                3    shall be paid on the unpaid balance due on the contract to the
                                4    contractor at the rate of one and one-half percent per month.
                                5    For purchases funded by state or federal grants to local public
                                6    bodies, if the local public body has not received the funds
                                7    from the federal or state funding agency, payments shall be
                                8    tendered to the contractor within five working days of receipt
                                9    of funds from that funding agency.
                                10  D.   If the central purchasing office or the using
                                11   agency finds that the services, construction or items of
                                12   tangible personal property are not acceptable, it shall, within
                                13   thirty days of the date of receipt of written notice from the
                                14   contractor that payment is requested for services or
                                15   construction completed or items of tangible personal property
                                16   delivered on site, provide to the contractor a letter of
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                                17   exception explaining the defect or objection to the services,
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                                18   construction or delivered tangible personal property along with
                                19   details of how the contractor may proceed to provide remedial
                                20   action.
                                21  E.   Late payment charges that differ from the
                                22   provisions of Subsection C of this section may be assessed if
                                23   specifically provided for by contract or pursuant to tariffs
                                24   approved by the [New Mexico public utility commission or the
                                25   state corporation] public regulation commission."
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                                1  SECTION 21.   EFFECTIVE DATE.--The effective date of the
                                2    provisions of this act is July 1, 2026.
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