PROCUREMENT CHANGES

SB0153

SENATE BILL 153

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Michael Padilla

AN ACT

RELATING TO PROCUREMENT; REDUCING THE NUMBER OF TAXPAYING YEARS
REQUIRED FOR CERTAIN RESIDENT BUSINESSES AND CONTRACTORS;
ADDING THE DEFINITION OF "BEST OBTAINABLE PRICE"; CLARIFYING
THE DEFINITION OF "CENTRAL PURCHASING OFFICE"; ADDING THE
DEFINITION OF "NOTICE OF INVITATION FOR SOLICITATION"; ADDING
THE DEFINITION OF "NOTICE OF REQUEST FOR PROPOSALS"; AMENDING
THE DEFINITION OF "SMALL BUSINESS" TO CONFORM TO THE DEFINITION
IN FEDERAL LAW; REQUIRING THAT SEALED BIDS BE OPENED IN
ACCORDANCE WITH SECTION 13-1-107 NMSA 1978 (BEING LAWS 1984,
CHAPTER 65, SECTION 80); REQUIRING STATE AGENCIES AND LOCAL
PUBLIC BODIES TO PROVIDE UP TO TWO NAMES FOR CHIEF PROCUREMENT
OFFICERS; REQUIRING THAT A CHIEF PROCUREMENT OFFICER
CERTIFICATION PROGRAM BE MAINTAINED BY THE STATE PURCHASING
AGENT; ALLOWING APPROVED CONTINUING EDUCATION UNITS TO BE USED
FOR RECERTIFICATION; DEFINING "CONTINUING EDUCATION UNITS";
REQUIRING EXEMPTION DETERMINATIONS TO INCLUDE THE FACTS RELIED
UPON IN THE DETERMINATION; INCREASING EXEMPTION MAXIMUM AMOUNTS
FOR CERTAIN PURCHASES; INCREASING SMALL PURCHASES AMOUNTS
EXCLUDED FROM REQUIRED PROCUREMENT BY THE STATE PURCHASING
AGENT; CHANGING INVITATION FOR BIDS POSTING AND PUBLICATION
REQUIREMENTS AND EXPENDITURE AMOUNTS; CLARIFYING HOW IDENTICAL
COMPETITIVE SEALED BIDS ARE AWARDED; REQUIRING THAT
PROFESSIONAL SERVICES CONTRACTS BE REVIEWED BY THE STATE
PURCHASING AGENT OR A GENERAL SERVICES DEPARTMENT DESIGNEE;
INCREASING THE AMOUNT FOR CERTAIN PURCHASES BY A CENTRAL
PURCHASING AGENT; LIMITING SOLE SOURCE CONTRACTS TO A TERM OF
FOUR YEARS, INCLUDING ALL EXTENSIONS AND RENEWALS; CHANGING
CERTAIN INTENT TO AWARD SOLE SOURCE CONTRACT REQUIREMENTS;
REQUIRING COST OR PRICING DATA BY PROSPECTIVE CONTRACTORS;
INCREASING MAXIMUM TERMS FOR PROFESSIONAL SERVICES CONTRACTS TO
EIGHT YEARS; PROVIDING PROCUREMENT PROCESS EXCEPTIONS FOR
CERTAIN DISASTER-RELATED CONTRACTS PROCURED DURING A DECLARED
STATE OF EMERGENCY; PROVIDING FOR PREPAYMENT OF CERTAIN CHILD
CARE ASSISTANCE SERVICES CONTRACTS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1.
Section 13-1-22 NMSA 1978 (being Laws 2012,
Chapter 56, Section 4, as amended) is amended to read:

"13-1-22. RESIDENT BUSINESS AND RESIDENT CONTRACTOR
CERTIFICATION--NATIVE AMERICAN RESIDENT BUSINESS AND NATIVE
AMERICAN RESIDENT CONTRACTOR CERTIFICATES--RESIDENT VETERAN
BUSINESS AND RESIDENT VETERAN CONTRACTOR CERTIFICATES.--

A. To receive a resident business, Native American
resident business, resident veteran business or Native American
resident veteran business preference pursuant to Section
13-1-21 NMSA 1978 or a resident contractor, Native American
resident contractor, resident veteran contractor or Native
American resident veteran contractor preference pursuant to
Section 13-4-2 NMSA 1978, a business or contractor shall submit
with its bid or proposal a copy of a valid resident business,
Native American resident business, resident veteran business or
Native American resident veteran business certificate or valid
resident contractor, Native American resident contractor,
resident veteran contractor or Native American resident veteran
contractor certificate issued by the taxation and revenue
department.

B. An application for a resident business
certificate shall include an affidavit from a certified public
accountant setting forth that the business is licensed to do
business in this state and that:

(1) the business has paid property taxes or
rent on real property in the state and paid at least one other
tax administered by the state,
excluding the motor vehicle
excise tax
, in [
each of the three years
]
the year
immediately
preceding the submission of the affidavit;

(2) if the business is a new business, the
owner or majority of owners has paid property taxes or rent on
real property in the state and has paid at least one other tax
administered by the state,
excluding the motor vehicle excise
tax
, in [
each of the three years
]
the year
immediately
preceding the submission of the affidavit and has not applied
for a resident business or resident contractor certificate
pursuant to this section during that time period;

(3) if the business is a relocated business,
at least eighty percent of the total personnel of the business
in the year immediately preceding the submission of the
affidavit were residents of the state and that, prior to the
submission of the affidavit, the business either leased real
property for ten years or purchased real property greater than
one hundred thousand dollars ($100,000) in value in the state;
or

(4) if the business is a previously certified
business or was eligible for certification, the business has
changed its name, has reorganized into one or more different
legal entities, was purchased by another legal entity but
operates in the state as substantially the same commercial
enterprise or has merged with a different legal entity but
operates in the state as substantially the same commercial
enterprise.

C. An application for a resident veteran business
certificate shall include the affidavit required by Subsection
B of this section and:

(1) verification by the United States
department of veterans affairs as being either a veteran-owned
small business or a service-disabled veteran-owned small
business; or

(2) verification of veteran status as
indicated by the United States department of defense DD form
214 of release or discharge from active duty with an honorable
discharge or of service-disabled veteran status by the United
States department of veterans affairs and proof that a veteran
or veterans own a majority of the business.

D. An application for a resident contractor
certificate shall include an affidavit from a certified public
accountant setting forth that the contractor is currently
licensed as a contractor in this state and that:

(1) the contractor has:

(a) registered with the state at least
one vehicle; and

(b) in [
each of the five years
]
the year

immediately preceding the submission of the affidavit: 1) paid
property taxes or rent on real property in the state and paid
at least one other tax administered by the state,
excluding the
motor vehicle excise tax
; and 2) paid unemployment insurance on
at least three full-time employees who are residents of the
state; provided that if a contractor is a legacy contractor,
the requirement of at least three full-time employees who are
residents of the state is waived;

(2) if the contractor is a new contractor, the
owner or majority of owners has paid property taxes or rent on
real property in the state and has paid at least one other tax
administered by the state,
excluding the motor vehicle excise
tax
, in [
each of the five years
]
the year
immediately preceding
the submission of the affidavit and has not applied for a
resident business or resident contractor certificate pursuant
to this section during that time period;

(3) if the contractor is a relocated business,
at least eighty percent of the total personnel of the business
in the year immediately preceding the submission of the
affidavit were residents of the state and that, prior to the
submission of the affidavit, the contractor either leased real
property for ten years or purchased real property greater than
one hundred thousand dollars ($100,000) in value in the state;
or

(4) if the contractor is a previously
certified contractor or was eligible for certification, the
contractor has changed its name, has reorganized into one or
more different legal entities, was purchased by another legal
entity but operates in the state as substantially the same
enterprise or has merged with a different legal entity but
operates in the state as substantially the same commercial
enterprise.

E. An application for a resident veteran contractor
certificate shall include the affidavit required by Subsection
D of this section and:

(1) verification by the United States
department of veterans affairs as being either a veteran-owned
small business or a service-disabled veteran-owned small
business; or

(2) verification of veteran status as
indicated by the United States department of defense DD form
214 of release or discharge from active duty with an honorable
discharge or of service-disabled veteran status by the United
States department of veterans affairs and proof that a veteran
or veterans own a majority of the business.

F. An application for a Native American resident
business certificate or a Native American resident contractor
certificate shall include an affidavit from a notary public
setting forth that the business is:

(1) operating on lands located on an Indian
nation, tribe or pueblo located in whole or in part on land
within New Mexico; and

(2) at least fifty-one percent owned by an
Indian nation, tribe or pueblo located in whole or in part on
land within New Mexico; provided that:

(a) the Indian nation, tribe or pueblo
receives at least a majority of the net income from the
business; and

(b) the management and daily operation
of the business are controlled by one or more individuals who
are members of a New Mexico Indian nation, tribe or pueblo; or

(3) at least fifty-one percent owned by one or
more New Mexico residents who are members of a federally
recognized Indian nation, tribe or pueblo located in whole or
in part on land within New Mexico and that is established for
the purpose of profit; provided that:

(a) the Native American owners receive
at least a majority of the net income from the business; and

(b) the management and daily operation
of the business are controlled by one or more individuals who
are members of a New Mexico Indian nation, tribe or pueblo.

G. An application for a Native American resident
veteran business certificate or a Native American resident
veteran contractor certificate shall include the affidavit
required by Subsection F of this section and, if the business
is not owned by an Indian nation, tribe or pueblo:

(1) verification by the United States
department of veterans affairs that the business is either a
veteran-owned small business or a service-disabled veteran-owned small business;

(2) verification of veteran status of a
majority of the owners of the business as indicated by the
United States department of defense DD form 214 of release or
discharge from active duty with an honorable discharge or of
service-disabled veteran status by the United States department
of veterans affairs; or

(3) verification of veteran status of the
contractor as indicated by the United States department of
defense DD form 214 of release or discharge from active duty
with an honorable discharge or of service-disabled veteran
status by the United States department of veterans affairs.

H. The taxation and revenue department shall
prescribe the form and content of the application and required
affidavit. The taxation and revenue department shall examine
the application and affidavit and, if necessary, may seek
additional information to ensure that the business or
contractor is eligible to receive the certificate pursuant to
the provisions of this section. If the taxation and revenue
department determines that an applicant is eligible, the
department shall issue a certificate pursuant to the provisions
of this section. If the taxation and revenue department
determines that the applicant is not eligible, the department
shall issue notification within thirty days. If no
notification is provided by the department, the certificate is
deemed approved. A certificate is valid for three years from
the date of its issuance; provided that if there is a change of
ownership of more than fifty percent, a resident business or
resident contractor shall reapply for a certificate.

I. A business or contractor whose application for a
certificate is denied has fifteen days from the date of the
taxation and revenue department's decision to file an objection
with the taxation and revenue department. The person filing
the objection shall submit evidence to support the objection.
The taxation and revenue department shall review the evidence
and issue a decision within fifteen days of the filing of the
objection.

J. If, following a hearing and an opportunity to be
heard, the administrative hearings office finds that a business
or contractor provided false information to the taxation and
revenue department in order to obtain a certificate or that a
business or contractor used a certificate to obtain a resident
business or resident contractor preference for a bid or
proposal and the resident business or contractor did not
perform the percentage of the contract specified in the bid or
proposal, the business or contractor:

(1) is not eligible to receive a certificate
or a preference pursuant to Section 13-1-21 or 13-4-2 NMSA 1978
for a period of five years from the date on which the taxation
and revenue department became aware of the submission of the
false information or the failure to perform the contract as
specified in the bid or proposal; and

(2) is subject to an administrative penalty of
up to fifty thousand dollars ($50,000) for each violation.

K. In a decision issued pursuant to Subsection I or
J of this section, the taxation and revenue department or the
administrative hearings office shall state the reasons for the
action taken and inform an aggrieved business or contractor of
the right to judicial review of the determination pursuant to
the provisions of Section 39-3-1.1 NMSA 1978.

L. The taxation and revenue department may assess a
reasonable fee for the issuance of a certificate not to exceed
the actual cost of administering the taxation and revenue
department's duties pursuant to this section.

M. The state auditor may audit or review the
issuance or validity of certificates.

N. For purposes of this section:

(1) "new business" means a person that did not
exist as a business in any form and that has been in existence
for less than three years;

(2) "new contractor" means a person that did
not exist as a business in any form and that has been in
existence for less than five years;

(3) "legacy contractor" means a construction
business that has been licensed in this state for ten
consecutive years; and

(4) "relocated business" means a business that
moved eighty percent of its total domestic personnel from
another state to New Mexico in the past five years."

SECTION 2.
A new section of the Procurement Code, Section
13-1-31.1 NMSA 1978, is enacted to read:

"13-1-31.1. [
NEW MATERIAL
] DEFINITION--BEST OBTAINABLE
PRICE.--"Best obtainable price" means the price at which
services or goods can be purchased that is most advantageous to
the purchasing entity. The "best obtainable price" can be
found by obtaining quotes; provided that if only one quote is
received, negotiations between the vendor and the procuring
entity shall be documented and approved by the central
purchasing office."

SECTION 3.
A new section of the Procurement Code, Section
13-1-70.2 NMSA 1978, is enacted to read:

"13-1-70.2. [
NEW MATERIAL
] DEFINITION--NOTICE OF
INVITATION FOR SOLICITATION.--"Notice of invitation for
solicitation" means a public announcement of a solicitation for
a procurement that shall be published at least once in no less
than two newspapers of general circulation or posted on the
central purchasing office's website."

SECTION 4.
A new section of the Procurement Code, Section
13-1-70.3 NMSA 1978, is enacted to read:

"13-1-70.3. [
NEW MATERIAL
] DEFINITION--NOTICE OF REQUEST
FOR PROPOSALS.--"Notice of request for proposals" means a
public announcement made by a central purchasing office to
solicit detailed proposals from potential offerors, including
suppliers, contractors or service providers, for a specific
project, product or service."

SECTION 5.
Section 13-1-88 NMSA 1978 (being Laws 1984,
Chapter 65, Section 61) is amended to read:

"13-1-88. DEFINITION--SMALL BUSINESS.--"Small business"
means a business [
not a subsidiary or division of another
business, having an average annual volume for the preceding
three fiscal years which does not exceed one million five
hundred thousand dollars ($1,500,000)
]
as defined in the
federal Small Business Act
."

SECTION 6.
Section 13-1-95.1 NMSA 1978 (being Laws 2001,
Chapter 292, Section 7, as amended) is amended to read:

"13-1-95.1. ELECTRONIC TRANSMISSIONS.--

A. The state purchasing agent shall develop
guidelines for central purchasing offices to use electronic
media, including distribution of solicitations and acceptance
of sealed bids and competitive sealed proposals that include
electronic signatures. The guidelines shall include:

(1) appropriate security to prevent
unauthorized access to electronically submitted bids or
proposals prior to the date and time set for opening of bids or
the deadline set for receipt for proposals, including the
electronic bidding, approval and award process; and

(2) accurate retrieval or conversion of
electronic forms of information into a medium that permits
inspection and copying.

B. A central purchasing office, in an invitation
for bids or a request for proposals, may require all or any
part of a sealed bid or a competitive sealed proposal to be
submitted electronically if the office determines that an
electronic submission will be advantageous to the procurement
process. If electronic submission is required:

(1) no hard copy documentation shall be
submitted to the central purchasing office prior to the award
of the contract, except as specifically identified in the
invitation for bids or the request for proposals;

(2) the invitation for bids or request for
proposals shall specify an opening date and time, a fixed
closing date and time and an email account or other secure
electronic location to which the electronic bid or proposal
shall be submitted;

(3) sealed bids submitted electronically shall
be opened [
publicly
] in [
the presence of one or more witnesses
at the time and place designated in the invitation for bids.

The amount of each bid and each bid item, if appropriate, and
such other relevant information as may be specified by the
state purchasing agent or a central purchasing office, together
with the name of each bidder, shall be recorded, and the record
and each bid shall be open to public inspection
]
accordance
with Section 13-1-107 NMSA 1978
; and

(4) for sealed proposals, the proposals shall
be opened, evaluated and the contract awarded as required in
the request for proposals and as otherwise provided in the
Procurement Code."

SECTION 7.
Section 13-1-95.2 NMSA 1978 (being Laws 2013,
Chapter 70, Section 3) is amended to read:

"13-1-95.2.
CHIEF PROCUREMENT OFFICERS--REPORTING
REQUIREMENT--TRAINING--CERTIFICATION.--

A. [
On or before January 1 of each year beginning
in 2014
]
Each year prior to certification expiration
, and every
time a chief procurement officer is hired, each state agency
and local public body shall [
provide
]
submit
to the state
purchasing agent [
the name of
]
no more than two names of
certified chief procurement officers for
the state agency's or
local public body's [
chief procurement officer and information
identifying the state agency's or local public body's
] central
purchasing office [
if applicable
].

B. The state purchasing agent shall maintain a list
of the names of the chief procurement officers reported to the
state purchasing agent by state agencies and local public
bodies. The state purchasing agent shall make the list of
chief procurement officers available to the public through the
[
web site
]
website
of the purchasing division of the general
services department and in any other appropriate form.

C. The state purchasing agent shall offer a
certification training program for chief procurement officers
each year.

D. [
On or before January 1, 2015
] The state
purchasing agent shall [
establish
]
maintain
a certification
program for chief procurement officers that includes initial
certification and recertification every two years for all chief
procurement officers. In order to be recertified, a chief
procurement officer shall pass a recertification examination
approved by the secretary of general services.

E. [
On and after July 1, 2015
] Only certified chief
procurement officers may do the following, except that persons
using procurement cards may continue to issue purchase orders
and authorize small purchases:

(1) make determinations
pursuant to the
Procurement Code
, including determinations regarding
exemptions; [
pursuant to the Procurement Code
]
provided that
the findings in an exemption determination shall include the
facts relied upon in the making of the determination
;

(2) issue purchase orders and authorize small
purchases pursuant to the Procurement Code; and

(3) approve procurement pursuant to the
Procurement Code."

SECTION 8.
Section 13-1-98 NMSA 1978 (being Laws 1984,
Chapter 65, Section 71, as amended by Laws 2023, Chapter 149,
Section 2 and by Laws 2023, Chapter 174, Section 1) is amended
to read:

"13-1-98. EXEMPTIONS FROM THE PROCUREMENT CODE.--
The
state purchasing agent or the central purchasing office that
makes an exemption determination shall include in the
determination the facts relied upon in the making of the
determination.
The provisions of the Procurement Code shall
not apply to:

A. procurement of items of tangible personal
property or services by a state agency or a local public body
from a state agency, a local public body or external
procurement unit except as otherwise provided in Sections
13-1-135 through 13-1-137 NMSA 1978;

B. procurement of tangible personal property or
services for the governor's mansion and grounds;

C. printing and duplicating contracts involving
materials that are required to be filed in connection with
proceedings before administrative agencies or state or federal
courts;

D. purchases of publicly provided or publicly
regulated gas, electricity, water, sewer and refuse collection
services;

E. purchases of books, periodicals, instructional
materials and training materials in printed, digital or
electronic format from the publishers, designated public-education-department-approved instructional material
depositories or copyright holders thereof and purchases of
print, digital or electronic format library materials by
public, school and state libraries for access by the public;

F. travel or shipping by common carrier or by
private conveyance or to meals and lodging;

G. purchase of livestock at auction rings or to the
procurement of animals to be used for research and
experimentation or exhibit;

H. contracts with businesses for public school
transportation services;

I. procurement of tangible personal property or
services, as defined by Sections 13-1-87 and 13-1-93 NMSA 1978,
by the corrections industries division of the corrections
department pursuant to rules adopted by the corrections
industries commission, which shall be reviewed by the
purchasing division of the general services department prior to
adoption;

J. purchases not exceeding [
ten thousand dollars
($10,000)
]
one hundred thousand dollars ($100,000)
consisting
of magazine subscriptions, web-based or electronic
subscriptions, conference registration fees and other similar
purchases where prepayments are required;

K. municipalities having adopted home rule charters
and having enacted their own purchasing ordinances;

L. the issuance, sale and delivery of public
securities pursuant to the applicable authorizing statute, with
the exception of bond attorneys and general financial
consultants;

M. contracts entered into by a local public body
with a private independent contractor for the operation, or
provision and operation, of a jail pursuant to Sections 33-3-26
and 33-3-27 NMSA 1978;

N. contracts for maintenance of grounds and
facilities at highway rest stops and other employment
opportunities, excluding those intended for the direct care and
support of persons with handicaps, entered into by state
agencies with private, nonprofit, independent contractors who
provide services to persons with handicaps;

O. contracts and expenditures for services or items
of tangible personal property to be paid or compensated by
money or other property transferred to New Mexico law
enforcement agencies by the United States department of justice
drug enforcement administration;

P. contracts for retirement and other benefits
pursuant to Sections 22-11-47 through 22-11-52 NMSA 1978;

Q. contracts with professional entertainers;

R. contracts and expenditures for legal
subscription and research services and litigation expenses in
connection with proceedings before administrative agencies or
state or federal courts, including experts, mediators, court
reporters, process servers and witness fees, but not including
attorney contracts;

S. contracts for service relating to the design,
engineering, financing, construction and acquisition of public
improvements undertaken in improvement districts pursuant to
Subsection L of Section 3-33-14.1 NMSA 1978 and in county
improvement districts pursuant to Subsection L of Section
4-55A-12.1 NMSA 1978;

T. works of art for museums or for display in
public buildings or places;

U. contracts entered into by a local public body
with a person, firm, organization, corporation or association
or a state educational institution named in Article 12, Section
11 of the constitution of New Mexico for the operation and
maintenance of a hospital pursuant to Chapter 3, Article 44
NMSA 1978, lease or operation of a county hospital pursuant to
the Hospital Funding Act or operation and maintenance of a
hospital pursuant to the Special Hospital District Act;

V. purchases of advertising in all media, including
radio, television, print and electronic,
but not including
purchases for marketing services that are broad strategic
activities, including market research, branding, campaign
planning or content development
;

W. purchases of promotional goods intended for
resale by the tourism department;

X. procurement of printing, publishing and
distribution services for materials produced and intended for
resale by the cultural affairs department;

Y. procurement by or through the public education
department from the federal department of education relating to
parent training and information centers designed to increase
parent participation, projects and initiatives designed to
improve outcomes for students with disabilities and other
projects and initiatives relating to the administration of
improvement strategy programs pursuant to the federal
Individuals with Disabilities Education Act; provided that the
exemption applies only to procurement of services not to exceed
two hundred thousand dollars ($200,000);

Z. procurement of services from community
rehabilitation programs or qualified individuals pursuant to

the State Use Act;

AA. purchases of products or services for eligible
persons with disabilities pursuant to the federal
Rehabilitation Act of 1973;

BB. procurement, by either the department of health
or Grant county or both, of tangible personal property,
services or construction that are exempt from the Procurement
Code pursuant to Section 9-7-6.5 NMSA 1978;

CC. contracts for investment advisory services,
investment management services or other investment-related
services entered into by the educational retirement board, the
state investment officer or the retirement board created
pursuant to the Public Employees Retirement Act;

DD. the purchase for resale by the state fair
commission of feed and other items necessary for the upkeep of
livestock;

EE. contracts entered into by the crime victims
reparation commission to distribute federal grants to assist
victims of crime, including grants from the federal Victims of
Crime Act of 1984 and the federal Violence Against Women Act of
1994;

FF. procurement by or through the early childhood
education and care department of early pre-kindergarten and
pre-kindergarten services purchased pursuant to the Pre-Kindergarten Act;

GG. procurement of services of commissioned
advertising sales representatives for New Mexico magazine;

HH. contracts entered into by the forestry division
of the energy, minerals and natural resources department to
distribute federal grants to nongovernmental entities and
individuals selected through an application process conducted
by the United States department of agriculture, the United
States department of the interior or any division or bureau
thereof for programs for wildfire prevention or protection,
urban forestry, forest and watershed restoration and
protection, reforestation or economic development projects to
advance the use of trees and wood biomass for hazardous fuel
reduction; and

II. procurements exempt from the Procurement Code
as otherwise provided by law."

SECTION 9.
Section 13-1-99 NMSA 1978 (being Laws 1984,
Chapter 65, Section 72, as amended) is amended to read:

"13-1-99. EXCLUDED FROM CENTRAL PURCHASING THROUGH THE
STATE PURCHASING AGENT.--Excluded from the requirement of
procurement through the state purchasing agent but not from the
requirements of the Procurement Code are the following:

A. procurement of professional services;

B. small purchases having a value not exceeding
[
one thousand five hundred dollars ($1,500)
]
ten thousand
dollars ($10,000)
;

C. emergency procurement;

D. procurement of highway construction or
reconstruction by the department of transportation;

E. procurement by the judicial branch of state
government;

F. procurement by the legislative branch of state
government;

G. procurement by the boards of regents of state
educational institutions named in Article 12, Section 11 of the
constitution of New Mexico;

H. procurement by the state fair commission of
tangible personal property, services and construction under
twenty thousand dollars ($20,000);

I. purchases of instructional materials;

J. procurement by all local public bodies;

K. procurement by regional education cooperatives;

L. procurement by charter schools;

M. procurement by each state health care
institution that provides direct patient care and that is, or a
part of which is, medicaid certified and participating in the
New Mexico medicaid program; and

N. procurement by the public school facilities
authority."

SECTION 10.
Section 13-1-104 NMSA 1978 (being Laws 1984,
Chapter 65, Section 77, as amended) is amended to read:

"13-1-104. COMPETITIVE SEALED BIDS--PUBLIC NOTICE.--

A. An invitation for bids or a notice thereof shall
be published not less than ten calendar days prior to the date
set forth for the opening of bids. In the case of purchases
made by the state purchasing agent
or a central purchasing
office
, the invitation or notice shall be published at least
once in [
at least three
]
no less than two
newspapers of general
circulation in this state; in addition, an invitation or notice
may be published electronically on the state purchasing agent's
[
web site that is maintained for that purpose. In the case of
purchases made by other central purchasing offices, the
invitation or notice shall be published at least once in a
newspaper of general circulation in the area in which the
central purchasing office is located. These requirements of
publication are in addition to any other procedures that may be
adopted by central purchasing offices to notify prospective
bidders that bids will be received, including publication in a
trade journal, if available. If there is no newspaper of
general circulation in the area in which the central purchasing
office is located, such other notice may be given as is
commercially reasonable
]
website
.

B.
Each
central purchasing [
offices
]
office
shall
send copies of the notice or invitation for bids involving the
expenditure of more than [
twenty thousand dollars ($20,000)
]

one hundred thousand dollars ($100,000)
to those businesses
that have signified in writing an interest in submitting bids
for particular categories of items of tangible personal
property, construction and services and that have paid any
required fees. A central purchasing office may set different
registration fees for different categories of services,
construction or items of tangible personal property, but such
fees shall be related to the actual, direct cost of furnishing
copies of the notice or invitation for bids to the prospective
bidders. The fees shall be used exclusively for the purpose of
furnishing copies of the notice or invitation for bids of
proposed procurements to prospective bidders.

C. A central purchasing office may satisfy the
requirement of sending copies of a notice or invitation for
bids by distributing the documents to prospective bidders
through electronic media. Central purchasing offices shall not
require that prospective bidders receive a notice or invitation
for bids through electronic media.

D. As used in this section, "prospective bidders"
includes persons considering submission of a bid as a general
contractor for the construction contract and persons who may
submit bids to a general contractor for work to be
subcontracted pursuant to the construction contract. Central
purchasing offices shall make copies of invitations for bids
for construction contracts available to prospective bidders. A
central purchasing office may require prospective bidders who
have requested documents for bid on a construction contract to
pay a deposit for a copy of the documents for bid. The deposit
shall equal the full cost of reproduction and delivery of the
documents for bid. The deposit, less delivery charges, shall
be refunded if the documents for bid are returned in usable
condition within the time limits specified in the documents for
bid, which time limits shall be no less than ten calendar days
from the date of the bid opening. All forfeited deposits shall
be credited to the funds of the applicable central purchasing
office."

SECTION 11.
Section 13-1-110 NMSA 1978 (being Laws 1984,
Chapter 65, Section 83) is amended to read:

"13-1-110. COMPETITIVE SEALED BIDS--IDENTICAL BIDS.--When
competitive sealed bids are used and two or more of the bids
submitted are identical in price and are the low bid, the state
purchasing agent or a central purchasing office may:

A. award pursuant to the multiple source award
provisions of Sections [
126 and 127 of the Procurement Code
]

13-1-153 and 13-1-154 NMSA 1978
;

B. award to a resident business
pursuant to Section
13-1-21 NMSA 1978
if the identical low bids are submitted by a
resident business and a nonresident business;

[
C. award to a resident manufacturer if the
identical low bids are submitted by a resident manufacturer and
a resident business;

D.
]
C.
award by lottery to one of the identical low
bidders; or

[
E.
]
D.
reject all bids and resolicit bids or
proposals for the required services, construction or items of
tangible personal property."

SECTION 12.
Section 13-1-118 NMSA 1978 (being Laws 1984,
Chapter 65, Section 91, as amended) is amended to read:

"13-1-118. COMPETITIVE SEALED PROPOSALS--PROFESSIONAL
SERVICES CONTRACTS--CONTRACT REVIEW.--[
All
]
If required
,
contracts for professional services with state agencies shall
be reviewed as to form, legal sufficiency and budget
requirements by
the state purchasing agent or the state
purchasing agent's designee
[
the general services department if
required by the

regulations of the department
]. This section
does not apply to contracts entered into by the legislative
branch of state government, the judicial branch of state
government or the boards of regents of state educational
institutions named in Article 12, Section 11 of the
constitution of New Mexico."

SECTION 13.
Section 13-1-125 NMSA 1978 (being Laws 1984,
Chapter 65, Section 98, as amended) is amended to read:

"13-1-125. SMALL PURCHASES.--

A. A central purchasing office shall procure
services, construction or items of tangible personal property
having a value not exceeding [
sixty thousand dollars ($60,000)
]

one hundred thousand dollars ($100,000)
, excluding applicable
state and local gross receipts taxes, in accordance with the
applicable small purchase rules adopted by the secretary, a
local public body or a central purchasing office that has the
authority to issue rules.

B. Notwithstanding the requirements of Subsection A
of this section, a central purchasing office may procure
professional services having a value not exceeding [
sixty
thousand dollars ($60,000)
]
one hundred thousand dollars
($100,000)
, excluding applicable state and local gross receipts
taxes, except for the services of landscape architects or
surveyors for state public works projects or local public works
projects, in accordance with professional services procurement
rules promulgated by the general services department or a
central purchasing office with the authority to issue rules.

C. Notwithstanding the requirements of Subsection A
of this section, a state agency or a local public body may
procure services, construction or items of tangible personal
property having a value not exceeding [
twenty thousand dollars
($20,000)
]
sixty thousand dollars ($60,000)
, excluding
applicable state and local gross receipts taxes, by issuing a
direct purchase order to a contractor based upon the best
obtainable price.

D. Procurement requirements shall not be
artificially divided so as to constitute a small purchase under
this section."

SECTION 14.
Section 13-1-126 NMSA 1978 (being Laws 1984,
Chapter 65, Section 99, as amended) is amended to read:

"13-1-126. SOLE SOURCE PROCUREMENT.--

A. A contract may be awarded without competitive
sealed bids or competitive sealed proposals regardless of the
estimated cost when the state purchasing agent or a central
purchasing office determines, in writing, that:

(1) there is only one source for the required
service, construction or item of tangible personal property;

(2) the service, construction or item of
tangible personal property is unique and this uniqueness is
substantially related to the intended purpose of the contract;
and

(3) other similar services, construction or
items of tangible personal property cannot meet the intended
purpose of the contract.

B. The state purchasing agent or a central
purchasing office shall use due diligence in determining the
basis for the sole source procurement, including reviewing
available sources and consulting the using agency, and shall
include its written determination in the procurement file.

C. The state purchasing agent or a central
purchasing office shall conduct negotiations, as appropriate,
as to price, delivery and quantity in order to obtain the price
most advantageous to the state agency or a local public body.

D. A contract for the purchase of research
consultant services by institutions of higher learning
constitutes a sole source procurement.

E. The state purchasing agent or a central
purchasing office shall not circumvent this section by narrowly
drafting specifications so that only one predetermined source
would satisfy those specifications.

F. A sole source contract shall not exceed a term
of four years, including all extensions and renewals.
"

SECTION 15.
Section 13-1-126.1 NMSA 1978 (being Laws
2013, Chapter 40, Section 6, as amended) is amended to read:

"13-1-126.1. SOLE SOURCE CONTRACTS--NOTICE--PROTEST.--

A. At least [
thirty
]
fifteen
days before it awards
a sole source contract, the state purchasing agent shall post
notice of its intent to award the contract on its website. At
least [
thirty
]
fifteen
days before it awards a sole source
contract, a central purchasing office shall post notice of its
intent to award the contract on its website, if it maintains
one, and shall transmit the notice to the state purchasing
agent for posting on the state purchasing agent's website. In
each case, the notice shall identify, at a minimum:

(1) the parties to the proposed contract;

(2) the nature and quantity of the service,
construction or item of tangible personal property being
contracted for; and

(3) the contract amount.

B. Any qualified potential contractor that was not
selected for a proposed sole source contract may protest the
selection in writing, within fifteen calendar days after the
notice of intent to award the contract was posted by the state
purchasing agent or central purchasing office, by submitting
the protest to the state purchasing agent or central purchasing
office, as appropriate. The state purchasing agent or central
purchasing office shall then reconsider its selection."

SECTION 16.
Section 13-1-138 NMSA 1978 (being Laws 1984,
Chapter 65, Section 111) is amended to read:

"13-1-138. COST OR PRICING DATA REQUIRED.--When required
by the state purchasing agent or a central purchasing office, a
prospective contractor shall submit cost or pricing data [
when
the contract is expected to exceed twenty-five thousand dollars
($25,000) and is to be awarded by a method other than
competitive sealed bids
]."

SECTION 17.
Section 13-1-150 NMSA 1978 (being Laws 1984,
Chapter 65, Section 123, as amended) is amended to read:

"13-1-150. MULTI-TERM CONTRACTS--SPECIFIED PERIOD.--

A. A multi-term contract for items of tangible
personal property, construction or services except for
professional services, in an amount under twenty-five thousand
dollars ($25,000), may be entered into for any period of time
deemed to be in the best interests of the state agency or a
local public body not to exceed [
four
]
eight
years; provided
that the term of the contract and conditions of renewal or
extension, if any, are included in the specifications and funds
are available for the first fiscal period at the time of
contracting. If the amount of the contract is twenty-five
thousand dollars ($25,000) or more, the term shall not exceed
ten years, including all extensions and renewals, except that
for a contract entered into pursuant to the Public Facility
Energy Efficiency and Water Conservation Act, the term shall
not exceed twenty-five years, including all extensions and
renewals. Payment and performance obligations for succeeding
fiscal periods shall be subject to the availability and
appropriation of funds therefor. If the contract is pursuant
to a public-private partnership agreement pursuant to the Trade
Ports Development Act, the contract term shall not exceed
thirty years, including all extensions and renewals.

B. A contract for professional services may not
exceed [
four
]
eight
years, including all extensions and
renewals, except for the following:

(1) services required to support or operate
federally certified medicaid, financial assistance and child
support enforcement management information or payment systems;

(2) services to design, develop or implement
the taxation and revenue information management systems project
authorized by Laws 1997, Chapter 125;

(3) a multi-term contract for the services of
trustees, escrow agents, registrars, paying agents, letter of
credit issuers and other forms of credit enhancement and other
similar services, excluding bond attorneys, underwriters and
financial advisors with regard to the issuance, sale and
delivery of public securities, may be for the life of the
securities or as long as the securities remain outstanding;

(4) services relating to the implementation,
operation and administration of the Education Trust Act;

(5) services relating to measurement and
verification of conservation-related cost savings and utility
cost savings pursuant to the Public Facility Energy Efficiency
and Water Conservation Act;

(6) services relating to the design and
engineering of a state public works project:

(a) for a period not to exceed the
requisite time for project completion and a subsequent warranty
period; and

(b) upon approval of the secretary of
finance and administration;

(7) services relating to the design and
engineering of a regional water project with an estimated cost
of more than five hundred million dollars ($500,000,000):

(a) for a period not to exceed the
requisite time for project completion and a subsequent warranty
period; and

(b) upon approval of the secretary of
finance and administration; and

(8) a contract for services pursuant to a
public-private partnership agreement pursuant to the Trade
Ports Development Act, which contract shall not exceed thirty
years, including all extensions and renewals."

SECTION 18.
Section 13-1-154.1 NMSA 1978 (being Laws
2007, Chapter 312, Section 1, as amended) is amended to read:

"13-1-154.1. MULTIPLE SOURCE CONTRACTS--ARCHITECTURAL AND
ENGINEERING SERVICES CONTRACTS--INDEFINITE QUANTITY
CONSTRUCTION CONTRACTS.--

A. A state agency or local public body may procure
multiple architectural or engineering services contracts for
multiple projects under a single qualifications-based request
for proposals; provided that the total amount of multiple
contracts and all renewals for a single contractor does not
exceed seven million five hundred thousand dollars ($7,500,000)
over [
four
]
eight
years and that a single contract, including
any renewals, does not exceed two million dollars ($2,000,000).

B. A state agency or local public body may procure
multiple indefinite quantity construction contracts pursuant to
a price agreement for multiple projects under a single request
for proposals; provided that the total amount of all contracts
and all renewals does not exceed thirty million dollars
($30,000,000) in a period of no more than ten years and the
contract provides that any one purchase order under the
contract may not exceed seven million dollars ($7,000,000).

C. A state agency or local public body may make
procurements in accordance with the provisions of Subsection A
or B of this section if:

(1) the advertisement and request for
proposals states that multiple contracts may or will be
awarded, states the number of contracts that may or will be
awarded and describes the services or construction to be
performed under each contract;

(2) there is a single selection process for
all of the multiple contracts, except that for each contract
there may be a separate final list and a separate negotiation
of contract terms; and

(3) each of the multiple contracts for
architectural or engineering services has a term not exceeding
[
four
]
eight
years, or for construction, has a term not
exceeding [
three
]
ten
years, each including all extensions and
renewals.

D. A contract to be awarded pursuant to this
section to a firm that is currently performing under a contract
issued pursuant to this section shall not cause the total
amount of all contracts issued pursuant to this section to that
firm to exceed:

(1) fifteen million dollars ($15,000,000) in
any [
four-year
]
eight-year
period for architectural or
engineering services; or

(2) thirty million dollars ($30,000,000) in
any ten-year period for construction.

E. Procurement pursuant to this section is subject
to the limitations of Sections 13-1-150 through 13-1-154 NMSA
1978.

F. A state agency and a local public body, not
including an agency of the legislative or judicial branch of
state government, shall report to the legislative finance
committee on an annual basis and to the purchasing division of
the general services department on, at minimum, a quarterly
basis the aggregate amount of contracts for each contractor and
the corresponding amounts to be spent under each multiple
source contract pursuant to this section. The general services
department may promulgate rules regarding reporting to the
department pursuant to this subsection.

G. Notwithstanding the provisions of Subsections A
through F of this section:

(1) a state agency or local public body may
exceed the monetary limitations for multiple source contracts,
architectural and engineering services contracts or indefinite
quantity construction contracts when:

(a) the governor has declared a state of
emergency or disaster pursuant to the Public Health Emergency
Response Act, the All Hazard Emergency Management Act or other
applicable law or executive powers;

(b) the procurement is directly related
to disaster response, recovery or relief efforts, including
infrastructure repair, temporary facilities, essential public
services or mitigation measures; and

(c) the state agency or local public
body documents the necessity for exceeding statutory limits,
obtains written approval from the state purchasing agent prior
to executing a contract pursuant to this subsection and reports
the procurement to the state purchasing agent within thirty
days of executing the contract; and

(2) unless otherwise authorized by law,
contracts executed under this subsection shall remain in effect
only for the duration of the declared emergency and the
emergency's recovery period, not to exceed twenty-four months
following the termination of the emergency declaration.
"

SECTION 19.
Section 13-1-155 NMSA 1978 (being Laws 1984,
Chapter 65, Section 128, as amended) is amended to read:

"13-1-155. PROCUREMENT OF USED ITEMS--APPRAISAL
REQUIRED--[
COUNTY
] ROAD EQUIPMENT EXCEPTION FOR AUCTIONS.--

A. A central purchasing office, when procuring used
items of tangible personal property the estimated cost of which
exceeds five thousand dollars ($5,000), shall request bids as
though the items were new, adding specifications that permit
used items under conditions to be outlined in the bid
specifications, including but not limited to requiring a
written warranty for at least ninety days after date of
delivery and an independent "certificate of working order" by a
qualified mechanic or appraiser.

B. Notwithstanding the provisions of Subsection A
of this section, [
the
]
a
purchasing office [
for a county
] may
purchase, at public or private auctions conducted by
established, recognized commercial auction companies, used
heavy equipment having an estimated cost that exceeds five
thousand dollars ($5,000) for use in construction and
maintenance of [
county
] streets, roads and highways, subject to
the following provisions:

(1) the commercial auction company shall have
been in business for at least three years preceding the date of
purchase and shall conduct at least five auctions annually;

(2) the value of each piece of equipment shall
be appraised prior to the auction by a qualified disinterested
appraiser retained and paid by the [
county
]
central purchasing
office
, who shall make a written appraisal report stating the
basis for the appraisal, including the age, condition and
comparable sales, and stating that the appraiser has exercised
[
his
] independent judgment without prior understanding or
agreement with any person as to a target value or range of
value;

(3) an independent "certificate of working
condition" shall be obtained prior to the auction from a
qualified mechanic who shall have made a detailed inspection of
each major working or major functional part and certified the
working condition of each; and

(4) the price paid, including all auction fees
and buyer's surcharges, shall not exceed the appraised value."

SECTION 20.
Section 13-1-158 NMSA 1978 (being Laws 1984,
Chapter 65, Section 131, as amended by Laws 1997, Chapter 104,
Section 1 and by Laws 1997, Chapter 222, Section 1) is amended
to read:

"13-1-158. PAYMENTS FOR PURCHASES.--

A. No warrant, check or other negotiable instrument
shall be issued in payment for any purchase of services,
construction or items of tangible personal property:

(1)
unless the central purchasing office or
the [
using agency
]
chief procurement officer
certifies that the
services, construction or items of tangible personal property
have been received and meet specifications; [
or
]

(2)
unless prepayment is permitted under
Section 13-1-98 NMSA 1978 by exclusion of the purchase from the
Procurement Code;
or

(3) unless the purchase is for child care
assistance services and the central purchasing office or the
chief procurement officer certifies in writing that, due to
customary business practices or specific facts demonstrating
undue hardship or special operational needs of the person
providing the child care assistance services prepayment is
necessary because the services cannot be reasonably obtained
without prepayment. Any contract requiring prepayment pursuant
to this paragraph shall:

(a) include provisions to protect state
money, including refund provisions or other contractual
remedies appropriate to the nature of the services;

(b) be applied uniformly to any
similarly situated person; and

(c) not be used to confer a competitive
advantage or preference
.

B. Unless otherwise agreed upon by the parties or
unless otherwise specified in the invitation for bids, request
for proposals or other solicitation, within fifteen days from
the date the central purchasing office or using agency receives
written notice from the contractor that payment is requested
for services or construction completed or items of tangible
personal property delivered on site and received, the central
purchasing office or using agency shall issue a written
certification of complete or partial acceptance or rejection of
the services, construction or items of tangible personal
property.

C. Except as provided in Subsection
A or
D of this
section, upon certification by the central purchasing office or
the using agency that the services, construction or items of
tangible personal property have been received and accepted,
payment shall be tendered to the contractor within thirty days
of the date of certification. If payment is made by mail, the
payment shall be deemed tendered on the date it is postmarked.
After the thirtieth day from the date that written
certification of acceptance is issued, late payment charges
shall be paid on the unpaid balance due on the contract to the
contractor at the rate of one and one-half percent per month.
For purchases funded by state or federal grants to local public
bodies, if the local public body has not received the funds
from the federal or state funding agency, payments shall be
tendered to the contractor within five working days of receipt
of funds from that funding agency.

D. If the central purchasing office or the using
agency finds that the services, construction or items of
tangible personal property are not acceptable, it shall, within
thirty days of the date of receipt of written notice from the
contractor that payment is requested for services or
construction completed or items of tangible personal property
delivered on site, provide to the contractor a letter of
exception explaining the defect or objection to the services,
construction or delivered tangible personal property along with
details of how the contractor may proceed to provide remedial
action.

E. Late payment charges that differ from the
provisions of Subsection C of this section may be assessed if
specifically provided for by contract or pursuant to tariffs
approved by the [
New Mexico public utility commission or the
state corporation
]
public regulation
commission."

SECTION 21.
EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2026.

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