New Mexico Procurement Code

13-1-28. Short title.

Sections 1 through 172 [13-1-28 to 13-1-117 and 13-1-118 to 13-1-199 NMSA 1978] of this act may be cited as the "Procurement Code." 

13-1-29. Rules of construction; purposes.

A.  The Procurement Code [13-1-28 to 13-1-117 and 13-1-118 to 13-1-199 NMSA 1978] shall be liberally construed and applied to promote its purposes and policies. 
B.  All references in law to the Public Purchases Act shall be construed to be references to the Procurement Code. 
C.  The purposes of the Procurement Code are to provide for the fair and equitable treatment of all persons involved in public procurement, to maximize the purchasing value of public funds and to provide safeguards for maintaining a procurement system of quality and integrity. 

13-6-1. Disposition of obsolete, worn-out or unusable tangible personal property.

A.  The governing authority of each state agency, local public body, school district and state educational institution may dispose of any item of tangible personal property belonging to that authority and delete the item from its public inventory upon a specific finding by the authority that the item of property is: 
(1) of a current resale value of five thousand dollars ($5,000) or less; and 
(2) worn-out, unusable or obsolete to the extent that the item is no longer economical or safe for continued use by the body. 
B.  The governing authority shall, as a prerequisite to the disposition of any items of tangible personal property: 
(1) designate a committee of at least three officials of the governing authority to approve and oversee the disposition; and 
(2) give notification at least thirty days prior to its action making the deletion by sending a copy of its official finding and the proposed disposition of the property to the state auditor and the appropriate approval authority designated in Section 13-6-2 NMSA 1978, duly sworn and subscribed under oath by each member of the authority approving the action. 
C.  A copy of the official finding and proposed disposition of the property sought to be disposed of shall be made a permanent part of the official minutes of the governing authority and maintained as a public record subject to the Inspection of Public Records Act [Chapter 14, Article 2 NMSA 1978]. 
D.  The governing authority shall dispose of the tangible personal property by negotiated sale to any governmental unit of an Indian nation, tribe or pueblo in New Mexico or by negotiated sale or donation to other state agencies, local public bodies, school districts, state educational institutions or municipalities or through the central purchasing office of the governing authority by means of competitive sealed bid or public auction or, if a state agency, through the federal property assistance bureau of the general services department. 
E.  If the governing authority is unable to dispose of the tangible personal property pursuant to Subsection D of this section, the governing authority may sell or, if the property has no value, donate the property to any organization described in Section 501 (c) (3) of the Internal Revenue Code of 1986. 
F.  If the governing authority is unable to dispose of the tangible personal property pursuant to Subsection D or E of this section, it may order that the property be destroyed or otherwise permanently disposed of in accordance with applicable laws. 
G.  If the governing authority determines that the tangible personal property is hazardous or contains hazardous materials and may not be used safely under any circumstances, the property shall be destroyed and disposed of pursuant to Subsection F of this section. 
H.  No tangible personal property shall be donated to an employee or relative of an employee of a state agency, local public body, school district or state educational institution; provided that nothing in this subsection precludes an employee from participating and bidding for public property at a public auction. 
I.  This section shall not apply to any property acquired by a museum through abandonment procedures pursuant to the Abandoned Cultural Properties Act [18-10-1 to 18-10-5 NMSA 1978]. 

13-6-2. Sale of property by state agencies or local public bodies; authority to sell or dispose of property; approval of appropriate approval authority.

A.  Any state agency, local public body, school district or state educational institution is empowered to sell or otherwise dispose of real or personal property belonging to the state agency, local public body, school district or state educational institution. Except as provided in Section 13-6-2.1 NMSA 1978 requiring state board of finance approval for certain transactions, sale or disposition of real or personal property having a current resale value of more than five thousand dollars ($5,000) may be made by any state agency, local public body, school district or state educational institution if the sale or disposition has been approved by the state budget division of the department of finance and administration for state agencies, the local government division of the department of finance and administration for local public bodies, the state department of public education for school districts and the commission on higher education for state educational institutions. 
B.  Prior approval of the appropriate approval authority is not required if the property is to be used as a trade-in or exchange pursuant to the provisions of the Procurement Code [13-1-28to 13-1-117 and 13-1-118 13-1-199 NMSA 1978]. 
C.  The appropriate approval authority may condition the approval of the sale or other disposition of any real or personal property upon the property being offered for sale to a state agency, local public body, school district or state educational institution. 
D.  The appropriate approval authority shall have the power to credit any payment received from the sale of any such real or personal property to the governmental body making the sale. The state agency, local public body, school district or state educational institution may convey all or any interest in the real or personal property without warranty. 
E.  This section shall not apply to any computer software or hardware of any state agency. 
F.  The provisions of this section shall not be applicable as to those institutions specifically enumerated in Article 12, Section 11 of the constitution of New Mexico, the state land office or the state highway commission. 

13-6-2.1. Leases; board of finance approval.

A.  Any sale, trade or lease for a period of more than five years but less than twenty-five years in duration of real property belonging to any state agency, local public body, school district or state educational institution or any sale, trade or lease of such real property for a consideration of more than twenty-five thousand dollars ($25,000) but less than one hundred thousand dollars ($100,000) shall not be valid unless it is approved prior to its effective date by the state board of finance. 
B.  The provisions of this section shall not be applicable as to those institutions specifically enumerated in Article 12, Section 11 of the constitution of New Mexico, the state land office or the state highway commission. 

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 two hundred fifty dollars ($250); 
C. emergency procurement; 
D. procurement of highway construction or reconstruction by the state highway and transportation department; 
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 five thousand dollars ($5,000); 
I. purchases from the instructional material fund; 
J. procurement by all local public bodies; 
K. procurement by regional education cooperatives; 
L. procurement by charter schools; and 
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.