HB0066

HOUSE BILL 66

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Luciano "Lucky" Varela

FOR THE GOVERNMENT RESTRUCTURING TASK FORCE

AN ACT

RELATING TO EXECUTIVE ORGANIZATION; REORGANIZING THE DEPARTMENT OF FINANCE AND ADMINISTRATION AND THE GENERAL SERVICES DEPARTMENT; CENTRALIZING ADMINISTRATIVE FUNCTIONS OF CERTAIN EXECUTIVE AGENCIES INTO THE DEPARTMENT OF FINANCE AND ADMINISTRATION; MOVING THE STATE PERSONNEL OFFICE AND THE PURCHASING DIVISION OF THE GENERAL SERVICES DEPARTMENT INTO THE DEPARTMENT OF FINANCE AND ADMINISTRATION; CREATING THE EXECUTIVE SERVICES BUREAU, STATE PERSONNEL DIVISION, PURCHASING DIVISION AND EDUCATIONAL FINANCE AND ACCOUNTABILITY DIVISION OF THE DEPARTMENT OF FINANCE AND ADMINISTRATION; ESTABLISHING QUALIFICATIONS FOR THE STATE PERSONNEL DIRECTOR; MAKING THE GENERAL SERVICES DEPARTMENT A NON-CABINET DEPARTMENT; TRANSFERRING APPROPRIATIONS, MONEY, PROPERTY, CONTRACTUAL OBLIGATIONS AND STATUTORY REFERENCES; AMENDING, REPEALING, ENACTING AND RECOMPILING SECTIONS OF THE NMSA 1978.

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

SECTION 1. Section 9-6-1 NMSA 1978 (being Laws 1977, Chapter 247, Section 1) is amended to read:

"9-6-1. SHORT TITLE.--[Sections 1 through 7 of this act] Chapter 9, Article 6 NMSA 1978 may be cited as the "Department of Finance and Administration Act"."

SECTION 2. Section 9-6-2 NMSA 1978 (being Laws 1977, Chapter 247, Section 2, as amended) is amended to read:

"9-6-2. PURPOSE.--The purpose of the Department of Finance and Administration Act is to make state government more efficient and responsive through consolidating, and eliminating the overlapping of, certain state government functions; and to establish a single, unified department to administer laws relating to finance and oversight of state government; and to perform other duties as provided by law."

SECTION 3. A new section of the Department of Finance and Administration Act is enacted to read:

"[NEW MATERIAL] DEFINITIONS.--As used in the Department of Finance and Administration Act:

A. "department" means the department of finance and administration; and

B. "secretary" means the secretary of finance and administration."

SECTION 4. Section 9-6-3 NMSA 1978 (being Laws 1977, Chapter 247, Section 3, as amended) is repealed and a new Section 9-6-3 NMSA 1978 is enacted to read:

"9-6-3. [NEW MATERIAL] DEPARTMENT OF FINANCE AND ADMINISTRATION--CREATED--DIVISIONS.--

A. The "department of finance and administration" is created as a cabinet department that includes the following organizational units:

(1) office of the secretary;

(2) administrative services division, including:

(a) executive services bureau; and

(b) capital outlay planning and monitoring bureau;

(3) board of finance division;

(4) educational finance and accountability division;

(5) financial control division;

(6) local government division;

(7) purchasing division, which includes the management and contracts review bureau;

(8) state budget division; and

(9) state personnel division.

B. The secretary may organize the department and the divisions specified in Subsection A of this section and may transfer or merge functions between divisions in the interest of efficiency and economy, but the secretary shall present the organization to the legislature for statutory revision. The secretary shall not create new divisions without the express authority of the legislature."

SECTION 5. A new section of Department of Finance and Administration Act is enacted to read:

"[NEW MATERIAL] ADMINISTRATIVELY ATTACHED AGENCIES.--The following agencies are administratively attached to the department:

A. the acequia commission;

B. the state board of finance;

C. the personnel board;

D. the New Mexico community development council;

E. the civil legal services commission; and

F. the land grant council."

SECTION 6. Section 9-6-4 NMSA 1978 (being Laws 1977, Chapter 247, Section 4, as amended) is amended to read:

"9-6-4. DEPARTMENT OF FINANCE AND ADMINISTRATION--SECRETARY--APPOINTMENT--QUALIFICATIONS.--The administrative and executive head of the department of finance and administration is the "secretary of finance and administration", who [shall be] is a member of the executive cabinet. The secretary shall be appointed by the governor with the advice and consent of the senate. The secretary shall be well versed in governmental finance."

SECTION 7. Section 9-6-5 NMSA 1978 (being Laws 1977, Chapter 247, Section 5, as amended) is amended to read:

"9-6-5. SECRETARY--DUTIES AND GENERAL POWERS.--

A. The secretary is responsible to the governor for the operation of the department. It is [his] the secretary's duty to manage all operations of the department and to administer and enforce the laws with which [he] the secretary or the department is charged.

B. To perform [his] the secretary's duties, the secretary has every power expressly enumerated in the laws, whether granted to the secretary or the department, or any division or office of the department, except where authority conferred upon any division or office is explicitly exempted from the secretary's authority by statute. In accordance with these provisions, the secretary shall:

(1) except as otherwise provided in the Department of Finance and Administration Act, exercise general supervisory and appointing authority over all department employees, subject to any applicable personnel laws and [regulations] rules;

(2) delegate authority to subordinates as [he] the secretary deems necessary and appropriate, clearly delineating such delegated authority and the limitations [thereto] of that authority;

(3) organize the department into those organizational units [he] that the secretary deems will enable it to function most efficiently, subject to any provisions of law requiring or establishing specific organizational units;

(4) within the limitations of available appropriations and applicable laws, employ and fix the compensation of those persons necessary to discharge [his] the secretary's duties;

(5) take administrative action by issuing orders and instructions, not inconsistent with the law, to assure implementation of and compliance with the provisions of law with the administration or execution of which [he] the secretary is responsible, and to enforce those orders and instructions by appropriate administrative action or actions in the courts;

(6) conduct research and studies that will improve the operations of the department and the provision of services to the citizens of the state;

(7) provide courses of instruction and practical training for employees of the department and other persons involved in the administration of programs with the objective of improving the operations and efficiency of administration;

(8) prepare an annual budget of the department;

(9) provide [cooperation, at the request of heads of] administrative services to administratively attached agencies and cooperate with adjunct agencies in order to:

(a) minimize or eliminate duplication of services and jurisdictional conflicts; and

(b) coordinate activities and resolve problems of mutual concern [and

(c) resolve by agreement the manner and extent to which the department shall provide budgeting, record-keeping and related clerical assistance to administratively attached agencies];

(10) appoint, with the governor's consent, one "deputy secretary", and, for each division [and office], a "director". These appointed positions are exempt from the provisions of the Personnel Act. Persons appointed to these positions shall serve at the pleasure of the secretary; and

(11) serve as, or designate the deputy secretary to serve as, executive officer of the state board of finance

[(12) give bond as provided in the Surety Bond Act. The department shall pay the cost of such bond; and

(13) require faithful performance or other fidelity bonds of such department employees and officers as he deems necessary, as provided in the Surety Bond Act. The department shall pay the costs of such bonds].

C. The secretary may apply for and receive, with the governor's approval, in the name of the department, any public or private funds, including [but not limited to] United States government funds, available to the department to carry out its programs, duties or services.

D. Where functions of departments overlap, or a function assigned to one department could [better] be performed better by another department, [a] the secretary may recommend appropriate legislation to the next session of the legislature for its approval.

E. The secretary may make and adopt such reasonable administrative and procedural rules [and regulations] as may be necessary to carry out the duties of the department and its divisions. No rule [or regulation] promulgated by the director of any division [or office] in carrying out the functions and duties of the division [or office] shall be effective until approved by the secretary unless otherwise provided by statute. Unless otherwise provided by statute, no [regulation] rule affecting any person or agency outside the department shall be adopted, amended or repealed without a public hearing on the proposed action before the secretary or a hearing officer designated by [him] the secretary. The public hearing shall be held in Santa Fe unless otherwise permitted by statute. Notice of the subject matter of the [regulation] rule, the action proposed to be taken, the time and place of the hearing, the manner in which interested persons may present their views and the method by which copies of the proposed [regulation] rule or proposed amendment or repeal of an existing [regulation] rule may be obtained shall be published once at least thirty days prior to the hearing date in a newspaper of general circulation and mailed at least thirty days prior to the hearing date to all persons who have made a written request for advance notice of hearing. All rules [and regulations] shall be filed in accordance with the State Rules Act."

SECTION 8. Section 9-6-5.1 NMSA 1978 (being Laws 1983, Chapter 296, Section 7) is amended to read:

"9-6-5.1. PLANNING POWERS AND DUTIES OF SECRETARY OF FINANCE AND ADMINISTRATION.--The secretary [of the department of finance and administration], in addition to the other powers and duties conferred:

A. shall review federal grant applications and provide management assistance to other state agencies and local governments;

B. shall coordinate, in accordance with directives from the governor's office of policy and planning, state agency plans for economic, natural resource, energy resource and human resource development;

C. shall provide aid to planning and development districts in developing grant proposals and cooperate with other local entities in developing grant proposals;

D. shall acquire, study and review all plans for capital projects proposed by state agencies and render advice on the plans. The secretary shall maintain long-range estimates and plans for capital projects and develop standards for measuring the need for and utility of proposed projects;

E. may contract for, receive and utilize any grants or other financial assistance made available by the United States government or by any other source, public or private;

F. may provide planning and funding assistance to units of local government, council of government organizations, Indian tribal governments situated within New Mexico and [to] nonprofit entities having for their purpose local, regional or community betterment. The secretary, incident to any such programs, may enter into contracts and agreements with such units of local government, council of government organizations, Indian tribal governments, nonprofit entities and the federal government and may participate in or receive aid from any federal or private program in relation to such a planning program or assistance;

G. shall confer with the state budget division of the department of finance and administration in developing comprehensive plans to assure coordination of planning and budgeting functions;

H. shall coordinate the state clearinghouse review process;

I. shall develop a status of the state report;

J. shall review and coordinate comment by state agencies on draft environmental impact statements;

K. shall provide community development block grant technical assistance to local governments;

L. shall administer, in consultation with and upon advice and direction from the community development block grant policy committee, the program for the state community development block grant program;

M. shall serve as staff to the New Mexico association of regional councils;

N. shall maintain a state planning library; and

O. shall provide planning assistance to county and multicounty districts relative to application by such districts for financial assistance and for regional plan development."

SECTION 9. Section 9-6-15 NMSA 1978 (being Laws 2003, Chapter 153, Section 69) is repealed and a new Section 9-6-15 NMSA 1978 is enacted to read:

"9-6-15. [NEW MATERIAL] EDUCATIONAL FINANCE AND ACCOUNTABILITY DIVISION--DUTIES.--

A. The educational finance and accountability division shall monitor and oversee public school and higher education finances and budgets and provide an independent evaluation of how well the two public education systems are performing and how well the public education department and higher education department perform in holding those systems accountable to students, taxpayers and citizens.

B. The director of the division shall be skilled in accountancy and auditing and familiar with the operation of public school and post-secondary educational institution budgets and finances. The director shall be appointed by the secretary with the governor's consent.

C. The public education department, higher education department, school districts, public post-secondary educational institutions and other agencies of the state shall cooperate with the division and provide information as requested by the division.

D. In addition to overseeing and monitoring public school and post-secondary educational institution budgets and finances, the division shall conduct an ongoing evaluation of:

(1) the unified pre-kindergarten through post-graduate education accountability data system;

(2) for public schools, how well the public education department monitors public schools and compliance with the Public School Code, including the Assessment and Accountability Act, in particular the success of interventions made for schools in need of improvement; the School Personnel Act, in particular the three-tiered licensing system for teachers and school administrators and the evaluation system that is required for continued licensure; the Compulsory School Attendance Law; compliance with the Audit Act; implementation of federal laws, including the Individuals with Disabilities Education Act; and other requirements and measures intended to improve the administration and delivery of public education and improve outputs and outcomes, including decreasing dropout rates, increasing graduation rates, preparing students for college or careers and decreasing the need for remediation in higher education;

(3) for higher education, how well the higher education department monitors post-secondary educational institutions; the Post-Secondary Education Articulation Act; the use of common student identification numbers and participation in the unified pre-kindergarten through post-graduate education accountability system; higher education department annual accountability reports; the review process by the higher education department and the state board of finance regarding capital expenditures; the system of accounting and reporting provided for in Section 21-1-33 NMSA 1978; and other requirements and measures intended to improve the administration and delivery of post-secondary education and improve outputs and outcomes, including decreasing dropout rates, increasing graduation rates, particularly baccalaureate graduation within four or five years, and preparing students for professional or vocational careers; and

(4) any other matters related to pre-kindergarten through post-graduate education assigned to it by the legislature or the secretary."

SECTION 10. A new section of the Department of Finance and Administration Act is enacted to read:

"[NEW MATERIAL] EXECUTIVE SERVICES BUREAU--DUTIES.--The executive services bureau shall provide budgeting, recordkeeping and related administrative and clerical assistance for those small agencies of the executive branch that have twenty or fewer full-time equivalents or a budget of one million dollars ($1,000,000) or less."

SECTION 11. A new section of the General Services Department Act is enacted to read:

"[NEW MATERIAL] DEFINITIONS.--As used in the General Services Department Act:

A. "department" means the general services department; and

B. "superintendent" means the superintendent of general services."

SECTION 12. Section 9-17-3 NMSA 1978 (being Laws 1983, Chapter 301, Section 3, as amended) is amended to read:

"9-17-3. GENERAL SERVICES DEPARTMENT--CREATION--TRANSFER AND MERGER OF DIVISION FUNCTIONS--MERGER [AND CREATION] OF DIVISIONS.--

A. The "general services department" is created as a non-cabinet department. The department shall consist of those divisions created by law or executive order, [as modified by executive order pursuant to Subsection C of this section] including:

(1) the administrative services division;

(2) the building services division;

(3) the property control division;

[(4) the purchasing division;

(5)] (4) the risk management division; and

[(6)] (5) the transportation services division, including:

(a) the state aviation bureau; and

(b) the surplus property bureau.

B. The [secretary of general services] superintendent is empowered to organize the department and the divisions specified in Subsection A of this section and may transfer or merge functions between divisions and may merge divisions in the interest of efficiency and economy.

[C. The governor is empowered to merge divisions of the department or to create additional divisions by executive order in the interest of efficiency or economy.]"

SECTION 13. Section 9-17-4 NMSA 1978 (being Laws 1983, Chapter 301, Section 4) is amended to read:

"9-17-4. GENERAL SERVICES DEPARTMENT--[SECRETARY] SUPERINTENDENT--APPOINTMENT--QUALIFICATIONS.--The administrative and executive head of the general services department is the "[secretary] superintendent of general services" [who shall be a member of the executive cabinet]. The [secretary] superintendent shall be appointed by the governor with the advice and consent of the senate. The [secretary] superintendent shall be well versed in administrative services and management."

SECTION 14. Section 9-17-5 NMSA 1978 (being Laws 1983, Chapter 301, Section 5) is amended to read:

"9-17-5. [SECRETARY] SUPERINTENDENT--DUTIES AND GENERAL POWERS.--

A. The [secretary] superintendent is responsible to the governor for the operation of the department. It is [his] the superintendent's duty to manage all operations of the department and to administer and enforce the laws with which [he] the superintendent or the department is charged.

B. To perform [his] the superintendent's duties, the [secretary] superintendent has every power expressly enumerated in the laws, whether granted to the [secretary] superintendent or the department, or any division of the department, except where authority conferred upon any division is explicitly exempted from the [secretary's] superintendent's authority by statute. In accordance with these provisions, the [secretary] superintendent shall:

(1) except as otherwise provided in the General Services Department Act, exercise general supervisory and appointing authority over all department employees, subject to any applicable personnel laws and [regulations] rules;

(2) delegate authority to subordinates as [he] the superintendent deems necessary and appropriate, clearly delineating such delegated authority and the limitations thereto;

(3) organize the department into those organizational units [he] that the superintendent deems will enable it to function most efficiently, subject to any provisions of law, including executive orders of the governor, requiring or establishing specific organizational units;

(4) within the limitations of available appropriations and applicable laws, employ and fix the compensation of those persons necessary to discharge [his] the superintendent's duties;

(5) take administrative action by issuing orders and instructions, not inconsistent with law, to assure implementation of and compliance with the provisions of law for whose administration or execution [he] the superintendent is responsible, and to enforce those orders and instructions by appropriate administrative action or action in the courts;

(6) conduct research and studies that will improve the operations of the department and the provision of services to other departments and the citizens of the state;

(7) provide courses of instruction and practical training for employees of the department and to other persons involved in the administration of programs, with the objective of improving the operations and efficiency of administration;

(8) prepare the department's annual budget;

(9) cooperate with the heads of administratively attached agencies, and adjunct agencies, at their request, in order to:

(a) minimize or eliminate duplication of services and jurisdictional conflicts; and

(b) coordinate activities and resolve problems of mutual concern; and

[(c) resolve by agreement the manner and extent to which the department shall provide budgeting, record-keeping and related clerical assistance to administratively attached agencies;]

(10) appoint, with the governor's consent, one "deputy [secretary] superintendent" and, for each division, a "director". These appointed positions are exempt from the provisions of the Personnel Act. Persons appointed to these positions shall serve at the pleasure of the [secretary] superintendent

[(11) give bond as provided in the Surety Bond Act. The department shall pay the cost of such bond; and

(12) require faithful performance or other fidelity bonds of such department employees and officers as he deems necessary, as provided in the Surety Bond Act. The department shall pay the cost of such bonds].

C. The [secretary] superintendent may apply for and receive, with the governor's approval, in the name of the department, any public or private funds, including but not limited to United States government funds, available to the department to carry out its programs, duties or services.

D. Where functions of departments overlap or a function assigned to one department could be better performed by another department, the [secretary] superintendent may recommend appropriate legislation to the next session of the legislature for its approval.

E. The [secretary] superintendent may make and adopt such reasonable administrative and procedural rules [and regulations] as may be necessary to carry out the duties of the department and its divisions. No rule [or regulation] promulgated by the director of any division in carrying out the functions and duties of the division shall be effective until approved by the [secretary] superintendent unless otherwise provided by statute. Unless otherwise provided by statute, no [regulation] rule affecting any person or agency outside the department shall be adopted, amended or repealed without a public hearing on the proposed action before the [secretary] superintendent or a hearing officer designated by [him] the superintendent. The public hearing shall be held in Santa Fe unless otherwise permitted by statute. Notice of the subject matter of the [regulation] rule, the action proposed to be taken, the time and place of the hearing, the manner in which interested persons may present their views and the method by which copies of the proposed [regulation] rule or proposed amendment or repeal of an existing [regulation] rule may be obtained shall be published once at least thirty days prior to the hearing date in a newspaper of general circulation in the state and mailed at least thirty days prior to the hearing date to all persons who have made written request for advance notice of hearing. All rules [and regulations] shall be filed in accordance with the State Rules Act."

SECTION 15. Section 10-9-3 NMSA 1978 (being Laws 1961, Chapter 240, Section 3) is amended to read:

"10-9-3. DEFINITIONS.--As used in the Personnel Act:

A. "director" means the state personnel director;

B. "division" means the state personnel division of the department of finance and administration;

[B.] C. "board" means the personnel board;

[C.] D. "service" means the state personnel service created by the Personnel Act and includes all positions covered by the Personnel Act;

[D.] E. "position" means any state office, job or position of employment;

[E.] F. "employer" means any authority having power to fill positions in an agency;

[F.] G. "agency" means any state department, bureau, division, branch or administrative group [which] that is under the same employer;

[G.] H. "class" means a group of positions similar enough in powers and responsibilities that they can be covered by the same qualifications and rate of pay;

[H.] I. "test" means a test of the qualifications, fitness and ability and includes tests that are written, oral, physical or in the form of a demonstration of skill or any combination thereof;

[I.] J. "employee" means a person in a position in the service who has completed [his] the probationary period for that position; and

[J.] K. "probationer" means a person in a position in the service who is still in the probationary period for that position."

SECTION 16. Section 10-9-10 NMSA 1978 (being Laws 1961, Chapter 240, Section 7, as amended) is amended to read:

"10-9-10. BOARD DUTIES.--The board shall:

[A. promulgate regulations to effectuate the Personnel Act;

B.] A. hear appeals and make recommendations to employers;

[C. hire, with the approval of the governor, a director experienced in the field of personnel administration;

D. review budget requests prepared by the director for the operation of the personnel program and make appropriate recommendations thereon;

E. make investigations, studies and audits necessary to the proper administration of the Personnel Act;

F.] B. make an annual report to the governor at the end of each fiscal year; and

[G. establish and maintain liaison with the general services department; and

H.] C. represent the public interest in the improvement of personnel administration in the system."

SECTION 17. A new section of the Personnel Act is enacted to read:

"[NEW MATERIAL] STATE PERSONNEL DIRECTOR--

QUALIFICATIONS--CONFIRMATION.--The "state personnel director" of the state personnel division of the department of finance and administration shall be a person of recognized character and ability appointed by the secretary of finance and administration based solely on the director's qualifications for the position without regard to political affiliation. The director shall have at least a master's degree in human resource management or public or business administration or a related field and at least seven years' progressive experience in applying the principles, methods and techniques of personnel administration. The state personnel director shall be confirmed by the senate."

SECTION 18. Section 10-9-12 NMSA 1978 (being Laws 1961, Chapter 240, Section 8, as amended) is amended to read:

"10-9-12. DIRECTOR DUTIES.--The director shall:

A. supervise all administrative and technical personnel activities of the state;

[B. act as secretary to the board;

C.] B. establish, maintain and publish annually a roster of all employees of the state showing for each employee [his] the employee's division, title, pay rate and other pertinent data;

[D.] C. make annual reports to the board;

[E. recommend to the board]

D. promulgate rules [he] that the director considers necessary or desirable to effectuate the Personnel Act; and

[F.] E. supervise all tests and prepare lists of persons passing them to submit to prospective employers."

SECTION 19. Section 10-9-13 NMSA 1978 (being Laws 1961, Chapter 240, Section 9, as amended) is amended to read:

"10-9-13. RULES--ADOPTION--COVERAGE.--Rules promulgated by the [board] division shall be effective when filed as required by law. The rules shall provide, among other things, for:

A. a classification plan for all positions in the service;

B. a pay plan for all positions in the service;

C. competitive entrance and promotion tests to determine the qualifications, fitness and ability of applicants to perform the duties of the position for which they apply. Such rules shall also provide for the awarding to those applicants having a passing grade of two preference points for each year of residency in New Mexico not to exceed a total of ten preference points;

D. exemption from competitive entrance tests for those professional persons applying for classified positions in the service who possess recognized registration or certification by another state agency;

E. a period of probation of one year during which a probationer may be discharged or demoted or returned to the eligible list without benefit of hearing;

F. the establishment of employment lists for the certification of the highest standing candidates to the prospective employers and procedure to be followed in hiring from the lists;

G. hours of work, holiday and leave;

H. dismissal or demotion procedure for employees in the service, including presentation of written notice stating specific reasons and time for the employees to reply thereto, in writing, and appeals to the board;

I. the rejection of applicants who fail to meet reasonable requirements as to age, physical condition, training, experience or moral conduct; and

J. employment of any apparently qualified applicant for a period of not more than ninety days when an emergency condition exists and there are no applicants available on an appropriate employment list as provided in Subsection F of this section. The applicant, if employed, shall be paid at the same rate as a comparable position covered by the Personnel Act."

SECTION 20. Section 10-9-21 NMSA 1978 (being Laws 1961, Chapter 240, Section 15, as amended) is amended to read:

"10-9-21. PROHIBITED ACTS.--

A. No employer shall dismiss an employee for failure or refusal to pay or promise to pay any assessment, subscription or contribution to any political organization or candidate; however, nothing contained in this section shall prevent voluntary contributions to political organizations.

B. No person in the [personnel office] division or employee in the service shall hold political office except for a non-partisan county or municipal office or be an officer of a political organization during [his] employment. For the purposes of the Personnel Act, being a local school board member or an elected board member of any post-secondary educational institution shall not be construed to be holding political office and being an election official shall not be construed to be either holding political office or being an officer of a political organization. Nothing in the Personnel Act shall deny employees the right to vote as they choose or to express their opinions on political subjects and candidates.

C. Any employee who becomes a candidate for public office shall, upon filing or accepting the nomination and during the campaign, take a leave of absence. This subsection does not apply to those employees of a grant-in-aid agency whose political activities are governed by federal statute.

D. The director shall investigate any written charge by any person that this section has been violated and take whatever steps deemed necessary.

E. No person shall be refused the right of taking an examination, from appointment to a position, from promotion or from holding a position because of political or religious opinions or affiliation or because of race or color.

F. No employee or probationer shall engage in partisan political activity while on duty.

G. With respect to employees of federal grant-in-aid agencies, the applicable personnel standards, regulations and federal laws limiting activities shall apply and shall be set forth in rules promulgated by the [board] department of finance and administration."

SECTION 21. Section 10-9-23 NMSA 1978 (being Laws 1961, Chapter 240, Section 17) is amended to read:

"10-9-23. PENALTIES.--Any person [wilfully] willfully violating any provision of the Personnel Act or the rules of the [board] division is guilty of a misdemeanor. In addition to the criminal penalties, a person found guilty of a misdemeanor under the Personnel Act is ineligible for appointment to or employment in a position in the service and forfeits [his] the person's office or position."

SECTION 22. Section 10-9-24 NMSA 1978 (being Laws 1961, Chapter 240, Section 18) is amended to read:

"10-9-24. EXISTING RULES.--Existing personnel rules, policies and pay plans for employees of the state as of July 1, 2011 shall govern until new rules, policies and pay plans are established under the Personnel Act."

SECTION 23. Section 13-1-37 NMSA 1978 (being Laws 1984, Chapter 65, Section 10) is amended to read:

"13-1-37. DEFINITION--CENTRAL PURCHASING OFFICE.--"Central purchasing office" means that office or officer within a state agency or a local public body responsible for the control of procurement of items of tangible personal property, services or construction. "Central purchasing office" includes the purchasing division of the [general services] department of finance and administration and the state purchasing agent."

SECTION 24. Section 13-1-86 NMSA 1978 (being Laws 1984, Chapter 65, Section 59) is amended to read:

"13-1-86. DEFINITION--SECRETARY.--"Secretary" means the secretary of [general services] finance and administration."

SECTION 25. Section 13-1-90 NMSA 1978 (being Laws 1984, Chapter 65, Section 63) is amended to read:

"13-1-90. DEFINITION--STATE AGENCY.--"State agency" means any department, commission, council, board, committee, institution, legislative body, agency, government corporation, educational institution or official of the executive, legislative or judicial branch of the government of this state. "State agency" includes the purchasing division of the [general services] department of finance and administration and the state purchasing agent but does not include local public bodies."

SECTION 26. Section 13-1-92 NMSA 1978 (being Laws 1984, Chapter 65, Section 65) is amended to read:

"13-1-92. DEFINITION--STATE PURCHASING AGENT.--"State purchasing agent" means the director of the purchasing division of the [general services] department of finance and administration."

SECTION 27. Section 13-1-95 NMSA 1978 (being Laws 1984, Chapter 65, Section 68) is amended to read:

"13-1-95. PURCHASING DIVISION--CREATION--DIRECTOR IS STATE PURCHASING AGENT--APPOINTMENT--DUTIES.--

A. The "purchasing division" is created within the [general services] department of finance and administration.

B. Subject to the authority of the secretary, the state purchasing agent shall be the administrator and [chief executive] director of the purchasing division. The state purchasing agent shall be appointed by the secretary with the approval of the governor.

C. The purchasing division and state purchasing agent shall be responsible for the procurement of services, construction and items of tangible personal property for all state agencies except as otherwise provided in the Procurement Code and shall administer the Procurement Code for those state agencies not excluded from the requirement of procurement through the state purchasing agent.

D. The state purchasing agent shall have the following additional authority and responsibility to:

(1) recommend procurement [regulations] rules to the secretary;

(2) establish and maintain programs for the development and use of procurement specifications and for the inspection, testing and acceptance of services, construction and items of tangible personal property;

(3) cooperate with the state budget division of the department [of finance and administration] in the preparation of statistical data concerning the acquisition and usage of all services, construction and items of tangible personal property by state agencies;

(4) require state agencies to furnish reports concerning usage, needs and stocks on hand of items of tangible personal property and usage and needs for services or construction;

(5) prescribe, with consent of the secretary, forms to be used by state agencies to requisition and report the procurement of items of tangible personal property, services and construction;

(6) provide information to state agencies and local public bodies concerning the development of specifications, quality control methods and other procurement information; and

(7) collect information concerning procurement matters, quality and quality control of commonly used services, construction and items of tangible personal property.

E. The state purchasing agent shall, upon the request of the central purchasing office of a local public body, procure a price agreement for the requested services, construction or items of tangible personal property."

SECTION 28. Section 13-1-97.1 NMSA 1978 (being Laws 2009, Chapter 107, Section 1) is amended to read:

"13-1-97.1. CONTRACT DATABASE.--

A. The department of finance and administration, the department of information technology, the department of transportation and the general services department shall jointly develop a database of all state contracts with a term beginning on or after January 1, 2010 and having a value of more than twenty thousand dollars ($20,000) entered into pursuant to the Procurement Code or otherwise within the purview of any state agency. The [general services] department of finance and administration shall coordinate the maintenance of the database with the assistance of the other departments.

B. The [general services] department of finance and administration shall make the database available to the public on its online web site no later than January 1, 2010. The database shall be searchable by contractor name, subject matter, date, price or consideration, contract number, amendments and other categories of information that the departments identified in Subsection A of this section agree are necessary to inform the public fully about state contracts."

SECTION 29. Section 13-1-98 NMSA 1978 (being Laws 1984, Chapter 65, Section 71, as amended) is amended to read:

"13-1-98. EXEMPTIONS FROM THE PROCUREMENT CODE.--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 and periodicals from the publishers or copyright holders thereof;

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 of finance and administration prior to adoption;

J. minor purchases not exceeding five thousand dollars ($5,000) consisting of magazine 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 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;

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

X. procurement of printing 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; and

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 and the federal Violence Against Women Act."

SECTION 30. 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 twenty thousand dollars ($20,000) in accordance with the applicable small purchase [regulations] rules adopted by the secretary, a local public body or a central purchasing office that has the authority to issue [regulations] rules.

B. Notwithstanding the requirements of Subsection A of this section, a central purchasing office may procure professional services having a value not exceeding fifty thousand dollars ($50,000), 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 [regulations] rules promulgated by the department of finance and administration [the general services department] or a central purchasing office with the authority to issue [regulations] 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 ten thousand dollars ($10,000) 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 31. Section 13-1-135.1 NMSA 1978 (being Laws 1995, Chapter 60, Section 2) is amended to read:

"13-1-135.1. RECYCLED CONTENT GOODS--COOPERATIVE PROCUREMENT.--

A. Beginning July 1, 1995, each central purchasing office shall, whenever its price, quality, quantity, availability and delivery requirements are met, purchase recycled content goods through contracts established by the purchasing division of the [general services] department of finance and administration or with other central purchasing offices.

B. For purposes of this section, "recycled content goods" means supplies and materials composed in whole or in part of recycled materials; provided that the recycled materials content meets or exceeds the minimum content standards required by bid specifications."

SECTION 32. Section 13-1-136 NMSA 1978 (being Laws 1984, Chapter 65, Section 109) is amended to read:

"13-1-136. COOPERATIVE PROCUREMENT--REPORTS REQUIRED.--The [general services department and the department of finance and administration shall notify the] state purchasing agent shall notify the secretary of finance and administration on or before January 1 of each year of the cooperative procurement agreements entered into by state agencies with local public bodies or external procurement units during the preceding fiscal year."

SECTION 33. Section 13-1C-3 NMSA 1978 (being Laws 2005, Chapter 334, Section 3) is amended to read:

"13-1C-3. DEFINITIONS.--As used in the State Use Act:

A. "central nonprofit agency" means a nonprofit agency approved pursuant to rules of the council to facilitate the equitable distribution of orders for the services of:

(1) qualified individuals; and

(2) community rehabilitation programs;

B. "community rehabilitation program" means a nonprofit entity:

(1) that is organized under the laws of the United States or this state, operated in the interest of persons with disabilities and operated so that no part of the income of which inures to the benefit of any shareholder or other person;

(2) that complies with applicable occupational health and safety standards as required by federal or state law; and

(3) that, in the provision of services, whether or not procured under the State Use Act, employs during the state fiscal year at least seventy-five percent persons with disabilities in direct labor for the provision of services;

C. "council" means the New Mexico council for purchasing from persons with disabilities;

D. "direct labor" means all work directly relating to the provision of services, but not work required for or relating to supervision, administration or inspection;

E. "local public body" means a political subdivision of the state and the political subdivision's agencies, instrumentalities and institutions;

F. "persons with disabilities" means persons who have a mental or physical impairment that constitutes or results in a substantial impediment to employment as defined by the federal Rehabilitation Act of 1973;

G. "qualified individual" means a person with a disability who is a business owner, or a business that is primarily owned and operated by persons with disabilities that employs at least seventy-five percent persons with disabilities in the provision of direct labor, which has been approved by the council to provide services to state agencies and local public bodies. A person who is receiving services pursuant to an individualized plan of employment from the vocational rehabilitation division of the public education department or from the commission for the blind shall be presumed to be a person with disability, as shall a person who is receiving supplemental security income or social security benefits based on disability;

H. "state agency" means a department, commission, council, board, committee, institution, legislative body, agency, government corporation, educational institution or official of the executive, legislative or judicial branch of government of this state; and

I. "state purchasing agent" means the director of the purchasing division of the [general services] department of finance and administration."

SECTION 34. Section 15-3A-2 NMSA 1978 (being Laws 1989, Chapter 363, Section 2) is amended to read:

"15-3A-2. DUTIES AND POWERS.--

A. The [governor's residence advisory commission] general services department shall:

(1) plan, assemble, dispose of and acquire furnishings, art, landscaping materials and plants and other decorations for the public areas of the official residence of the governor;

(2) monitor and report on the status of maintenance of the governor's residence and recommend to the [general services department and to the] legislature actions necessary to repair, maintain and renovate the residence;

(3) conduct a detailed inventory at the beginning of each governor's term and annually prepare and submit to the legislature and the governor [and the general services department] a written inventory of and a statement on the condition of these public furnishings, art decorations and other items of the residence, as well as a written statement on the condition of the residence as a whole; and

(4) develop statewide interest in the residence and effect such measures as will enhance the governor's ability to provide appropriate hospitality to the visitors of the residence.

B. The [commission] department may:

(1) [utilize] use the assistance of individuals, [the general services department] other state agencies and nonprofit charitable corporations in carrying out its duties;

(2) accept on behalf of the state from any private or other public sources, money, gifts, donations and bequests [for use by the commission] in carrying out its duties; and

(3) enter into public promotions of its endeavors and publish such materials as it deems appropriate [to promote the purposes of the commission]."

SECTION 35. Section 15-3A-3 NMSA 1978 (being Laws 1989, Chapter 363, Section 3) is amended to read:

"15-3A-3. TRUST FUND CREATED.--There is created in the state treasury a permanent trust fund [which] that shall be known as the "governor's residence preservation fund". The fund shall consist of all gifts, donations and bequests of money to the [governor's residence advisory commission] fund as well as any appropriations made to the [commission] fund. Earnings from the investment of the fund shall be credited to the fund. Expenditure [of] from the fund [shall be only for the purposes for which the commission was created and] shall be [paid to the commission] made upon vouchers signed by the [chairman of the commission] secretary of general services and warrants issued by the secretary of finance and administration."

SECTION 36. TEMPORARY PROVISION--TRANSFERS OF PROPERTY, CONTRACTUAL OBLIGATIONS AND STATUTORY PROVISIONS--STATE PERSONNEL OFFICE TO DEPARTMENT OF FINANCE AND ADMINISTRATION-- RULES AND STATUTORY REVIEW REQUIRED.--

A. On the effective date of this act, all functions, appropriations, money, records, furniture, equipment and other property of the state personnel office are transferred to the department of finance and administration.

B. On the effective date of this act, contractual obligations of the state personnel office shall be binding on the department of finance and administration.

C. On the effective date of this act, statutory references to the state personnel office shall be deemed to be references to the state personnel division of the department of finance and administration.

D. Rules of the personnel board shall be deemed to be rules of the state personnel division of the department of finance and administration until amended or repealed. The department shall review the state personnel rules and statutes pertaining to state personnel within one year of the effective date of this act and shall report to the governor and the legislature on changes that are necessary to make the state personnel system equitable, effective, responsive and accountable for a modern, well-qualified and responsible state work force. Rules that are in conflict with state law shall be repealed or shall be suspended until the legislature has been given the opportunity to change the law.

SECTION 37. TEMPORARY PROVISION--TRANSFERS OF PROPERTY, CONTRACTUAL OBLIGATIONS AND STATUTORY PROVISIONS--PURCHASING DIVISION TO DEPARTMENT OF FINANCE AND ADMINISTRATION--RULES AND STATUTORY REVIEW REQUIRED.--

A. On the effective date of this act, all functions, appropriations, money, records, furniture, equipment and other property of the purchasing division of the general services department are transferred to the department of finance and administration.

B. On the effective date of this act, contractual obligations of the purchasing division of the general services department shall be binding on the department of finance and administration.

C. On the effective date of this act, statutory references to the purchasing division of the general services department shall be deemed to be references to the purchasing division of the department of finance and administration.

D. Rules of the purchasing division of the general services department pertaining to purchasing shall be deemed to be rules of the department of finance and administration until amended or repealed. The department of finance and administration shall review the procurement rules and statutes pertaining to procurement within one year of the effective date of this act and shall report to the governor and the legislature on changes that are necessary to make the procurement system more efficient, cost-effective, streamlined and accountable. Rules that are in conflict with state law shall be repealed or shall be suspended until the legislature has been given the opportunity to change the law.

SECTION 38. TEMPORARY PROVISION--STATUTORY REFERENCES TO SECRETARY OF GENERAL SERVICES.--On the effective date of this act, statutory references to the secretary of general services shall be deemed to be references to the superintendent of general services.

SECTION 39. REPEAL.--Sections 9-17-6, 10-9-11 and 15-3A-1 NMSA 1978 (being Laws 1983, Chapter 301, Section 6, Laws 1977, Chapter 247, Section 47 and Laws 1989, Chapter 363, Section 1, as amended) are repealed.

SECTION 40. CONTINGENT RECOMPILATION.--If Sections 9-6-12 through 9-6-14 NMSA 1978 (being Laws 2003, Chapter 126, Sections 1 through 3) are not repealed by another act of the first session of the fiftieth legislature, the compiler is instructed to recompile those sections in the Cultural Affairs Department Act or other suitable location in the NMSA 1978.

SECTION 41. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2011.

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