0001| HOUSE BILL 230
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0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003| INTRODUCED BY
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0004| TED HOBBS
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0005|
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0006|
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0007|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO PUBLIC PURCHASING; AMENDING SECTIONS OF THE
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0012| PROCUREMENT CODE.
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0013|
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0014| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0015| Section 1. Section 13-1-67 NMSA 1978 (being Laws 1984,
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0016| Chapter 65, Section 40) is amended to read:
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0017| "13-1-67. DEFINITION--LOCAL PUBLIC BODY.--"Local public
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0018| body" means every political subdivision of the state; [and]
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0019| the agencies, instrumentalities and institutions thereof; and
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0020| two-year post-secondary educational institutions."
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0021| Section 2. Section 13-1-98 NMSA 1978 (being Laws 1984,
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0022| Chapter 65, Section 71, as amended) is amended to read:
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0023| "13-1-98. EXEMPTIONS FROM THE PROCUREMENT CODE.--The
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0024| provisions of the Procurement Code shall not apply to:
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0025| A. procurement of items of tangible personal
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0001| property or services by a state agency or a local public body
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0002| from a state agency, a local public body or external
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0003| procurement unit except as otherwise provided in Sections
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0004| 13-1-135 through 13-1-137 NMSA 1978;
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0005| B. procurement of tangible personal property or
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0006| services for the governor's mansion and grounds;
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0007| C. printing and duplicating contracts involving
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0008| materials which are required to be filed in connection with
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0009| proceedings before administrative agencies or state or federal
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0010| courts;
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0011| D. purchases of publicly provided or publicly
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0012| regulated gas, electricity, water, sewer and refuse collection
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0013| services;
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0014| E. purchases of books and periodicals from the
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0015| publishers or copyright holders thereof;
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0016| F. travel or shipping by common carrier or by
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0017| private conveyance or to meals and lodging;
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0018| G. purchase of livestock at auction rings or to
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0019| the procurement of animals to be used for research and
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0020| experimentation or exhibit;
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0021| H. contracts with businesses for public school
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0022| transportation services;
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0023| I. procurement of tangible personal property or
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0024| services, as defined by Sections 13-l-87 and 13-l-93 NMSA
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0025| 1978, by the corrections industries division of the
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0001| corrections department pursuant to regulations adopted by the
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0002| corrections [industries] commission, which shall be reviewed
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0003| by the purchasing division of the general services department
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0004| prior to adoption;
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0005| J. minor purchases, not exceeding five thousand
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0006| dollars ($5,000), consisting of magazine subscriptions,
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0007| conference registration fees and other similar purchases where
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0008| prepayments are required;
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0009| K. municipalities having adopted home rule
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0010| charters and having enacted their own purchasing ordinances;
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0011| L. the issuance, sale and delivery of public
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0012| securities pursuant to the applicable authorizing statute,
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0013| with the exception of bond attorneys and general financial
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0014| consultants;
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0015| M. contracts entered into by a local public body
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0016| with a private independent contractor for the operation, or
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0017| provision and operation, of a jail pursuant to Sections
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0018| 33-3-26 and 33-3-27 NMSA 1978;
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0019| N. contracts for maintenance of grounds and
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0020| facilities at highway rest stops and other employment
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0021| opportunities, excluding those intended for the direct care
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0022| and support of persons with handicaps, entered into by state
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0023| agencies with private, nonprofit, independent contractors who
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0024| provide services to persons with handicaps;
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0025| O. contracts and expenditures for services to be
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0001| paid or compensated by money or other property transferred to
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0002| New Mexico law enforcement agencies by the United States
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0003| department of justice drug enforcement administration;
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0004| P. contracts for retirement and other benefits
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0005| pursuant to Sections 22-11-47 through 22-11-52 NMSA 1978;
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0006| [and]
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0007| Q. contracts with professional entertainers; and
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0008| R. contracts and expenditures for expert witness
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0009| or court reporter services in connection with anticipated
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0010| proceedings before state or federal courts."
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0011| Section 3. Section 13-1-99 NMSA 1978 (being Laws 1984,
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0012| Chapter 65, Section 72, as amended) is amended to read:
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0013| "13-1-99. EXCLUDED FROM CENTRAL PURCHASING THROUGH THE
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0014| STATE PURCHASING AGENT.--Excluded from the requirement of
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0015| procurement through the state purchasing agent but not from
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0016| the requirements of the Procurement Code are the following:
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0017| A. procurement of professional services, except
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0018| for professional services related to information and
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0019| communication services, resources and systems;
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0020| B. small purchases having a value not exceeding
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0021| [two hundred fifty dollars ($250)] five hundred dollars
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0022| ($500);
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0023| C. emergency procurement;
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0024| D. procurement of highway construction or
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0025| reconstruction by the state highway and transportation
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0001| department;
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0002| E. procurement by the judicial branch of state
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0003| government;
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0004| F. procurement by the legislative branch of state
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0005| government;
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0006| G. procurement by the boards of regents of state
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0007| educational institutions named in Article 12, Section 11 of
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0008| the constitution of New Mexico;
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0009| [H. procurement of information processing
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resources procured through the commission on information and
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communication management;
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I.] H. procurement by the state fair commission
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0013| of tangible personal property, services and construction under
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0014| [five thousand dollars ($5,000)] ten thousand dollars
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0015| ($10,000);
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0016| [J.] I. purchases from the instructional
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0017| material fund;
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0018| [K.] J. procurement by all local public
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0019| bodies;
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0020| [L.] K. procurement by regional education
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0021| cooperatives; and
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0022| [M.] L. procurement by each state health care
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0023| institution that provides direct patient care and that is, or
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0024| a part of which is, medicaid certified and participating in
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0025| the New Mexico medicaid program."
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0001| Section 4. Section 13-1-104 NMSA 1978 (being Laws 1984,
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0002| Chapter 65, Section 77, as amended) is amended to read:
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0003| "13-1-104. COMPETITIVE SEALED BIDS--PUBLIC NOTICE.--
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0004| A. [The] An invitation for bids or a notice
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0005| thereof shall be published not less than ten calendar days
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0006| prior to the date set forth for the opening of bids. In the
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0007| case of purchases made by the state purchasing agent, the
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0008| invitation or notice shall be published at least once in at
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0009| least three newspapers of general circulation in this state.
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0010| In the case of purchases made by other central purchasing
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0011| offices, the invitation or notice shall be published at least
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0012| once in a newspaper of general circulation in the area in
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0013| which the central purchasing office is located. These
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0014| requirements of publication are in addition to [any] other
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0015| procedures which may be adopted by central purchasing offices
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0016| to notify prospective bidders that bids will be received,
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0017| including but not limited to publication in a trade journal,
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0018| if available. If there is no newspaper of general circulation
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0019| in the area in which the central purchasing office is located,
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0020| [such] other notice may be given as is commercially
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0021| reasonable.
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0022| B. The state purchasing agent and all central
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0023| purchasing offices shall send copies of the notice or
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0024| invitation for bids involving the expenditure of more than
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0025| [five thousand dollars ($5,000)] ten thousand dollars
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0001| ($10,000) to those businesses which have signified in writing
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0002| an interest in submitting bids for particular categories of
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0003| items of tangible personal property, construction and services
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0004| and which have paid any required fees. The state purchasing
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0005| agent or a central purchasing office may set different
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0006| registration fees for different categories of services,
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0007| construction or items of tangible personal property, but such
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0008| fees shall be related to the actual, direct cost of furnishing
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0009| copies of the notice or invitation for bids to the prospective
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0010| bidders. The fees shall be used exclusively for the purpose
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0011| of furnishing copies of the notice or invitation for bids of
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0012| proposed procurements to prospective bidders.
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0013| C. As used in this subsection, "prospective
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0014| bidders" includes persons considering submission of a bid as a
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0015| general contractor for the construction contract and persons
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0016| who may submit bids to a general contractor for work to be
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0017| subcontracted pursuant to the construction contract. The
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0018| state purchasing agent and all central purchasing offices
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0019| shall make copies of invitations for bids for construction
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0020| contracts available to prospective bidders. The state
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0021| purchasing agent or a central purchasing office may require
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0022| prospective bidders who have requested documents for bid on a
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0023| construction contract to pay a deposit for a copy of the
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0024| documents for bid. The deposit shall equal the full cost of
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0025| reproduction and delivery of the documents for bid. The
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0001| deposit, less delivery charges, shall be refunded if the
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0002| documents for bid are returned in usable condition within the
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0003| time limits specified in the documents for bid, which time
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0004| limits shall be no less than ten calendar days from the date
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0005| of the bid opening. All forfeited deposits shall be credited
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0006| to the funds of the state purchasing agent or central
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0007| purchasing office, whichever is applicable."
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0008| Section 5. Section 13-1-135 NMSA 1978 (being Laws 1984,
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0009| Chapter 65, Section 108) is amended to read:
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0010| "13-1-135. COOPERATIVE PROCUREMENT AUTHORIZED.--
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0011| A. Cooperative procurement agreements between
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0012| governmental entities with common needs shall be used for a
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0013| single solicitation and subsequent contract if, by broadening
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0014| and strengthening the bargaining power of the individual
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0015| governmental entities, opportunities exist to maximize the
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0016| value of public funds and reduce administrative costs.
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0017| [A.] B. Unless a joint powers agreement is
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0018| required pursuant to Subsection C of this section, [any]
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0019| a state agency or local public body may either participate
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0020| in, sponsor or administer a cooperative procurement agreement
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0021| for the procurement of [any] services, construction or items
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0022| of tangible personal property with [any other] another
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0023| state agency, local public body or external procurement unit
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0024| in accordance with an agreement entered into [under the Joint
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Powers Agreements Act] and approved by the governing
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0001| authority of each of the public agencies involved. A
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0002| cooperative procurement shall clearly specify the purpose of
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0003| the agreement and the method by which the purpose will be
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0004| accomplished. Any power exercised pursuant to the agreement
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0005| shall be limited to the central purchasing office of one of
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0006| the contracting parties, even though one or more of the
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0007| parties may be an external procurement unit. An approved and
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0008| signed copy of each cooperative procurement agreement entered
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0009| into pursuant to this subsection shall be filed with the state
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0010| purchasing agent. A cooperative procurement agreement
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0011| pursuant to the authority of this subsection is limited to the
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0012| procurement of items of tangible personal property, services
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0013| or construction.
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0014| C. A cooperative procurement agreement involving
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0015| mutually held funds between the parties, the transfer of funds
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0016| from one party to another or the receipt of funds by a state
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0017| agency or local public body shall only be entered into
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0018| pursuant to the Joint Powers Agreements Act.
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0019| [B.] D. Central purchasing offices other than
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0020| the state purchasing agent may cooperate by agreement with the
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0021| state purchasing agent in obtaining contracts or price
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0022| agreements, and such [contract] contracts or agreed prices
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0023| shall apply to purchase orders subsequently issued [under]
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0024| pursuant to the agreement."
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0025| Section 6. Section 13-1-155 NMSA 1978 (being Laws 1984,
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0001| Chapter 65, Section 128, as amended) is amended to read:
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0002| "13-1-155. PROCUREMENT OF USED ITEMS--APPRAISAL
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0003| REQUIRED--COUNTY ROAD EQUIPMENT EXCEPTION FOR AUCTIONS.--
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0004| A. A central purchasing office, when procuring
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0005| used items of tangible personal property, [the estimated cost
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of which exceeds five thousand dollars ($5,000)] shall
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0007| request bids as though the items were new, adding
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0008| specifications that permit used items under conditions to be
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0009| outlined in the bid specifications, including, [but not
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limited to requiring a written warranty for at least ninety
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days after date of delivery] if applicable, a requirement
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0012| that the seller provide the usual and customary written
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0013| warranty as is extended to private sector buyers and an
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0014| independent "certificate of working order" by a qualified
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0015| mechanic, [or] appraiser or technician.
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0016| B. Notwithstanding the provisions of Subsection A
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0017| of this section, the central purchasing office for a county
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0018| may purchase, at public or private auctions conducted by
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0019| established, recognized commercial auction companies, used
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0020| items of heavy equipment [having an estimated cost that
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exceeds five thousand dollars ($5,000)] for use in
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0022| construction and maintenance of county streets, roads and
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0023| highways, subject to the following provisions:
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0024| [(1) the commercial auction company shall
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have been in business for at least three years preceding the
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date of purchase and shall conduct at least five auctions
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annually;
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(2) the value of each piece of equipment
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shall be appraised]
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0005| (1) for each item of equipment that the
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0006| county is interested in purchasing at a public auction, an
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0007| appraisal shall be performed prior to the auction by a
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0008| qualified disinterested appraiser retained and paid by the
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0009| county who shall make a written appraisal report stating the
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0010| basis for the appraisal, including the age, condition, range
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0011| of value or target value and comparable sales [and stating
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that] of like equipment. The appraisal report shall include
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0013| a signed statement that the appraiser has exercised his
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0014| independent judgment without prior understanding or agreement
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0015| with any person as to a target value or range of value;
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0016| [(3)] (2) for each item of equipment, an
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0017| independent "certificate of working condition" shall be
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0018| obtained prior to the auction from a qualified mechanic, who
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0019| shall have made a detailed inspection of each major working or
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0020| major functional part and certified the working condition of
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0021| each; and
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0022| [(4) the price paid] (3) for each item of
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0023| equipment, the maximum price that is bid and paid by the
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0024| county, including all auction fees and buyer's surcharges,
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0025| shall not exceed the appraised value."
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