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(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

General Services Department (GSD)

Economic Development Department (EDD)

Public Regulation Commission, Transportation Division (PRC/TD)

SUMMARY

Synopsis of Bill

Endorsed by the Revenue Stabilization and Tax Policy Committee, the bill eliminates the 5% bidders preference to qualified New Mexico resident businesses and manufacturers when competing for government procurement contracts in the case of buses.

The bill allows open competition for public procurement contracts, so that there is equal opportunity to sell buses in states that have reciprocal preference laws.

Significant Issues

According to a survey conducted by the General Services Department of 32 states with Reciprocal Preference Laws regarding SB18 and its effect on competing for business in those states, there would be 2 effects:

1. No effect since their reciprocal statute applied to any business, without regard to the particular commodity or service offered by the business, that maintained its principal place of business located in a state that had a resident preference; and

2. Since their reciprocal preference applied to individual commodities and services, the preference would be waived if New Mexico resident businesses and manufacturers that manufacture buses attempted to compete for government business in their state.

AW/gm