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A JOINT MEMORIAL

REQUESTING THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO

STUDY THE VIABILITY OF PROMPT PAYMENT PROVISIONS BEING ADDED

TO THE STATE PROCUREMENT CODE, SIMILAR TO FEDERAL ACQUISITION

REGULATIONS, AND TO REPORT ITS FINDINGS TO THE APPROPRIATE

INTERIM LEGISLATIVE COMMITTEE.

WHEREAS, the federal government has acquisition

regulations that require prompt payment on service and

construction contracts; and

WHEREAS, a system of prompt payment may reduce the

overall cost of public works projects due to increased

interest from available bidders and reduced cost of capital

for those performing work for the state;

NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE

STATE OF NEW MEXICO that the department of finance and

administration, with cooperation from the general services

department, be requested to study the viability of prompt

payment provisions, similar to federal acquisition

regulations, in state procurement of goods and services so

that payment generally occurs within fourteen days of the date

of an invoice; and

BE IT FURTHER RESOLVED that the department report its

findings and recommendations for legislation to amend the

procurement code by December 2007 to the appropriate interim

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legislative committee, as determined by the New Mexico

legislative council, for review; and

BE IT FURTHER RESOLVED that copies of this memorial be

transmitted to the secretaries of finance and administration

and general services.