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F I S C A L I M P A C T R E P O R T

SPONSOR Anderson

ORIGINAL DATE

LAST UPDATED

3/9/07

HB HJM 78

SHORT TITLE Prompt Payment Provisions in Procurement Code

SB

ANALYST Propst

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Bill

House Joint Memorial 78 notes that the federal government has acquisition regulations that

require prompt payment and that prompt payment may reduce overall cost of public works

projects due to increased interest from available bidders and reduced costs of capital.

HJM 78 requests that the Department of Finance and Administration work with the General

Services Department to study the viability of prompt payment provisions similar to the federal

acquisition regulations in order to move towards a 14 day payment for goods and services in

New Mexico.

DFA is to report its findings and recommendations for legislation by December 2007. The

Legislative Council Service will determine the appropriate interim legislative committee to

receive the report.

WEP/mt