HOUSE BILL 705
49th legislature - STATE OF NEW MEXICO - first session, 2009
INTRODUCED BY
Antonio "Moe" Maestas
AN ACT
RELATING TO PUBLIC PROCUREMENT; INCREASING CERTAIN THRESHOLD VALUES FOR PROCUREMENT ACTIONS; AMENDING SECTIONS OF THE NMSA 1978.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 13-1-60 NMSA 1978 (being Laws 1984, Chapter 65, Section 33) is amended to read:
"13-1-60. DEFINITION--HEAVY ROAD EQUIPMENT.--"Heavy road equipment" means any motor-driven vehicle or apparatus capable of use for earth moving or mixing components [which] that has an aggregate value or price of over [one thousand dollars ($1,000)] fifty thousand dollars ($50,000)."
Section 2. Section 13-1-99 NMSA 1978 (being Laws 1984, Chapter 65, Section 72, as amended) is amended to read:
"13-1-99. EXCLUDED FROM CENTRAL PURCHASING THROUGH THE STATE PURCHASING AGENT.--Excluded from the requirement of procurement through the state purchasing agent but not from the requirements of the Procurement Code are the following:
A. procurement of professional services;
B. small purchases having a value not exceeding [one thousand five hundred dollars ($1,500)] twenty thousand dollars ($20,000);
C. emergency procurement;
D. procurement of highway construction or reconstruction by the department of transportation;
E. procurement by the judicial branch of state government;
F. procurement by the legislative branch of state government;
G. procurement by the boards of regents of state educational institutions named in Article 12, Section 11 of the constitution of New Mexico;
H. procurement by the state fair commission of tangible personal property, services and construction under twenty thousand dollars ($20,000);
I. purchases from the instructional material fund;
J. procurement by all local public bodies;
K. procurement by regional education cooperatives;
L. procurement by charter schools;
M. procurement by each state health care institution that provides direct patient care and that is, or a part of which is, medicaid certified and participating in the New Mexico medicaid program; and
N. procurement by the public school facilities authority."
Section 3. Section 13-1-146 NMSA 1978 (being Laws 1984, Chapter 65, Section 119, as amended) is amended to read:
"13-1-146. REQUIREMENT FOR BID SECURITY.--Bid security shall be required of bidders or offerors for construction contracts when the price is estimated by the procurement officer to exceed [twenty-five thousand dollars ($25,000)] sixty thousand dollars ($60,000). Bid security in an amount equal to at least five percent of the amount of the bid shall be a bond provided by a surety company authorized to do business in this state, or the equivalent in cash, or otherwise supplied in a form satisfactory to the state agency or a local public body."
Section 4. Section 13-1-155 NMSA 1978 (being Laws 1984, Chapter 65, Section 128, as amended) is amended to read:
"13-1-155. PROCUREMENT OF USED ITEMS--APPRAISAL REQUIRED--COUNTY ROAD EQUIPMENT EXCEPTION FOR AUCTIONS.--
A. A central purchasing office, when procuring used items of tangible personal property the estimated cost of which exceeds [five thousand dollars ($5,000)] twenty thousand dollars ($20,000), shall request bids as though the items were new, adding specifications that permit used items under conditions to be outlined in the bid specifications, including but not limited to requiring a written warranty for at least ninety days after date of delivery and an independent "certificate of working order" by a qualified mechanic or appraiser.
B. Notwithstanding the provisions of Subsection A of this section, the purchasing office for a county may purchase, at public or private auctions conducted by established, recognized commercial auction companies, used heavy equipment having an estimated cost that exceeds [five thousand dollars ($5,000)] twenty thousand dollars ($20,000) for use in construction and maintenance of county streets, roads and highways, subject to the following provisions:
(1) the commercial auction company shall have been in business for at least three years preceding the date of purchase and shall conduct at least five auctions annually;
(2) the value of each piece of equipment shall be appraised prior to the auction by a qualified disinterested appraiser retained and paid by the county, who shall make a written appraisal report stating the basis for the appraisal, including the age, condition and comparable sales, and stating that the appraiser has exercised [his] independent judgment without prior understanding or agreement with any person as to a target value or range of value;
(3) an independent "certificate of working condition" shall be obtained prior to the auction from a qualified mechanic who shall have made a detailed inspection of each major working or major functional part and certified the working condition of each; and
(4) the price paid, including all auction fees and buyer's surcharges, shall not exceed the appraised value."
Section 5. Section 13-1-156 NMSA 1978 (being Laws 1984, Chapter 65, Section 129, as amended) is amended to read:
"13-1-156. TRADE OR EXCHANGE OF USED ITEMS--APPRAISAL REQUIRED.--
A. A central purchasing office, when trading in or exchanging used items of tangible personal property the estimated value of which exceeds [five thousand dollars ($5,000)] twenty thousand dollars ($20,000) as part-payment on the procurement of new items of tangible personal property, shall:
(1) have an independent appraisal made of the items to be traded in or exchanged. The appraisal shall be in writing, shall be made part of the procurement file and shall be a public record. The invitation for bids or request for proposals shall contain notice to prospective bidders or offerors of the description and specifications of the items to be traded in or exchanged, the appraised value of the items to be traded in or exchanged and the location where the items to be traded in or exchanged may be inspected; or
(2) have two written quotes for purchase of the property at a specified price.
B. Award shall be based upon the net bid. Bidders or offerors shall compute their net bid or offer by deducting the appraised value or highest quote of the items to be traded in or exchanged from the gross bid or offer on the new items of tangible personal property to be procured. If an amount offered in trade is less than the appraised value or the highest quote but is found to be a fair reflection of the current market, representative of the condition of the items of tangible personal property and in the best interest of the agency, the bid or offer may be accepted. Documentation of the terms of acceptance shall be in writing, shall be made a part of the procurement file and shall be a public record."
Section 6. Section 13-4-13.1 NMSA 1978 (being Laws 2004, Chapter 89, Section 1, as amended) is amended to read:
"13-4-13.1. PUBLIC WORKS CONTRACTS--REGISTRATION OF CONTRACTORS AND SUBCONTRACTORS.--
A. Except as otherwise provided in this subsection, in order to submit a bid valued at more than [fifty thousand dollars ($50,000)] sixty thousand dollars ($60,000) in order to respond to a request for proposals or to be considered for award of any portion of a public works project greater than [fifty thousand dollars ($50,000)] sixty thousand dollars ($60,000) for a public works project that is subject to the Public Works Minimum Wage Act, the contractor, serving as a prime contractor or not, shall be registered with the labor [and industrial division of the labor] relations division of the workforce solutions department. Bidding documents issued or released by a state agency or political subdivision of the state shall include a clear notification that each contractor, prime contractor or subcontractor is required to be registered pursuant to this subsection. The provisions of this section do not apply to vocational classes in public schools or public post-secondary educational institutions.
B. The state or any political subdivision of the state shall not accept a bid on a public works project subject to the Public Works Minimum Wage Act from a prime contractor that does not provide proof of required registration for itself.
C. Contractors and subcontractors may register with the division on a form provided by the division and in accordance with [labor] workforce solutions department rules. The division shall charge an annual registration fee of two hundred dollars ($200). The division shall issue to the applicant a certificate of registration within fifteen days after receiving from the applicant the completed registration form and the registration fee.
D. Registration fees collected by the division shall be deposited in the labor enforcement fund."
Section 7. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2009.
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