HOUSE BILL 389

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Ray Begaye

AN ACT

RELATING TO MUNICIPAL PROCUREMENT; ENACTING A NEW SECTION OF THE MUNICIPAL CODE THAT AUTHORIZES MUNICIPALITIES TO CONTRACT DIRECTLY WITH WATER STORAGE TANK SERVICE PROVIDERS; AMENDING THE PROCUREMENT CODE TO PROVIDE AN EXCEPTION FOR MUNICIPALITIES ENTERING INTO CONTRACTS WITH WATER STORAGE TANK SERVICE PROVIDERS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. A new section of the Municipal Code is enacted to read:

     "[NEW MATERIAL] WATER STORAGE TANK SERVICE CONTRACTS.--A municipality may, by direct negotiation or through the solicitation of requests for proposals, enter into a multiyear service contract for the engineering, repair and maintenance of a water storage tank and the appurtenant facilities owned, controlled or operated by the municipality, provided that the contract for services includes provisions that:

          A. provide that the municipality is not required to make total payments in a single year that exceed the water utility charges received by the municipality for that year;

          B. require that the work be performed under the review of a professional engineer licensed in the state of New Mexico who certifies that the work will be performed in compliance with all applicable codes and engineering standards; and

          C. provide that if, on the date of commencement of the contract, the water storage tank or appurtenant facilities require engineering, repair or service in order to bring the tank or facilities into compliance with federal, state or local requirements, the party contracting with the municipality shall provide the engineering, repair or service and that the cost of the work necessary to ensure such compliance shall be itemized separately and charged to the municipality in payments spread over a period of not less than three years from the date of commencement of the contract."

     SECTION 2. Section 13-1-98 NMSA 1978 (being Laws 1984, Chapter 65, Section 71, as amended) is amended to read:

     "13-1-98. EXEMPTIONS FROM THE PROCUREMENT CODE.--The provisions of the Procurement Code shall not apply to:

          A. procurement of items of tangible personal property or services by a state agency or a local public body from a state agency, a local public body or external procurement unit except as otherwise provided in Sections 13-1-135 through 13-1-137 NMSA 1978;

          B. procurement of tangible personal property or services for the governor's mansion and grounds;

          C. printing and duplicating contracts involving materials that are required to be filed in connection with proceedings before administrative agencies or state or federal courts;

          D. purchases of publicly provided or publicly regulated gas, electricity, water, sewer and refuse collection services;

          E. purchases of books and periodicals from the publishers or copyright holders thereof;

          F. travel or shipping by common carrier or by private conveyance or to meals and lodging;

          G. purchase of livestock at auction rings or to the procurement of animals to be used for research and experimentation or exhibit;

          H. contracts with businesses for public school transportation services;

          I. procurement of tangible personal property or services, as defined by Sections 13-1-87 and 13-1-93 NMSA 1978, by the corrections industries division of the corrections department pursuant to rules adopted by the corrections industries commission, which shall be reviewed by the purchasing division of the general services department prior to adoption;

          J. minor purchases not exceeding five thousand dollars ($5,000) consisting of magazine subscriptions, conference registration fees and other similar purchases where prepayments are required;

          K. municipalities having adopted home rule charters and having enacted their own purchasing ordinances;

          L. the issuance, sale and delivery of public securities pursuant to the applicable authorizing statute, with the exception of bond attorneys and general financial consultants;

          M. contracts entered into by a local public body with a private independent contractor for the operation, or provision and operation, of a jail pursuant to Sections

33-3-26 and 33-3-27 NMSA 1978;

          N. contracts for maintenance of grounds and facilities at highway rest stops and other employment opportunities, excluding those intended for the direct care and support of persons with handicaps, entered into by state agencies with private, nonprofit, independent contractors who provide services to persons with handicaps;

          O. contracts and expenditures for services or items of tangible personal property to be paid or compensated by money or other property transferred to New Mexico law enforcement agencies by the United States department of justice drug enforcement administration;

          P. contracts for retirement and other benefits pursuant to Sections 22-11-47 through 22-11-52 NMSA 1978;

          Q. contracts with professional entertainers;

          R. contracts and expenditures for litigation expenses in connection with proceedings before administrative agencies or state or federal courts, including experts, mediators, court reporters, process servers and witness fees, but not including attorney contracts;

          S. contracts for service relating to the design, engineering, financing, construction and acquisition of public improvements undertaken in improvement districts pursuant to Subsection L of Section 3-33-14.1 NMSA 1978 and in county improvement districts pursuant to Subsection L of Section

4-55A-12.1 NMSA 1978;

          T. works of art for museums or for display in public buildings or places;

          U. contracts entered into by a local public body with a person, firm, organization, corporation or association or a state educational institution named in Article 12, Section 11 of the constitution of New Mexico for the operation and maintenance of a hospital pursuant to Chapter 3, Article 44 NMSA 1978, lease or operation of a county hospital pursuant to the Hospital Funding Act or operation and maintenance of a hospital pursuant to the Special Hospital District Act;

          V. purchases of advertising in all media, including radio, television, print and electronic;

          W. purchases of promotional goods intended for resale by the tourism department; 

          X. procurement of printing services for materials produced and intended for resale by the cultural affairs department;

          Y. procurement by or through the public education department from the federal department of education relating to parent training and information centers designed to increase parent participation, projects and initiatives designed to improve outcomes for students with disabilities and other projects and initiatives relating to the administration of improvement strategy programs pursuant to the federal Individuals with Disabilities Education Act; provided that the exemption applies only to procurement of services not to exceed two hundred thousand dollars ($200,000);

          Z. procurement of services from community rehabilitation programs or qualified individuals pursuant to

the State Use Act;

          AA. purchases of products or services for eligible persons with disabilities pursuant to the federal Rehabilitation Act of 1973;

          BB. procurement, by either the department of health or Grant county or both, of tangible personal property, services or construction that are exempt from the Procurement Code pursuant to Section 9-7-6.5 NMSA 1978;

          CC. contracts for investment advisory services, investment management services or other investment-related services entered into by the educational retirement board, the state investment officer or the retirement board created pursuant to the Public Employees Retirement Act;

          DD. the purchase for resale by the state fair commission of feed and other items necessary for the upkeep of livestock; [and]

          EE. contracts entered into by the crime victims reparation commission to distribute federal grants to assist victims of crime, including grants from the federal Victims of Crime Act of 1984 and the federal Violence Against Women Act; and

          FF. contracts entered into by a municipality for the service of water storage tanks as provided for in the Municipal Code."

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2011.

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