NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

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(Parenthesis ( ) Indicate Expenditure Decreases)

(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

General Services Department

New Mexico State Highway Department

State Department of Education

SUMMARY

Synopsis of Bill

House Bill 565 proposes to amend the section of the Procurement Code relating to public notice of invitation for bids. Currently, the requirements for competitive sealed bids is $5.0. This legislation would change the requirement to $10.0.

Significant Issues

According to staff from the General Services Department, the ceiling for competitive sealed bids for construction, services and tangible property was raised from $5.0 to $10.0 in the 1997 legislative session. The public notice section of the Procurement Code was not changed in 1997, which leaves a conflict. House Bill 565 will conform public notice requirements for competitive bides with other requirements for those bids.

FISCAL IMPLICATIONS

Costs associated with public notice may be reduced.

WJC/njw