Senate Bill 39 expands procurement preference for resident businesses,
keeping New Mexico dollars in New Mexico

SANTA FE – Gov. Michelle Lujan Grisham on Thursday announced the introduction of Senate Bill 39, which will increase the bidding preference New Mexico businesses receive when seeking government contracts and grant in-state preference to Native American businesses.

Sponsored by Sen. Benny Shendo and Rep. Harry Garcia, the legislation would change state procurement law by:

• Increasing the bidding preference of New Mexico businesses seeking state and local government contracts from 5 percent to 8 percent.
• Allowing, for the first time, Native American-owned businesses operating on tribal land to qualify as certified New Mexico resident businesses and receive the same bidding preference as other in-state companies.
• Renewing the 10 percent bidding preference for certified New Mexico resident veteran businesses, which is due to expire June 30 without action by the Legislature to extend it.
• Eliminating the prohibition on New Mexico veteran businesses with more than $3 million in annual revenues from receiving the 10 percent bidding preference.

“Smart policies like these are what makes our state a great place to be in business, and I’m encouraging the Legislature to join me in lifting up our New Mexican-grown businesses,” said Gov. Lujan Grisham. “This administration believes in supporting a thriving and healthy economy, and that starts right here at home.”

“Support of local businesses, including Tribally owned businesses and veteran owned businesses, is just one of the many initiatives Governor Lujan Grisham and the Legislature are implementing to keep New Mexico’s economy growing,” said Santa Clara Pueblo Governor J. Michael Chavarria. “We thank Governor Lujan Grisham, Senator Shendo, and Senator Garcia for supporting legislation that creates equity for Native American-owned businesses in New Mexico.”

The Buy New Mexico initiative was launched by Gov. Lujan Grisham in 2019, and resulted in a 9% increase in New Mexico businesses registering with the state to become notified of upcoming contract awards.

“We must keep the momentum behind New Mexico’s economy going, and we have to make sure that no one is left behind,” said General Services Secretary-designate John A. Garcia. “Buy New Mexico has already been an incredibly successful initiative, and we’re looking forward to expanding it to more New Mexicans.”

Each year, the state of New Mexico and local public bodies spend billions of dollars to buy goods and services, including everything from janitorial supplies to computers, landscaping services to legal representation.

The goal of the Buy New Mexico initiative is to drive more of those purchasing dollars to in-state businesses, helping them grow and create more jobs in communities around the state.