Current through Register Vol. 35, No. 18, September 24, 2024
A. The contracts
review bureau of the department of finance and administration shall review and
approve all professional services contracts which result in expenditures
greater than five thousand dollars ($5,000), including applicable gross
receipts tax, and all amendments to those contracts for all state agencies
except as provided in Subsections B and C of Section 2.40.2.2 NMAC of this
rule. Contracts expending public funds in accordance with the Procurement Code,
Sections
13-1-28 to
13-1-199
NMSA 1978 as amended are included within the scope of this rule.
B. The following state agencies are currently
exempt from submitting professional services contracts and amendments through
the contracts review bureau of the department of finance and administration:
(1) state agencies within the judicial branch
of government as defined by the New Mexico Constitution, Article VI;
(2) state agencies within the legislative
branch of government as defined by the New Mexico Constitution, Article
IV;
(3) state educational
institutions as defined by the New Mexico Constitution, Article XII, Section 11
and Chapter 21, Articles 13, 14, 16 and 17 NMSA 1978;
(4) the state fair for only those contracts
exempted pursuant to Subsection H of Section
13-1-99
NMSA 1978;
(5) the New Mexico
public school insurance authority pursuant to Subsection F of Section
22-29-6
and
22-29-8
NMSA 1978 for contracts for procuring goods or services and paying for
insurance or insurance-related services;
(6) the New Mexico mortgage finance authority
pursuant to Section
58-18-20
NMSA 1978; and
(7) other state
agencies exempt by statute.
C. Pursuant to Section
6-5-9
NMSA 1978, the secretary of the department of finance and administration may
exempt a state agency's contracts from contracts review bureau review and
approval when the secretary of the department of finance and administration
determines that efficiency or economy so requires. A state agency seeking an
exemption must:
(1) apply in writing to the
secretary of the department of finance and administration; and
(2) meet all of the following requirements:
(a) issue its own warrants;
(b) be exempt from prior submission of
vouchers or purchase orders to the financial control division of the department
of finance and administration;
(c)
receive the majority of its money from non-general fund sources;
(d) maintain pre-audit and post-audit fiscal
accounting controls;
(e) maintain
and operate its own administrative unit for procurement and controls its own
encumbrance of funds available for professional service contracts;
(f) provide administrative control and review
of professional services contracts through its own administrative unit;
and
(g) employs in-house counsel to
prepare, review, and approve professional services contracts for form and legal
sufficiency and to advise the state agency with respect to all applicable laws
and regulations; provided, however, that the attorney general shall also review
and approve all contracts subject to Paragraph (1) of Subsection C of
2.40.2.10 NMAC
of this rule prior to approval and execution by the state agency.
