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New Mexico-based companies could be at a greater advantage when seeking government contracts under legislation tabled Thursday and backed by Governor Michelle Lujan Grisham.

The proposal, Senate Bill 39, would also give preference in the state to Native American businesses on tribal lands — something not currently done under government procurement laws.

Under the legislation, sponsored by Sen. Benny Shendo, D-Jemez Pueblo and Rep. Harry Garcia, D-Grants, the bidding preference for New Mexico-based companies would increase from 5% to 8%.

More:

• Native American-owned businesses on tribal lands in New Mexico would receive the same bidding preference as New Mexico-based businesses.

• A 10% bid preference given to businesses owned by veterans residing in New Mexico would be expanded and the ban on veteran-owned businesses with more than $3 million in annual revenue from getting veteran preference would be lifted.

“Smart policies like these make our state a great place to do business, and I encourage the legislature to join me in growing our New Mexico businesses,” Lujan Grisham said in a statement Thursday.

Lujan Grisham has previously supported policies aimed at increasing the number of New Mexico companies eligible to bid on government contracts, such as the Buy New Mexico initiative launched in 2019 which increased the number of companies registered to receive notifications. on future contract awards.

Department of General Services spokesman Thom Cole said 1,795 companies are certified as New Mexico companies and are eligible to receive bidding preference.

While it’s unclear how much additional money could flow to New Mexico-based businesses under the proposed legislation, Cole said it could be a significant amount since the state spends billions of dollars each year.

Similarly, Cole said there had been increased business development on tribal lands over the past few decades and that the amendment to the public procurement code to allow businesses on tribal lands to receive call preference. offers in the state could bring in significant sums to these establishments.

New Mexico Chamber of Commerce President and CEO Rob Black said the chamber supports the bill.

“We are very supportive of efforts to promote more contract and business opportunities for New Mexico businesses, New Mexico small businesses in particular, so we think it’s really needed,” he said. said Black. “There’s a lot of work to be done in this space and this is a good first step in that direction.”