The bill establishes a formal procedure for the retirement of the New Mexico state flag when it is no longer suitable for display. It specifies that the flag may be destroyed, preferably by burning, in a manner that honors its significance as a state emblem. The bill emphasizes the importance of conducting the retirement ceremony in a dignified manner.

Additionally, the bill allows for the retirement ceremony to be either a public event, led by uniformed personnel from state or federal military services or patriotic societies, or a private ceremony. This provision aims to ensure that the retirement of the flag is conducted with respect and recognition of its symbolic value to the state of New Mexico.