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 dignified ceremony that honors its significance as an emblem of the state.

Additionally, the bill allows for the retirement ceremony to be conducted publicly, under the guidance of uniformed personnel from state or federal military services or patriotic societies, or it can be held privately. This legislation aims to ensure that the retirement of the state flag is conducted with respect and dignity.