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 an emblem of the state. 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 a patriotic society, or a private ceremony. This provision aims to ensure that the retirement of the flag is conducted with the respect and honor it deserves.