The bill establishes a formal procedure for retiring 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 with dignity.

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 respectfully, reflecting its status as a symbol of New Mexico.