The bill establishes guidelines for the proper 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 symbol of the state.

Additionally, the bill allows for the retirement ceremony to be conducted publicly, led by uniformed personnel from state or federal military services or a patriotic society, or it may be held privately. This legislation aims to ensure that the retirement of the state flag is conducted with the respect and dignity it deserves.