N.M. Admin. Code § 9.2.5.15
The department will designate an AAA to administer each PSA for which the department allocates funds under Title III of the Older Americans Act, supplemental state funds, or both. When designating a new AAA, the department shall give right of first refusal to unit(s) of general purpose local government if such unit can meet the requirements of 9.2.5.13 NMAC and the boundaries of the PSA are reasonably contiguous. If any unit of general purpose local government chooses not to exercise right of first refusal, the department shall then give preference to an established AAA or aging organization which operates in the PSA, and shall take into consideration the historical experience applicants have had in coordination, planning, and delivery of services for older adults. The department secretary shall approve or disapprove any applications for designation in writing.
N.M. Admin. Code § 9.2.5.15