A. All runoff elections authorized by Article 7, § 5 of the constitution of New Mexico shall be conducted pursuant to this section as a top-two runoff election or as a ranked-choice runoff election as follows:

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(1)     a top-two runoff election shall be conducted on a separate ballot when the candidate receiving the most votes for an office did not receive the percentage of votes required by the laws of the municipality to be elected in the first round of voting. When ordered, the top- two runoff election shall be held following the regular local election and allow the voter to select between the two candidates who in the first round of voting received the highest number of votes for an office; and

(2)     a ranked-choice runoff election shall be conducted on the same ballot as the regular local election and allow the voter to rank the candidates for an office in the order of preference for the voter.

B. If a municipality whose laws provide for top-two runoff elections is notified by the proper canvassing board that a runoff election is required following the regular local election, the top- two runoff election shall be conducted in accordance with those election provisions and procedures in the ordinances or charter of the municipality that do not conflict with the Election Code or administrative rules issued by the secretary of state; provided that in a municipality in which the first round of voting is conducted at the regular local election:

(1)     the county clerk shall perform the duties of administering the top-two runoff election; and

(2)     the municipality shall reimburse the secretary of state the actual cost of conducting the runoff election.

C. A municipality whose laws provide for a runoff election shall conduct the election in the manner provided by the municipality’s ordinance or charter; provided that a municipality may by ordinance choose between conducting a top-two runoff election and a ranked-choice runoff election. The ordinance shall be filed with the secretary of state no later than June 30 of the year the next regular local election is scheduled.

D. The secretary of state shall issue rules to implement top-two and ranked-choice runoff elections.