The state Senate passed the legislation, also known as House Bill 100, in a 22-15 vote on Friday, the Albuquerque Journal reports.
The bill, which has already been approved by the state House, now heads to the desk of New Mexico Gov. Michelle Lujan Grisham (D) for consideration.
Proponents of the measure argue that the passage of the bill, which was sponsored by Democratic state Reps. Derrick Lente and Andrea Romero, would better reflect the state’s culture.
According to 2017 U.S. Census data, more than 12 percent of the state’s population is comprised of Native Americans.
The report comes months after San Francisco’s primary legislative body voted to replace Columbus Day with Indigenous Peoples Day in an effort to recognize the "historic discrimination and violence" against Native Americans in the U.S.
Lawmakers in Kansas are also considering abolishing Columbus Day and replacing the holiday with Indigenous Peoples Day.
If passed, House Bill 100 would make New Mexico the fourth state in the country to enact the such legislation.