HB 20 — TECHNOLOGY & INNOVATION DIVISION

and = = o h l ] b ,d i a º e (d) coordinating with federal and state r i = r t e w d technology transfer programs;

m(12) acoordinate ninnovation oinitiatives dacross mstate :agencies, including:

b e d s º o t n = .230891.2AIC March 3, 2025 (3:41pm) s k m e - 5 - e a n e d r e l u [ A d HCEDC/HB 20 (12) coordinate innovation initiatives across state agencies, including:

As used in this section, "target sectors" means hHCEDC/HB 20/a Page 5 aerospace and space, biosciences, clean energy and water, g o advanced computing, which includes artificial intelligence, t hr g e i k quantum computing and cybersecurity, and other sectors that are h r i s strategic and important for statewide economic development." h , t, SECTION 3.

A new section of the Economic Development e u g e b l e e h Department Act is enacted to read:

n"TECHNOLOGY d d i = = o h "[NEW MATERIAL] TECHNOLOGY AND INNOVATION NETWORK ADVISORY lBOARD-- ]CREATED--MEMBERS--DUTIES.-- b ,d i a º e BOARD--CREATED--MEMBERS--DUTIES.-- r i = r t e w d m a n o A.

The "technology and innovation network advisory dboard" mis :created in the technology and innovation division of the department.

b e d s º o t n = .230891.2AIC March 3, 2025 (3:41pm) s k m e - 6 - e a n e d r e l u [ A d HCEDC/HB 20 board" is created in the technology and innovation division of the department.

HCEDC/HB 20/a Page 6 (c) the United States air force research laboratory;

h (d) New Mexico state university;

g o (e) the university of New Mexico;

t hr g e (f) the university of New Mexico health i k h r i s sciences center;

h , t, (g) the New Mexico institute of mining e u g e b l and technology;

e e h n d d i (h) Navajo technical university;

and = = o h l ] b ,d i a º e (i) central New Mexico community r i = r t e w d college;

m(3) a nrepresentative ofrom deach mcenter :of excellence established pursuant to Section 21-1-27.11 NMSA 1978 that is not otherwise represented on the board;

b e d s º o t n = .230891.2AIC March 3, 2025 (3:41pm) s k m e - 7 - e a n e d r e l u [ A d HCEDC/HB 20 (3) a representative from each center of excellence established pursuant to Section 21-1-27.11 NMSA 1978 that is not otherwise represented on the board;

HCEDC/HB 20/a Page 7 (e) one representative from the venture capital industry with at least five years of relevant h experience;

g o Hfl1º (f) one representative from the t hr g e i k private sector who owns a business and who, on account of the h r i s person's previous vocation, employment or affiliation, cannot h , t, be classified as a representative of employers or eemployees; u g e b l e e h employees;»Hfl1 n d d i = = o h Hfl1º (f)»Hfl1 Hfl1º(g)»Hfl1 one l ] b ,d i a º e representative from a New Mexico business incubator or r i = r t e w d m a n o accelerator with at least five years of relevant experience;

d(g) mone :representative from a New Mexico business incubator or accelerator with at least five years of relevant experience;

b e d s º o t n = .230891.2AIC March 3, 2025 (3:41pm) s k m e - 8 - e a n e d r e l u [ A d HCEDC/HB 20 and Hfl1º(h) (g)»Hfl1 Hfl1º(h)»Hfl1 eight representatives who are industry alliance members or have at least five years of relevant experience working in entrepreneurial support.

The technology"technology and innovation network advisory boardboard" is created to unite various sector perspectives to assist in the guidance and ongoing strategic planning of the division.

(1) provide to the technology and innovation division recommendations for strategic engagement, industry perspective, sectors that the division should make target sectors and feedback on the division's programs and h initiatives;

gHCEDC/HB o20/a Page 8 (2) assist with ensuring active engagement t hr g e between the state and the private sector;

i k h r i s (3) assist the technology and innovation h , t, division with administering the Research, Development and e u g e b l Deployment Fund Act, including providing recommendations to e e h n d d i that division for eligibility requirements, funding priorities = = o h l ] b ,d i a º e and the awarding of project funding;

and r(4) ipublish =annual rperformance treports eby wDecember dof (4)each publishyear annualthat performanceidentify reportsnear-term byconstraints mand achallenges, nidentify oopportunities dand mlong-term :trends and provide sector survey metrics and policy recommendations.

b e d s º o t n = .230891.2AIC March 3, 2025 (3:41pm) s k m e - 9 - e a n e d r e l u [ A d HCEDC/HB 20 December of each year that identify near-term constraints and challenges, identify opportunities and long-term trends and provide sector survey metrics and policy recommendations.

The terms shall be four years, and the initial terms shall be staggered so that the terms of one-half of the members shall expire at the end of the initial two years and the terms of the h remaining members shall expire at the end of theHCEDC/HB initial20/a fourPage u9 »the rinitial four years.

t h g e E.

Each member of the advisory board shall, l i h r i s pursuant to a policy adopted by and on forms required by the h , e h executive committee of the board, disclose conflicts of t u g e b l interest annually.

e e , gh n d d i = = o h F.

In the event of a vacancy on the technology and l ] b ,d i a º r innovation network advisory board, a new member shall be e r = t e w d appointed by the original appointing authority for the mremainder aof nthe ounexpired dterm. m :

b r e t º o t n = .230891.2AIC March 3, 2025 (3:41pm) s k m e - 10 - e a n e d r e l u [ A d HCEDC/HB 20 remainder of the unexpired term.

hHCEDC/HB 20/a Page 10 (3) assistance with reporting requirements and g o metric tracking;

and t hr g e (4) support with the administration of i k h r i s grants." h , t, SECTION 4.

A new section of the Economic Development e u g e b l Department Act is enacted to read:

e"TECHNOLOGY e h n d d i "[NEW MATERIAL] TECHNOLOGY AND INNOVATION NETWORK ADVISORY =BOARD-- =EXECUTIVE o h l ] b ,d i a º e BOARD--EXECUTIVE COMMITTEE--SUBCOMMITTEES--COMPOSITION AND r i = r t e w d DUTIES.-- mA. a n o d m :

b e d s º o t n = .230891.2AIC March 3, 2025 (3:41pm) s k m e - 11 - e a n e d r e l u [ A d HCEDC/HB 20 A.

The executive committee shall oversee the technology and innovation network advisory board's operations, set meeting agendas, review and approve subcommittee recommendations and make time-sensitive decisions between full h board meetings.

gHCEDC/HB o20/a Page 11 D.

A subcommittee shall be composed of the two t hr g e i k representatives from the corresponding target sector, one h r i s representative from a laboratory, one representative from a h , t, university, one representative from private industry and the e u g e b l e e h secretary or the secretary's designee to serve as chair.

The n d d i = = o h subcommittee members shall elect a vice chair.

A member of the l ] b ,d i a º e public may apply to the executive committee to be a nonvoting r i = r t e w d member of a subcommittee, and the executive committee shall madopt apolicies nand oprocedures dnecessary mfor :such an application and evaluation process.

b e d s º o t n = .230891.2AIC March 3, 2025 (3:41pm) s k m e - 12 - e a n e d r e l u [ A d HCEDC/HB 20 adopt policies and procedures necessary for such an application and evaluation process.

[NEW MATERIAL ] SHORT TITLE.--Sections 5 through 11 of this act may be cited as the "Research, Development and Deployment Fund Act".

h SECTION 6.

[NEW MATERIAL] DEFINITIONS.--As used in the gResearch, oHCEDC/HB Research,20/a Page 12 Development and Deployment Fund Act:

t hr g e A.

"applicant" means a person or entity applying i k h r i s for project funding;

h , t, B.

"applicant match" means money for a project e u g e b l provided by an applicant or a partnering entity that is not a e e h n d d i political subdivision of the state;

= = o h l ] b ,d i a º e C.

"board" means the technology and innovation r i = r t e w d network advisory board established pursuant to Section 3 of mthis a2025 nact; o d m :

b e d s º o t n = .230891.2AIC March 3, 2025 (3:41pm) s k m e - 13 - e a n e d r e l u [ A d HCEDC/HB 20 this 2025 act;

h I.

"public entity" means a political subdivision ofHCEDC/HB g20/a oPage 13 of the state, a state agency or a national laboratory or public t hr g e i k post-secondary educational institution in New Mexico;

and h r i s J.

"target sector" means aerospace and space, h , t, biosciences, clean energy and water, advanced computing, which e u g e b l e e h includes artificial intelligence, quantum computing and n d d i = = o h cybersecurity, and other sectors that are strategic and l ] b ,d i a º e important for statewide economic development.

r i = r t e w d SECTION 7.

[NEW MATERIAL ] RESEARCH, DEVELOPMENT AND mDEPLOYMENT aFUND.-- nA. o d m :

b e d s º o t n = .230891.2AIC March 3, 2025 (3:41pm) s k m e - 14 - e a n e d r e l u [ A d HCEDC/HB 20 DEPLOYMENT FUND.-- A.

Expenditures from the fund shall be by warrant of the secretary of finance and administration pursuant to vouchers signed by the secretary of economic development or the h secretary's authorized representative.

gHCEDC/HB o20/a Page 14 SECTION 8.

[NEW MATERIAL ] PROJECT FUNDING--DEPARTMENT tDUTIES-- hrAPPLICATIONS.-- g e DUTIES--APPLICATIONS.-- i k h r i s A.

The division shall administer the provisions of h , t, the Research, Development and Deployment Fund Act to provide e u g e b l project funding to applicants that meet all eligibility e e h n d d i requirements.

= = o h l ] b ,d i a º e (1) establish a streamlined application r i = r t e w d process pursuant to the requirements of the Research, mDevelopment aand nDeployment oFund dAct, mwith: :

b e d s º o t n = .230891.2AIC March 3, 2025 (3:41pm) s k m e - 15 - e a n e d r e l u [ A d HCEDC/HB 20 Development and Deployment Fund Act, with:

h (5) monitor ongoing compliance with a funded gHCEDC/HB o20/a Page 15 project's match requirements when a match is applicable or t hr g e i k match funding is being requested;

h r i s (6) establish procedures for addressing h , t, undelivered applicant funding commitments;

e u g e b l e e h (7) annually report with the department to the n d d i = = o h legislature and governor on the administration, performance and l ] b ,d i a º e efficacy of the Research, Development and Deployment Fund Act;

rand i(8) =promulgate rrules tnecessary eto wimplement dand administer the provisions of the Research, Development and mDeployment aFund nAct, oin dconsultation mwith :the board.

b e d s º o t n = .230891.2AIC March 3, 2025 (3:41pm) s k m e - 16 - e a n e d r e l u [ A d HCEDC/HB 20 (8) promulgate rules necessary to implement and administer the provisions of the Research, Development and Deployment Fund Act, in consultation with the board.

provided that the applicant makes changes and improvements based on any feedback h received from the prior application;

and gHCEDC/HB o20/a Page 16 (5) in response to grant award solicitations t hr g e by the division.

i k h r i s C.

In administering the provisions of the Research, h , t, Development and Deployment Fund Act, the division shall not:

e u g e b l (1) impose limitations on the amount of e e h n d d i project funding that may be awarded to public post-secondary = = o h l ] b ,d i a º e educational institutions, except as provided in the Research, r i = r t e w d Development and Deployment Fund Act;

or m(2) arestrict nthe oawarding dof mproject :funding to only research activities.

b e d s º o t n = .230891.2AIC March 3, 2025 (3:41pm) s k m e - 17 - e a n e d r e l u [ A d HCEDC/HB 20 (2) restrict the awarding of project funding to only research activities.

[NEW MATERIAL ] ELIGIBILITY REQUIREMENTS.-- A.

HCEDC/HB 20/a Page 17 (d) create new economic opportunities;

h (e) create new jobs and workforce g o training opportunities;

and t hr g e i k (f) advance the commercialization of a h r i s technology in at least one of the target sectors;

h , t, (3) an applicant shall submit:

e u g e b l e e h (a) a project budget that includes n d d i = = o h proposed and anticipated funding from state and non-state l ] b ,d i a º e sources;

r i = r t e w d m a n o (b) one or more letters of support or dletters mof :commitment of resources to the project;

b e d s º o t n = .230891.2AIC March 3, 2025 (3:41pm) s k m e - 18 - e a n e d r e l u [ A d HCEDC/HB 20 letters of commitment of resources to the project;

(4) if applicable due to a match requirement, an applicant shall submit evidence satisfactory to the division that the applicant has received applicant match in an amount that is equal to or greater than the HCEDC/HB 20/a Page 18 amount of project funding the applicant is requesting, including certification by the h applicant of such a fact;

g o (5) if an applicant is seeking project funding t hr g e in connection with or as part of a separate application for i k h r i s grant money that requires cost sharing, matching funds, h , t, institutional support or regional financial commitments as a e u g e b l condition of eligibility for that grant money, the applicant e e h n d d i shall submit written evidence from the entity providing that = = o h l ] b ,d i a º e grant money that clearly states such requirements will be used r i = r t e w d in the evaluation of applications for that grant money.

If no msuch written evidence exists of the requirements for institutional support or regional financial commitment, the applicant may submit alternative proof of the requirements and the division shall establish criteria and, on a ncase-by-case obasis, devaluate mwhether :the proof is sufficient;

b e d s º o t n = .230891.2AIC March 3, 2025 (3:41pm) s k m e - 19 - e a n e d r e l u [ A d HCEDC/HB 20 such written evidence exists of the requirements for institutional support or regional financial commitment, the applicant may submit alternative proof of the requirements and the division shall establish criteria and, on a case-by-case basis, evaluate whether the proof is sufficient;

HCEDC/HB 20/a Page 19 C.

When an applicant's project has a match requirement, the division may reduce applicant match h requirements by up to fifty percent for projects:

g o (1) that primarily benefit communities that t hr g e i k are rural or part of Indian nations, tribes or pueblos;

h r i s (2) led by minority-serving public post- h , t, secondary educational institutions as defined in federal law;

e u g e b l e e h or n d d i = = o h (3) that address critical state needs as l ] b ,d i a º e determined by the department in its statewide economic plan.

r i = r t e w d D.

An in-kind contribution to a project may qualify mas a nportion oof dan mapplicant's :required match when the:

b e d s º o t n = .230891.2AIC March 3, 2025 (3:41pm) s k m e - 20 - e a n e d r e l u [ A d HCEDC/HB 20 as a portion of an applicant's required match when the:

[NEW MATERIAL ] PROJECT FUNDING AWARDS--AWARDS--PROCESS--TERMS.-- PROCESS--TERMS.-- A.

HCEDC/HB 20/a Page 20 (2) when applicable, have higher percentages of matching funds from non-public entities;

h (3) demonstrate strong potential for g o commercialization in a target sector;

t hr g e (4) support the growth of New Mexico-based i k h r i s companies;

h , t, (5) benefit communities that are rural or in e u g e b l an Indian nation, tribe or pueblo;

and e e h n d d i (6) provide opportunities for broad regional = = o h l ] b ,d i a º e participation.

r i = r t e w d B.

m(1) aallow nfor omultiyear dproject mperiods :aligned with federal or private sector grant or other non-state funding opportunity time lines;

b e d s º o t n = .230891.2AIC March 3, 2025 (3:41pm) s k m e - 21 - e a n e d r e l u [ A d HCEDC/HB 20 (1) allow for multiyear project periods aligned with federal or private sector grant or other non-state funding opportunity time lines;

[NEW MATERIAL ] REPORTING.--On or before December 1 of 2025 and of every year thereafter, the department shall provide a report to the governor, the legislative finance committee and HCEDC/HB 20/a Page 21 the appropriate interim committees that study economic development regarding the administration, efficacy and performance of the Research, Development and Deployment Fund h Act, including:

g o A.

t hr g e i k B.

for each project, the dollar amounts awarded, h r i s the amount of non-state matching funds the project received, if h , t, applicable, and the amount of non-state funding leveraged;

e u g e b l e e h C.

updates on the progress, performance, outcomes n d d i = = o h and impacts of each project that was awarded funding;

l ] b ,d i a º e D.

r i = r t e w d m a n o E.

return on investment of state money spent dpursuant mto :the Research, Development and Deployment Fund Act;

b e d s º o t n = .230891.2AIC March 3, 2025 (3:41pm) s k m e - 22 - e a n e d r e l u [ A d HCEDC/HB 20 pursuant to the Research, Development and Deployment Fund Act;

other relevant performance metrics, including those recommended by the boardboard, to measure the success of the Research, Development and Deployment Fund Act and the state's investment of public money pursuant to that act.

"[NEW"TECHNOLOGY MATERIAL] TECHNOLOGY INNOVATION PRIZE--ELIGIBILITY-- REQUIREMENTS--PARTICIPATION--ADMINISTRATION.-- A.

The department shall establish and administer HCEDC/HB 20/a Page 22 the "technology innovation prize program".

h (2) no less than one million dollars g o ($1,000,000) each for the next two award recipients;

and t hr g e (3) additional award amounts as recommended i k h r i s and approved by the technology and innovation network advisory h , t, board.

e u g e b l B.

Technology innovation prizes shall only be e e h n d d i awarded to companies that provide technological innovation in = = o h l ] b ,d i a º e the following sectors:

r i = r t e w d (1) clean energy and water;

m(2) aaerospace nand ospace; d m :

b e d s º o t n = .230891.2AIC March 3, 2025 (3:41pm) s k m e - 23 - e a n e d r e l u [ A d HCEDC/HB 20 (2) aerospace and space;

and HCEDC/HB 20/a Page 23 (3) in the case of an international applicant, maintain a contractual partnership with a New Mexico-based entity.

Before receiving technology innovation prize h money, a recipient shall enter into a contract with the g o department that requires the recipient to:

t hr g e i k (1) maintain operations and a substantial h r i s presence in New Mexico for a minimum of three years after h , t, receiving the award;

e u g e b l e e h (2) create and maintain for at least three n d d i = = o h years after receiving prize money a number of jobs in New l ] b ,d i a º e Mexico, as required by the department;

r i = r t e w d (3) participate in science, technology, mengineering aand nmathematics oeducation dinitiatives mwithin :the state;

b e d s º o t n = .230891.2AIC March 3, 2025 (3:41pm) s k m e - 24 - e a n e d r e l u [ A d HCEDC/HB 20 engineering and mathematics education initiatives within the state;

(2) mentorship opportunities with industry HCEDC/HB 20/a Page 24 experts;

The department, with approval from the h technology and innovation network advisory board and for the g o purposes of administering the technology innovation prize t hr g e program, shall create a steering committee, develop program i k h r i s time lines, establish application rules and guidelines, h , t, establish partnerships and determine resource allocation.

e u g e b l G.

The department shall promulgate rules as e e h n d d i necessary to carry out the provisions of this section.

= = o h l ] b ,d i a º e H.

As used in this section, "business" means any r i = r t e w d corporation, partnership, limited liability company, joint mventure aor nother osimilar dlegal mentity." :SECTION 13.

b e d s º o t n = .230891.2AIC March 3, 2025 (3:41pm) s k m e - 25 - e a n e d r e l u [ A d HCEDC/HB 20 venture or other similar legal entity." SECTION 13.

Any information obtained by the technology [enterprise ] and innovation division that is deemed by the director to be proprietary technical or business information shall be held in confidence.

The technology [enterprise ] and innovation division shall take such steps as are necessary to safeguard the confidentiality of the HCEDC/HB 20/a Page 25 information.

Notwithstanding Sections 10-15-1 through 10-15-4 NMSA 1978 or any other law requiring meetings of public bodies to be open to the public, meetings of the commission shall be h closed when proprietary technical or business information is g o discussed." t hr g e i k SECTION 14.

Section 9-15-19 NMSA 1978 (being Laws 1991, h r i s Chapter 21, Section 24) is repealed and a new Section 9-15-19 h , t, NMSA 1978 is enacted to read:

e u g e b l e e h "9-15-19.

[NEW MATERIAL ] TECHNOLOGY AND INNOVATION FUND n d d i = = o h CREATED.--The "technology and innovation fund" is created as a l ] b ,d i a º e nonreverting fund in the state treasury to replace the r i = r t e w d m a n o technology enterprise fund.

The fund consists of ddistributions, mappropriations, :gifts, grants, donations, money from cooperative research and technology transfer agreements and income from investment of the fund.

b e d s º o t n = .230891.2AIC March 3, 2025 (3:41pm) s k m e - 26 - e a n e d r e l u [ A d HCEDC/HB 20 distributions, appropriations, gifts, grants, donations, money from cooperative research and technology transfer agreements and income from investment of the fund.

HCEDC/HB 20/a Page 26 (1) the office of strategy, science and technology of the economic development department and the office of entrepreneurship of the economic development department, including the functions, personnel, appropriations, h money, records and other property of those offices, shall be g o transferred to the technology and innovation division of the t hr g e economic development department;

and i k h r i s (2) money in the technology enterprise fund h , t, shall be transferred to the technology and innovation fund.

e u g e b l B.

The secretary of economic development shall e e h n d d i assign other programs and funds management to the appropriate = = o h l ] b ,d i a º e division.

r i = r t e w d C.

Contractual obligations of any of the m a n o d m :

b e d s º o t n = .230891.2AIC March 3, 2025 (3:41pm) s k m e - 27 - e a n e d r e l u [ A d HCEDC/HB 20 transferred units of the economic development department shall continue to be obligations of the department.

HAFCº SECTION 16.

APPROPRIATIONS.-- A.

One hundred million dollars ($100,000,000) is appropriated from the general fund to the research, development and deployment fund for expenditure in fiscal year 2026 and subsequent fiscal years for the purposes of the fund.

Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.

TenThe millionsecretary dollarsof ($10,000,000) is appropriated from the general fund to the economic development departmentshall forassign expenditureother inprograms fiscaland yearsfunds 2026management through 2029 to award prizes pursuant to the technologyappropriate innovationdivision. prize program.

AnyC. unexpended or unencumbered balance remaining at the end of fiscal year 2029 shall revert to the general fund.»HAFC h SECTION HAFCº 17.»HAFC HAFCº16.»HAFC REPEAL.--Sections u » r t h 9-15-16 and 9-15-17 NMSA 1978 (being Laws 1991, Chapter 21, g e l i Sections 21 and 22) are repealed.

hContractual robligations iof sany SECTIONof HAFCº18.»HAFCthe HAFCº17.»HAFCtransferred EFFECTIVEunits DATE.--of hthe ,economic edevelopment hdepartment tshall ucontinue gto Thebe effectiveobligations date of the provisionsdepartment. of this act is July 1, e b l e e , gh 2025.

nSECTION d16. d i = = o h - 28 - l ] b ,d i a º r e r = t e w d m a n o d m :

bREPEAL.--Sections r9-15-16 eand t9-15-17 ºNMSA o1978 t(being nLaws =1991, .230891.2AICChapter March21, 3,Sections 202521 (3:41pm)and s22) kare mrepealed. e e a n e d r e l u [ A d

SECTION 17.

EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2025.

HCEDC/HB 20/a Page 27 25