HOUSE BILL 54

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

John A. Heaton

AN ACT

RELATING TO ECONOMIC DEVELOPMENT; PROVIDING CONDITIONS FOR STATE EXPENDITURES FOR BUSINESS INCUBATORS; MAKING APPROPRIATIONS; DECLARING AN EMERGENCY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. BUSINESS INCUBATORS--CONDITIONS FOR STATE EXPENDITURES.--Business incubators receiving state funds shall be required to pass a state incubator certification program administered by the economic development department. The department shall certify business incubators that submit documentation to the department that the incubator has:

          A. a mission statement that defines the incubator's role to assist entrepreneurs and support the growth of businesses;

          B. for incubators established after the effective date of this section, a formal feasibility study indicating an appropriate market and local community support or, for incubators established prior to the effective date of this section, a business plan;

          C. an effective governing board or an appropriate oversight advisory board committed to the incubator's mission;

          D. qualified management and staff to achieve the mission of the incubator and to help businesses;

          E. an ongoing business assistance program that places the greatest value on client assistance and adds value to client businesses by developing programs and coordinating activities such as:

                (1) technical assistance and consulting;

                (2) coaching and mentoring, business training workshops and seminars;

                (3) providing marketing assistance;

                (4) fostering networking opportunities and links with other business service providers; and

                (5) providing assistance in obtaining financing;

          F. a facility that encourages innovation and provides dedicated space for incubator client firms with flexible leases and that includes a common area meeting space and business equipment;

          G. a process for client businesses that involves a screening and selection process and graduation policy for client companies;

          H. a system for program evaluation;

          I. all applicable required licenses and permits and a functional accounting system; and

          J. membership in the national business incubation association.

     Section 2. APPROPRIATION.--Five hundred thousand dollars ($500,000) is appropriated from the general fund to the economic development department for expenditure in fiscal years 2005 and 2006 for a competitive grants program for up to one hundred fifty thousand dollars ($150,000) in start-up operating funds for new business incubators in the state. The grants made under this appropriation shall require a fifty percent match from the recipient. Any unexpended or unencumbered balance remaining at the end of fiscal year 2006 shall revert to the general fund.

     Section 3. APPROPRIATION.--Fifty thousand dollars ($50,000) is appropriated from the general fund to the economic development department for expenditure in fiscal years 2005 and 2006 to develop and administer the business incubator certification program. Any unexpended or unencumbered balance remaining at the end of fiscal year 2006 shall revert to the general fund.

     Section 4. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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