SENATE BILL 21

50th legislature - STATE OF NEW MEXICO - second session, 2012

INTRODUCED BY

Timothy M. Keller

AN ACT

RELATING TO HIGHER EDUCATION; CREATING THE ENERGY TECHNOLOGY HIGHER EDUCATION ENDOWMENT FUND TO FUND THE CURRICULUM, TEACHING, RESEARCH, DEVELOPMENT AND COMMERCIALIZATION OF ENERGY TECHNOLOGIES; REQUIRING AN ANNUAL LEGISLATIVE FINANCE COMMITTEE EVALUATION AND REPORT; TEMPORARILY DISTRIBUTING A PORTION OF GROSS RECEIPTS TAX REVENUE TO THE FUND; MAKING AN APPROPRIATION.

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

     SECTION 1. A new section of the Tax Administration Act is enacted to read:

     "[NEW MATERIAL] DISTRIBUTION--ENERGY TECHNOLOGY HIGHER EDUCATION ENDOWMENT FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the energy technology higher education endowment fund in the amount of eight hundred thirty-five thousand dollars ($835,000) from the net receipts attributable to the gross receipts tax imposed by the Gross Receipts and Compensating Tax Act. The distribution shall be made:

          A. after the distribution made pursuant to Section

7-1-6.4 NMSA 1978;

          B. after the distribution made pursuant to Section 7-1-6.42 NMSA 1978;

          C. after any distribution of net receipts attributable to the gross receipts tax for payment of debt service on outstanding bonds or to a fund dedicated for that purpose; and

          D. prior to any other distribution of net receipts attributable to the gross receipts tax."

     SECTION 2. A new section of Chapter 21, Article 1 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] ENERGY TECHNOLOGY HIGHER EDUCATION ENDOWMENT FUND CREATED.--

          A. The "energy technology higher education endowment fund" is created in the state treasury. The fund shall consist of the distribution under the Tax Administration Act, appropriations, earnings from investment of the fund, gifts, grants, donations, bequests and payments of royalties or licensing fees from a university. Earnings from investment of the fund shall be credited to the fund. Money in the fund shall be invested by the state investment council. Any money in the fund shall not revert to any other fund at the end of a fiscal year.

          B. As used in this section, "energy technology" means energy that is produced by methods that improve energy efficiency by increasing the net benefits per unit of energy used.

          C. The purposes of the fund are to enable and to promote energy technology higher education and industry incubation, growth and employment in the state.

          D. On July 1, 2015, and on July 1 of each year thereafter, five percent of the value of the fund on December 31 of the previous calendar year shall be disbursed to the following institutions in the following proportions:

                (1) one-third to the university of New Mexico;

                (2) one-third to New Mexico state university; and

                (3) one-third to the New Mexico institute of mining and technology.

          E. Money from the fund shall be used only for:

                (1) recruiting and retaining teaching faculty;

                (2) developing and implementing curricula;

                (3) research and development; and

                (4) commercializing technology.

          F. To carry out the purposes of and to use the fund in the most effective and efficient manner, the university of New Mexico, New Mexico state university and the New Mexico institute of mining and technology shall collaborate with each other and coordinate their sustainable energy curricula.

          G. Each university shall pay to the energy technology higher education endowment fund an amount equal to ten percent of the licensing fees or royalties received for research, development, commercialization or patents financed in whole or in part by a disbursement from that fund.

          H. On an annual basis starting in fiscal year 2018, the university of New Mexico, New Mexico state university and the New Mexico institute of mining and technology shall report to the legislative finance committee, which shall evaluate and report to the appropriate legislative interim committee, on the uses of and expenditures from the fund, including:

                (1) the number of teaching faculty recruited and retained;

                (2) a description of sustainable energy technology courses and programs;

                (3) a description of any collaboration among the universities and between the universities and other institutions, agencies, entities or persons;

                (4) an accounting of how the courses and programs are funded, including amounts and sources;

                (5) the number of students who completed courses and obtained degrees in energy technology programs;

                (6) a description of current and projected technology research, development and commercialization and patent applications, and their economic impact;

                (7) an analysis of current and projected job creation and industry incubation and growth; and

                (8) any other information it deems appropriate or as requested by the appropriate legislative interim committee."

     SECTION 3. DELAYED REPEAL.--Section 1 of this act is repealed effective July 1, 2016.

     SECTION 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2012.

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