HOUSE FLOOR SUBSTITUTE FOR

HOUSE BILL 460

53rd legislature - STATE OF NEW MEXICO - first session, 2017

AN ACT

RELATING TO ECONOMIC DEVELOPMENT; ENACTING THE BIOSCIENCE DEVELOPMENT ACT; CREATING THE BIOSCIENCE DEVELOPMENT FUND.

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

     SECTION 1. [NEW MATERIAL] SHORT TITLE.--This act may be cited as the "Bioscience Development Act".

     SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the Bioscience Development Act:

          A. "authority" means the bioscience authority;

          B. "bioscience" means the scientific areas represented by life sciences and biotechnology that are included in the five industries recognized by the United States department of labor:

                (1) drugs and pharmaceuticals;

                (2) medical devices and equipment;

                (3) research testing and medical laboratories;

                (4) bioscience-related distribution; and

                (5) agriculture and chemicals related to bioscience;

          C. "financial assistance" means tax incentives, grants, loans and other financial benefits provided for projects to a qualified entity on terms and conditions approved by the authority;

          D. "national laboratories" means Los Alamos national laboratory and Sandia national laboratories;

          E. "research institutions" means the university of New Mexico, New Mexico state university and the New Mexico institute of mining and technology; and

          F. "technological innovations" means research, development, prototype assembly, manufacture, patenting, licensing, marketing and sale of inventions, ideas, practices, applications, processes, machines, technology and related property rights of all kinds.

     SECTION 3. [NEW MATERIAL] BIOSCIENCE AUTHORITY CREATED--BOARD OF DIRECTORS--MEMBERSHIP.--

          A. The "bioscience authority" is created as a public-private partnership representing a collaborative among state government, research institutions, national laboratories and private industry in New Mexico. The authority is administratively attached to the economic development department.

          B. The board of directors of the authority shall consist of sixteen voting members as follows:

                (1) the secretaries of economic development and higher education or their designees;

                (2) the vice president for research of the university of New Mexico;

                (3) the vice chancellor for research of the university of New Mexico health sciences center;

                (4) the vice president for research of New Mexico state university;

                (5) the vice president for research and economic development of the New Mexico institute of mining and technology;

                (6) the director of the New Mexico state university institute of applied biosciences; and

                (7) nine members of the public who have experience working in bioscience, appointed as follows:

                     (a) three members appointed by the governor with the consent of the senate;

                     (b) three members appointed by the president pro tempore of the senate with the consent of the senate; and

                     (c) three members appointed by the speaker of the house of representatives with the consent of the senate.

          C. The executive director of the authority shall serve as a nonvoting member of the board of directors.

          D. The public members appointed pursuant to Paragraph (7) of Subsection B of this section by the governor, the president pro tempore of the senate and the speaker of the house of representatives shall be residents of the state and shall serve for terms of three years, except for the initial appointees, who shall be appointed so that the terms are staggered after initial appointment. Initial appointees by the governor, the president pro tempore of the senate and the speaker of the house shall be appointed by their appointing authority to serve terms as follows: one member for one year; one member for two years; and one member for three years.

          E. Appointed voting members of the board of directors of the authority may be reimbursed for per diem and mileage in accordance with the provisions of the Per Diem and Mileage Act that apply to nonsalaried public officers, unless a different provision of that act applies to a specific member, in which case that member shall be paid under the applicable provision. Members shall receive no other compensation, perquisite or allowance for serving as a member of the board of directors.

          F. The secretary of economic development or the secretary's designee shall serve as the chair of the board of directors of the authority. Members of the board of directors shall elect any other officers from the membership that the board determines to be appropriate.

          G. The chair and four voting members of the board of directors of the authority appointed by the chair, two of whom shall be public members, shall constitute the "bioscience authority executive committee". The executive director of the board of directors shall be a nonvoting member of the executive committee. The executive committee shall have powers and duties as delegated to it by the board of directors.

          H. If a vacancy occurs among the appointed voting members of the board of directors, the appointing authority of the former member shall appoint a replacement to serve out the term of that member. If an appointed member's term expires, the member shall continue to serve until another person is appointed.

          I. The board of directors shall meet at the call of the chair and shall meet at least once every three months.

          J. The board of directors shall maintain written minutes of all meetings of the authority and maintain other appropriate records, including financial transaction records in compliance with law and adequate to provide an accurate record for audit purposes pursuant to the Audit Act.

     SECTION 4. [NEW MATERIAL] AUTHORITY POWERS AND DUTIES.--

          A. The authority shall:

                (1) advise the governor, the economic development department, the legislature and the New Mexico finance authority oversight committee on methods, proposals, programs and initiatives that may stimulate investment in bioscience industries and provide additional employment opportunities for New Mexico residents;

                (2) make and execute all contracts and other instruments necessary or convenient to the exercise of its powers and duties;

                (3) create programs to expand bioscience economic opportunities within New Mexico, including potential means of providing financial assistance and incentives for bioscience industries and facilities;

                (4) create avenues of communication between New Mexico and representatives of bioscience industries;

                (5) promote legislation that will further the goals of the authority and development of bioscience industries and facilities;

                (6) oversee, produce or cause to have produced promotional literature related to explanation and fulfillment of the authority's goals;

                (7) identify science and technology trends that are significant to bioscience enterprises and act as a clearinghouse for bioscience enterprise issues and information;

                (8) coordinate and expedite the involvement of the state executive branch's bioscience-related development efforts;

                (9) perform or cause to be performed environmental, transportation, communication, land use and other technical studies necessary or advisable for bioscience projects or programs; and

                (10) actively recruit industries and establish programs that will result in the location and relocation of new bioscience industries in the state.

          B. The authority may:

                (1) solicit and accept federal, state, local and private grants of funds, property or financial or other aid in any form for the purpose of carrying out the provisions of the Bioscience Authority Act; and

                (2) act as an applicant for bioscience facilities and assist in carrying out all tasks and functions for the acquisition or construction of bioscience facilities, including filing all necessary documents and follow-up of such filings with appropriate agencies.

          C. In exercising its authority, the authority shall not incur debt as a general obligation of the state or pledge the full faith and credit of the state to repay debt.

SECTION 5. [NEW MATERIAL] AUTHORITY STAFF--CONTRACTS.--

          A. To the extent that funding is available, the authority shall hire an executive director who shall employ the necessary professional, technical and clerical staff to enable the authority to function efficiently.

          B. The executive director of the authority shall direct the affairs and business of the authority, subject to the policies, control and direction of the board of directors.

          C. The authority may contract with any other competent private or public organization or individual to assist in the fulfillment of its duties.

     SECTION 6. [NEW MATERIAL] FUND CREATED.--

          A. The "bioscience development fund" is created in the state treasury. Separate accounts within the fund may be created for any project. Money in the fund, subject to appropriation by the legislature, may be expended by the authority for the purposes of carrying out the provisions of the Bioscience Development Act. Money in the fund shall not revert at the end of a fiscal year.

          B. Except as provided in this section, money received by the authority shall be deposited in the fund, including:

                (1) money appropriated by the legislature;

                (2) interest earned upon money in the fund;

                (3) property or securities acquired through the use of money belonging to the fund;

                (4) all earnings of property or securities acquired pursuant to Paragraph (3) of this subsection;

                (5) all of the money received by the authority from a public or private source; and

                (6) fees, rents or other charges imposed and collected by the authority.

          C. Disbursements from the bioscience development fund shall be made only upon warrant drawn by the secretary of finance and administration pursuant to vouchers signed by the executive director of the authority or the executive director's designee pursuant to the Bioscience Development Act; provided that in the event the position of executive director is vacant, vouchers may be signed by the chair of the authority.

     SECTION 7. [NEW MATERIAL] CONFIDENTIAL INFORMATION.-- Information obtained by the authority regarding technological innovations with federal patents pending shall be confidential and not subject to inspection pursuant to the Inspection of Public Records Act.

     SECTION 8. [NEW MATERIAL] REPORT TO THE GOVERNOR AND THE LEGISLATURE.--The authority shall submit a report of its activities to the governor and to the appropriate interim committees of the legislature not later than October 1 of each year.

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