SENATE BILL 62
56th legislature - STATE OF NEW MEXICO - first session, 2023
INTRODUCED BY
Michael Padilla
AN ACT
RELATING TO ECONOMIC DEVELOPMENT; CREATING THE OFFICE OF ENTREPRENEURSHIP AND INNOVATION; CREATING THE ENTREPRENEURSHIP AND INNOVATION ADVISORY COMMITTEE; CREATING THE ENTREPRENEURSHIP CAPITAL INFUSION FUND; REQUIRING REPORTS; MAKING APPROPRIATIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Economic Development Department Act is enacted to read:
"[NEW MATERIAL] OFFICE OF ENTREPRENEURSHIP AND INNOVATION.--
A. The "office of entrepreneurship and innovation" is created and is administratively attached to the department. The department shall provide administrative services to the office.
B. The governor shall appoint a director of the office of entrepreneurship and innovation. The director may hire staff as needed to meet the responsibilities of the office of entrepreneurship and innovation.
C. The office of entrepreneurship and innovation shall:
(1) support entrepreneurs in navigating state resources, programs and rules;
(2) advocate for equitable access to capital, markets and networks;
(3) provide technical assistance services and guidance to start-up businesses for general business operations;
(4) create and administer the entrepreneurship capital infusion fund;
(5) provide data analytics and research to entrepreneurs and innovators related to current market trends and projected highest rates of returns on investments;
(6) convene regular meetings of economic development agencies in New Mexico to develop entrepreneurship and innovation strategies; and
(7) beginning in 2024, by no later than September 30 of each year, report to the governor, the legislative finance committee, the library of the legislative council service and economic development agencies in New Mexico on the activities of the office during the prior fiscal year and the status of the entrepreneurship capital infusion fund."
SECTION 2. A new section of the Economic Development Department Act is enacted to read:
"[NEW MATERIAL] ENTREPRENEURSHIP AND INNOVATION ADVISORY COMMITTEE--CREATED--MEMBERSHIP--DUTIES.--
A. The "entrepreneurship and innovation advisory committee" is created. The department shall provide necessary administrative services to the committee.
B. The entrepreneurship and innovation advisory committee is composed of:
(1) the secretary or the secretary's designee, who shall chair the committee;
(2) the president of a state university or the president's designee; and
(3) a member of the public who is familiar with economic development, entrepreneurship and innovation.
C. Members of the entrepreneurship and innovation advisory committee identified in Paragraphs (2) and (3) of Subsection B of this section shall be appointed by the governor with the consent of the senate and shall serve at the pleasure of the governor.
D. The entrepreneurship and innovation advisory committee shall:
(1) meet quarterly and at such other times as deemed necessary by the chair;
(2) recommend the adoption of rules establishing the application process and criteria for the approval of loans from the entrepreneurship capital infusion fund;
(3) develop forms of applications for loans from the entrepreneurship capital infusion fund; and
(4) consider and approve or disapprove applications for loans from the entrepreneurship capital infusion fund.
E. Members who are not public employees are
entitled to per diem and mileage as provided in the Per Diem
and Mileage Act but shall receive no other compensation,
perquisite or allowance."
SECTION 3. A new section of the Economic Development Department Act is enacted to read:
"[NEW MATERIAL] ENTREPRENEURSHIP CAPITAL INFUSION FUND CREATED.--
A. The "entrepreneurship capital infusion fund" is created in the state treasury. The fund consists of appropriations, income from investment of the fund and any other money distributed or otherwise allocated to the fund. Balances in the fund at the end of any fiscal year shall not
revert to the general fund.
B. Money in the entrepreneurship capital infusion fund may be used to make loans of up to five hundred thousand dollars ($500,000) to enable entrepreneurs to leverage funds from other sources for the purposes of meeting the start-up costs of new economic endeavors, as approved by the entrepreneurship and innovation advisory committee.
C. Money in the entrepreneurship capital infusion fund may be used for administrative and reimbursable costs incurred by the office of entrepreneurship and innovation subject to the legislative appropriation process.
D. Disbursements from the entrepreneurship capital infusion fund shall be made by warrant of the secretary of finance and administration pursuant to vouchers signed by the secretary of economic development or the secretary's authorized representative.
E. By December 1, 2023, and by December 1 of each
year thereafter, the secretary shall provide a report to the governor, the legislative finance committee and the library of the legislative council service regarding:
(1) loans approved by the entrepreneurship and innovation advisory committee pursuant to Subsection B of this section;
(2) the status of repayment obligations for loans made pursuant to Subsection B of this section;
(3) money used for administrative and
reimbursable costs pursuant to Subsection C of this section; and
(4) the status of the entrepreneurship capital infusion fund."
SECTION 4. APPROPRIATION.--
A. Seven hundred fifty thousand dollars ($750,000) is appropriated from the general fund to the economic development department for expenditure in fiscal year 2024 to fund the activities of the office of entrepreneurship and innovation. Any unexpended or unencumbered balance remaining at the end of fiscal year 2024 shall revert to the general fund.
B. Two million dollars ($2,000,000) is
appropriated from the general fund to the entrepreneurship capital infusion fund for expenditure in fiscal year 2024 and
subsequent fiscal years to provide financial support for the start-up costs of new economic endeavors. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.
SECTION 5. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2023.
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