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F I S C A L I M P A C T R E P O R T

SPONSOR Cisneros

DATE TYPED 3/14/05

HB

SHORT TITLE Create Technology Research Collaborative

SB 169/aSFl#1/aHAFC

ANALYST Williams

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

None

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to Senate Bill 184, House Bill 219

Duplicate of House Bill 128

Relates to General Appropriation Act

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

None

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Economic Development Department (EDD)

Commission on Higher Education (CHE)

SUMMARY

Endorsed by the Economic and Rural Development and Telecommunications Committee

Synopsis of HAFC Amendment

The House Appropriation and Finance Committee Amendment authorizes a new section of stat-

ute regarding the treatment of intellectual property generated through the work of the collabora-

Senate Bill 169/aSFl#1/aHAFC -- Page 2

tive. Specifically, the language specifies an institution would own intellectual property created

by an associated employee or agent. Jointly created intellectual property would be owned

jointly. If the intellectual property is created using federal funds, then applicable federal laws

and regulations would govern ownership of the intellectual property.

Synopsis of SFl#1

The Senate floor amendment respecifies the higher education membership of the technology re-

search collaborative board. These members would be the presidents, or their designees, of the

state’s three research universities: the University of New Mexico, New Mexico State University

and New Mexico Institute of Mining and Technology. Further, the amendment would require

the five public members appointed by the Governor to be subject to the consent of the Senate.

Synopsis of Original Bill

The bill creates the Technology Research Collaborative, with the New Mexico Institute of Min-

ing and Technology acting as fiscal agent. In addition to state appropriations, the collaborative

may receive “items of value” from public or private sources. Members of the collaborative in-

clude national laboratories, major research institutes and all post-secondary institutions. Pur-

poses of the collaborative as specified in the bill are:

•

Establishing advanced technology centers

•

Developing, creating and commercializing new intellectual property

•

Encouraging new opportunities for business and increased jobs

•

Creation of a workforce to support new enterprises based on intellectual property

The work of the collaborative will be administered by a board, whose members would serve two-

year terms at the pleasure of the governor. The board includes the following members:

•

Governor, or designee, serving as chair

•

Three members representing higher education research institutions, appointed by the

governor

•

Five members at large, appointed by the governor

•

Director of Sandia National Laboratories, or designee

•

Director of Los Alamos National Laboratory, or designee

Meeting frequency, reimbursement eligibility, quorum and voting-by-proxy are specified in the

bill. The board would employ an exempt director and staff and will provide annual reports to

the legislature on expenditures and progress.

FISCAL IMPLICATIONS

The bill does not include an appropriation. The bill relates to Senate Bill 184 which contains an

appropriation. Also, see appropriation in Section 5 of proposed General Appropriation Act of

2005.

TECHNICAL ISSUES

•

Is membership limited to national laboratories in New Mexico or would qualifying facili-

ties outside the state be eligible for participation.

Senate Bill 169/aSFl#1/aHAFC -- Page 3

•

Is the intent to limit participation to public post-secondary institutions in the state.

•

The purposes of the collaborative may need to be clearer

OTHER SUBSTANTIVE ISSUES

The role of New Mexico Institute of Mining and Technology as fiscal agent is not clear; alterna-

tives would include the CHE.

CHE notes the project was not submitted as part of the FY06 funding cycle request process.

POSSIBLE QUESTIONS

1.

To what extent are current state agencies engaged in these functions.

2.

How would outcomes and performance effectiveness of the collaborative be determined.

AW/yr:rs:njw