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F I S C A L I M P A C T R E P O R T
SPONSOR Salazar
ORIGINAL DATE
LAST UPDATED
01/24/07
HB 132
SHORT TITLE Technology Research Collaborative
SB
ANALYST Williams
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
$12,000.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates Senate Bill 34
Relates to LFC recommendation for FY08 for recurring general fund appropriation of $1.5
million.
SOURCES OF INFORMATION
LFC Files
Responses Received From
Economic Development Department (EDD)
Higher Education Department (NMHED)
SUMMARY
Synopsis of Bill
Endorsed by Economic and Rural Development and Telecommunications Committee.
House Bill 132 appropriates $12 million from the general fund to the board of regents of New
Mexico Institute of Mining and Technology for the technology research collaborative (TRC).
The appropriation would also provide state funding, to be matched with federal and private
contributions to the TRC and the centers of excellence across the state.
FISCAL IMPLICATIONS
The appropriation of $12 million contained in this bill is a recurring expense to the general fund.
Any unexpended or unencumbered balance remaining at the end of fiscal year 2008 shall revert
to the general fund.
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House Bill 132 – Page
2
SIGNIFICANT ISSUES
The Technology Research Collaborative was established in state statute in 2005 pursuant to
Senate Bill 169. There are 10 member institutions throughout the state to encourage
collaboration between research universities and national laboratories. The TRC mission is to
collaborate in the acceleration of new technology business formations and expansions that will
benefit applied research programs. New Mexico Institute of Mining and Technology is currently
serving as fiscal agent for TRC.
The Blue Ribbon Task Force on Higher Education formula funding in January 2003
recommended incentive funds for higher education, including research incentive funding. The
2003 legislature established in state statute all incentive funds requested by the task force.
Appropriations to these funds have been slow, and in the case of the Technology Enhancement
Fund, no funds have been appropriated specifically to the fund.
In the case of research, rather than funding the Technology Enhancement Fund, the Legislature
provided direct funding for Technology Research Collaborative (TRC). State appropriations are
as follows:
o
2005 session: $1.1 million, nonrecurring
o
2006 session: $2.0 million, nonrecurring
The initial four funding grants for the 2005 appropriations were based on the following award
criteria: Strategic value, commercial feasibility, economic potential, collaboration, management
and matching resource requirement.
Grant Awards from 2005 Appropriations totaling $996,800:
$348,000 University of New
Mexico Health Sciences
Center and Los Alamos
National Laboratory
Radiopharmaceutical
Isotopes
Medical diagnostic
applications
$250,000 Sandia National
Laboratories, Intelligent
Energy and New Mexico
Tech
Hydrogen
generation/power
systems
Advanced hydrogen
generation and power
systems
$200,000 New Mexico Tech,
AgrilOptics, Inc. and Air
Force Research
Laboratory
Adaptive optics
Commercial adaptive
optics applications
$198,800 Sandia, TPL, Inc., and
University of New
Mexico
Supercapacitor
applications
Supercapacitors for
commercial uses
The next round of grant awards will be announced approximately February 15, 2007.
The LFC recommendation for higher education for FY08 includes $1.5 million in recurring
funding for the TRC in place of the technology enhancement fund, to advance the concepts
envisioned by the Blue Ribbon Task Force on Higher Education. The Higher Education
Department notes “This proposal was not in the list submitted by NMIMT through Research,
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House Bill 132 – Page
3
Public Service and Special Program Requests to the Higher Education Department (NMHED)
for review."
PERFORMANCE IMPLICATIONS
Performance measures are not evident; see questions below.
ADMINISTRATIVE IMPLICATIONS
Recognizing a possible duplication of state funded programs, the Economic Development
Department and the TRC entered into a JPA to transfer about $200 thousand and 2 FTE from
EDD’s Office of Science and Technology to the TRC. After the hiring of an executive director
for TRC, that agreement was severed, and the current relationship is unclear.
TECHNICAL ISSUES
The language of the specified appropriation is not clear.
OTHER SUBSTANTIVE ISSUES
The proposed areas of strategic investment in 2006 were nanotechnology, optics, medical
applications (including isotopes), digital media, sustainable natural resources and alternative
energies (including solar and hydrogen). Attached is an NCSL LEGISBRIEF identifying state
initiatives for nanotechnology-related projects. The report notes more than half the states
introduced nanotechology-related legislation in 2006.
The Economic Development Department notes “the Governor has asked his senior science
advisor to take the lead in working out a viable plan for the Technology Research
Collaborative’s future and its efforts to integrate investments with those of the State’s."
Six advanced technology centers (ATCs) were proposed during an early stage of the
development of TRC:
.
Art, Research, Technology and Science Laboratory
.
New Mexico Center for Isotopes in Medicine
.
Center for Sustainable Natural Resources in the Southwest
.
Hydrogen
.
Fuel Cells and end-user technologies
.
Collaborative Center for Technology Translation
.
Integration of Security Technologies and Decision Support
.
New Mexico Center for Optics
The current relationship between the ATCs, the TRC and centers of excellence is not clear.
POSSIBLE QUESTIONS
1.
How is current funding split between:
a.
projects
b.
administrative costs
c.
technology research collaborative
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House Bill 132 – Page
4
d.
advanced technology centers
e.
centers of excellence
2.
What detail is available regarding the current and projected levels of budget sources and uses
for TRC administration. For the centers of excellence.
3. How would the appropriation in this bill be split between the following potential uses.
a. for TRC administrative costs
b. for TRC designated research projects
c. for centers of excellence administrative costs
d. for centers of excellence research projects
4.
How are priority investment areas determined. Are the priority investment areas aligned with
the state’s economic development strategic plan.
5.
How is the grant funding used.
6.
What is the expected success/failure rate of the selected projects.
7.
Are firms that fail to commercialize the product or move to another state required to pay back
the state investment.
8.
Are performance measures available for the TRC, ATC’s and centers of excellence.
9.
What is the relationship with EDD Office of Science and Technology.
Attachment
AW/csd
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