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

SPONSOR Papen

ORIGINAL DATE

LAST UPDATED

2/14/07

HB

SHORT TITLE Broaden University Research & Development

SB 773

ANALYST Wilson

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Higher Education Department (HED)

Economic Development Department (EDD)

Public School Support (PSS)

SUMMARY

Synopsis of Bill

Senate Bill 773 clarifies the scope of the existing University Research Park Act by amending

certain sections of the NMSA 1978. of New Mexico. This bill introduces amendments to the

original language of the Act that allow New Mexico universities to form research park

corporations to pursue economic development initiatives that may not fit under the strict

definition of technology or research, as long as these initiatives support university teaching,

research or service missions.

Also, language has been added that includes the creation of learning opportunities for university

students as part of economic development initiatives sponsored by research park corporations.

For example, these amendments will allow the formation of a corporation for students to produce

movies or other media products, which may not be characterized as research but are a part of the

academic program. In addition, the definition of the “research park" has been broadened to

include buildings and projects for the development of real property.

Senate Bill773– Page

2

From the perspective of the HED, extending the title of the Act to include economic

development underscores the importance of economic development initiatives in the state.

Examples of such initiatives include the College Affordability Act, New Mexico Statewide

Learning Project and the Governors Career Clusters.

FISCAL IMPLICATIONS

There is no fiscal impact.

SIGNIFICANT ISSUES

The University Research Park Act was signed into law in 1988. It was designed to give New

Mexico universities, four and two year educational institutions, community colleges and

vocational/technical institutes the authority to develop research parks and corporations for the

socio-economic benefit of the people and the State.

New Mexico’s colleges and universities can help drive economic development in our State. The

goal of wealth and job creation for New Mexicans will be enhanced by the increased flexibility

afforded by the proposed amendments to the University Research Park Act. This bill further

enables New Mexico colleges and universities to take advantage of diverse economic

development opportunities that benefit their communities, institutions, and the people of New

Mexico by supporting college and university missions. This bill is endorsed by the Council of

University Presidents.

DW/nt