SENATE JUDICIARY COMMITTEE SUBSTITUTE FOR
SENATE BILL 478
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 New Mexico 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. "board of directors" means the board of directors of the authority;
D. "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;
E. "national laboratories" means Los Alamos national laboratory and Sandia national laboratories; and
F. "research institutions" means the university of New Mexico, New Mexico state university and the New Mexico institute of mining and technology.
SECTION 3. [NEW MATERIAL] NEW MEXICO BIOSCIENCE AUTHORITY CREATED--BOARD OF DIRECTORS--MEMBERSHIP.--
A. The "New Mexico bioscience authority" is created as a public-private partnership, which shall be formed pursuant to the Nonprofit Corporation Act, representing a collaborative among state government, research institutions, national laboratories and private industry in New Mexico. The authority is administratively attached to and shall be considered an affiliated supporting organization of the university of New Mexico health sciences center pursuant to Section 6-5A-1 NMSA 1978. The authority shall constitute a public body corporate by the name set forth in the incorporation certificate and by such name may sue and be sued, have the capacity to make contracts, acquire, hold, enjoy, dispose of and convey property real and personal, accept grants and donations, borrow money, incur indebtedness, impose fees and assessments and do any other act or thing necessary or proper for carrying out the purposes of the Bioscience Development Act.
B. The authority shall be governed, and all of its functions, powers and duties shall be exercised, by the board of directors. The board of directors shall consist of twelve voting members as follows:
(1) two representatives of the university of New Mexico health sciences center with experience in conducting research in bioscience, to be appointed by the president of the university of New Mexico;
(2) two representatives of New Mexico state university with experience in conducting research in bioscience, to be appointed by the president of the university;
(3) one representative of the New Mexico institute of mining and technology with experience in conducting research in bioscience, to be appointed by the president of the institute;
(4) the secretary of economic development or the secretary's designee; and
(5) six members of the public who have experience working in bioscience as follows:
(a) two members appointed by the governor with the advice and consent of the senate; and
(b) four members appointed by the New Mexico legislative council with the advice and consent of the senate; provided that no more than two members shall be members of the same political party.
C. The public members appointed pursuant to Paragraph (5) of Subsection B of this section by the governor and the New Mexico legislative council shall be residents of the state and shall serve for terms of four years, except for the initial appointees, who shall be appointed so that the terms are staggered after initial appointment. Initial appointees by the governor shall serve terms as follows: one member for two years and one member for four years. Initial appointees by the New Mexico legislative council shall be appointed to serve terms as follows: one member for one year, one member for two years, one member for three years and one member for four years.
D. Members shall receive no compensation, perquisite or allowance for serving as a member of the board of directors.
E. The board of directors shall adopt bylaws, in accordance with the Nonprofit Corporation Act, which bylaws shall govern the conduct of the authority. Members of the board of directors shall elect a chair of the board, any other officers from the membership that the board determines to be appropriate and an executive director as set forth in the bylaws.
F. The chair and four voting members of the board of directors appointed by the chair, two of whom shall be public members, shall constitute the "bioscience authority executive committee". The executive director and chair 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.
G. 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 member is appointed.
H. The board of directors shall meet at the call of the chair and shall meet at least once every three months.
I. 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] LIMITATIONS ON DIRECTOR ACTIVITIES.--
A. Except as provided in Subsection B of this section, members of the board of directors are public officers subject to the provisions of the Governmental Conduct Act.
B. Members of the board of directors shall not, within one year of having served as a director, accept employment with an entity that has benefited from a contractual or other activity with the authority. Any person who knowingly and willfully violates the provisions of this subsection is guilty of a fourth degree felony and shall be sentenced pursuant to the provisions of Section 31-18-15 NMSA 1978; provided, however, that nothing contained herein shall be construed to prohibit a member of the board of directors who is employed by a research institution or a national laboratory that may have benefited from a contractual or other activity with the authority from continuing in that employment nor to have violated this section continuing in such employment. An alleged violation of this subsection may be reported to the attorney general or district attorney for enforcement.
SECTION 5. [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 6. [NEW MATERIAL] AUTHORITY STAFF--CONTRACTS.--
A. The executive director shall, in consultation with the board of directors, direct the affairs and business of the authority.
B. The authority may contract with any other competent private or public organization or individual to assist in the fulfillment of its duties.
SECTION 7. [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 secretary of economic development or the secretary's designee pursuant to the Bioscience Development 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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