HOUSE BILL 143
55th legislature - STATE OF NEW MEXICO - second session, 2022
INTRODUCED BY
Linda Serrato
AN ACT
RELATING TO HIGHER EDUCATION; CREATING A FIVE-YEAR INNOVATION ACCELERATOR PILOT PROJECT TO ASSIST START-UP BUSINESSES TO ACCELERATE INTO VIABLE BUSINESSES THAT ARE ATTRACTIVE TO INVESTORS AND TO STUDY THE ECONOMIC DEVELOPMENT AND DIVERSIFICATION POTENTIAL OF ACCELERATORS; PROVIDING FOR INNOVATION ACCELERATOR CENTERS AT CERTAIN COMMUNITY COLLEGES; CREATING A FUND; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of Chapter 21 NMSA 1978 is enacted to read:
"[NEW MATERIAL] INNOVATION ACCELERATOR PILOT PROJECT--ELIGIBILITY--APPLICATION--REPORTING AND EVALUATION.--
A. The "innovation accelerators for progress pilot project" is created as a five-year study at one or more community colleges, including branch community colleges, of the efficacy of innovation accelerators on the success of business start-ups, economic development and diversification of New Mexico's economy. The higher education department shall administer the pilot project and determine pilot project application requirements and procedures and criteria for evaluating applications from New Mexico community colleges. The department may require that each applicant determine an economic-sector focus suitable to the applicant's region. The department and the participating community colleges shall apply for grants and seek donations for the pilot project and innovation accelerator centers.
B. Each community college that is approved for participation in the pilot project shall establish an innovation accelerator center to support early-stage, growth-driven businesses through education, mentorship and the provision of professional services. Each center shall provide a fixed-term, cohort-based, competitive program that includes structured educational and mentorship components and assists business start-ups to, as applicable:
(1) define and build their initial products and identify supply chain resources;
(2) identify promising customer segments and secure resources, including capital and employees;
(3) take advantage of networking opportunities with peer ventures, successful entrepreneurs, program graduates, venture capitalists, angel investors and corporate executives; and
(4) develop and evaluate the efficacy of their business ideas and models.
C. Based on the application approved by the higher education department, an innovation accelerator center shall:
(1) accept a cohort of business start-up participants that fall within its economic-sector focus;
(2) specify the fixed participation time for each innovation accelerator cohort;
(3) develop sector-specific curriculum and provide participants with mentors who have deep subject-matter expertise;
(4) provide participants with office space and defined business services;
(5) assist participants in attracting investors; and
(6) require graduating cohorts to participate in a competitive, public presentation in which each participant demonstrates its product and business to an audience of qualified investors.
D. Each innovation accelerator center shall collect data and evaluate the success of the center's participants through one-year and three-year post-participation data based on the following, as applicable:
(1) operational status of the business and, if still operating, the business's location and ownership;
(2) number and size of financial investments;
(3) investors' rate of return and stock prices;
(4) number of clients or customers gained;
(5) small business innovation research or small business technology transfer awards;
(6) patent filings;
(7) number of employees and quarterly payroll;
(8) annual sales or revenue and net profit;
(9) evaluation of business success or failure on local, regional and state economies; and
(10) other information required of the higher education department or collected by the center.
E. The higher education department shall collect data and evaluate the success of each innovation accelerator center based on the following:
(1) number and type of applicants;
(2) number of participants and cohort sizes;
(3) number and type of businesses that completed their programs;
(4) number of investors the center attracted on demonstration days and otherwise;
(5) success of businesses that graduated as measured by the data collected by the center in Subsection D of this section;
(6) percentage of businesses that were acquired, are still operating or failed;
(7) local, regional and state economic activity generated by the center;
(8) other information determined by the department; and
(9) a narrative provided by the center on lessons learned by the success or failure of participants and whether failures affected services and delivery methods of the center.
F. The higher education department shall submit periodic reports and a final report to the legislature and the governor on the efficacy of the innovation accelerators for progress pilot project."
SECTION 2. A new section of Chapter 21 NMSA 1978 is enacted to read:
"[NEW MATERIAL] FUND CREATED.--The "innovation accelerators for progress fund" is created as a nonreverting fund in the state treasury. The fund consists of appropriations, gifts, grants and donations to the fund. The fund shall be administered by the higher education department, and money in the fund is appropriated to the department to carry out the innovation accelerators for progress pilot project. Expenditures from the fund shall be on warrants of the secretary of finance and administration pursuant to vouchers signed by the secretary of higher education or the secretary's authorized representative."
SECTION 3. APPROPRIATION.--Five million dollars ($5,000,000) is appropriated from the general fund to the higher education department for expenditure in fiscal year 2023 and succeeding fiscal years to conduct the innovation accelerators for progress pilot project. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.
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