AN ACT

RELATING TO ECONOMIC DEVELOPMENT; PROVIDING CONDITIONS FOR STATE EXPENDITURES FOR BUSINESS INCUBATORS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. BUSINESS INCUBATORS--CONDITIONS FOR STATE EXPENDITURES.--Business incubators receiving state funds shall be required to pass a state incubator certification program administered by the economic development department. The department shall certify business incubators that submit documentation to the department that the incubator has:

          A. a mission statement that defines the incubator's role to assist entrepreneurs and support the growth of businesses;

          B. for incubators established after the effective date of this section, a formal feasibility study indicating an appropriate market and local community support or, for incubators established prior to the effective date of this section, a business plan;

          C. an effective governing board or an appropriate oversight advisory board committed to the incubator's mission;

          D. qualified management and staff to achieve the mission of the incubator and to help businesses;

          E. an ongoing business assistance program that places the greatest value on client assistance and adds value to client businesses by developing programs and coordinating activities such as:

                (1) technical assistance and consulting;

                (2) coaching and mentoring, business training workshops and seminars;

                (3) providing marketing assistance;

                (4) fostering networking opportunities and links with other business service providers; and

                (5) providing assistance in obtaining financing;

          F. a facility that encourages innovation and provides dedicated space for incubator client firms with flexible leases and that includes a common area meeting space and business equipment;

          G. a process for client businesses that involves a screening and selection process and graduation policy for client companies;

          H. a system for program evaluation;

          I. all applicable required licenses and permits and a functional accounting system; and

          J. membership in the national business incubation association.

HB 54

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