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

SPONSOR Salazar

DATE TYPED 3/14/05

HB 128/aHEC/aSFL#1

SHORT TITLE Create Technology Research Collaborative

SB

ANALYST Williams

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

None

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to House Bill 219

Duplicates House Bill 128

Relates to General Appropriation Act

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

None

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Economic Development Department (EDD)

No Response Received From

Commission on Higher Education (CHE)

Council of University Presidents

SUMMARY

Endorsed by the Economic and Rural Development and Telecommunications Committee

House Bill 128/aHEC/aSFL#1 -- Page 2

Synopsis of SFl#1

The Senate Floor Amendment authorizes a new section of statute regarding the treatment of in-

tellectual property generated through the work of the collaborative. Specifically, the language

specifies an institution would own intellectual property created by an associated employee or

agent. Jointly created intellectual property would be owned jointly. If the intellectual property is

created using federal funds, then applicable federal laws and regulations would govern owner-

ship of the intellectual property.

Synopsis of HEC Amendment

The House Education Committee amendment respecifies the higher education membership of the

technology research collaborative board. These members would be the presidents, or their des-

ignees, of the state’s three research universities: the University of New Mexico, New Mexico

State University and New Mexico Institute of Mining and Technology. Further, the amendment

would require the five public members appointed by the Governor to be subject to the consent of

the Senate.

Synopsis of Original Bill

The bill creates the Technology Research Collaborative, with the New Mexico Institute of Min-

ing and Technology as the fiscal agent. In addition to state appropriations, the collaborative may

receive “items of value” from public or private sources. Members of the collaborative include

national laboratories, major research institutes and all post-secondary institutions. Purposes of

the collaborative as specified in the bill are:

•

Establishing advanced technology centers

•

Developing, creating and commercializing new intellectual property

•

Encouraging new opportunities for business and increased jobs

•

Creation of a workforce to support new enterprises based on intellectual property

The work of the collaborative will be administered by a board, whose members would serve two-

year terms at the pleasure of the governor. The board includes the following members:

•

Governor, or designee, serving as chair

•

Three members representing higher education research institutions, appointed by the

governor

•

Five members at large, appointed by the governor

•

Director of Sandia National Laboratories, or designee

•

Director of Los Alamos National Laboratory, or designee

Meeting frequency, reimbursement eligibility, quorum and voting-by-proxy are specified in the

bill. The board would employ an exempt director and staff and will provide annual reports to

the legislature on expenditures and progress.

FISCAL IMPLICATIONS

The bill does not include an appropriation. The bill relates to House Bill 129 which contains an

appropriation and the 2005 General Appropriation Act which includes an appropriation for the

technology research collaborative.

House Bill 128/aHEC/aSFL#1 -- Page 3

TECHNICAL ISSUES

•

Is membership limited to national laboratories in New Mexico or would qualifying facili-

ties outside the state be eligible for participation.

•

Is the intent to limit participation to public post-secondary institutions in the state.

•

The purposes of the collaborative may need to be clearer

OTHER SUBSTANTIVE ISSUES

The role of New Mexico Institute of Mining and Technology as fiscal agent is not clear; alterna-

tives would include the Commission on Higher Education.

POSSIBLE QUESTIONS

1.

To what extent are current state agencies engaged in these functions.

2.

How would outcomes and performance effectiveness of the collaborative be determined.

AW/lg:yr