HOUSE COMMERCE AND ECONOMIC DEVELOPMENT

COMMITTEE SUBSTITUTE FOR

HOUSE BILL 250

57th legislature - STATE OF NEW MEXICO - second session, 2026

 

 

 

 

 

 

 

AN ACT

RELATING TO ECONOMIC DEVELOPMENT; PROVIDING THAT MONEY IN THE RESEARCH, DEVELOPMENT AND DEPLOYMENT FUND IS SUBJECT TO APPROPRIATION BY THE LEGISLATURE; AUTHORIZING EXPENDITURES FROM THE FUND FOR QUANTUM FACILITY INFRASTRUCTURE PROJECTS AND FOR FUSION FACILITY PROJECTS; CHANGING THE MEMBERSHIP OF THE TECHNOLOGY AND INNOVATION NETWORK ADVISORY BOARD, THE ADVISORY BOARD'S EXECUTIVE COMMITTEE AND SUBCOMMITTEES CREATED BY THE ADVISORY BOARD; REMOVING THE REPRESENTATIVE FROM THE UNIVERSITY OF NEW MEXICO HEALTH SCIENCES CENTER AS A CORE MEMBER OF THE ADVISORY BOARD; REMOVING REPRESENTATIVES OF CENTERS OF EXCELLENCE NOT OTHERWISE REPRESENTED AS MEMBERS OF THE ADVISORY BOARD; REDUCING THE NUMBER OF PUBLIC MEMBERS OF THE ADVISORY BOARD TO NINE PUBLIC MEMBERS WITH EXPERIENCE IN INVESTMENT OR ENTREPRENEURIAL SUPPORT IN FOUR OF THE TARGET SECTORS; REMOVING TWO PUBLIC MEMBERS APPOINTED BY THE SECRETARY OF ECONOMIC DEVELOPMENT AS MEMBERS OF THE ADVISORY BOARD'S EXECUTIVE COMMITTEE; REMOVING THE REQUIREMENT THAT ONE REPRESENTATIVE FROM PRIVATE INDUSTRY SHALL BE A MEMBER OF A SUBCOMMITTEE CREATED BY THE ADVISORY BOARD; MAKING CONFORMING AMENDMENTS; ENACTING TEMPORARY PROVISIONS TO PROVIDE FOR THE EXPIRATION OF THE TERMS OF SERVICE OF ADVISORY BOARD MEMBERS AND THE SUBCOMMITTEE MEMBER REMOVED BY THIS ACT AND FOR THE APPOINTMENT OF ADVISORY BOARD MEMBERS CREATED BY THIS ACT; MAKING APPROPRIATIONS.

 

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

     SECTION 1. Section 6-31A-1 NMSA 1978 (being Laws 2025, Chapter 133, Section 5) is amended to read:

     "6-31A-1. SHORT TITLE.--[Sections 5 through 11 of this act] Chapter 6, Article 31A NMSA 1978 may be cited as the "Research, Development and Deployment Fund Act"."

     SECTION 2. Section 6-31A-3 NMSA 1978 (being Laws 2025, Chapter 133, Section 7) is amended to read:

     "6-31A-3. RESEARCH, DEVELOPMENT AND DEPLOYMENT FUND.--

          A. The "research, development and deployment fund"

is created as a nonreverting fund in the state treasury. The

fund consists of distributions, appropriations, gifts, grants, donations and income from investment of the fund. The department shall administer the fund. Money in the fund is [appropriated to the department] subject to appropriation by the legislature for the purposes of catalyzing innovation, economic growth and job creation by providing early-stage capital and financial support to emerging technologies, start-up businesses and research initiatives that align with the state's economic development plan through project awards pursuant to the Research, Development and Deployment Fund Act.

          B. Expenditures from the fund shall be by warrant of the secretary of finance and administration pursuant to vouchers signed by the secretary of economic development or the secretary's authorized representative."

     SECTION 3. A new section of the Research, Development and Deployment Fund Act, Section 6-31A-5.1 NMSA 1978, is enacted to read:

     "6-31A-5.1. [NEW MATERIAL] ELIGIBILITY REQUIREMENTS-- QUANTUM FACILITY INFRASTRUCTURE PROJECTS.--

          A. For project funding for a quantum facility, the requirements described in this section shall be met in addition to the requirements pursuant to Section 6-31A-5 NMSA 1978.

          B. An applicant shall make at least three million dollars ($3,000,000) in qualified quantum expenditures for infrastructure for a quantum facility located in New Mexico.

          C. The amount of project funding shall not exceed thirty percent of the amount of the qualified quantum expenditures made by the applicant for infrastructure for a quantum facility, not to exceed fifty million dollars ($50,000,000) per quantum facility.

          D. Prior to incurring a qualified quantum expenditure, an applicant shall apply for preliminary certification of eligibility for project funding from the department on forms and in the manner prescribed by the department. The preliminary certification shall be limited to confirming that the qualified quantum expenditures proposed to be made by the applicant will in whole or in part be used to provide infrastructure for a quantum facility and an estimate of the amount of project funding for which the applicant may be eligible. Only one certificate of eligibility shall be issued for a quantum facility, regardless of ownership of the facility.

          E. Within twelve months of completion of construction of a quantum facility, the applicant shall seek final certification from the department. The maximum aggregate amount of project funding for all quantum facility infrastructure projects that may be certified shall not exceed seventy-five million dollars ($75,000,000), subject to the limitations pursuant to and the availability of money in the fund. An application for final certification shall include information required by the department to determine eligibility for project funding, including information substantiating qualified quantum expenditures.

          F. As used in this section:

                (1) "qualified quantum expenditure" means an expenditure made by an applicant for land and rent paid or incurred for land, improvements, buildings or infrastructure required for a quantum facility, but not including any expenditure for property that is owned by a municipality or county in connection with an industrial revenue bond project, property for which the applicant has received any credit pursuant to the Investment Credit Act or property that was owned by the applicant or an affiliate before January 1, 2025. If a "qualified quantum expenditure" is an allocation of an expenditure, the cost accounting methodology used for the allocation of the expenditure shall be the same cost accounting methodology used by the applicant in its other business activities;

                (2) "quantum facility" means a facility in New Mexico at which research and development in quantum technology is conducted, other than a facility operated by an applicant for the United States or an agency, a department or an instrumentality thereof; and

                (3) "quantum technology" means technology that relies on quantum superposition or quantum entanglement or innovations that enable those technologies."

     SECTION 4. A new section of the Research, Development and Deployment Fund Act, Section 6-31A-5.2 NMSA 1978, is enacted to read:

     "6-31A-5.2. [NEW MATERIAL] ELIGIBILITY REQUIREMENTS--FUSION FACILITY PROJECTS.--

          A. For project funding for a qualified fusion facility, the requirements described in this section shall be met in addition to the requirements pursuant to Section 6-31A-5 NMSA 1978.

          B. The amount of project funding shall not exceed thirty percent of the amount of the qualified fusion capital expenditures made by the applicant, not to exceed fifty million dollars ($50,000,000) per fusion facility.

          C. Prior to incurring a qualified fusion capital expenditure, an applicant shall apply for a preliminary certification of eligibility for project funding from the department on forms and in the manner prescribed by the department on or before the first day of the fiscal year in which the applicant intends to apply for project funding. In an application for preliminary certification of eligibility, the applicant shall demonstrate that the applicant:

                (1) has invested at least ten million dollars ($10,000,000) in New Mexico;

                (2) currently employs at least thirty full-time employees in New Mexico; and

                (3) plans to invest at least one hundred million dollars ($100,000,000) in New Mexico within the four years immediately following the date of the application.

          D. The department shall make a determination on an application for a preliminary certification of eligibility within thirty days from receiving the application. If the department determines that the applicant has demonstrated eligibility in accordance with this section and with Section 6-31A-5 NMSA 1978 and that the applicant's proposed expenditures are qualified fusion capital expenditures, the department shall issue a preliminary certification of eligibility and provide the applicant with an estimate of the amount of project funding for which the applicant may be eligible. Only one preliminary certification of eligibility shall be issued each year for a fusion facility, regardless of the facility's ownership.

          E. After an applicant receives a preliminary certification of eligibility and incurs a qualified fusion capital expenditure, the applicant shall seek a final certification from the department. The maximum aggregate amount of project funding per year for all qualified fusion capital expenditures that may be certified shall not exceed seventy-five million dollars ($75,000,000), subject to the limitation pursuant to this section and the availability of money in the fund. An applicant for a final certification shall include information required by the department to determine eligibility for project funding, including information substantiating qualified fusion capital expenditures. Within sixty days from the date an application for final certification is received, the department shall make a determination on the application and initiate project funding if the application is approved.

          F. As used in this section:

                (1) "fusion facility" means a facility in New Mexico in which fusion machines or components of fusion machines are built or in which a fusion machine is operated for research and development purposes and does not include a facility operated by an applicant for the United States or an agency, a department or an instrumentality of the United States;

                (2) "fusion machine" means a machine capable of transforming atomic nuclei through fusion processes into different elements, isotopes or particles and includes associated systems that are essential to facilitate a fusion process; and

                (3) "qualified fusion capital expenditure" means an expenditure to procure equipment or facilities required for a fusion facility and does not include an expenditure for land that is owned by a municipality or county in connection with an industrial revenue bond or an expenditure for which the applicant has received a credit pursuant to the Investment Credit Act. If a "qualified fusion capital expenditure" is an allocation of an expenditure, the cost accounting methodology used for the allocation for the expenditure shall be the same as the cost accounting methodology used by the applicant in the applicant's other business activities."

     SECTION 5. Section 9-15-15.4 NMSA 1978 (being Laws 2025, Chapter 133, Section 3) is amended to read:

     "9-15-15.4. TECHNOLOGY AND INNOVATION NETWORK ADVISORY BOARD--CREATED--MEMBERS--DUTIES.--

          A. The "technology and innovation network advisory board" is created in the technology and innovation division of the department. [The advisory board consists of an executive committee and any subcommittees created by the executive committee.] The advisory board is composed of the following members:

                (1) the secretary or the secretary's designee, to serve as chair;

                (2) [eleven] ten members who may collectively be referred to as "core members", including the president of the New Mexico independent community colleges or that president's designee, the president of the New Mexico chamber of commerce or that president's designee and one representative from [each of the following]:

                     (a) Sandia national laboratories;

                     (b) Los Alamos national laboratory;

                     (c) the United States air force research laboratory;

                     (d) New Mexico state university;

                     (e) the university of New Mexico;

                     [(f) the university of New Mexico health sciences center;

                     (g)] (f) the New Mexico institute of mining and technology;

                     [(h)] (g) Navajo technical university; and

                     [(i)] (h) central New Mexico community college; and

                [(3) a representative from each center of excellence established pursuant to Section 21-1-27.11 NMSA 1978 that is not otherwise represented on the board; and

                (4) the following public members to be

appointed by the secretary:

                     (a) one representative from a skilled trades association in New Mexico;

                     (b) one representative from a regional economic development organization;

                     (c) one representative from an Indian nation, tribe or pueblo;

                     (d) one representative from the private equity industry with at least five years of relevant experience;

                     (e) one representative from the venture capital industry with at least five years of relevant experience;

                     (f) one representative from the private sector who owns a business and who, on account of the person's previous vocation, employment or affiliation, cannot be classified as a representative of employers or employees;

                     (g) one representative from a New Mexico business incubator or accelerator with at least five years of relevant experience; and

                     (h) eight representatives who are industry alliance members or have at least five years of relevant experience working in entrepreneurial support. Two representatives shall be from each of the following four target sectors: aerospace and space, biosciences, clean energy and water and advanced computing]

                (3) nine public members appointed by the secretary who have experience in investment or entrepreneurial support in the target sectors of aerospace and space, biosciences, clean energy and water or advanced computing.

          B. The technology and innovation network advisory board [is created to unite various sector perspectives to assist in the guidance and ongoing strategic planning of the division. The advisory board] shall:

                (1) unite various sector perspectives and assist in and guide the ongoing strategic planning of the division;

                [(1)] (2) provide [to] the technology and innovation division with recommendations for strategic engagement [industry perspective] and for sectors that the division should make target sectors and with industry perspectives and feedback on the division's programs and initiatives;

                [(2)] (3) assist with ensuring active engagement between the state and the private sector;

                [(3)] (4) assist the technology and innovation division with administering the Research, Development and Deployment Fund Act, including providing recommendations to that division for eligibility requirements, funding priorities and the awarding of project funding; and

                [(4)] (5) publish annual performance reports by December of each year that identify near-term constraints, [and] challenges [identify] and opportunities and long-term trends and that provide sector survey metrics and policy recommendations.

          C. The technology and innovation network advisory board shall meet [beginning in 2025, not less than] at least quarterly or at the call of the chair or at the request of two-fifths of its membership [to carry out its duties]. A majority of the members constitutes a quorum for the transaction of business, and the support of a majority of the quorum is required for adoption of any action.

          D. Appointments to the technology and innovation network advisory board shall be made [by] before September 1, 2025, and the terms of service of appointed members [shall start] begin on September 1, 2025. The [terms shall be] term of service of a technology and innovation network advisory board member is four years; [and] provided that the initial terms shall be staggered so that the terms of one-half of the members shall expire at the end of the initial two years and the terms of the remaining members shall expire at the end of the initial four years. The initial terms shall be selected by random drawing.

          E. Each member of the technology and innovation network advisory board shall [pursuant to a policy adopted by and on forms required by the executive committee of the board] disclose conflicts of interest annually in accordance with procedures adopted by the board's executive committee.

          F. In the event of a vacancy on the technology and innovation network advisory board, a new member shall be appointed by the original appointing authority for the remainder of the unexpired term. A member may be removed by the secretary or by a two-thirds' vote of the executive committee members.

          G. Public members of the technology and innovation network advisory board are entitled to [receive] per diem and mileage reimbursement as provided in the Per Diem and Mileage Act and shall receive no other compensation, perquisite or allowance.

          H. [The staff for the technology and innovation network advisory board shall be provided by] The technology and innovation division of the department [and the staff] shall provide staff for the technology and innovation network advisory board to:

                (1) provide administrative and technical support for the advisory board;

                (2) [assistance] assist with the coordination and documentation of board, executive committee and subcommittee meetings;

                (3) [assistance] assist with reporting requirements and metric tracking; and

                (4) support with the administration of grants."

     SECTION 6. Section 9-15-15.5 NMSA 1978 (being Laws 2025, Chapter 133, Section 4) is amended to read:

     "9-15-15.5. TECHNOLOGY AND INNOVATION NETWORK ADVISORY BOARD--EXECUTIVE COMMITTEE--SUBCOMMITTEES--COMPOSITION AND DUTIES.--

          [A. There is created within the technology and innovation network advisory board an executive committee.

          B.] A. The technology and innovation network advisory board has an executive committee [is composed] that consists of the following members of the [technology and innovation network advisory] board:

                (1) the chair;

                (2) two core members; and

                [(3) two of the public members appointed by the secretary; and

                (4)] (3) one representative from each of the following [four] target sectors:

                     (a) aerospace and space;

                     (b) biosciences;

                     (c) clean energy and water; and

                     (d) advanced computing.

          [C.] B. The executive committee shall oversee the technology and innovation network advisory board's operations, set meeting agendas, review and approve subcommittee recommendations and make time-sensitive decisions between full board meetings.

          [D.] C. The technology and innovation network advisory board may create subcommittees related to a target sector. A subcommittee shall [be composed of the] include two representatives from the corresponding target sector, one representative from a laboratory, one representative from a university [one representative from private industry] and the secretary or the secretary's designee to serve as chair. The subcommittee members shall elect a vice chair. A member of the public may apply to the executive committee to be a nonvoting member of a subcommittee [and the executive committee shall adopt] in accordance with policies and procedures [necessary for such an application and evaluation process] adopted by the executive committee.

          [E.] D. A subcommittee created by the technology and innovation network advisory board shall develop sector-specific metrics and goals, review and assess relevant grant proposals, monitor sector performance and trends, prepare annual reports and identify cross-sector opportunities.

          [F.] E. Beginning September 1, 2025, the executive committee [beginning September 1, 2025] and any subcommittees created shall meet [not less than] at least quarterly or at the call of the chair or at the request of two-fifths of its membership [to carry out its duties]. A majority of the members of a subcommittee constitutes a quorum for the transaction of business, and the support of a majority of the quorum is required for adoption of any action."

     SECTION 7. TEMPORARY PROVISION.--

          A. The term of service for members of the technology and innovation network advisory board appointed pursuant to the following paragraphs and subparagraphs shall expire on the effective date of this act:

                (1) Subparagraph (f) of Paragraph (2) of Subsection A of Section 3 of Chapter 133 of Laws 2025;

                (2) Paragraph (3) of Subsection A of Section 3 of Chapter 133 of Laws 2025; and

                (3) Paragraph (4) of Subsection A of Section 3 of Chapter 133 of Laws 2025.

          B. The term of service for a member of a subcommittee created by the technology and innovation network advisory board appointed as "one representative from private industry" pursuant to Subsection D of Section 4 of Chapter 133 of Laws 2025 shall expire on the effective date of this act.

          C. Members to fill the positions on the technology and innovation network advisory board created by Section 5 of this act shall be appointed on or before July 1, 2026.

     SECTION 8. APPROPRIATIONS.--

          A. The following amounts are appropriated from the research, development and deployment fund to the economic development department for expenditure in fiscal years 2027 through 2029:

                (1) up to thirty-three percent of the balance of the fund is appropriated to provide project funding for quantum facility infrastructure projects in accordance with Section 6-31A-5.1 NMSA 1978;

                (2) up to thirty-three percent of the balance of the fund is appropriated to provide project funding for fusion facility projects in accordance with Section 6-31A-5.2 NMSA 1978; and

                (3) up to thirty-four percent of the balance of the fund is appropriated to carry out the purposes of the fund as provided in Section 6-31A-3 NMSA 1978.

          B. No more than one-third of the amounts appropriated in Paragraphs (1) through (3) of Subsection A of this section may be expended in a single fiscal year.

          C. Any unexpended balance remaining at the end of fiscal year 2029 shall revert to the research, development and deployment fund.

     SECTION 9. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2026.

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