House Bill 20 (HB 20), relating to economic development, creates the Technology and Innovation Division within the Economic Development Department (EDD), providing powers and duties. HB 20 creates the Technology and Innovation Network Advisory Board. HB 20 enacts the Research, Development and Deployment Fund Act and a related fund. HB 20 provides for match funding for certain projects that promote certain goals, and establishes an application process, eligibility requirements and award terms. HB 20 requires reporting. HB 20 creates the Technology Innovation Prize Program and provides requirements for eligibility and receiving prize money. HB 20 transfers office functions, personnel, money and property to the Technology and Innovation Division. HB 20 repeals Sections 9-15-16 and 9-15 17 NMSA 1978 (being laws 1991, Chapter 21, Sections 21 and 22) to remove obsolete provisions. HB 20 makes appropriations.  

 HB 20 relates to economic development and makes many changes as follows:
SECTION 1 amends the Executive Department in Subsection D to create the Technology and Innovation Division. 
SECTION 2 adds a new section of the Economic Development Department Act in Subsection A to create the Technology and Innovation Division (Division) in the department.
In addition to any organizational units, programs or funds that the secretary assigns to the Division, the Division consists of the Office of Strategy, Science and Technology.
B. The Division is authorized to:
- engage and coordinate with the Technology and Innovation Network Advisory Board (Board) and the broader business community and support and coordinate with the target sector subcommittees of the Board; 
-represent New Mexico at national conferences and trade shows related to technology and innovation, focusing on the target sectors; 
- identify and support applications for federal grant opportunities in the target sectors; 
- provide program staff for each target sector to coordinate and serve as liaisons; 
- market and promote New Mexico's target sectors within and without New Mexico;
- administer the Research, Development and Deployment Fund Act (Fund Act);
- develop and maintain a statewide technology and innovation strategic plan and to collect, analyze and report to the department on innovation metrics;
- support technology transfer and commercialization;
- coordinate innovation initiatives across state agencies and maintain databases and resources.
C. As used in this section, "target sectors" means aerospace and space, biosciences, clean energy and water, advanced computing, which includes artificial intelligence, quantum computing and cybersecurity, and other sectors that are strategic and important for statewide economic development. 
SECTION 3 adds a new section of the Economic Development Department Act to create the Technology and Innovation Network Advisory Board (Board). 
A. The Board is created in the Division and consists of an executive committee and four subcommittees: the aerospace and space subcommittee, the advanced computing subcommittee, the biosciences subcommittee and the clean energy and water subcommittee. The Board is composed of the following:
(1) the secretary or the secretary's designee, to serve as chair; 
(2) ten members who may collectively be referred to as "core members",  as specified in this subsection.
(3) a representative from each center of excellence established pursuant to Section 21-1-27.11 NMSA 1978; 
(4) a representative from each authority created in statute that is administratively attached to a state agency or political subdivision of the state; and 
(5) public members as specified, to be appointed by the secretary: 
B. The Board is created to unite various sector perspectives to assist in the guidance and ongoing strategic planning of the Division. The Board shall: (1) provide to the Division recommendations for strategic engagement, industry perspective, sectors that the Division should make target sectors and feedback on the Division's programs and initiatives; (2) assist with ensuring active engagement between the state and the private sector; (3) assist the Division with administering the Act as directed in this subsection; and (4) publish annual performance reports by December of each year that identify near-term constraints and challenges, identify opportunities and long-term trends and provide sector survey metrics and policy recommendations.
C. The Board shall meet, beginning in 2025, not less than quarterly 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 Board shall be made by and the terms of service of appointed members shall start on September 1, 2025. The terms shall be four years and the initial terms shall be set in the usual way.
E. Each member of the Board shall serve on at least one subcommittee. Each member of the 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. 
F. In the event of a vacancy on the 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 Board are entitled to receive per diem and mileage as provided in the Per Diem and Mileage Act and shall receive no other compensation, perquisite or allowance. 
H. The staff for the Board shall be provided by the Division. The staff shall provide assistance as specified in this subsection.
SECTION 4 adds new section of the Economic Development Department Act to provide the executive committee, subcommittees composition and duties, as follows:
A. There are created within the Board an executive committee and four subcommittees as specified in Section 3A.
B. The executive committee is composed of the members of the Board as specified in this subsection.
C. The executive committee shall oversee the Board's operations, set meeting agendas, review and approve subcommittee recommendations and make time-sensitive decisions between full board meetings. 
D. Each of the four subcommittees is composed of the 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 policies and procedures necessary for such an application and evaluation process. 
E. Each subcommittee 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. The executive committee and each of the four subcommittees shall meet, beginning September 1, 2025, not less than quarterly 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.
SECTION 5 adds new material to provide that Sections 5 through 11 of this Act may be cited as the Research, Development and Deployment Fund Act (Fund Act). 
SECTION 6 adds new material to provide Definitions as used in the Fund Act. 
SECTION 7 adds new material to create the Research, Development and Deployment Fund (Fund).
The Fund is created as a nonreverting fund in the state treasury and consists of the usual funding sources. The department shall administer the Fund and the money in the Fund is appropriated to the department for the purposes of the Fund Act. Expenditures from the Fund shall proceed in the usual way.
SECTION 8 adds new material to provide that the Division shall administer provisions of the Fund Act to provide project match funding to applicants that meet eligibility requirements, as specified in this subsection.
The division shall:
- establish an application process and criteria pursuant to the requirements of the Act as specified in this section.
- award project funding in consultation with the Board's recommendations; 
-verify applicant match funding requirements for a project and monitor ongoing compliance with a funded project's match requirements; 
- establish procedures for addressing undelivered applicant funding commitments; 
 - annually report with the department to the legislature and governor on the administration, performance and efficacy of the Research, Development and Deployment Fund Act; and 
- promulgate rules necessary to implement and administer the provisions of the Act, in consultation with the Board. 
B. Applications may be submitted as specified in this subsection. 
C. In administering the provisions of the Fund Act, the Division shall not: (1) limit reviews to cycles exceeding monthly time frames but shall accept and review applications on an ongoing basis; (2) impose limitations on the amount of project funding that may be awarded to public post-secondary educational institutions, except as provided in the Act; or (3) restrict the awarding of project funding to only research activities. 
SECTION 9 adds new material to provide eligibility requirements. 
A. To be eligible for project funding an applicant must meet the criteria listed in this subsection.
B. In lieu of evidence of documented need for project funding required pursuant to Subsection A of this section, an applicant may include with the applicant's application a justification for why project funding is necessary for the project to be successful and effectively promote state interests in one or more target sectors. 
C. The division may reduce applicant match requirements by up to 50 percent for projects: (1) that primarily benefit communities that are rural or part of Indian nations, tribes or pueblos; (2) led by minority-serving public postsecondary educational institutions as defined in federal law; or (3) that address critical state needs as determined by the department in its statewide economic plan. 
D. An in-kind contribution to a project may qualify as a portion of the applicant's required match when the in-kind contribution meets the criteria in this subsection.
SECTION 10 adds new material to provide terms and processes for project funding awards.
A. Priority shall be given to projects that: 
(1) create high-quality, high-wage jobs in New Mexico;
(2) have higher percentages of matching funds from non-public entities; 
(3) demonstrate strong potential for commercialization and making New Mexico a national leader in the target sectors; 
(4) support the growth of New Mexico-based companies; 
(5) benefit communities that are rural or in an Indian nation, tribe or pueblo; and 
(6) provide opportunities for broad regional participation. 
B. Awards of project funding shall: 
(1) allow for multiyear project periods aligned with federal or private sector grant or other non-state funding opportunity time lines; 
(2) permit pre-award project spending by applicants when necessary to meet non-state grant application deadlines; and 
(3) provide that a certain amount of the funding may be used for an applicant's administrative costs to implement the project. 
SECTION 11 adds new material to require reporting:  On or before December 1, 2025, and every year thereafter, the department shall provide a report to the governor, the Legislative Finance Committee and the appropriate interim committees regarding the administration, efficacy and performance of the Act, including the information specified in this section. 
SECTION 12 adds new material to the Economic Development Department Act to establish and administer the Technology Innovation Prize Program (Program).
A. The department shall establish and administer the Program, which shall provide:
(1) no less than $5,000,000 for the top award recipient; 
(2) no less than $1,000,000 each for the next two award recipients; and 
(3) additional award amounts as recommended and approved by the Board. 
B. Technology innovation prizes shall only be awarded to companies that provide technological innovation in the following sectors four target sectors and other sectors that are recommended through resolution of the Board. 
C. To be eligible for a technology innovation prize, an applicant shall meet the criteria in this subsection.
D. Before receiving technology innovation prize money, a recipient shall enter into a contract with the department that requires the recipient to: 
(1) maintain operations and a substantial presence in New Mexico for a minimum of three years after receiving the award; 
(2) create and maintain for at least three years after receiving prize money a number of jobs in New Mexico, as required by the department; 
(3) participate in science, technology, engineering and mathematics education initiatives within the state; and 
(4) repay to the department the prize money at a fair current market interest rate if the recipient accepts the prize money and fails to meet a requirement of this section. 
E. The department shall establish or coordinate with existing programs to provide technology innovation prize money recipients with: (1) access to New Mexico's national laboratories for consultation; (2) mentorship opportunities with industry experts; and (3) networking events with potential investors and partners. 
F. The department, with approval from the Board and for the purposes of administering the Program, shall create a steering committee, develop Program time lines, establish application rules and guidelines, establish partnerships and determine resource allocation. 
G. The department shall promulgate rules as necessary to carry out the provisions of this section. 
H. As used in this section, "business" means any corporation, partnership, limited liability company, joint venture or other similar legal entity." 
SECTION 13 amends Executive Department in Proprietary Information to insert the title of the division throughout this section by inserting “and innovation”.
SECTION 14 repeals Section 9-15-19 NMSA 1978 (being Laws 1991, Chapter 21, Section 24)  and a new Section 9-15-19 NMSA 1978 is enacted to create the Technology and Innovation Fund (Innovation Fund).
The Innovation Fund is created as a nonreverting fund in the state treasury to replace the Technology Enterprise Fund. The Innovation Fund consists of usual financial contributions.
The Economic Development Department shall administer the Innovation Fund and money is subject to appropriation by the legislature for administering the provisions of Section 2 of this 2025 act. Expenditures from the Innovation Fund shall be in the usual way.
SECTION 15 provides a temporary provision for transfer.
A. On the effective date of this act: (1) the Office of Strategy, Science and Technology of the and the Office of Entrepreneurship Economic Development Department shall be transferred to the Division; and (2) money in the Technology Enterprise Fund shall be transferred to the Innovation Fund. 
B. The secretary of economic development shall assign other programs and funds management to the appropriate division. 
C. Contractual obligations of any of the transferred units of the EDD shall continue to be obligations of the department. 
SECTION 16 makes appropriations: 
A. $100,000,000 is appropriated from the General Fund to the Research, Development and Deployment Fund for expenditure in Fiscal Year 2026 and subsequent fiscal years for the purposes of the Fund. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the General Fund. 
B. $10,000,000 is appropriated from the General Fund to the EDD  for expenditure in Fiscal Years 2026 through 2029 to award prizes pursuant to the Program. Any unexpended or unencumbered balance remaining at the end of fiscal year 2029 shall revert to the General Fund. 
SECTION 17 repeals Executive Department Sections 9-15-16 and 9-15-17 NMSA 1978 (being Laws 1991, Chapter 21, Sections 21 and 22). 
SECTION 18 makes the effective date July 1, 2025. 

 House Bill 20 would amend Section 9-15-4 NMSA 1978 (being Laws 1983, Chapter 297, Section 4, as amended), to create a new division, which does not exist currently. 

 House Bill 20 is amended by the House Appropriations and Finance Committee (HAFC) to delete “appropriations” and insert “appropriation” in the title. Section 16 in Appropriations has Subsection A deleted, which appropriated $100,000,000 to the Research Development and Deployment Fund. Subsection B is deleted, which appropriated $10,000,000 to the Economic Development Department. 

 House Bill 20 is substituted by the House Commerce and Economic Development Committee as follows:
SECTION 3 creating the Technology and Innovation Network Advisory Board is amended in Subsection A to remove the specification of four subcommittees and replaces the number with “any” subcommittees. Subsection A also is amended to change elements in the composition of the advisory board. Subsection A(2) increases the members of the board from ten to 11 and adds A(2)(i) to include central New Mexico community college. Subsection A(3) is amended to specify a required representative from each center of excellence “that is not otherwise represented on the board”.
Subsection A(4) is deleted..
Subsection E  requires members of the advisory board to disclose conflicts of interest annually.
The requirement that each member of the board shall serve on at least one subcommittee is deleted from Subsection E.
SECTION 4 adds a new section of the Economic Development Act creating the Technology and Innovation Network Advisory board. In the substituted bill, Subsection A and Subsection D  are amended to delete references to four subcommittees as specified in this subsection. Subsection F specifies that any subcommittees created shall meet not less than quarterly.
SECTION 8 regarding Project Match Funding in Subsection A(1) deletes A(1)(b). 
A. The division shall administer the provisions of the Research, Development and Deployment Fund Act to provide project funding to applicants that meet all eligibility requirements. The division shall:
Subsection A(4) and Subsection A(5) are amended to add “when a match is applicable or match funding is being requested”;
Subsection B regarding submission of applications has B(5) inserted:
(5) in response to grant award solicitations by the division.
Subsection C has C(1) of the original bill deleted. This paragraph specified that applications shall be accepted and reviews would be on an ongoing, rolling basis. 
SECTION 9 has the title changed to delete Applicant Match. The title now reads:
 [NEW MATERIAL] ELIGIBILITY REQUIREMENTS.
Subsection A(3)(d) is deleted as follows:
(3) an applicant shall submit:
(d) if not a public entity, at least one partnership agreement entered into for the purposes of the
project with a public entity other than the department;
Subsection A(3)(e) is revised as follows:
(e) a time line for non-state funding availability and applicant match funding availability, if applicable; 
Subsection A(4) inserts “if applicable due to a match requirement” regarding the evidence an applicant shall submit.
Subsection C inserts the requirement that “when an applicant’s project has a match requirement”, the division may reduce applicant match requirements by up to 50 percent for projects.
SECTION 10. [NEW MATERIAL] PROJECT FUNDING AWARDS-- PROCESS—TERMS.
Subsection A(2) inserts “when applicable”  
SECTION 11. [NEW MATERIAL] REPORTING in Subsection B has “if applicable” inserted.