Senate Bill 119

     "[NEW MATERIAL] INVESTMENTS--REQUIREMENTS--REIMBURSEMENT OBLIGATIONS.--

          A. The authority may invest in a bioscience business that:

                (1) is a New Mexico business that shall maintain a minimum in-state workforce of five employees with a minimum median annual salary of sixty thousand dollars ($60,000) as a condition of the investment; or

                (2) pursuant to a contract with the authority, shall relocate to New Mexico and agree to maintain the bioscience business as a New Mexico business for a minimum period of five years as a condition of the investment and maintain a minimum in-state workforce of five employees with a minimum median annual salary of sixty thousand dollars ($60,000).

          B. The authority shall assess a bioscience business prior to making an investment decision. An assessment shall include the following assessment factors with scoring weights determined by the authority by rule:

                (1) the market opportunity presented by the product or service offered by the business;

                (2) the current financial stability and status of the business;

                (3) the expertise and experience in bioscience and business start-ups of the officers of the business;

                (4) the business's business plan and strategy to capture or create a market for the business's products or services;

                (5) the business's competitive assets, including intellectual and physical properties;

                (6) the established business's exit strategy;

                (7) the projected economic benefits of the New Mexico business over the next five years, including projected sales, revenue and the number of in-state employees; and

                (8) the projected social benefits of the business in accordance with procurement preferences provided in state or federal law.

          C. Investments made pursuant to this section shall be made with a co-investing organization chosen by the authority in consultation with the university of New Mexico purchasing office through a competitive process; provided that the co-investing organization meets the following requirements:

                (1) the officer of the co-investing organization with final decision-making authority for a co-investment with the authority shall have a minimum of five years of experience investing in bioscience companies or a minimum of ten years of experience investing in start-up companies; and

                (2) the authority's investment in a bioscience business shall be no more than one-third of the combined investment of the authority and a co-investor organization in that business within a twelve-month period, making the co-investor organization the lead investor and the authority a follow-on investor.

          D. An investment contract with a portfolio business shall specify that:

                (1) if the portfolio business fails to meet its contractual obligations pursuant to this section, it shall either:

                     (a) fully reimburse the authority for the bioscience development fund's cost basis in the portfolio business; or

                     (b) document to the satisfaction of the authority that the portfolio business has provided economic benefits to the state that exceed the authority's cost basis in the business;

                (2) in any sale of a majority of the assets or a majority of the voting stock of the business to a single entity or set of affiliated entities, the acquiring entity or set of affiliated entities shall assume the legal obligations of the contract with the authority;

                (3) in a bankruptcy proceeding, liquidation or deemed liquidation event for the portfolio business, a claim by the authority shall be paid first, except as otherwise provided by federal or state law; and

                (4) milestones shall be met quarterly, semi- annually or annually on a case-by-case basis dependent on the type of investment to release a disbursement of funds; provided that milestones may include:

                     (a) key hires;

                     (b) reaching a higher technological readiness level;

                     (c) signing partnership or collaboration agreements;

                     (d) being awarded grants and contracts with agencies, foundations or private industry;

                     (e) filing new intellectual property patents and receiving granted patents;

                     (f) sales and sales agreements for equipment, goods and services;

                     (g) investigational new drug approval;

                     (h) in vitro or in vivo proof of technology;

                     (i) immunogenicity data to support investigational new drug filing; and

                     (j) other milestones deemed appropriate for the investment by the authority.

          E. When a portfolio business must compensate the authority pursuant to this section due to an acquisition by another entity or a relocation outside of the state, the authority, in collaboration with local investors, may accept stock in the acquiring entity or in the relocated business in lieu of a cash payment if the value of the stock would be equal to or greater than the amount that the business must compensate."

     "[NEW MATERIAL] EMPLOYMENT RESTRICTIONS.--

          A. An entity that has benefited from a contractual or other activity with the authority, including the receipt of co-investment funding, shall:

                (1) have no employee related to a member of the board of directors; and

                (2) not hire a member of the board of directors nor an employee of the authority within one year of the completion of the board member's term of office or the employee's service with the authority.

          B. Any person who knowingly and willfully violates the provisions of Subsection A of this section is guilty of a misdemeanor and shall be sentenced pursuant to the provisions of Subsection B of Section 30-1-6 NMSA 1978. An alleged violation of Subsection A of this section may be reported to the attorney general or district attorney for enforcement."

     "[NEW MATERIAL] INVESTMENT REPORTING.--Quarterly reports for all investments shall be presented to the board of directors by the board of the investment committee during regular board meetings, and such reports shall be publicly available pursuant to the Open Meetings Act."