New Mexico
Register / Volume XXXVII, Issue 14 / July 28, 2026
NOTICE OF
PROPOSED RULEMAKING AND PUBLIC HEARING
The Technology and Innovation
Division (“Division”) of the New Mexico Economic Development Department
(“Department”) will hold a public hearing on Monday, August
31, 2026, from 10:00 – 11:00 a.m. The
hearing will be conducted in person at the following location:
Monday, August 31, 2026, 10:00-11:00 a.m. Mountain
Time
Mabry Hall located in the Jerry
Apodaca Education Building, 300 Don Gaspar Ave., Santa Fe, NM 87501
Microsoft Teams Meeting
Information
Meeting Link: https://teams.microsoft.com/meet/275478541732380?p=9xRs1QSXfVe4GAH4xG
Meeting ID: 275 478 541 732
380
Passcode: nb69eg72
The purpose of the rule
hearing is to obtain input and public comment on proposed new rules relating to 2.96.1 NMAC, Research,
Development and Deployment Fund Act, Laws 2025, Ch. 133 (House Bill 20 Approved
April 9, 2025).
Copies of the proposed rule
may be accessed online at https://edd.newmexico.gov/about-us/public-notices/
or contact Department staff at info@edd.nm.gov
(505) 827-0300.
The Department will accept
written public comments on the proposed rule beginning July 28, 2026. Please submit written comments on the proposed
rule to the Department via electronic mail at info@edd.nm.gov or by regular
mail at 1100 S. Saint Francis Dr., Santa Fe, New Mexico, 87505. Written comments must be received no later
than 5 p.m. on August 30, 2026. Comments
received prior to the rule hearing will be posted to the Department website at https://edd.newmexico.gov/about-us/public-notices/.
Interested persons will also be given
the opportunity to present their comments during the rule hearing.
Individuals who require this
information in an alternative format or need any form of auxiliary aid to
attend or participate in this meeting are asked to contact the Department Staff
as soon as possible at info@edd.nm.gov or (505) 827-0300. The Committee requests advance notice to
provide required special accommodations at least one week prior to the meeting
or as soon as possible.
Statutory Authority:
Legal authority for this rulemaking may be found in the Research, Development
and Deployment Fund Act, Section 6-31A-1 et seq., NMSA 1978, specifically 6-31A-4(A)(8).
Proposed Rule:
This is a new Rule, 2.96.1
NMAC, Sections 1 through 11, effective September 22, 2026.
CHAPTER 96 RESEARCH,
DEVELOPMENT AND DEPLOYMENT FUND ACT
PART 1 GENERAL PROVISIONS
2.96.1.1 ISSUING
AGENCY: Economic Development Department.
[2.96.1.1 NMAC - N,
xx/xx/2026]
2.96.1.2 SCOPE: All public
entities or businesses registered to transact business in New Mexico applying
for Research, Development and Deployment funds through the Economic Development
Department and meeting the eligibility requirements of the Economic Development
Department technology and innovation division.
[2.96.1.2 NMAC - N,
xx/xx/2026]
2.96.1.3 STATUTORY
AUTHORITY: Section 6-31A-4, NMSA 1978.
[2.96.1.3 NMAC - N, xx/xx/2026]
2.96.1.4 DURATION: Permanent.
[2.96.1.4 NMAC - N,
xx/xx/2026]
2.96.1.5 EFFECTIVE
DATE:
xx/xx, 2026 unless a later date is cited at the end of a section.
[2.96.1.5 NMAC - N,
xx/xx/2026]
2.96.1.6 OBJECTIVE: To drive innovation, stimulate economic
growth, and create jobs by offering early-stage capital and financial support
for emerging technologies, start-up enterprises, and research initiatives that
align with the state’s economic development strategy through project awards
pursuant to the act.
[2.96.1.6 NMAC - N, xx/xx/2026]
2.96.1.7 DEFINITIONS:
A. “Act” means the Research,
Development and Deployment Fund Act, Sections 6-31A-1 through 6-31A-7, NMSA
1978, as the same may be amended and supplemented.
B. “Applicant
match” means money for a project provided by an applicant or a partnering
entity that is not a political subdivision of the state.
C. “Application” means a written document or other
information filed with the division for the purpose of evaluating an
applicant’s proposal for funding opportunities.
D. “Business”
means any corporation, partnership, limited liability company, joint venture or
other similar legal entity registered in the state.
E. “Department”
means the economic development department.
F. “Division”
means the technology and innovation division of the department.
G. “Documented
Need” has the meaning given in the act and refers to a non-state funding
source’s own requirements, such as cost-sharing, matching, or institutional or
regional commitments used in evaluating proposals for that funding rather than
an applicant’s general need for project funding.
H. “Eligible
applicant” means a public entity or a business registered to transact
business in New Mexico.
I. “Sleeve”
means a portion of the fund with its own investment strategy aligned with the
purpose of the Act.
J. “Solicitation”
means a call for applications for funding from one or more sleeves.
K. “State”
means the state of New Mexico.
[2.96.1.7 NMAC - N,
xx/xx/2026]
2.96.1.8 ELIGIBILITY,
APPLICATION, EVALUATION, AND AWARD: The division, in consultation with the board, will
develop policies and consider a variety of factors in reviewing and evaluating
applications from eligible applicants for project funding opportunities.
A. Applicant
Eligibility. To be eligible for funding, applicants must meet all eligibility
requirements established by the division.
B. Project
Eligibility. To be eligible for funding, a project must reasonably expect to result in
at least two of the following in New Mexico:
(1) advance innovation in at least one of the target sectors;
(2) foster collaboration between at least two of the
following: private industry, a national
laboratory, a federal agency or a public entity;
(3) leverage federal or private investment;
(4) create new economic opportunities;
(5) create new jobs and workforce training opportunities; and
(6) advance the commercialization of a technology in at least
one of the target sectors;
C. Solicitations. The division will release
solicitations that specify the application, evaluation, and award processes and
procedures for one or more sleeves consistent with this rule, the Act, and
other applicable laws and regulations. In solicitations or otherwise, the
division shall establish a streamlined application process pursuant to the
requirements of the act. Notwithstanding
the foregoing, the division may at its discretion source projects independently
of any solicitation.
D. Application Requirements. The division will set forth application
requirements in each solicitation.
E. Matching
Requirements of Complementary Programs. If an applicant is seeking project funding in
connection with or as part of a separate application for grant money that
requires cost sharing, matching funds, institutional support or regional
financial commitments as a condition of eligibility for that grant money, the
applicant shall submit written evidence from the entity providing that grant
money that clearly states such requirements will be used in the evaluation of
applications for that grant money. If no
such written evidence exists of the requirements for institutional support or
regional financial commitment, the applicant may submit alternative proof of
the requirements and the division shall establish criteria and, on a
case-by-case basis, evaluate whether the proof is sufficient.
F. Alternative
to Documented Need. In lieu of evidence of documented need as defined by the act for project
funding, 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.
G. Applicant
Match. The
division may or may not require applicant match for a particular project,
solicitation, sleeve, or for the fund overall and will set forth any such
requirement in the relevant solicitation, in policy, or in another appropriate
form and manner. In cases where the division does require applicant match, the division
may reduce applicant match requirements by up to fifty percent for projects:
(1) that primarily benefit communities that are rural or part
of Indian nations, tribes or pueblos;
(2) that are led by minority-serving public post-secondary
educational institutions as defined in federal law; or
(3) that address critical state needs as
determined by the department in its statewide economic plan.
H. In-Kind
Contributions. The division may allow in-kind contributions as permitted by the act and
as set forth in the relevant solicitation, in policy, or in another appropriate
form and manner. An in-kind contribution to a project may qualify as a portion
of an applicant’s required match when the:
(1) value of the in-kind contribution can be independently
verified;
(2) in-kind contribution is essential to the project's success,
as determined by the division;
(3) in-kind contribution would otherwise be a legitimate
project expense; and
(4) total in-kind contributions to a project constitute no more
than fifty percent of the applicant match.
I. Timing
of Application Submissions. Applications
are submitted in response to the division’s solicitations or as otherwise
sourced by the division. Consistent with
the act, the division will design solicitations and other sourcing mechanisms
to accommodate applications submitted:
(1) up to three hundred sixty-five days prior to anticipated
federal or private sector grant deadlines for new or recurring published
opportunities;
(2) for pending proposals with multistage reviews that have
been submitted but have not had an award finalized or, subject to division
approval, within ninety days after such an award is finalized;
(3) for project funding awards pending successful non-state
funding or private grant applications; and
(4) for re-application by an applicant who has previously been
denied project funding, provided that the applicant makes changes and
improvements based on any feedback received from the prior application.
J. Application
Evaluation and Award. The division
will:
(1) award project funding in consultation with the board’s
recommendations;
(2) verify applicant match funding requirements for a project
when a match is applicable or match funding is being requested; and
(3) consider applications in light of any priorities and of any
other requirements or goals set forth in the relevant solicitation.
K. Project
Priority. The division shall set
forth any such priorities in the relevant
solicitation, in policy, or in another appropriate form and manner.
Priority shall be given to projects that
(1) create high-quality, high-wage jobs in New Mexico;
(2) when applicable, have higher percentages of matching funds
from non-public entities;
(3) demonstrate strong potential for commercialization in a
target sector;
(4) support the growth of New Mexico-based companies;
(5) benefit communities that are rural or in an Indian nation,
tribe or pueblo;
(6) provide opportunities for broad regional participation; and
(7) fulfill any other requirement or advance any other goal
established by the division and consistent with the act as set forth in any
solicitation, with respect to one or more sleeves, or with respect to the fund
overall.
L. Timing
and Use of Project Funding. Awards of
project funding shall:
(1) allow for multiyear project periods aligned with
federal or private sector grant or other non-state funding opportunity
timelines;
(2) permit pre-award project spending by applicants when
necessary to meet non-state grant application deadlines, provided that
applicants shall use non-state funding or other institutional funding for
pre-award spending; and
(3) provide that a certain amount of the funding may be
used for an applicant’s administrative costs to implement the project.
[2.96.1.8 NMAC - N,
xx/xx/2026]
2.96.1.9 ADMINISTRATION OF THE RESEARCH,
DEVELOPMENT AND DEPLOYMENT FUND:
A. Nature
and Makeup of the Fund. The fund is a
nonreverting fund in the state treasury and is
administered by the department. The fund consists of distributions,
appropriations, gifts, grants, donations and income from investment in the
fund, including appropriations from the technology and innovation fund as permitted
by Section 9-15-19, NMSA 1978, as the same may be amended or supplemented.
B. Purpose
of Awards. Money in the fund may be used 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 made pursuant to the act.
C. Monitoring
and Oversight. The division shall monitor and oversee projects in
accordance with the act and as set forth in any applicable solicitation,
policy, or award document or in another appropriate form and manner.
D. Mechanism
of Expenditures. Expenditures from the fund shall be by warrant of the
secretary of finance and administration pursuant to vouchers signed by the
secretary or the secretary’s authorized representative.
[2.96.1.9 NMAC - N,
xx/xx/2026]
2.96.1.10 REPORTING: On
or before December 1, 2026, and every year thereafter, the department shall
provide a report to the governor, the legislative finance committee and the
appropriate interim committees that study economic development regarding the
administration, efficacy and performance of the fund, including:
A. projects
that have been awarded funding;
B. for
each project, the dollar amounts awarded, the amount of non-state matching
funds the project received, if applicable, and the amount of non-state funding
leveraged;
C. updates
on the progress, performance, outcomes and impacts of each project that was
awarded funding;
D. total
jobs created and retained in the state;
E. return
on investment of state money spent pursuant to the act;
F. any
additional investment that was attracted to the state and state-owned
businesses; and
G. other
relevant performance metrics, including those recommended by the board, to
measure the success of the act and the state’s investment of public money
pursuant to the act.
[2.96.1.10 NMAC - N,
xx/xx/2026]
2.96.1.11 AMENDMENT OF RULES: This rule may
be amended or repealed at any time by the department in accordance with the
provisions of the state rules act.
[2.96.1.11 NMAC - N,
xx/xx/2026]
HISTORY OF 2.96.1 NMAC: [RESERVED]