HB 209
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AN ACT
RELATING TO STUDENT LOANS; AMENDING THE HEALTH PROFESSIONAL
LOAN REPAYMENT ACT TO UPDATE THE REQUIREMENTS FOR RECEIVING
LOAN REPAYMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 21-22D-3 NMSA 1978 (being Laws 1995,
Chapter 144, Section 18, as amended) is amended to read:
"21-22D-3. DEFINITIONS.--As used in the Health
Professional Loan Repayment Act:
A. "department" means the higher education
department;
B. "health professional" means a physician,
optometrist, podiatrist, physician's assistant, dentist,
nurse, member of an allied health profession as defined in
the Allied Health Student Loan for Service Act or a licensed
or certified health professional as determined by the
department;
C. "loan" means a grant of money to defray the
costs incidental to a health education, under a contract
between the federal government or a commercial lender and a
health professional, requiring either repayment of principal
and interest or repayment in services;
D. "nurse in advanced practice" means a registered
nurse, including a: HB 209
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(1) certified nurse practitioner, certified
registered nurse anesthetist or clinical nurse specialist,
authorized pursuant to the Nursing Practice Act to function
beyond the scope of practice of professional registered
nursing; or
(2) certified nurse-midwife licensed by the
department of health; and
E. "osteopathic primary care physician" means an
osteopathic physician licensed pursuant to the Medical
Practice Act with specialty training in family medicine,
general internal medicine, obstetrics, gynecology or general
pediatrics."
SECTION 2. Section 21-22D-6 NMSA 1978 (being Laws 1995,
Chapter 144, Section 21, as amended) is amended to read:
"21-22D-6. AWARD CRITERIA--CONTRACT TERMS--PAYMENT.--
A. Prior to receiving an award, the health
professional shall file with the higher education department
a declaration of intent to practice as a health professional
in areas of New Mexico designated as underserved by the
department. The department shall consult with the department
of health when designating areas as underserved.
B. Award criteria shall provide that:
(1) amounts shall be dependent upon the
location of the practice, the applicant's total health
professional education indebtedness and characteristics of HB 209
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the practice;
(2) preference in making awards shall be to
individuals who have graduated from a New Mexico post-
secondary educational institution;
(3) recruitment awards shall be made to
eligible participants who agree to relocate to an approved
designated area;
(4) highest priority shall be given to
participants in practices in which health profession
vacancies are difficult to fill, practices that require after
hours call at least every other night and practices that have
heavy obstetrical responsibilities;
(5) award amounts may be modified based upon
available funding or other special circumstances; and
(6) an award shall not exceed the total
medical education indebtedness of any participant.
C. The following education debts are not eligible
for repayment pursuant to the Health Professional Loan
Repayment Act:
(1) amounts incurred as a result of
participation in state loan-for-service programs or other
state programs whose purpose states that service be provided
in exchange for financial assistance;
(2) scholarships that have a service
component or obligation; HB 209
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(3) personal loans from friends or
relatives; and
(4) loans that exceed individual standard
school expense levels.
D. The loan repayment award shall be evidenced by
a contract between the health professional and the department
acting on behalf of the state. The contract shall provide
for the payment by the state of a stated sum to the health
professional's debtors and shall state the obligations of the
health professional under the program, including a minimum
three-year period of service, quarterly reporting
requirements and other policies established by the
department.
E. Recipients shall serve a complete year in order
to receive credit for that year. The minimum credit for a
year shall be established by the department.
F. If a health professional does not comply with
the terms of the contract, the department shall assess a
penalty of up to three times the amount of award disbursed
plus eighteen percent interest, unless the department finds
acceptable extenuating circumstances for why the health
professional cannot serve or comply with the terms of the
contract. If the department does not find acceptable
extenuating circumstances for the health professional's
failure to comply with the contract, the department shall HB 209
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require immediate repayment plus the amount of the penalty.
G. The department shall adopt regulations to
implement the provisions of this section. The regulations may
provide for the disbursement of loan repayment awards to the
lenders of health professionals in annual or other periodic
installments."