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HOUSE BILL 304
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Rebecca Dow and Mark B. Murphy
AN ACT
RELATING TO LAW ENFORCEMENT; ENACTING THE LAW ENFORCEMENT
OFFICER LOAN REPAYMENT ACT; GRANTING LOAN REPAYMENT AWARDS TO
CERTAIN LAW ENFORCEMENT OFFICERS; PROVIDING FOR CONTRACTS,
CONTRACT CANCELLATIONS AND CONTRACT ENFORCEMENT; CREATING A
FUND; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of Chapter 21 NMSA 1978 is
enacted to read:
"[NEW MATERIAL] SHORT TITLE.--This act may be cited as the
"Law Enforcement Officer Loan Repayment Act"."
SECTION 2. A new section of Chapter 21 NMSA 1978 is
enacted to read:
"[NEW MATERIAL] DEFINITIONS.--As used in the Law
Enforcement Officer Loan Repayment Act:
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A. "applicant" means a person applying for an
award;
B. "award" means the grant of money to repay loans;
C. "department" means the higher education
department;
D. "fund" means the law enforcement officer loan
repayment fund;
E. "law enforcement officer" means a person who is
an employee of a New Mexico county or municipal law enforcement
agency and who is authorized to carry a firearm and is
certified pursuant to federal law or the Law Enforcement
Training Act;
F. "loan" means a grant of money pursuant to a
contract between a student and the federal government, state
government or a commercial lender to defray the costs
incidental to an undergraduate or law enforcement education and
that requires either repayment of principal and interest or
repayment in services; and
G. "program" means the law enforcement officer loan
repayment program, which provides money to repay undergraduate
education student loans and loans for law enforcement
training."
SECTION 3. A new section of Chapter 21 NMSA 1978 is
enacted to read:
"[NEW MATERIAL] POWERS AND DUTIES.--The department may:
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A. grant an award to repay loans obtained for
undergraduate education and law enforcement training obtained
by a law enforcement officer upon such terms and conditions as
may be imposed by rule of the department; and
B. delegate to other agencies or contract for the
performance of services required by the program."
SECTION 4. A new section of Chapter 21 NMSA 1978 is
enacted to read:
"[NEW MATERIAL] AWARDS--CRITERIA--CONTRACT TERMS.--
A. An applicant shall be a law enforcement officer
before applying for the program.
B. Prior to receiving an award, a law enforcement
officer shall file an application with the department that
meets the criteria established by rule of the department.
C. An award recipient shall certify on at least an
annual basis the recipient's continued employment as a law
enforcement officer by a New Mexico county or municipal law
enforcement agency.
D. The following debts are not eligible for
repayment pursuant to the Law Enforcement Officer Loan
Repayment Act:
(1) amounts incurred as a result of
participation in state loan-for-service programs or other state
programs whose purposes state that service be provided in
exchange for financial assistance;
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(2) scholarships that have a service component
or obligation;
(3) personal loans from friends or relatives;
(4) loans that exceed individual standard
school expense levels; and
(5) loans that are eligible for another state
or federal loan repayment program.
E. Award criteria shall provide that:
(1) the applicant has satisfactorily completed
at least three years of service as a law enforcement officer
for a New Mexico municipality or county;
(2) the percentage of repayment directly
relates to years of service completed as a law enforcement
officer;
(3) priority shall be given to law enforcement
officers who work in geographic areas where vacancies are
difficult to fill as determined by the department of public
safety;
(4) award amounts may be modified based on
available funding or other special circumstances; and
(5) an award for each law enforcement officer
shall not exceed twenty-five thousand dollars ($25,000) or the
loan indebtedness of the officer, whichever is less.
F. Every loan repayment award shall be evidenced by
a contract between the law enforcement officer and the
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department on behalf of the state. The contract shall provide
for the payment by the state of a stated sum to the law
enforcement officer's federal government lender, state
government lender or commercial lender and shall state the
obligations of the law enforcement officer under the program as
established by the department.
G. A contract between a law enforcement officer and
the department shall provide that if the law enforcement
officer does not comply with the terms of the contract, the law
enforcement officer shall reimburse the department for all loan
payments made on the law enforcement officer's behalf plus
reasonable interest at a rate to be determined by the
department unless the department finds acceptable extenuating
circumstances for why the law enforcement officer cannot serve
or comply with the terms of the contract.
H. Awards shall be in the form of payments from the
fund directly to the federal government lender, state
government lender or commercial lender for a law enforcement
officer who has received the award and shall be considered a
payment on behalf of the law enforcement officer pursuant to
the contract between the department and the law enforcement
officer. An award shall not obligate the state or the
department to a law enforcement officer's lender for any other
payment and shall not be considered to create any privity of
contract between the state or the department and the lender.
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I. The department shall adopt rules to implement
the provisions of the Law Enforcement Officer Loan Repayment
Act. The rules:
(1) shall provide a procedure for determining
the amount of the loan that will be repaid; and
(2) may provide for the disbursement of awards
to the lender in annual or other periodic installments."
SECTION 5. A new section of Chapter 21 NMSA 1978 is
enacted to read:
"[NEW MATERIAL] CONTRACTS--ENFORCEMENT--CANCELLATION.--
A. The general form of a contract required pursuant
to the Law Enforcement Officer Loan Repayment Act shall be
prepared and approved by the department's general counsel, and
each contract shall be signed by the law enforcement officer
and the secretary of higher education or the secretary's
authorized representative on behalf of the state. The
department is vested with full and complete authority and power
to sue in its own name for any balance due to the state from a
law enforcement officer under a loan repayment contract.
B. The department may cancel a contract made
between the department and a law enforcement officer pursuant
to the Law Enforcement Officer Loan Repayment Act for any
reasonable cause deemed sufficient by the department."
SECTION 6. A new section of Chapter 21 NMSA 1978 is
enacted to read:
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"[NEW MATERIAL] LAW ENFORCEMENT OFFICER LOAN REPAYMENT
FUND CREATED.--The "law enforcement officer loan repayment
fund" is created in the state treasury. The fund consists of
appropriations, repayment of awards and interest received by
the department, income from investment of the fund, gifts,
grants and donations. The fund shall be administered by the
department, and money in the fund is appropriated to the
department to make awards pursuant to the Law Enforcement
Officer Loan Repayment Act. Money in the fund at the end of a
fiscal year shall not revert to any other fund. All payments
for awards shall be made on warrants of the secretary of
finance and administration pursuant to vouchers signed by the
secretary of higher education or the secretary's authorized
representative."
SECTION 7. A new section of Chapter 21 NMSA 1978 is
enacted to read:
"[NEW MATERIAL] REPORTS.--The department shall submit
annual reports to the governor and the legislature prior to
each regular legislative session of the department's
activities, the awards granted and the job title and duties of
each loan recipient. The report shall also include any
contract cancellations and enforcement actions the department
has taken."
SECTION 8. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2025.
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