HOUSE BILL 304
57th 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:
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:
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;
(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 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.
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:
"[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.