SENATE BILL 823
47th legislature - STATE OF NEW MEXICO - first session, 2005
INTRODUCED BY
Linda M. Lopez
FOR THE LEGISLATIVE HEALTH AND HUMAN SERVICES COMMITTEE
AN ACT
RELATING TO TAXATION; PROVIDING AN EXEMPTION IN THE INCOME TAX ACT FOR CERTAIN NURSES AND PHYSICIANS SERVING IN ACUTE SHORTAGE AND MEDICALLY UNDERSERVED AREAS; AMENDING AND ENACTING SECTIONS OF THE NMSA 1978; MAKING APPROPRIATIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. A new section of the Income Tax Act is enacted to read:
"[NEW MATERIAL] EXEMPTION--INCOME FOR CERTAIN HEALTH CARE PROVIDERS.--Stipend income received by a nurse or a physician, licensed in New Mexico, from the New Mexico health service corps pursuant to the Health Service Corps Act and income and awards received pursuant to the Health Professional Loan Repayment Act are exempt from state income tax."
Section 2. Section 21-1-26.8 NMSA 1978 (being Laws 1995, Chapter 144, Section 1) is amended to read:
"21-1-26.8. HEALTH PROFESSION ADVISORY COMMITTEE--CREATED--DUTIES.--
A. The "health profession advisory committee" is created to advise the commission on higher education on matters relating to the administration of student loan programs for health professionals. [The health profession advisory committee replaces the medical shortage area committee.]
B. The health profession advisory committee shall be composed of a representative of the department of health; a representative of the New Mexico health policy commission; and representatives of public post-secondary health and medical training programs, underserved health and medical area providers, recruiting and placement organizations and professional health and medical associations. Members shall be appointed by the commission on higher education pursuant to the policies and procedures of the commission.
C. The health profession advisory committee shall:
(1) define and designate health professional shortage areas of the state, including acute shortage areas;
(2) designate those fields of specialization within nursing and the practice of medicine in which the state is experiencing an acute shortage;
[(2)] (3) make recommendations to the commission on higher education on applicants for medical, osteopathic, nursing and allied health loan for service programs and loan repayment programs; and
[(3)] (4) give advice or other assistance to the commission as requested."
Section 3. Section 21-22D-3 NMSA 1978 (being Laws 1995, Chapter 144, Section 18) is amended to read:
"21-22D-3. DEFINITIONS.--As used in the Health Professional Loan Repayment Act:
A. "commission" means the commission on higher education;
B. "health professional" means a [primary care] physician, optometrist, podiatrist, [physician's] physician 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 commission; and
C. "loan" means a grant of money to defray the costs incidental to a health professional 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."
Section 4. Section 21-22D-4 NMSA 1978 (being Laws 1995, Chapter 144, Section 19) is amended to read:
"21-22D-4. COMMISSION POWERS AND DUTIES--PARTICIPANT ELIGIBILITY--QUALIFICATIONS.--
A. The commission may grant an award to repay loans obtained for health [educational] education expenses of a health professional upon such terms and conditions as may be imposed by regulations of the commission.
B. Applicants shall be licensed or certified to practice in New Mexico as health professionals and shall be bona fide citizens and residents of the United States and of New Mexico. Applicants shall declare their intent to practice as health professionals within designated health professional shortage areas and acute shortage areas of the state.
C. The commission shall make a full and careful investigation of the ability, character and qualifications of each applicant and determine fitness to become a health professional in the health professional loan repayment program.
D. The commission shall assist selected health professionals in locating practice positions in designated health professional shortage areas and acute shortage areas."
Section 5. APPROPRIATIONS.--
A. Five hundred thousand dollars ($500,000) is appropriated from the general fund to the health professional loan repayment fund for expenditure in fiscal year 2006 and subsequent fiscal years for the purpose of making loans to students pursuing medical specialties that are needed in acute shortage and medically underserved areas pursuant to the Health Professional Loan Repayment Act. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.
B. Seven hundred fifty thousand dollars ($750,000) is appropriated from the general fund to the department of health for expenditure in fiscal year 2006 to contract for expanded recruitment of physicians, dentists, physician assistants, nurse practitioners, certified nurse midwives, nurses and clinical nurse specialists for employment statewide, including employment in state agencies. Any unexpended or unencumbered balance remaining at the end of fiscal year 2006 shall revert to the general fund.
Section 6. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2005.
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