SENATE BILL 23

55th legislature - STATE OF NEW MEXICO - second session, 2022

INTRODUCED BY

Gerald Ortiz y Pino

FOR THE LEGISLATIVE HEALTH AND HUMAN SERVICES COMMITTEE

AN ACT

RELATING TO HEALTH; ENACTING THE RURAL PRIMARY CARE CLINICIAN LOAN REPAYMENT ACT; PROVIDING FOR A LOAN REPAYMENT PROGRAM TO ASSIST RURAL PRIMARY CARE ORGANIZATIONS TO RECRUIT AND RETAIN ELIGIBLE CLINICIANS; CREATING A FUND; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. [NEW MATERIAL] SHORT TITLE.--This act may be cited as the "Rural Primary Care Clinician Loan Repayment Act".

     SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the Rural Primary Care Clinician Loan Repayment Act:

          A. "award" means a written commitment from the department to an eligible organization agreeing to repay or reduce the loan of an eligible clinician hired by the eligible organization;

          B. "department" means the department of health;

          C. "eligible clinician" means:

                (1) a medical doctor;

                (2) an osteopathic physician;

                (3) a physician assistant;

                (4) a nurse practitioner;

                (5) a dentist;

                (6) a dental hygienist;

                (7) a dental therapist;

                (8) a psychologist;

                (9) an independent social worker;

                (10) a master social worker;

                (11) an art therapist;

                (12) a licensed professional mental health counselor;

                (13) a licensed clinical professional mental health counselor;

                (14) an alcohol and drug abuse counselor;

                (15) a substance abuse associate;

                (16) a marriage and family therapist; or

                (17) an associate marriage and family therapist;

          D. "eligible organization" means a nonprofit community-based or public entity whose primary purpose is to provide primary health care services for residents of health care underserved areas;

          E. "health care underserved area" means a geographic area, population or facility for which the department has determined, through the use of indices and other standards set by the department, that sufficient primary health care is not being provided to the residents of that area;

          F. "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 an eligible clinician, requiring repayment of principal and interest;

          G. "loan repayment program" means a program to provide a loan repayment award for eligible organizations to recruit, hire and retain eligible clinicians in accordance with the provisions of the Rural Primary Care Clinician Loan Repayment Act;

          H. "primary health care" means the first level of basic or general health care for an individual's health needs, including preventive diagnostic and medical treatment services; and

          I. "recipient" means an eligible clinician with a loan who is hired by an eligible organization and approved for loan repayment by the department.

     SECTION 3. [NEW MATERIAL] DEPARTMENT POWERS AND DUTIES--

PARTICIPANT ELIGIBILITY--QUALIFICATIONS.--

          A. The department may grant an award to an eligible organization to repay the loans of recipients, obtained for health educational expenses of a recipient upon such terms and conditions as may be imposed by rules of the department.

          B. The recipient shall be licensed or certified to practice in the state and provide primary care services within designated health care underserved areas of the state.

          C. The department shall be allowed up to three percent of expenditures in each fiscal year for administration of the loan repayment program.

     SECTION 4. [NEW MATERIAL] DELEGATION OF DUTIES.--The department may delegate to other agencies or contract for the performance of services required by the provisions of the Rural Primary Care Clinician Loan Repayment Act.

     SECTION 5. [NEW MATERIAL] AWARD CRITERIA--CONTRACT TERMS--PAYMENT.--

          A. An eligible organization seeking an award to be used to offer loan repayment to new eligible clinician recruits shall file an application with the department.

          B. The department shall establish award criteria, which criteria shall provide that:

                (1) amounts shall be dependent upon the type of clinician the eligible organization is seeking to recruit;

                (2) recruitment awards shall be made to eligible organizations operating licensed practices in approved health care underserved areas;

                (3) the eligible organization has demonstrated a need to recruit eligible clinicians;

                (4) the eligible organization has demonstrated the difficulty in filling clinician vacancies in the health care underserved area;

                (5) the eligible organization has demonstrated the need for financial assistance to recruit eligible clinicians;

                (6) award amounts may be modified based upon available funding or other special circumstances; and

                (7) an award shall not exceed the total health professional education indebtedness of any recipient.

     SECTION 6. [NEW MATERIAL] AWARDS.--

          A. The department shall make awards to eligible organizations.

          B. An eligible organization shall have nine months to recruit eligible clinicians after receiving notification of an award.

          C. The department shall make a full and careful investigation of the ability, character and qualifications of each eligible clinician to determine fitness to become a recipient in the loan repayment program.

          D. The following education debts are not eligible for repayment pursuant to the Rural Primary Care Clinician 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;

                (3) personal loans from friends or relatives;

                (4) loans that exceed individual standard school expense levels; or

                (5) loans that are being repaid or reduced through other loan repayment programs.

          E. The department shall enter into a loan repayment agreement, evidenced by a contract between the recipient 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 recipient's debtors and shall state the obligations of the recipient under the program, including a minimum two-year period of service, quarterly reporting requirements and other policies established by the department.

          F. Recipients shall serve a full quarter of service and shall request approval of that service upon submission of a report certifying completion of the service. The minimum credit for a quarter shall be established by the department.

          G. If a recipient does not comply with the terms of the contract, the department shall terminate the contract unless the department finds acceptable extenuating circumstances for why the recipient cannot serve or comply with the terms of the contract, in which case the department may temporarily suspend the contract.

          H. The department shall adopt rules to implement the provisions of this section. The rules may provide for the disbursement of loan repayment awards directly to the lenders of recipients in periodic installments.

     SECTION 7. [NEW MATERIAL] CONTRACTS--ENFORCEMENT.--The general form of the contract required shall be prepared and approved by the attorney general and signed by the recipient and the designated representative of the department on behalf of the state.

     SECTION 8. [NEW MATERIAL] FUND CREATED--DISTRIBUTIONS.--The "rural primary care clinician loan repayment fund" is created as a nonreverting fund in the state treasury. The fund is composed of appropriations, donations and money earned from investment of the fund and otherwise accruing to the fund. Money in the fund is appropriated to the department to provide a revenue stream to finance the activities of the Rural Primary Care Clinician Loan Repayment Act. All money appropriated for the loan repayment program shall be credited and deposited to the fund. All payments for awards shall be made upon vouchers signed by the designated representative of the department and upon warrant issued by the secretary of finance and administration. Balances remaining in the fund at the end of a fiscal year shall not revert.

     SECTION 9. [NEW MATERIAL] CANCELLATION.--The department may cancel any contract made between the department and any recipient for any reasonable cause deemed sufficient by the department.

     SECTION 10. [NEW MATERIAL] REPORTS.--The department shall make annual reports to the governor and to the legislature, prior to each regular session, of its activities, the awards granted, the names and addresses of recipients and the names and locations of the practices of those recipients who are serving in a designated health care underserved area of the state pursuant to the Rural Primary Care Clinician Loan Repayment Act.

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