0001| SENATE BILL 1115 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| BEN D. ALTAMIRANO | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO EDUCATION; CHANGING THE STUDENT EXCHANGE PROGRAM OF | 0012| THE WESTERN INTERSTATE COMMISSION ON HIGHER EDUCATION FROM A | 0013| GRANT PROGRAM TO A LOAN FOR SERVICE PROGRAM; PROVIDING FOR | 0014| CONTRACTS; CREATING A FUND; MAKING AN APPROPRIATION. | 0015| | 0016| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0017| Section 1. SHORT TITLE.--This act may be cited as the | 0018| "WICHE Loan for Service Act". | 0019| Section 2. DEFINITIONS.--As used in the WICHE Loan for | 0020| Service Act: | 0021| A. "commission" means the commission on higher | 0022| education; and | 0023| B. "student" means a New Mexico resident who | 0024| attends or is about to attend a graduate or professional | 0025| program of education through the auspices of the Compact for | 0001| Western Regional Cooperation in Higher Education. | 0002| Section 3. STUDENT EXCHANGE PROGRAM--TERMS OF STUDENT | 0003| LOANS--PAYBACK REQUIREMENTS.-- | 0004| A. Financial assistance by the state for the | 0005| student exchange program of the western interstate commission | 0006| on higher education shall be through a loan program established | 0007| pursuant to this section. | 0008| B. A student may receive a loan of tuition | 0009| assistance on the following terms: | 0010| (1) the loan shall not exceed the amount | 0011| equivalent to the support provided through the compact per | 0012| discipline each year; and | 0013| (2) the loan shall bear interest at the rate | 0014| of: | 0015| (a) eighteen percent per year if the | 0016| student completes his education and no portion of the principal | 0017| and interest is forgiven pursuant to Subsection E of this | 0018| section; and | 0019| (b) seven percent per year in all other | 0020| cases. | 0021| C. The loan shall be evidenced by a contract | 0022| between the student and the commission acting on behalf of the | 0023| state. The contract shall provide for the payment by the state | 0024| of a stated sum covering the cost of tuition assistance and | 0025| shall be conditioned on the repayment of the loan to the state, | 0001| together with interest, over a period established by the | 0002| commission. The contract shall provide further that | 0003| immediately upon completion or termination of the student's | 0004| education, all interest then accrued shall be capitalized. | 0005| D. Loans made to a student who fails to complete | 0006| his education shall become due, together with interest, | 0007| immediately upon termination of his education. The commission | 0008| shall establish terms of repayment, alternate service or | 0009| cancellation terms. | 0010| E. The contract shall provide that the commission | 0011| shall forgive a portion of the loan principal and interest for | 0012| each year that a loan recipient practices his profession in New | 0013| Mexico. Loan principal and interest shall be forgiven as | 0014| follows: | 0015| (1) loan terms of one year shall require one | 0016| year of practice for each year of the loan. Upon completion of | 0017| service, one hundred percent of the principal plus accrued | 0018| interest shall be forgiven; | 0019| (2) loan terms of two years shall require one | 0020| year of practice for each year of the loan. Upon completion of | 0021| the first year of service, fifty percent of the principal plus | 0022| accrued interest shall be forgiven; upon completion of the | 0023| second year of service, the remainder of the principal plus | 0024| accrued interest shall be forgiven; | 0025| (3) for loan terms of three years or more, | 0001| forty percent of the principal plus accrued interest shall be | 0002| forgiven upon completion of the first year of service, thirty | 0003| percent of the principal plus accrued interest shall be | 0004| forgiven upon completion of the second year of service and the | 0005| remainder of the principal plus accrued interest shall be | 0006| forgiven upon completion of the third year of service; and | 0007| (4) the commission may establish other | 0008| forgiveness terms for professionals providing service in | 0009| serious shortage areas. | 0010| F. Loan recipients shall serve a complete year in | 0011| order to receive credit for that year. The minimum credit for | 0012| a year shall be established by the commission. | 0013| G. If a student completes his professional | 0014| education and does not return to New Mexico to practice his | 0015| profession, the commission shall assess a penalty of up to | 0016| three times the principal due, plus eighteen percent interest, | 0017| unless the commission finds acceptable extenuating | 0018| circumstances for why the student cannot serve. If the | 0019| commission does not find acceptable extenuating circumstances | 0020| for the student's failure to carry out his declared intent to | 0021| practice his profession in New Mexico, the commission shall | 0022| require immediate repayment of the unpaid principal amount of | 0023| the loan plus accrued interest owed the state plus the amount | 0024| of any penalty assessed pursuant to this subsection. | 0025| H. The commission may provide by regulation for the | 0001| repayment of student exchange program loans in annual or other | 0002| periodic installments. | 0003| Section 4. COMMISSION POWERS AND DUTIES--CONTRACTS.-- | 0004| A. The commission may: | 0005| (1) arrange with other agencies for the | 0006| performance of services required by the provisions of Section 3 | 0007| of the WICHE Loan for Service Act; | 0008| (2) sue in its own name for any balance due | 0009| the state from a student on a contract; | 0010| (3) cancel a contract made between it and a | 0011| student for a reasonable cause deemed sufficient by the | 0012| commission; and | 0013| (4) adopt regulations to implement the | 0014| provisions of the WICHE Loan for Service Act. | 0015| B. The commission shall make an annual report to | 0016| the governor and the legislature prior to the regular session | 0017| of its activities pursuant to the WICHE Loan for Service Act, | 0018| including loans granted and paid back or fulfilled through the | 0019| practice of a profession in New Mexico; a list of the schools | 0020| or colleges attended by those receiving loans; and any other | 0021| information the commission deems pertinent. | 0022| C. The general form of the contract provided for in | 0023| Section 3 of the WICHE Loan for Service Act shall be prepared | 0024| and approved by the attorney general and signed by the student | 0025| and a designee of the commission on behalf of the state. | 0001| Section 5. FUND CREATED--METHOD OF PAYMENT.--The "WICHE | 0002| loan for service fund" is created in the state treasury. All | 0003| money appropriated for loans to students participating in the | 0004| student exchange program of the western interstate commission | 0005| on higher education shall be credited to the fund. All | 0006| payments of principal and interest on loans made pursuant to | 0007| the WICHE Loan for Service Act shall be credited to the fund. | 0008| All payments of money for loans shall be made upon vouchers | 0009| signed by the designated representative of the commission and | 0010| warrants drawn by the secretary of finance and administration. | 0011|  | 0012| | 0013| | 0014| FORTY-THIRD LEGISLATURE SB 1115/a | 0015| FIRST SESSION, 1997 | 0016| | 0017| | 0018| March 10, 1997 | 0019| | 0020| Mr. President: | 0021| | 0022| Your FINANCE COMMITTEE, to whom has been referred | 0023| | 0024| SENATE BILL 1115 | 0025| | 0001| has had it under consideration and reports same with | 0002| recommendation that it DO PASS, amended as follows: | 0003| | 0004| 1. On page 1, line 23, after "resident" insert "who is | 0005| a graduate of a New Mexico high school and". | 0006| | 0007| 2. On page 2, line 10, strike the second occurrence of | 0008| "the" and insert in lieu thereof "an". | 0009| | 0010| 3. On page 2, line 11, before "support" insert | 0011| "negotiated". | 0012| | 0013| 4. On page 2, line 11, after "support" strike the | 0014| remainder of the line, strike line 12 up to the semicolon and | 0015| insert in lieu thereof "fee for the graduate or professional | 0016| program". | 0017| | 0018| 5. On page 6, between lines 10 and 11, insert the | 0019| following sections: | 0020| | 0021| "Section 6. CANCELLATION.--The commission may cancel a | 0022| contract with a student for reasonable cause deemed sufficient by | 0023| the commission. | 0024| | 0025| Section 7. EFFECTIVE DATE.--The effective date of the | 0001| provisions of this act is July 1, 1997.". | 0002| | 0003| | 0004| | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| | 0012| | 0013| | 0014| | 0015| | 0016| | 0017| | 0018| | 0019| Respectfully submitted, | 0020| | 0021| | 0022| | 0023| | 0024| __________________________________ | 0025| Ben D. Altamirano, Chairman | 0001| | 0002| | 0003| | 0004| Adopted_______________________ Not | 0005| Adopted_______________________ | 0006| (Chief Clerk) (Chief Clerk) | 0007| | 0008| | 0009| Date ________________________ | 0010| | 0011| | 0012| The roll call vote was 7 For 1 Against | 0013| Yes: 7 | 0014| No: McKibben | 0015| Excused: Ingle, Lyons, Romero | 0016| Absent: None | 0017| | 0018| | 0019| S1115FC1 .118518.1 | 0020| | 0021| State of New Mexico | 0022| House of Representatives | 0023| | 0024| FORTY-THIRD LEGISLATURE | 0025| FIRST SESSION, 1997 | 0001| | 0002| | 0003| March 16, 1997 | 0004| | 0005| | 0006| Mr. Speaker: | 0007| | 0008| Your APPROPRIATIONS AND FINANCE COMMITTEE, to | 0009| whom has been referred | 0010| | 0011| SENATE BILL 1115, as amended | 0012| | 0013| has had it under consideration and reports same with | 0014| recommendation that it DO PASS, amended as follows: | 0015| | 0016| 1. On page 1, line 14, strike "AN APPROPRIATION" and insert | 0017| in lieu thereof "APPROPRIATIONS". | 0018| | 0019| 2. On page 6, between lines 10 and 11, insert the following | 0020| new section: | 0021| | 0022| "Section 6. APPROPRIATION.--Four hundred thousand dollars | 0023| ($400,000) is appropriated from the general fund to the board of | 0024| regents of the university of New Mexico for expenditure in fiscal | 0025| year 1998 to supplement funding of the student exchange program | 0001| of the western interstate commission on higher education.". | 0002| | 0003| Respectfully submitted, | 0004| | 0005| | 0006| | 0007| | 0008| Max Coll, Chairman | 0009| | 0010| | 0011| Adopted Not Adopted | 0012| | 0013| (Chief Clerk) (Chief Clerk) | 0014| | 0015| Date | 0016| | 0017| The roll call vote was 12 For 1 Against | 0018| Yes: 12 | 0019| No: Bird | 0020| Excused: Marquardt, Saavedra, Taylor,J.P., Watchman | 0021| Absent: None | 0022| | 0023| | 0024| | 0025| G:\BILLTEXT\BILLW_97\S1115 State of New Mexico | 0001| House of Representatives | 0002| | 0003| FORTY-THIRD LEGISLATURE | 0004| FIRST SESSION, 1997 | 0005| | 0006| | 0007| March 17, 1997 | 0008| | 0009| | 0010| Mr. Speaker: | 0011| | 0012| Your EDUCATION COMMITTEE, to whom has been referred | 0013| | 0014| SENATE BILL 1115, as amended | 0015| | 0016| has had it under consideration and reports same with | 0017| recommendation that it DO PASS, amended as follows: | 0018| | 0019| 1. On page 6, line 11, insert "For the 1997-98 fiscal year, | 0020| $70,000 is appropriated from the nursing-loan-for-service fund to | 0021| the commission on higher education from collections generated in | 0022| excess of the amount received and budgeted for the 1997-98 fiscal | 0023| year. This appropriation shall be used to support the operation | 0024| and administration of the program, including paying support fees | 0025| for students currently enrolled in the WICHE program. | 0001| | 0002| Section 6. APPLICABILITY.--The WICHE Loan for Service Act | 0003| applies to contracts entered into with students on or after the | 0004| effective date of that act."., | 0005| | 0006| and thence referred to the APPROPRIATIONS AND FINANCE | 0007| COMMITTEE. | 0008| | 0009| Respectfully submitted, | 0010| | 0011| | 0012| | 0013| | 0014| Samuel F. Vigil, Chairman | 0015| | 0016| | 0017| Adopted Not Adopted | 0018| | 0019| (Chief Clerk) (Chief Clerk) | 0020| | 0021| Date | 0022| | 0023| The roll call vote was 9 For 0 Against | 0024| Yes: 9 | 0025| Excused: Miera, Nicely, Trujillo, S.M. Williams | 0001| Absent: None | 0002| | 0003| | 0004| .118854.1 | 0005| G:\BILLTEXT\BILLW_97\S1115 State of New Mexico | 0006| House of Representatives | 0007| | 0008| FORTY-THIRD LEGISLATURE | 0009| FIRST SESSION, 1997 | 0010| | 0011| | 0012| March 17, 1997 | 0013| | 0014| | 0015| Mr. Speaker: | 0016| | 0017| Your APPROPRIATIONS AND FINANCE COMMITTEE, to | 0018| whom has been referred | 0019| | 0020| SENATE BILL 1115, as amended | 0021| | 0022| has had it under consideration and reports same with | 0023| recommendation that it DO PASS, amended as follows: | 0024| | 0025| 1. On page 1, line 14, strike "AN APPROPRIATION" and insert | 0001| in lieu thereof "APPROPRIATIONS". | 0002| | 0003| 2. On page 6, between lines 10 and 11, insert the following | 0004| new section: | 0005| | 0006| "Section 6. APPROPRIATION.--Four hundred thousand dollars | 0007| ($400,000) is appropriated from the general fund to the board of | 0008| regents of the university of New Mexico for expenditure in fiscal | 0009| year 1998 to supplement funding of the student exchange program | 0010| of the western interstate commission on higher education.". | 0011| | 0012| Respectfully submitted, | 0013| | 0014| | 0015| | 0016| | 0017| Max Coll, Chairman | 0018| | 0019| | 0020| Adopted Not Adopted | 0021| | 0022| (Chief Clerk) (Chief Clerk) | 0023| | 0024| Date | 0025| | 0001| The roll call vote was 12 For 1 Against | 0002| Yes: 12 | 0003| No: Bird | 0004| Excused: Marquardt, Saavedra, Taylor,J.P., Watchman | 0005| Absent: None | 0006| | 0007| | 0008| | 0009| G:\BILLTEXT\BILLW_97\S1115 |