0001| HOUSE BILL 494 | 0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998 | 0003| INTRODUCED BY | 0004| GAIL C. BEAM | 0005| | 0006| | 0007| | 0008| FOR THE HEALTH AND WELFARE REFORM COMMITTEE | 0009| | 0010| AN ACT | 0011| RELATING TO HEALTH; CREATING A SINGLE HEALTH PROFESSIONAL AND | 0012| STUDENT LOAN AND REPAYMENT ACT; PROVIDING OPPORTUNITIES TO | 0013| REPAY EDUCATIONAL LOANS THROUGH SERVICE IN DESIGNATED AREAS | 0014| INADEQUATELY SERVED BY HEALTH PROFESSIONALS; PROVIDING | 0015| PENALTIES; RENAMING A FUND; AMENDING AND REPEALING SECTIONS OF | 0016| THE NMSA 1978. | 0017| | 0018| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0019| Section 1. Section 21-22D-1 NMSA 1978 (being Laws 1995, | 0020| Chapter 144, Section 16) is amended to read: | 0021| "21-22D-1. SHORT TITLE.--~[Sections 16 through 25 of | 0022| this act]~ |Chapter 21, Article 22D NMSA 1978| may be cited as | 0023| the "Health Professional |and Student| Loan |and| Repayment | 0024| Act"." | 0025| Section 2. Section 21-22D-2 NMSA 1978 (being Laws 1995, | - 1 - 0001| Chapter 144, Section 17) is amended to read: | 0002| "21-22D-2. PURPOSE.--The purpose of the Health | 0003| Professional |and Student| Loan |and| Repayment Act is to | 0004| increase the number of health professionals in underserved | 0005| areas of the state through an educational |loan and| loan | 0006| repayment program. The act provides for repayment of the | 0007| principal and reasonable interest accrued on loans obtained | 0008| from the federal government or a commercial lender for health | 0009| education purposes." | 0010| Section 3. Section 21-22D-3 NMSA 1978 (being Laws 1995, | 0011| Chapter 144, Section 18) is amended to read: | 0012| "21-22D-3. DEFINITIONS.--As used in the Health | 0013| Professional |and Student| Loan |and| Repayment Act: | 0014| |A. "allied health profession" means physical | 0015| therapy, occupational therapy, speech-language pathology, | 0016| audiology, pharmacology, nutrition, respiratory care, | 0017| laboratory technology, radiologic technology, mental health | 0018| services, emergency medical services or a licensed or | 0019| certified health profession as defined by the commission;| | 0020| ~[A.]~ |B.| "commission" means the commission on | 0021| higher education; | 0022| ~[B.]~ |C.| "health professional" means a primary | 0023| care physician, optometrist, |osteopathic physician, | 0024| osteopathic physician's assistant|, podiatrist, physician's | 0025| assistant, dentist, nurse, member of an allied health | - 2 - 0001| profession ~[as defined in the Allied Health Student Loan for | 0002| Service Act]~ or a licensed or certified health professional | 0003| as determined by the commission; ~[and | 0004| C.]~ |D.| "loan" means a grant of money to defray | 0005| the costs incidental to a health education, under a contract | 0006| between |the state, the| federal government or a commercial | 0007| lender and a |student or a| health professional, requiring | 0008| either repayment of principal and interest or repayment in | 0009| services; |and| | 0010| |E. "student" means a resident of New Mexico who | 0011| is a student enrolled in a school of medicine, nursing | 0012| education program, school of osteopathic medicine or | 0013| osteopathic physician's assistant program or an accredited | 0014| education program for one of the allied health professions set | 0015| forth in Subsection A of this section, provided the program or | 0016| school is approved by the commission|." | 0017| Section 4. Section 21-22D-4 NMSA 1978 (being Laws 1995, | 0018| Chapter 144, Section 19) is amended to read: | 0019| "21-22D-4. COMMISSION POWERS AND DUTIES--PARTICIPANT | 0020| ELIGIBILITY--QUALIFICATIONS.-- | 0021| A. The commission may grant |a loan or| an award | 0022| to repay loans obtained for health ~[educational]~ |education| | 0023| expenses of a |student or| health professional upon such terms | 0024| and conditions as may be imposed by regulations of the | 0025| commission. | - 3 - 0001| B. Applicants shall be |students or| licensed or | 0002| certified to practice in New Mexico as health professionals | 0003| and shall be bona fide citizens and residents of the United | 0004| States and of New Mexico. Applicants shall declare their | 0005| intent to practice as health professionals within designated | 0006| health professional shortage areas of the state. | 0007| C. The commission shall make a full and careful | 0008| investigation of the ability, character and qualifications of | 0009| each applicant and determine fitness to become a health | 0010| professional in the health professional |loan and| loan | 0011| repayment program. | 0012| D. The commission shall assist selected health | 0013| professionals in locating practice positions in designated | 0014| health professional shortage areas." | 0015| Section 5. Section 21-22D-5 NMSA 1978 (being Laws 1995, | 0016| Chapter 144, Section 20) is amended to read: | 0017| "21-22D-5. DELEGATION OF DUTIES.--The commission may | 0018| delegate to other agencies or contract for the performance of | 0019| services required by the provisions of the Health Professional | 0020| |and Student| Loan |and| Repayment Act." | 0021| Section 6. Section 21-22D-6 NMSA 1978 (being Laws 1995, | 0022| Chapter 144, Section 21) is amended to read: | 0023| "21-22D-6. AWARD CRITERIA--CONTRACT TERMS--PAYMENT.-- | 0024| A. Prior to receiving an award |or loan|, the | 0025| health professional |or student applicant| shall file with the | - 4 - 0001| commission a declaration of intent to practice as a health | 0002| professional in areas of New Mexico designated as underserved | 0003| by the health profession advisory committee. | 0004| B. Award criteria shall provide that: | 0005| (1) amounts shall be dependent upon the | 0006| location of the practice, the applicant's total health | 0007| professional ~[educational]~ |education needs or| indebtedness | 0008| and characteristics of the practice; | 0009| (2) preference in making awards shall be to | 0010| individuals who have graduated from a New Mexico public post- | 0011| secondary educational institution; | 0012| (3) recruitment awards shall be made to | 0013| eligible participants who agree to relocate to an approved | 0014| designated area; | 0015| (4) highest priority shall be given to | 0016| ~[participants]~ |applicants| in practices in which health | 0017| profession vacancies are difficult to fill, practices that | 0018| require |regular| after hours ~[call at least every other | 0019| night]~ |calls| and practices that have heavy obstetrical | 0020| responsibilities; | 0021| (5) award |or loan| amounts may be modified | 0022| based upon available funding or other special circumstances; | 0023| and | 0024| (6) an award shall not exceed the total | 0025| medical ~[educational]~ |education| indebtedness of any | - 5 - 0001| participant. | 0002| C. The following ~[educational]~ |education| debts | 0003| are not eligible for repayment pursuant to the Health | 0004| Professional |and Student| Loan |and| Repayment Act: | 0005| (1) amounts incurred as a result of | 0006| participation in |other| state loan-for-service programs or | 0007| other state programs whose purpose states that service be | 0008| provided in exchange for financial assistance; | 0009| (2) scholarships that have a service | 0010| component or obligation; | 0011| (3) personal loans from friends or relatives; | 0012| and | 0013| (4) loans that exceed individual standard | 0014| school expense levels. | 0015| D. The |loan or| loan repayment award shall be | 0016| evidenced by a contract between the |student or| health | 0017| professional and the commission acting on behalf of the state. | 0018| The contract shall provide for the payment by the state of a | 0019| stated sum to the health professional's debtors and shall | 0020| state the obligations of the |student or| health professional | 0021| under the program, including a minimum two-year period of | 0022| service, quarterly reporting requirements and other policies | 0023| established by the commission. | 0024| E. Recipients shall serve a complete year in order | 0025| to receive credit for that year. The minimum credit for a | - 6 - 0001| year shall be established by the commission. | 0002| F. If a |student or| health professional does not | 0003| comply with the terms of the contract, the commission shall | 0004| assess a penalty of ~[up to]~ three times the amount of award | 0005| disbursed plus eighteen percent interest, unless the | 0006| commission finds acceptable extenuating circumstances for why | 0007| the health professional cannot serve or comply with the terms | 0008| of the contract. |Acceptable extenuating circumstances do not | 0009| include the student's or health professional's preference not | 0010| to practice or continue practicing in the designated health | 0011| professional shortage area or his opportunity or desire to | 0012| practice in the employ, partnership or association of a person | 0013| willing to pay back his health professional education | 0014| indebtedness.| If the commission does not find acceptable | 0015| extenuating circumstances for the health professional's | 0016| failure to comply with the contract, the commission shall | 0017| require immediate repayment plus the amount of the penalty. | 0018| G. The commission shall adopt regulations to | 0019| implement the provisions of this section. The regulations may | 0020| provide for the disbursement of loan repayment awards to the | 0021| lenders of health professionals in annual or other periodic | 0022| installments." | 0023| Section 7. Section 21-22D-7 NMSA 1978 (being Laws 1995, | 0024| Chapter 144, Section 22) is amended to read: | 0025| "21-22D-7. CONTRACTS--ENFORCEMENT.--The general form of | - 7 - 0001| the contract required shall be prepared and approved by the | 0002| attorney general and signed by the |student or| health | 0003| professional and the designated representative of the | 0004| commission on behalf of the state. The commission is vested | 0005| with full and complete authority and power to sue in its own | 0006| name for any balance due the state from any student |or health | 0007| professional| on any such contract." | 0008| Section 8. Section 21-22D-8 NMSA 1978 (being Laws 1995, | 0009| Chapter 144, Section 23) is amended to read: | 0010| "21-22D-8. FUND CREATED--METHOD OF PAYMENT.--The "health | 0011| professional |and student| loan |and| repayment fund" is | 0012| created in the state treasury. All money appropriated for the | 0013| health professional |and student| loan |and| repayment program | 0014| shall be credited to the fund, and all payments for penalties | 0015| or repayment of awards received by the commission shall be | 0016| credited to the fund or shall be deposited with the | 0017| commission's administrative agent. All payments for |loans | 0018| and| loan repayment awards shall be made upon vouchers signed | 0019| by the designated representative of the commission and upon | 0020| warrant issued by the secretary of finance and | 0021| administration." | 0022| Section 9. Section 21-22D-9 NMSA 1978 (being Laws 1995, | 0023| Chapter 144, Section 24) is amended to read: | 0024| "21-22D-9. CANCELLATION.--The commission may cancel any | 0025| contract made between it and any health professional |or | - 8 - 0001| student| for any reasonable cause deemed sufficient by the | 0002| commission." | 0003| Section 10. Section 21-22D-10 NMSA 1978 (being Laws | 0004| 1995, Chapter 144, Section 25) is amended to read: | 0005| "21-22D-10. REPORTS.--The commission shall make annual | 0006| reports to the governor and to the legislature, prior to each | 0007| regular session, of its activities, the |loans and| loan | 0008| repayment awards granted, the names and addresses of |loan | 0009| and| loan repayment award recipients, the names and locations | 0010| of the practices of those health professionals who are serving | 0011| in a designated health professional shortage area of the state | 0012| pursuant to the Health Professional |and Student| Loan |and| | 0013| Repayment Act and the name of each loan |student and loan| | 0014| repayment award recipient who is not serving in a designated | 0015| health professional shortage area, the reason the person is | 0016| not serving and the amount owed and paid on the loan and loan | 0017| repayment award." | 0018| Section 11. FUNDS TRANSFERS.--On July 1, 1998, all | 0019| balances in and funds due and accrued to the medical student | 0020| loan for service fund, osteopathic medical student loan for | 0021| service fund, nursing student loan for service fund and allied | 0022| health student loan for service fund are transferred to the | 0023| health professional and student loan and repayment fund | 0024| created in Section 21-22D-8 NMSA 1978 to be expended for the | 0025| purposes of the Health Professional and Student Loan and | - 9 - 0001| Repayment Act. | 0002| Section 12. REPEAL.--Sections 21-22-1 through 21-22-10, | 0003| 21-22A-1 through 21-22A-10, 21-22B-1 through 21-22B-10 and | 0004| 21-22C-1 through 21-22C-10 NMSA 1978 (being Laws 1975, Chapter | 0005| 244, Sections 1 through 10, Laws 1978, Chapter 109, Sections 1 | 0006| through 10, Laws 1987, Chapter 299, Sections 1 through 10 and | 0007| Laws 1994, Chapter 57, Sections 3 through 12, as amended) are | 0008| repealed. | 0009| Section 13. EFFECTIVE DATE.--The effective date of the | 0010| provisions of this act is July 1, 1998. | 0011|  |