HOUSE BILL 375

57th legislature - STATE OF NEW MEXICO - first session, 2025

INTRODUCED BY

Joanne J. Ferrary and Eleanor Chávez and Jenifer Jones

and Linda M. López and Kathleen Cates

AN ACT

RELATING TO HIGHER EDUCATION; ENACTING THE GRADUATE BEHAVIORAL HEALTH SCHOLARSHIP ACT TO PROVIDE DEBT-FREE EDUCATION TO ELIGIBLE GRADUATE STUDENTS WHO ARE STUDYING TO BECOME BEHAVIORAL HEALTH PROFESSIONALS; REQUIRING THE HIGHER EDUCATION DEPARTMENT TO ADMINISTER THE GRADUATE BEHAVIORAL HEALTH SCHOLARSHIP PROGRAM; 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 "Graduate Behavioral Health Scholarship Act".

     SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the Graduate Behavioral Health Scholarship Act:

          A. "academic year" means any consecutive period of two semesters, three quarters or other comparable units commencing with the fall term each year;

          B. "department" means the higher education department;

          C. "eligible institution" means any graduate-degree-granting institution of higher education that is enumerated in Article 12, Section 11 of the constitution of New Mexico;

          D. "eligible student" means a person enrolled in a graduate behavioral health degree program at an eligible institution who:

                (1) has not earned a master's or doctoral degree from a graduate behavioral health degree program at the time the scholarship is awarded;

                (2) remains in good academic standing as determined by the eligible institution where the eligible student is enrolled;

                (3) is enrolled as a full-time graduate student as determined by the eligible institution where the eligible student is enrolled; and

                (4) has complied with other rules promulgated by the department to carry out the provisions of the Graduate Behavioral Health Scholarship Act;

          E. "graduate behavioral health degree program" means a program of study intended to result in a master's or higher degree or certification in the field of:

                (1) counseling;

                (2) psychiatric nursing;

                (3) nurse practitioner or physician assistant in addiction medicine;

                (4) psychology; or

                (5) social work; and

          F. "scholarship" means the graduate behavioral health scholarship.

     SECTION 3. [NEW MATERIAL] GRADUATE BEHAVIORAL HEALTH SCHOLARSHIP FUND CREATED.--The "graduate behavioral health scholarship fund" is created as a nonreverting fund in the state treasury, consisting of income from investment of the fund and any specified distributions, appropriations, gifts, grants and donations to the fund. The fund shall be administered by the higher education department, and money in the fund is appropriated to the higher education department for the purposes of providing scholarships pursuant to the Graduate Behavioral Health Scholarship Act. Expenditures from the fund shall be by warrant of the secretary of finance and administration pursuant to vouchers signed by the secretary of higher education or the secretary's authorized representative.

     SECTION 4. [NEW MATERIAL] SCHOLARSHIP CREATED--ADMINISTRATION.--

          A. Scholarships shall be awarded to eligible students in an amount not to exceed one hundred percent of the costs of tuition, school fees, books, licensing application fees and initial licensing fees after all other state financial aid has been applied.

          B. The department shall administer the Graduate Behavioral Health Scholarship Act and shall promulgate rules to carry out the provisions of that act.

          C. An eligible student may only be awarded a scholarship for one graduate behavioral health degree program.

          D. Prior to June 1 of each year, based on the amount appropriated by the legislature from the graduate behavioral health scholarship fund and on the projected enrollment of eligible students at eligible institutions, the department shall:

                (1) determine the total amount of money available for scholarships; and

                (2) distribute to each eligible institution an amount based on the projected enrollment in graduate behavioral health degree programs at each eligible institution; provided that the amount shall not exceed the remaining balance of the graduate behavioral health scholarship fund.

          E. Prior to receiving a scholarship, an eligible student shall commit to practice in New Mexico for as many years as the eligible student receives a scholarship. The commitment shall be evidenced by a contract between the eligible student and the department.

          F. If an eligible student graduates from a graduate behavioral health degree program and fails to fulfill the contractual commitment to practice in New Mexico, the department shall assess a penalty of up to three times the amount of the value of the scholarship awarded to the student, unless the department finds acceptable extenuating circumstances for why the eligible student cannot fulfill the commitment.

     SECTION 5. [NEW MATERIAL] DURATION OF SCHOLARSHIP.--

          A. Each scholarship is for a period of one academic year.

          B. Scholarships may be provided to an eligible student until the eligible student completes a graduate behavioral health degree program.

     SECTION 6. [NEW MATERIAL] TERMINATION OF SCHOLARSHIP.--A scholarship is terminated upon the occurrence of:

          A. withdrawal of the eligible student from the eligible institution;

          B. failure of the eligible student to achieve satisfactory academic progress set by the eligible institution where the eligible student is enrolled; or

          C. substantial noncompliance by the eligible student with the Graduate Behavioral Health Scholarship Act or the rules promulgated pursuant to that act.

     SECTION 7. [NEW MATERIAL] DEPARTMENT RULEMAKING AND REPORTING.--

          A. The department shall promulgate rules setting forth explicit criteria in accordance with the Graduate Behavioral Health Scholarship Act for:

                (1) student eligibility; and

                (2) calculating the total amount of money necessary to pay for scholarships at each eligible institution.

          B. The department shall report by November 1 of each year to the legislative finance committee, the legislative health and human services committee and the department of finance and administration on the:

                (1) status of the graduate behavioral health scholarship fund; and

                (2) aggregated data for each eligible institution that shows the:

                     (a) number of eligible students who received scholarships in the prior academic year;

                     (b) total number of students enrolled in graduate behavioral health degree programs in the prior academic year; and

                     (c) number of eligible students who graduated with a degree from a graduate behavioral health degree program in the prior academic year.

     SECTION 8. APPROPRIATION.--

          A. Ten million dollars ($10,000,000) is appropriated from the general fund to the graduate behavioral health scholarship fund for expenditure in fiscal year 2026 and subsequent fiscal years to:

                (1) provide scholarships to eligible students; and

                (2) provide the higher education department with up to one hundred fifty thousand dollars ($150,000) to administer the fund and make reports required by the Graduate Behavioral Health Scholarship Act.

          B. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.

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