SENATE BILL 546
46th legislature - STATE OF NEW MEXICO - second session, 2004
INTRODUCED BY
Linda M. Lopez
AN ACT
RELATING TO TAXATION; PROVIDING TAX EXEMPTIONS FOR CERTAIN STIPENDS AND AWARDS PURSUANT TO THE HEALTH SERVICE CORPS ACT AND THE HEALTH PROFESSIONAL LOAN REPAYMENT ACT; AMENDING SECTIONS OF THE NMSA 1978; ENACTING SECTIONS OF THE INCOME TAX ACT AND THE GROSS RECEIPTS AND COMPENSATING TAX ACT; MAKING AN APPROPRIATION.
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--STIPENDS AND AWARDS RECEIVED FROM THE HEALTH SERVICE CORPS.--Stipends received from the New Mexico health service corps pursuant to the Health Service Corps Act and awards received pursuant to the Health Professional Loan Repayment Act are exempt from taxation."
Section 2. A new section of the Gross Receipts and Compensating Tax Act is enacted to read:
"[NEW MATERIAL] EXEMPTION--GROSS RECEIPTS--STIPENDS AND AWARDS.--Exempted from the gross receipts tax are the receipts of a health professional received as a stipend pursuant to the Health Service Corps Act and awards received pursuant to the Health Professional Loan Repayment Act."
Section 3. 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) designate health professional shortage areas and acute shortage areas of the state;
(2) designate those fields of specialization within the practice of medicine in which the state has 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 4. 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 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 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 5. 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 6. APPROPRIATION.--Five hundred thousand dollars ($500,000) is appropriated from the general fund to the health professional loan repayment fund for expenditure in fiscal year 2005 and subsequent fiscal years to make loans 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.
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