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