0001|                            HOUSE BILL 295
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0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003|                            INTRODUCED BY
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0004|                             GAIL C. BEAM
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0005|     
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0006|                                   
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0007|     
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0008|             FOR THE HEALTH AND WELFARE REFORM COMMITTEE
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0009|     
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0010|                                AN ACT
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0011|     RELATING TO HEALTH; INCREASING THE PENALTY FOR A HEALTH
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0012|     PROFESSIONAL'S FAILURE TO COMPLY WITH CERTAIN LOAN SERVICE
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0013|     CONTRACTS.
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0014|     
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0015|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016|          Section 1.  Section 21-22-6 NMSA 1978 (being Laws 1975,
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0017|     Chapter 244, Section 6, as amended) is amended to read:
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0018|          "21-22-6.  MEDICAL STUDENT LOANS--CONTRACT TERMS--
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0019|     REPAYMENT.--
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0020|               A.  Each applicant who is approved for a loan by
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0021|     the commission may be granted a loan, in such amounts and for
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0022|     such periods as determined by the commission, with which to
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0023|     defray expenses incurred in obtaining a medical education at
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0024|     any reputable and accredited medical school in the United
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0025|     States if the applicant files with the commission a
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<center>- 1 -</center>

0001|     declaration of his intent to practice his profession as a
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0002|     licensed physician or physician assistant in areas of New
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0003|     Mexico designated as not being adequately served by medical
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0004|     practitioners.
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0005|               B.  The loans shall not exceed the necessary
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0006|     expenses incurred while attending a medical school or college
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0007|     and shall bear interest at the rate of:
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0008|                    (1)  eighteen percent per year if the student
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0009|     completes his medical education and no portion of the
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0010|     principal and interest is forgiven pursuant to Subsection E of
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0011|     this section; and
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0012|                    (2)  seven percent per year in all other
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0013|     cases. 
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0014|               C.  The loan shall be evidenced by a contract
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0015|     between the student and the commission acting on behalf of the
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0016|     state.  The contract shall provide for the payment by the
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0017|     state of a stated sum covering the costs of a medical
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0018|     education and shall be conditioned upon the repayment of the
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0019|     loan to the state, together with interest, over a period
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0020|     established by the commission in consultation with the student
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0021|     after completion of medical school and any period of
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0022|     internship or residency required to complete the student's
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0023|     education.  The contract shall further provide that
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0024|     immediately upon completion or termination of the student's
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0025|     medical education, all interest then accrued shall be
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<center>- 2 -</center>

0001|     capitalized.
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0002|               D.  Loans made to students who fail to complete
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0003|     their medical education shall become due, together with
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0004|     interest, immediately upon termination of their medical
    |
0005|     education.  The commission, in consultation with the student,
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0006|     shall establish terms of repayment, alternate service or
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0007|     cancellation terms.
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0008|               E.  The contract shall provide that the commission
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0009|     shall forgive a portion of the loan principal and interest for
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0010|     each year that a loan recipient practices his profession as a
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0011|     licensed physician or physician assistant in areas approved by
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0012|     the health profession advisory committee as not being
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0013|     adequately served by medical practitioners.  Loan principal
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0014|     and interest shall be forgiven as follows:
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0015|                    (1)  loan terms of one year shall require one
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0016|     year of practice in a designated health professional shortage
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0017|     area.  Upon completion of service, one hundred percent of the
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0018|     principal plus accrued 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 in a designated health professional shortage
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0021|     area for each year of the loan.  Upon completion of the first
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0022|     year of service, fifty percent of the principal plus accrued
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0023|     interest shall be forgiven.  Upon completion of the second
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0024|     year of service, the remainder of the principal plus accrued
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0025|     interest shall be forgiven; and
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<center>- 3 -</center>

0001|                    (3)  for loan terms of three years or more,
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0002|     forty percent of the principal plus accrued interest shall be
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0003|     forgiven upon completion of the first year of service in a
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0004|     designated health professional shortage area, thirty percent
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0005|     of the principal plus accrued interest shall be forgiven upon
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0006|     completion of the second year of service and the remainder of
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0007|     the principal plus accrued interest shall be forgiven upon
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0008|     completion of the third year of service.
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0009|               F.  Recipients shall serve a complete year in order
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0010|     to receive credit for that year.  The minimum credit for a
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0011|     year shall be established by the commission.
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0012|               G.  If a loan recipient completes his professional
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0013|     education and does not serve in a health professional shortage
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0014|     area <u>or refuses to complete his service under this contract</u>,
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0015|     the commission shall assess a penalty of <s>[up to]</s> three times
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0016|     the principal due, plus eighteen percent interest, unless the
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0017|     commission finds acceptable extenuating circumstances <s>[for]</s>
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0018|     why the student cannot serve.  <u>Acceptable extenuating
</u>    |
<u></u>0019| <u>    circumstances do not include the health professional's
</u>    |
<u></u>0020| <u>    preference not to continue practicing in the designated health
</u>    |
<u></u>0021| <u>    professional shortage area or his opportunity or desire to
</u>    |
<u></u>0022| <u>    practice in the employ or partnership of a person willing to
</u>    |
<u></u>0023| <u>    pay back his indebtedness.</u>  If the commission does not find
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0024|     acceptable extenuating circumstances for the student's failure
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0025|     to carry out his declared intent to serve in a health
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<center>- 4 -</center>

0001|     professional shortage area in the state, the commission shall
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0002|     require immediate repayment of the unpaid principal amount of
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0003|     the loan plus accrued interest owed the state plus the amount
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0004|     of any penalty assessed pursuant to this subsection.
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0005|               H.  The commission shall adopt regulations to
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0006|     implement the provisions of this section.  The regulations may
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0007|     provide for the repayment of medical student loans in annual
    |
0008|     or other periodic installments."
    |
0009|          Section 2.  Section 21-22A-6 NMSA 1978 (being Laws 1978,
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0010|     Chapter 109, Section 6, as amended) is amended to read:
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0011|          "21-22A-6.  OSTEOPATHIC MEDICAL STUDENT LOANS--CONTRACT
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0012|     TERMS--REPAYMENT.--
    |
0013|               A.  Each applicant who is approved for a loan by
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0014|     the commission may be granted a loan, in such amounts and for
    |
0015|     such periods as determined by the commission, with which to
    |
0016|     defray expenses incurred in obtaining an osteopathic medical
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0017|     education at any reputable and accredited osteopathic medical
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0018|     school in the United States if the applicant files with the
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0019|     commission a declaration of his intent to practice his
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0020|     profession as a licensed osteopathic physician or osteopathic
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0021|     physician's assistant in areas of New Mexico designated as not
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0022|     being adequately served by osteopathic medical practitioners.
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0023|               B.  The loan shall not exceed the necessary
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0024|     expenses incurred while attending an osteopathic medical
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0025|     school or college or osteopathic physician's assistant program
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<center>- 5 -</center>

0001|     and shall bear interest at the rate of:
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0002|                    (1)  eighteen percent per year if the student
    |
0003|     completes his osteopathic medical education and no portion of
    |
0004|     the principal and interest is forgiven pursuant to Subsection
    |
0005|     E of this section; and 
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0006|                    (2)  seven percent per year in all other
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0007|     cases.
    |
0008|               C.  The loan shall be evidenced by a contract
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0009|     between the student and the commission acting on behalf of the
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0010|     state.  The contract shall provide for the payment by the
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0011|     state of a stated sum covering the costs of an osteopathic
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0012|     medical education and shall be conditioned upon the repayment
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0013|     of the loan to the state, together with interest, over a
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0014|     period established by the commission in consultation with the
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0015|     student after the completion of osteopathic medical school or
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0016|     <u>an</u> osteopathic physician's assistant program and any period
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0017|     of internship or residency required to complete the student's
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0018|     education.  The contract shall further provide that
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0019|     immediately upon completion or termination of the student's
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0020|     osteopathic medical education, all interest then accrued shall
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0021|     be capitalized.
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0022|               D.  Loans made to students who fail to complete
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0023|     their osteopathic medical education shall become due, together
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0024|     with interest, immediately upon termination of their
    |
0025|     osteopathic medical education.  The commission, in
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<center>- 6 -</center>

0001|     consultation with the student, shall establish terms of
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0002|     repayment, alternate service or cancellation terms.
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0003|               E.  The contract shall provide that the commission
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0004|     shall forgive a portion of the loan principal and interest for
    |
0005|     each year that a loan recipient practices his profession as a
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0006|     licensed osteopathic physician or osteopathic physician's
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0007|     assistant in areas approved by the health profession advisory
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0008|     committee as not being adequately served by osteopathic
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0009|     medical practitioners.  Loan principal and interest shall be
    |
0010|     forgiven as follows:
    |
0011|                    (1)  loan terms of one year shall require one
    |
0012|     year of practice in a designated health professional shortage
    |
0013|     area.  Upon completion of service, one hundred percent of the
    |
0014|     principal plus accrued interest shall be forgiven;
    |
0015|                    (2)  loan terms of two years shall require one
    |
0016|     year of practice in a designated health professional shortage
    |
0017|     area for each year of the loan.  Upon completion of the first
    |
0018|     year of service, fifty percent of the principal plus accrued
    |
0019|     interest shall be forgiven.  Upon completion of the second
    |
0020|     year of service, the remainder of the principal plus accrued
    |
0021|     interest shall be forgiven; and
    |
0022|                    (3)  for loan terms of three years or more,
    |
0023|     forty percent of the principal plus accrued interest shall be
    |
0024|     forgiven upon completion of the first year of service in a
    |
0025|     designated health professional shortage area, thirty percent
    |
<center>- 7 -</center>

0001|     of the principal plus accrued interest shall be forgiven upon
    |
0002|     completion of the second year of service and the remainder of
    |
0003|     the principal plus accrued interest shall be forgiven upon
    |
0004|     completion of the third year of service.
    |
0005|               F.  Recipients shall serve a complete year in order
    |
0006|     to receive credit for that year.  The minimum credit for a
    |
0007|     year shall be established by the commission.
    |
0008|               G.  If a loan recipient completes his professional
    |
0009|     education and does not serve in a health professional shortage
    |
0010|     area, the commission shall assess a penalty of <s>[up to]</s> three
    |
0011|     times the principal due, plus eighteen percent interest,
    |
0012|     unless the commission finds acceptable extenuating
    |
0013|     circumstances <s>[for]</s> why the student cannot serve. 
    |
0014|     <u>Acceptable extenuating circumstances do not include the
</u>    |
<u></u>0015| <u>    health professional's preference not to continue practicing in
</u>    |
<u></u>0016| <u>    the designated health professional shortage area or his
</u>    |
<u></u>0017| <u>    opportunity or desire to practice in the employ or partnership
</u>    |
<u></u>0018| <u>    of a person willing to pay back his indebtedness.</u>  If the
    |
0019|     commission does not find acceptable extenuating circumstances
    |
0020|     for the student's failure to carry out his declared intent to
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0021|     serve in a health professional shortage area in the state, the
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0022|     commission shall require immediate repayment of the unpaid
    |
0023|     principal amount of the loan plus accrued interest owed the
    |
0024|     state plus the amount of any penalty assessed pursuant to this
    |
0025|     section.
    |
<center>- 8 -</center>

0001|               H.  The commission shall adopt regulations to
    |
0002|     implement the provisions of this section.  The regulations may
    |
0003|     provide for the repayment of osteopathic medical student loans
    |
0004|     in annual or other periodic installments."
    |
0005|          Section 3.  Section 21-22B-6 NMSA 1978 (being Laws 1987,
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0006|     Chapter 299, Section 6, as amended) is amended to read:
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0007|          "21-22B-6.  NURSING STUDENT LOANS--CONTRACT TERMS--
    |
0008|     REPAYMENT.--
    |
0009|               A.  Each applicant who is approved for a loan by
    |
0010|     the commission may be granted a loan, in such amounts for such
    |
0011|     periods as determined by the commission, with which to defray
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0012|     expenses incurred in obtaining a nursing education; provided
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0013|     that the applicant files with the commission a declaration of
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0014|     intent to practice as a licensed nurse in areas of New Mexico
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0015|     designated as underserved.
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0016|               B.  The loans shall not exceed the necessary
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0017|     expenses incurred while attending a program of nursing and
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0018|     shall bear interest at the rate of:
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0019|                    (1)  eighteen percent per year if the student
    |
0020|     completes his nursing education and no portion of the
    |
0021|     principal and interest is forgiven pursuant to Subsection E of
    |
0022|     this section; and
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0023|                    (2)  seven percent per year in all other
    |
0024|     cases.
    |
0025|               C.  The loan shall be evidenced by a contract
    |
<center>- 9 -</center>

0001|     between the student and the commission acting on behalf of the
    |
0002|     state.  The contract shall provide for the payment by the
    |
0003|     state of a stated sum covering the costs of a nursing
    |
0004|     education and shall be conditioned upon the repayment of the
    |
0005|     loan to the state, together with interest, over a period
    |
0006|     negotiated between the student and the commission after
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0007|     completion of a nursing program.  The contract shall further
    |
0008|     provide that immediately upon completion or termination of the
    |
0009|     student's nursing education, all interest then accrued shall
    |
0010|     be capitalized.
    |
0011|               D.  Loans made to students who fail to complete
    |
0012|     their nursing education shall become due, together with
    |
0013|     interest, immediately upon termination of nursing education. 
    |
0014|     The commission, in consultation with the student, shall
    |
0015|     establish terms of repayment, alternate service or
    |
0016|     cancellation terms with the commission.
    |
0017|               E.  The contract shall provide that the commission
    |
0018|     may forgive a portion of the loan principal and interest for
    |
0019|     each year that a loan recipient practices nursing in areas
    |
0020|     approved by the health profession advisory committee.  Loan
    |
0021|     principal and interest shall be forgiven as follows:
    |
0022|                    (1)  loan terms of one year shall require one
    |
0023|     year of practice in a designated health professional shortage
    |
0024|     area.  Upon completion of service, one hundred percent of the
    |
0025|     principal plus accrued interest shall be forgiven;
    |
<center>- 10 -</center>

0001|                    (2)  loan terms of two years shall require one
    |
0002|     year of practice in a designated health professional shortage
    |
0003|     area for each year of the loan.  Upon completion of the first
    |
0004|     year of service, fifty percent of the principal plus accrued
    |
0005|     interest shall be forgiven.  Upon completion of the second
    |
0006|     year of service, the remainder of the principal plus accrued
    |
0007|     interest shall be forgiven; and
    |
0008|                    (3)  for loan terms of three years or more,
    |
0009|     forty percent of the principal plus accrued interest shall be
    |
0010|     forgiven upon completion of the first year of service in a
    |
0011|     designated health professional shortage area, thirty percent
    |
0012|     of the principal plus accrued interest shall be forgiven upon
    |
0013|     completion of the second year of service and the remainder of
    |
0014|     the principal plus accrued interest shall be forgiven upon
    |
0015|     completion of the third year of service.
    |
0016|               F.  Recipients shall serve a complete year in order
    |
0017|     to receive credit for that year.  The minimum credit for a
    |
0018|     year shall be established by the commission.
    |
0019|               <u>G.  If a recipient does not comply with the terms
</u>    |
<u></u>0020| <u>    of the contract, the commission shall assess a penalty of
</u>    |
<u></u>0021| <u>    three times the amount of the award disbursed plus eighteen
</u>    |
<u></u>0022| <u>    percent interest, unless the commission finds acceptable
</u>    |
<u></u>0023| <u>    extenuating circumstances why the health professional cannot
</u>    |
<u></u>0024| <u>    serve or comply with the terms of the contract.  Acceptable
</u>    |
<u></u>0025| <u>    extenuating circumstances do not include the health
</u>    |
<center>- 11 -</center>

<u></u>0001| <u>    professional's preference not to continue practicing in the
</u>    |
<u></u>0002| <u>    designated health professional shortage area or his
</u>    |
<u></u>0003| <u>    opportunity or desire to practice in the employ or partnership
</u>    |
<u></u>0004| <u>    of a person willing to pay back his indebtedness, and the
</u>    |
<u></u>0005| <u>    contract shall so provide.</u>
    |
0006|               <s>[G.]</s> <u>H.</u>  The commission shall adopt regulations
    |
0007|     to implement the provisions of this section.  The regulations
    |
0008|     may provide for the repayment of nursing student loans in
    |
0009|     annual or other periodic installments."
    |
0010|          Section 4.  Section 21-22C-6 NMSA 1978 (being Laws 1994,
    |
0011|     Chapter 57, Section 8, as amended) is amended to read:
    |
0012|          "21-22C-6.  ALLIED HEALTH STUDENT LOANS--CONTRACT 
    |
0013|     TERMS--REPAYMENT.--
    |
0014|               A.  Prior to receiving a loan, each applicant
    |
0015|     approved for a loan shall file with the commission a
    |
0016|     declaration of intent to practice as a licensed allied health
    |
0017|     professional in areas of New Mexico designated as underserved.
    |
0018|               B.  The loans shall not exceed the necessary
    |
0019|     expenses incurred while attending an allied health profession
    |
0020|     program and shall bear interest at the rate of:
    |
0021|                    (1)  eighteen percent per year if the student
    |
0022|     completes his allied health profession education and no
    |
0023|     portion of the principal and interest is forgiven pursuant to
    |
0024|     Subsection E of this section; and
    |
0025|                    (2)  seven percent per year in all other
    |
<center>- 12 -</center>

0001|     cases.
    |
0002|               C.  The loan shall be evidenced by a contract
    |
0003|     between the student and the commission acting on behalf of the
    |
0004|     state.  The contract shall provide for the payment by the
    |
0005|     state of a stated sum covering the costs of an allied health
    |
0006|     profession education and shall be conditioned on the repayment
    |
0007|     of the loan to the state, together with interest, over a
    |
0008|     period negotiated between the student and the commission after
    |
0009|     completion of an allied health profession education.  The
    |
0010|     contract shall further provide that immediately upon
    |
0011|     completion or termination of the student's allied health
    |
0012|     profession education, all interest then accrued shall be
    |
0013|     capitalized.
    |
0014|               D.  Loans made to students who fail to complete
    |
0015|     their allied health profession education shall become due,
    |
0016|     together with interest, immediately upon termination of that
    |
0017|     education.  The commission, in consultation with the student,
    |
0018|     shall establish repayment terms, alternate service or
    |
0019|     cancellation terms.
    |
0020|               E.  The contract shall provide that the commission
    |
0021|     shall forgive a portion of the loan principal and interest for
    |
0022|     each year that a loan recipient practices an allied health
    |
0023|     profession in areas approved by the health profession advisory
    |
0024|     committee.  Loan principal and interest shall be forgiven as
    |
0025|     follows:
    |
<center>- 13 -</center>

0001|                    (1)  loan terms of one year shall require one
    |
0002|     year of practice in a designated health professional shortage
    |
0003|     area.  Upon completion of service, one hundred percent of the
    |
0004|     principal plus accrued interest shall be forgiven;
    |
0005|                    (2)  loan terms of two years shall require one
    |
0006|     year of practice in a designated health professional shortage
    |
0007|     area for each year of the loan.  Upon completion of the first
    |
0008|     year of service, fifty percent of the principal plus accrued
    |
0009|     interest shall be forgiven.  Upon completion of the second
    |
0010|     year of service, the remainder of the principal plus accrued
    |
0011|     interest shall be forgiven; and
    |
0012|                    (3)  for loan terms of three years or more,
    |
0013|     forty percent of the principal plus accrued interest shall be
    |
0014|     forgiven upon completion of the first year of service, thirty
    |
0015|     percent of the principal plus accrued interest shall be
    |
0016|     forgiven upon completion of the second year of service and the
    |
0017|     remainder of the principal plus accrued interest shall be
    |
0018|     forgiven upon completion of the third year of service.
    |
0019|               F.  Recipients shall serve a complete year in order
    |
0020|     to receive credit for that year.  The minimum credit for a
    |
0021|     year shall be established by the commission.
    |
0022|               G.  If a loan recipient completes his professional
    |
0023|     education and does not serve the required number of years in a
    |
0024|     health professional shortage area, the commission shall assess
    |
0025|     a penalty of <s>[up to]</s> three times the principal due, plus
    |
<center>- 14 -</center>

0001|     eighteen percent interest, unless the commission finds
    |
0002|     acceptable extenuating circumstances <s>[for]</s> why the student
    |
0003|     cannot serve.  <u>Acceptable extenuating circumstances do not
</u>    |
<u></u>0004| <u>    include the health professional's preference not to continue
</u>    |
<u></u>0005| <u>    practicing in the designated health professional shortage area
</u>    |
<u></u>0006| <u>    or his opportunity or desire to practice in the employ or
</u>    |
<u></u>0007| <u>    partnership of a person willing to pay back his indebtedness,
</u>    |
<u></u>0008| <u>    and the contract shall so provide.</u>  If the commission does
    |
0009|     not find acceptable extenuating circumstances for the
    |
0010|     student's failure to carry out his declared intent to serve in
    |
0011|     a health professional shortage area in the state, the
    |
0012|     commission shall require immediate repayment of the unpaid
    |
0013|     principal amount of the loan plus accrued interest owed the
    |
0014|     state plus the amount of any penalty assessed pursuant to this
    |
0015|     subsection.
    |
0016|               H.  The commission shall adopt regulations to
    |
0017|     implement the provisions of this section.  The regulations may
    |
0018|     provide for the repayment of allied health student loans in
    |
0019|     annual or other periodic installments."
    |
0020|          Section 5.  Section 21-22D-6 NMSA 1978 (being Laws 1995,
    |
0021|     Chapter 144, Section 21) is amended to read:
    |
0022|          "21-22D-6.  AWARD CRITERIA--CONTRACT TERMS--PAYMENT.--
    |
0023|               A.  Prior to receiving an award, the health
    |
0024|     professional shall file with the commission a declaration of
    |
0025|     intent to practice as a health professional in areas of New
    |
<center>- 15 -</center>

0001|     Mexico designated as underserved by the health profession
    |
0002|     advisory committee.
    |
0003|               B.  Award criteria shall provide that:
    |
0004|                    (1)  amounts shall be dependent upon the
    |
0005|     location of the practice, the applicant's total health
    |
0006|     professional <s>[educational]</s> <u>education</u> indebtedness and
    |
0007|     characteristics of the practice;
    |
0008|                    (2)  preference in making awards shall be to
    |
0009|     individuals who have graduated from a New Mexico public post-
    |
0010|     secondary educational institution;
    |
0011|                    (3)  recruitment awards shall be made to
    |
0012|     eligible participants who agree to relocate to an approved
    |
0013|     designated area;
    |
0014|                    (4)  highest priority shall be given to
    |
0015|     participants in practices in which health profession vacancies
    |
0016|     are difficult to fill, practices that require after-hours
    |
0017|     <s>[call]</s> <u>availability</u> at least every other night and
    |
0018|     practices that have heavy obstetrical responsibilities;
    |
0019|                    (5)  award amounts may be modified based upon
    |
0020|     available funding or other special circumstances; and
    |
0021|                    (6)  an award shall not exceed the total
    |
0022|     medical <s>[educational]</s> <u>education</u> indebtedness of any
    |
0023|     participant.
    |
0024|               C.  The following <s>[educational]</s> <u>education</u> debts
    |
0025|     are not eligible for repayment pursuant to the Health
    |
<center>- 16 -</center>

0001|     Professional Loan Repayment Act:
    |
0002|                    (1)  amounts incurred as a result of
    |
0003|     participation in state loan-for-service programs or other
    |
0004|     state programs whose purpose states that service be provided
    |
0005|     in exchange for financial assistance;
    |
0006|                    (2)  scholarships that have a service
    |
0007|     component or obligation;
    |
0008|                    (3)  personal loans from friends or relatives;
    |
0009|     and
    |
0010|                    (4)  loans that exceed individual standard
    |
0011|     school expense levels.
    |
0012|               D.  The loan repayment award shall be evidenced by
    |
0013|     a contract between the health professional and the commission
    |
0014|     acting on behalf of the state.  The contract shall provide for
    |
0015|     the payment by the state of a stated sum to the health
    |
0016|     professional's debtors and shall state the obligations of the
    |
0017|     health professional under the program, including a minimum
    |
0018|     two-year period of service, quarterly reporting requirements
    |
0019|     and other policies established by the commission.
    |
0020|               E.  Recipients shall serve a complete year in order
    |
0021|     to receive credit for that year.  The minimum credit for a
    |
0022|     year shall be established by the commission.
    |
0023|               F.  If a health professional does not comply with
    |
0024|     the terms of the contract, the commission shall assess a
    |
0025|     penalty of <s>[up to]</s> three times the amount of award disbursed
    |
<center>- 17 -</center>

0001|     plus eighteen percent interest, unless the commission finds
    |
0002|     acceptable extenuating circumstances for why the health
    |
0003|     professional cannot serve or comply with the terms of the
    |
0004|     contract.  <u>Acceptable extenuating circumstances do not
</u>    |
<u></u>0005| <u>    include the health professional's preference not to continue
</u>    |
<u></u>0006| <u>    practicing in the designated underserved area or his
</u>    |
<u></u>0007| <u>    opportunity or desire to practice in the employ or partnership
</u>    |
<u></u>0008| <u>    of a person willing to pay back his indebtedness, and the
</u>    |
<u></u>0009| <u>    contract shall so provide.</u>  If the commission does not find
    |
0010|     acceptable extenuating circumstances for the health
    |
0011|     professional's failure to comply with the contract, the
    |
0012|     commission shall require immediate repayment plus the amount
    |
0013|     of the penalty.
    |
0014|               G.  The commission shall adopt regulations to
    |
0015|     implement the provisions of this section.  The regulations may
    |
0016|     provide for the disbursement of loan repayment awards to the
    |
0017|     lenders of health professionals in annual or other periodic
    |
0018|     installments."
    |
0019|                              
    |