2023 New Mexico Statutes › Chapter 21 - State and Private Education Institutions › Article 22D - Health Professional Loan Repayment › Section 21-22D-6 - Award criteria; contract terms; payment.

A. Prior to receiving an award, the health professional shall file with the higher education department a declaration of intent to practice as a health professional in areas of New Mexico designated as underserved by the department. The department shall consult with the department of health when designating areas as underserved.
B. Award criteria shall provide that:
(1) amounts shall be dependent upon the location of the practice, the applicant's total health professional education indebtedness and characteristics of the practice;
(2) preference in making awards shall be to individuals who have graduated from a New Mexico post-secondary educational institution;
(3) recruitment awards shall be made to eligible participants who agree to relocate to an approved designated area;
(4) highest priority shall be given to participants in practices in which health profession vacancies are difficult to fill, practices that require after hours call at least every other night and practices that have heavy obstetrical responsibilities;
(5) award amounts may be modified based upon available funding or other special circumstances; and
(6) an award shall not exceed the total medical education indebtedness of any participant.
C. The following education debts are not eligible for repayment pursuant to the Health Professional Loan Repayment Act:
(1) amounts incurred as a result of participation in state loan-for-service programs or other state programs whose purpose states that service be provided in exchange for financial assistance;
(2) scholarships that have a service component or obligation;
(3) personal loans from friends or relatives; and
(4) loans that exceed individual standard school expense levels.
D. The loan repayment award shall be evidenced by a contract between the health professional and the department acting on behalf of the state. The contract shall provide for the payment by the state of a stated sum to the health professional's debtors and shall state the obligations of the health professional under the program, including a minimum three-year period of service, quarterly reporting requirements and other policies established by the department.
E. Recipients shall serve a complete year in order to receive credit for that year. The minimum credit for a year shall be established by the department.
F. If a health professional does not comply with the terms of the contract, the department shall assess a penalty of up to three times the amount of award disbursed plus eighteen percent interest, unless the department finds acceptable extenuating circumstances for why the health professional cannot serve or comply with the terms of the contract. If the department does not find acceptable extenuating circumstances for the health professional's failure to comply with the contract, the department shall require immediate repayment plus the amount of the penalty.
G. The department shall adopt regulations to implement the provisions of this section. The regulations may provide for the disbursement of loan repayment awards to the lenders of health professionals in annual or other periodic installments.
History:
Laws 1995, ch. 144, § 21; 2005, ch. 321, § 11; 2017, ch. 138, § 2; 2023, ch. 66, § 2.
ANNOTATIONS
Compiler's notes.
— House Bill 126, enacted by the Fifty-Third Legislature, First Session, 2017, was vetoed by the governor on March 15, 2017. Pursuant to the First Judicial District Court's decision in State ex rel. New Mexico Legislative Council v. Honorable Susana Martinez, Governor of the State of New Mexico et al., D-101-CV-2017-01550, and affirmed by S.Ct. Order No. S-1-SC-36731, on April 25, 2018, which held that Article IV, Section 22 of the New Mexico Constitution requires that objections must accompany a returned bill, House Bill 126 was chaptered into law by the Secretary of State.
The 2023 amendment,
effective June 16, 2023, required the higher education department to consult with the department of health when designating areas as underserved for purposes loan payment awards, and increased the minimum period of service; in Subsection A, after "underserved by the department", added "The department shall consult with the department of health when designating areas as underserved."; and in Subsection D, after "including a minimum", deleted "two-year" and added "three-year".
The 2017 amendment,
effective March 15, 2017, in Subsection A, after "shall file with the", deleted "commission" and added "higher education department", and replaced "commission" with "department" throughout the section.
The 2005 amendment,
effective June 17, 2005, changed "health professional advisory committee" to "commission" in Subsection A.