HEALTH CARE PROFESSIONAL LOAN FUND CHANGES

HHHC/HB 66/a
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AN ACT
RELATING TO HEALTH CARE PROFESSIONAL LOAN REPAYMENT;
REQUIRING AWARD RECIPIENTS TO BE HEALTH PROFESSIONALS WHO
CURRENTLY MAINTAIN PRACTICE IN NEW MEXICO OR AGREE TO
RELOCATE TO AND COMMENCE PRACTICE IN NEW MEXICO; REQUIRING
THE HIGHER EDUCATION DEPARTMENT TO DETERMINE AND DISBURSE
AWARD AMOUNTS; PROVIDING ADDITIONAL AWARD CRITERIA; ADDING
DEFINITIONS; ALLOWING FEES TO BE ASSESSED UPON BREACH OF
CONTRACT; AMENDING THE HEALTH PROFESSIONAL LOAN REPAYMENT
FUND; REPEALING SECTIONS OF THE NMSA 1978; MAKING AN
APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 21-22D-3 NMSA 1978 (being Laws 1995,
Chapter 144, Section 18, as amended) is amended to read:
"21-22D-3. DEFINITIONS.--As used in the Health
Professional Loan Repayment Act:
A. "award" means the grant of money to repay
eligible education debt;
B. "department" means the higher education
department;
C. "health professional" means a professional
licensed pursuant to the:
(1) Medical Practice Act;
(2) Physical Therapy Act;
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(3) Occupational Therapy Act;
(4) Speech-Language Pathology, Audiology and
Hearing Aid Dispensing Practices Act;
(5) Pharmacy Act;
(6) Nutrition and Dietetics Practice Act;
(7) Respiratory Care Act;
(8) Medical Imaging and Radiation Therapy
Health and Safety Act;
(9) Dental Health Care Act;
(10) Professional Psychologist Act;
(11) Counseling and Therapy Practice Act;
(12) Nursing Practice Act;
(13) Optometry Act;
(14) Chiropractic Physician Practice Act;
(15) Dental Amalgam Waste Reduction Act;
(16) Genetic Counseling Act;
(17) Polysomnography Practice Act;
(18) Physician Assistant Act;
(19) Anesthesiologist Assistants Act;
(20) Podiatry Act;
(21) Professional Psychologist Act;
(22) Pharmacist Prescriptive Authority Act;
(23) Massage Therapy Practice Act;
(24) Acupuncture and Oriental Medicine
Practice Act;
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(25) Social Work Practice Act;
(26) Emergency Medical Services Act; and
(27) other health professional licensing
acts as determined by the department;
D. "licensed physician" means a health
professional who is licensed to practice medicine in New
Mexico pursuant to the Medical Practice Act;
E. "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; and
F. "nurse in advanced practice" means a registered
nurse, including a:
(1) certified nurse practitioner, certified
registered nurse anesthetist or clinical nurse specialist,
authorized pursuant to the Nursing Practice Act to function
beyond the scope of practice of professional registered
nursing; or
(2) certified nurse-midwife licensed by the
department of health."
SECTION 2. Section 21-22D-6 NMSA 1978 (being Laws 1995,
Chapter 144, Section 21, as amended) is amended to read:
"21-22D-6. HEALTH PROFESSIONAL LOAN REPAYMENT PROGRAM--
AWARD CRITERIA--CONTRACT TERMS--PAYMENT.--
HHHC/HB 66/a
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A. The "health professional loan repayment
program" is created and shall be administered by the
department. A health professional shall apply for an award
on a form provided by the department.
B. Health professionals shall be selected to
receive awards based on the following criteria:
(1) a health professional shall currently
maintain practice in New Mexico or have agreed to relocate to
and commence practice in New Mexico within ninety days of the
grant of an award. An award shall not be disbursed until the
health professional commences practice in New Mexico;
(2) highest priority shall be given to
licensed physicians;
(3) designated health professional shortage
areas and a health professional's total eligible education
debt and characteristics of the practice; and
(4) the number of awards shall be limited to
the amount of funds appropriated to the department for the
purpose of the health professional loan repayment program.
C. Award amounts shall be determined by the
department in accordance with the following:
(1) funds shall be disbursed in amounts that
result in the payment of the full obligation of all awards
provided in a given year;
(2) an award to a licensed physician shall
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be a minimum of seventy-five thousand dollars ($75,000) per
year for four consecutive years, with the exception that:
(a) the total award amount shall not
exceed the licensed physician's total eligible education
debt;
(b) the award amount shall be prorated
based on a four-year award period; and
(c) part-time employment as a licensed
physician shall be prorated based on the percentage of hours
worked relative to full-time employment; and
(3) an award to a health professional other
than a licensed physician shall:
(a) not exceed the health
professional's total eligible education debt;
(b) be prorated based on a three-year
award period; and
(c) be prorated based on the percentage
of hours relative to full-time employment if the health
professional maintains part-time employment in the health
professional's respective health profession.
D. The department shall encumber the full amount
of the award during the first year of a health professional's
award period at a published schedule as determined by the
department.
E. The following education debts are not eligible
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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; and
(4) loans that exceed individual standard
school expense levels.
F. 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
four-year period of service for licensed physicians and
three-year period of service for health professionals other
than licensed physicians, quarterly reporting requirements
and other policies established by the department. The
department may cancel the contract made between the
department and the health professional for any reasonable
cause deemed sufficient by the department.
G. Recipients shall serve a complete year in order
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to receive credit for that year. The minimum credit for a
year shall be established by the department.
H. If a health professional does not comply with
the terms of the contract, the department shall assess up to
the full amount of award disbursed and may assess a fee of no
more than eighteen percent interest of the amount of the
award disbursed, 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.
I. The department shall promulgate rules to
implement the provisions of this section that may provide for
the disbursement of awards to the lenders of health
professionals in annual or other periodic installments."
SECTION 3. Section 21-22D-7 NMSA 1978 (being Laws 1995,
Chapter 144, Section 22) is amended to read:
"21-22D-7. CONTRACTS--ENFORCEMENT.--The general form of
the contract required shall be prepared and approved by the
attorney general and signed by the health professional and
the designated representative of the department on behalf of
the state. The department is vested with full and complete
authority and power to sue in its own name for any balance
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due the state from any student on any such contract."
SECTION 4. Section 21-22D-8 NMSA 1978 (being Laws 1995,
Chapter 144, Section 23) is amended to read:
"21-22D-8. HEALTH PROFESSIONAL LOAN REPAYMENT FUND
CREATED--PURPOSE--METHOD OF PAYMENT.--
A. The "health professional loan repayment fund"
is created as a nonreverting fund in the state treasury. The
fund consists of appropriations, distributions, gifts and
grants. The department shall administer the fund, and money
in the fund is appropriated to the department to provide
awards pursuant to the Health Professional Loan Repayment
Act; provided that:
(1) no less than fifty percent of the
available funds in the health professional loan repayment
fund as of the beginning of each fiscal year shall be
encumbered for licensed physicians who receive an award; and
(2) funds that are encumbered but unexpended
shall be used for awards in the next fiscal year.
B. Disbursements from the fund shall be made 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 5. Section 21-22D-10 NMSA 1978 (being Laws
1995, Chapter 144, Section 25) is amended to read:
"21-22D-10. REPORTS.--By December 31 of each year, the
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department shall make annual reports to the governor and to
the legislature of its activities, the amount of each award
granted, the cumulative total award amount, the number of
awards made by profession type and the county and
municipality where each health professional that received an
award practices in the state."
SECTION 6. REPEAL.--Sections 21-22D-2 and 21-22D-9 NMSA
1978 (being Laws 1995, Chapter 144, Sections 17 and 24) are
repealed.