MEDICAL PROVIDER LOAN-FOR-SERVICE PGMS

HB0085

HOUSE BILL 85

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Joseph L. Sanchez
and
Sarah Silva
and
Joseph Franklin Hernandez

and
Rebecca Dow
and
Jack Chatfield

AN ACT

RELATING TO HEALTH CARE; INCREASING THE NUMBER OF PHYSICIANS,
PHYSICIAN ASSISTANTS AND ADVANCED PRACTICE NURSES PRACTICING IN
NEW MEXICO THROUGH LOAN REPAYMENT AND LOAN-FOR-SERVICE
PROGRAMS; REQUIRING SERVICES IN UNDERSERVED AREAS OF THE STATE;
CREATING A TRUST FUND AND A PROGRAM FUND; PROVIDING FOR
DISTRIBUTIONS FROM THE TRUST FUND; MAKING A TRANSFER FROM THE
GENERAL FUND TO THE MEDICAL PROVIDER RECRUITMENT TRUST FUND;
MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1.
A new section of Chapter 21 NMSA 1978 is
enacted to read:

"[
NEW MATERIAL
] MEDICAL PROVIDER RECRUITMENT TRUST FUND.--

A. The "medical provider recruitment trust fund" is
created in the state treasury. The fund consists of
distributions or appropriations from other funds in the state
treasury, income from investment of the fund, gifts, grants,
donations and any other deposits into the fund. Distributions
from the fund to the medical provider recruitment program fund
shall be as provided in this section.

B. The state investment officer, subject to the
approval of the state investment council, shall invest money in
the trust fund:

(1) in accordance with the prudent investor
rule set forth in the Uniform Prudent Investor Act; and

(2) in consultation with the state treasurer.

C. The state investment officer shall report
quarterly to the state investment council and the legislative
finance committee on the investments made pursuant to this
section. A report shall be submitted no later than October 1
of each year to the legislative finance committee, the revenue
stabilization and tax policy committee and any other
appropriate interim committees.

D. On July 1, 2027 and each July 1 thereafter, a
distribution shall be made from the medical provider
recruitment trust fund to the medical provider recruitment
program fund in an amount equal to five percent of the average
of the year-end market values of the trust fund for the
immediately preceding three calendar years. If, on July 1 of a
year, the trust fund has been in effect for fewer than three
calendar years, the distribution shall be in an amount equal to
five percent of the average of the year-end market values of
the trust fund for the immediately preceding number of calendar
years the trust fund has been in effect.

E. In addition to the distributions to the medical
provider recruitment program fund, money in the trust fund may
be expended in the event that general fund balances, including
all authorized revenues and transfers to the general fund and
balances in the general fund operating reserve, the
appropriation contingency fund and the tax stabilization
reserve, will not meet the level of appropriations authorized
from the general fund for a fiscal year. In that event, to
avoid an unconstitutional deficit, the legislature may transfer
from the trust fund to the general fund only the amount
necessary to meet general fund appropriations for that fiscal
year and only if the legislature has authorized transfers from
the appropriation contingency fund, the general fund operating
reserve and the tax stabilization reserve that exhaust those
fund balances."

SECTION 2.
A new section of Chapter 21 NMSA 1978 is
enacted to read:

"[
NEW MATERIAL
] MEDICAL PROVIDER RECRUITMENT PROGRAM
FUND.--

A. As used in this section:

(1) "advanced practice nurse" means a
certified nurse practitioner, certified nurse-midwife, clinical
nurse specialist, certified nurse anesthetist or other graduate
nurse licensed for advanced practice by the board of nursing;

(2) "department" means the higher education
department;

(3) "participant" means a person who attends
or has graduated from medical school, a physician assistant
program or graduate nursing education and who has a contract
with the department for loan for service or loan repayment
through service in an underserved area;

(4) "physician" means a medical physician or
an osteopathic physician licensed by the New Mexico medical
board;

(5) "physician assistant" means a physician
assistant or an osteopathic physician assistant licensed by the
New Mexico medical board;

(6) "primary care provider" means a physician,
a physician assistant or an advanced practice nurse who has
completed training in family medicine, general internal
medicine or general pediatrics;

(7) "secretary" means the secretary of higher
education; and

(8) "underserved area" means a geographic area
in New Mexico designated by the department in which sufficient
health care is not being provided to the residents of that
area.

B. The "medical provider recruitment program fund"
is created as a nonreverting fund in the state treasury. The
fund consists of distributions, appropriations, income from
investment of the fund, gifts, grants and donations. The
department shall administer the fund, and money in the fund is
subject to appropriation by the legislature for loan for
service and loan repayment for physicians, physician assistants
and advanced practice nurses participating in programs through
the Medical Student Loan for Service Act, the Osteopathic
Medical Student Loan for Service Act, the Health Professional
Loan Repayment Act or other loan-for-service or loan repayment
programs approved by the department. Initial priorities shall
be given to applicants for loan repayment programs, especially
those who hold an applicable graduate degree from a state
university in New Mexico or a university with which New Mexico
has a bordering states agreement, and to participants who are
committed to serving as primary care providers. Disbursements
from the fund shall be 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 3.
TRANSFER--APPROPRIATION.--

A. Five million dollars ($5,000,000) is transferred
from the general fund to the medical provider recruitment trust
fund in fiscal year 2026.

B. One million dollars ($1,000,000) is appropriated
from the general fund to the medical provider recruitment
program fund for expenditure in fiscal year 2027 and subsequent
fiscal years to provide medical loan repayments and medical
loans for service as provided in Section 2 of this act. Any
unexpended balance remaining at the end of a fiscal year shall
not revert to the general fund.

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