HEALTH PROFESSIONAL ADVISORY COMMITTEE

SB0014

SENATE BILL 14

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

INTRODUCED BY

Martin Hickey
and
Natalie Figueroa
and
Cindy Nava

and
Katy M. Duhigg

AN ACT

RELATING TO HEALTH CARE PROFESSIONAL LOAN REPAYMENT; CREATING
THE HEALTH PROFESSIONS ADVISORY COMMITTEE TO SELECT RECIPIENTS
OF LOAN REPAYMENT AWARDS; 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 POWERS AND DUTIES;
PROVIDING ADDITIONAL AWARD CRITERIA; ADDING DEFINITIONS;
ALLOWING FEES TO BE ASSESSED UPON BREACH OF CONTRACT; AMENDING
THE HEALTH PROFESSIONAL LOAN REPAYMENT FUND; CONCLUDING THE
PROVISION OF LOANS MADE PURSUANT TO THE ALLIED HEALTH STUDENT
LOAN FOR SERVICE ACT; REPEALING SECTIONS OF THE NMSA 1978;
MAKING AN APPROPRIATION.

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

SECTION 1.
Section 21-22C-4 NMSA 1978 (being Laws 1994,
Chapter 57, Section 6) is amended to read:

"21-22C-4. ALLIED HEALTH LOANS--QUALIFICATIONS.--

A. [
The commission
]
Prior to May 20, 2026, the
higher education department
may grant a loan to a student it
deems qualified to receive the loan upon terms and conditions
it determines pursuant to the provisions of the Allied Health
Student Loan for Service Act and regulations adopted pursuant
to that act.

B. The [
commission
]
higher education department

shall only receive, pass on and allow or disallow an
application for a loan made by a student enrolled or accepted
in an allied health profession program who is a bona fide
citizen and resident of the United States [
and of New Mexico
]
and who declares [
his
]
the
intent to practice
in person
an
allied health profession within a designated area of the state.

C. The [
commission
]
higher education department

shall make a full and careful investigation of the ability,
character and qualifications of each applicant and determine
fitness to become a recipient of a student loan. [
The
investigation of each applicant shall include an investigation
of the ability of the applicant and the applicant's parent or
guardian to pay the applicant's expenses for an allied health
profession education. The commission shall give preference to
qualified applicants who are unable, or whose parents or
guardians are unable, to pay the educational expenses.
]

D. The [
commission
]
higher education department

shall arrange for loan recipients to receive assistance in
locating appropriate practice positions in designated
underserved areas."

SECTION 2.
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. "committee" means the health professions
advisory committee;

[
A.
]
C.
"department" means the higher education
department;

[
B.
]
D.
"health professional" means a [
physician,
optometrist, podiatrist, physician's assistant, dentist, nurse,
member of an allied health profession as defined in the Allied
Health Student Loan for Service Act or a licensed or certified
health professional as determined by the department
]

professional licensed pursuant to the:

(1) Medical Practice Act;

(2) Physical Therapy Act;

(3) Occupational Therapy Act;

(4) Speech-Language Pathology, Audiology and
Hearing Aid Dispensing 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) Optometry Act; or

(13) Emergency Medical Services Act; and

[
C.
]
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.

[
D. "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; and

E. "osteopathic primary care physician" means an
osteopathic physician licensed pursuant to the Medical Practice
Act with specialty training in family medicine, general
internal medicine, obstetrics, gynecology or general
pediatrics.
]"

SECTION 3.
Section 21-22D-4 NMSA 1978 (being Laws 1995,
Chapter 144, Section 19) is amended to read:

"21-22D-4. [
COMMISSION POWERS AND DUTIES--PARTICIPANT
ELIGIBILITY--QUALIFICATIONS
]
HEALTH PROFESSIONS ADVISORY
COMMITTEE--CREATED--COMPOSITION
.--

[
A. The commission may grant an award to repay
loans obtained for health educational expenses of a health
professional upon such terms and conditions as may be imposed
by regulations of the commission.

B. Applicants shall be licensed or certified to
practice in New Mexico as health professionals and shall be
bona fide citizens and residents of the United States and of
New Mexico. Applicants shall declare their intent to practice
as health professionals within designated health professional
shortage areas of the state.

C. The commission shall make a full and careful
investigation of the ability, character and qualifications of
each applicant and determine fitness to become a health
professional in the health professional loan repayment program.

D. The commission shall assist selected health
professionals in locating practice positions in designated
health professional shortage areas.
]

A. The "health professions advisory committee" is
created.

B. The committee is composed of the following seven
members:

(1) the secretary of health or the secretary's
designee;

(2) the secretary of health care authority or
the secretary's designee;

(3) the secretary of higher education or the
secretary's designee;

(4) the executive vice president of the
university of New Mexico health sciences center or the
executive vice president's designee;

(5) the chair of the New Mexico medical board
or the chair's designee; and

(6) two representatives of professional health
and medical associations, including one behavioral health
association, as appointed by the secretary of higher education,
who shall serve at the pleasure of the secretary.

C. The members of the committee shall select a
chair, vice chair and other officers that the committee deems
necessary. The committee shall maintain minutes of all the
meetings of the committee.
"

SECTION 4.
Section 21-22D-5 NMSA 1978 (being Laws 1995,
Chapter 144, Section 20) is amended to read:

"21-22D-5. [
DELEGATION OF DUTIES
]
HEALTH PROFESSIONS
ADVISORY COMMITTEE--DEPARTMENT--POWERS--DUTIES
.--[
The
commission may
]

A. The committee shall:

(1) review applications provided by the
department;

(2) evaluate whether an applicant satisfies
the criteria provided pursuant to Subsection C of Section
21-22D-6 NMSA 1978;

(3) meet biannually and at the call of the
chair;

(4) select health professionals to receive
awards; and

(5) advise the department on determinations of
award amounts.

B. The department shall:

(1) determine award amounts in accordance with
the criteria provided pursuant to Subsection D of Section
21-22D-6 NMSA 1978;

(2) disburse funds to health professionals who
are selected by the committee to receive awards;

(3) assist awarded health professionals in
locating practice positions in designated shortage areas; and

(4) promulgate rules as necessary to
administer the Health Professional Loan Repayment Act.

C. The department may
delegate to other agencies or
contract for the performance of services required by the
provisions of the Health Professional Loan Repayment Act."

SECTION 5.
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.--

[
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
]

A. As used in this section, "licensed physician"
means a medical or osteopathic physician licensed to practice
medicine in New Mexico pursuant to the Medical Practice Act.

B. 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. The department shall forward those
applications to the committee.

C. The committee shall select health professionals
to receive awards based on the following criteria:

[
(3) recruitment awards
]
(1) a health
professional
shall [
be made to eligible participants who agree
]

currently maintain practice in New Mexico or have agreed
to
relocate to [
an approved designated area
]
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;

[
(4)
]
(2)
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
]
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 in the health professional loan repayment
fund.

D. 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 by the committee in a given year;

(2) an award to a licensed physician shall be
in an amount equal to seventy-five thousand dollars ($75,000)
per year for four consecutive years; provided that the
committee may award an additional fifth year subject to
availability of funds and successful completion of a four-consecutive-year contract by a licensed physician; and provided
further that the total award amount shall not exceed the
licensed physician's total eligible education debt; and

(3) an award to a health professional other
than a licensed physician shall be calculated by multiplying
forty thousand dollars ($40,000) by the quotient of the number
of years of full-time post-secondary training required for
initial licensure in the field of practice of the health
professional divided by eight; provided that the total award
amount shall not exceed the health professional's total
eligible education debt.

E. 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
.

[
C.
]
F.
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;
and

[
(3) personal loans from friends or relatives;
and

(4)
]
(3)
loans that exceed individual standard
school expense levels.

[
D.
]
G.
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
]
four-year
period of service
for health
professionals who are 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.

[
E.
]
H.
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.
]
I.
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
full
amount of award

disbursed [
plus eighteen
]
and may assess a fee of no more than
fifteen
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 [
plus the amount
of the penalty
].

J. A recipient of an award shall not be in
violation of the recipient's contract if the recipient
transitions to part-time employment, which part-time employment
shall be at least fifty percent of full time employment. A
recipient who transitions to part-time employment shall be
required to extend the recipient's contract for the period of
time necessary to make up for the time period of less than
full-time employment due to the part-time employment.

[
G.
]
K.
The department shall [
adopt regulations
]

promulgate rules
to implement the provisions of this section
[
the regulations
]
that
may provide for the disbursement of
[
loan repayment
] awards to the lenders of health professionals
in annual or other periodic installments."

SECTION 6.
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 [
commission
]
department
on
behalf of the state. The [
commission
]
department
is vested
with full and complete authority and power to sue in its own
name for any balance due the state from any student on any such
contract."

SECTION 7.
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.--The "health professional
loan repayment fund" is created
as a nonreverting fund
in the
state treasury. [
All money appropriated for the health
professional loan repayment program shall be credited to the
fund, and all payments for penalties or repayment of awards
received by the commission shall be credited to the fund or
shall be deposited with the commission's administrative agent.
All payments for loan repayment awards shall be made upon
vouchers signed by the designated representative of the
commission and upon warrant issued by the secretary of finance
and administration.
]
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 at least
seventy-five percent of the money in the fund as of the end of
each fiscal year shall be used to provide awards to
professionals licensed pursuant to the Medical Practice Act.

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 8.
Section 21-22D-10 NMSA 1978 (being Laws 1995,
Chapter 144, Section 25) is amended to read:

"21-22D-10. REPORTS.--[
The commission
]
By November 1 of
each year, the department
shall make annual reports to the
governor and to the legislature [
prior to each regular session
]
of its activities, the [
loan repayment awards
]
amount of each
award
granted, [
the names and addresses of loan repayment award
recipients, the names and locations of the practices of those
health professionals who are serving in a designated health
professional shortage area of the state pursuant to the Health
Professional Loan Repayment Act and the name of each loan
repayment award recipient who is not serving in a designated
health professional shortage area, the reason the person is not
serving and the amount owed and paid on the loan and loan
repayment award
]
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 9.
REPEAL.--Sections 21-22D-2 and 21-22D-9 NMSA
1978 (being Laws 1995, Chapter 144, Sections 17 and 24, as
amended) are repealed.

SECTION 10.
APPROPRIATION.--Twenty-five million dollars
($25,000,000) is appropriated from the general fund to the
higher education department for expenditure in fiscal year 2027
and subsequent fiscal years to make awards pursuant to the
Health Professional Loan Repayment Act. Any unexpended balance
remaining at the end of a fiscal year shall not revert to the
general fund.

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