HOUSE BILL 85
57th legislature - STATE OF NEW MEXICO - second session, 2026
INTRODUCED BY
Joseph L. Sanchez
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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