HOUSE BILL 242
48th legislature - STATE OF NEW MEXICO - first session, 2007
INTRODUCED BY
Debbie A. Rodella
AN ACT
RELATING TO HEALTH CARE; CREATING THE DENTAL HYGIENIST STUDENT LOAN FOR SERVICE ACT; CREATING A FUND; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. SHORT TITLE.--This act may be cited as the "Dental Hygienist Student Loan for Service Act".
Section 2. PURPOSE.--The purpose of the Dental Hygienist Student Loan for Service Act is to meet the emergency currently existing resulting from the shortage of dental hygienists in certain areas of the state by increasing the number of dental hygienists in these areas through a program of loans for dental hygiene students. The program will require as a condition of each loan that the student declare intent to practice as a dental hygienist within one of the areas of the state designated as an underserved area prior to the granting of the loan.
Section 3. DEFINITIONS.--As used in the Dental Hygienist Student Loan for Service Act:
A. "dental hygiene education program" means a dental hygiene education program in an institution accredited by a member of the joint commission on dental accreditation;
B. "department" means the higher education department;
C. "loan" means a grant of funds to defray the costs incidental to a dental hygiene education, under a contract between the department and a dental hygiene student, requiring repayment with services or repayment with interest;
D. "student" means a resident of New Mexico who is a student enrolled in a dental hygiene education program; and
E. "underserved area" means an area in New Mexico designated by the department as one with a shortage of dental hygienists.
Section 4. DENTAL HYGIENE STUDENT LOANS--DEPARTMENT AUTHORIZED--QUALIFICATION.--
A. The department is authorized to grant a loan to defray the expenses of the dental hygiene education program of a student deemed qualified by the department to receive a loan same, upon such terms and conditions as may be imposed by rules of the department.
B. The department shall only receive, pass upon and allow or disallow those applications for loans made by those students enrolled or accepted by dental hygiene education programs who declare their intent to practice as licensed dental hygienists upon graduation within underserved areas.
C. The department shall make a full and careful investigation of the ability, character and qualifications of each applicant and determine the applicant's fitness to become a recipient of a loan. The department shall give preference to qualified applicants who are unable, or whose parents or guardians are unable, to pay the applicant's expenses in obtaining a dental hygiene education.
D. The department shall arrange for loan recipients to receive assistance in locating appropriate practice positions in underserved areas.
Section 5. DENTAL HYGIENE STUDENT LOANS--CONTRACT TERMS--REPAYMENT.--
A. Each applicant who is approved for a loan by the department may be granted a loan, in such amounts and for such periods as determined by the department, with which to defray expenses incurred in obtaining a dental hygiene education at any accredited dental hygiene education program in the United States if the applicant files with the department a declaration of intent to practice as a licensed dental hygienist upon graduation in an underserved area.
B. The loan shall not exceed the necessary expenses incurred while attending a dental hygiene education program and shall bear interest at the rate of:
(1) eighteen percent per year if the loan recipient completes the dental hygiene education program and no portion of the principal and interest is forgiven pursuant to Subsection F of this section; and
(2) seven percent per year in all other cases.
C. Loans made pursuant to the Dental Hygienist Student Loan for Service Act shall not accrue interest until:
(1) the department determines the loan recipient has terminated the recipient's dental hygiene education program prior to completion; or
(2) the department determines the loan recipient has failed to fulfill the recipient's obligation to serve in an underserved area.
D. The loan shall be evidenced by a contract between the loan recipient and the department acting on behalf of the state. The contract shall provide for the payment by the state of a stated sum covering the costs of a dental hygiene education program and shall be conditioned upon the repayment of the loan to the state over a period established by the department in consultation with the loan recipient after completion of the dental hygiene education program and any period of internship or residency required to complete the loan recipient's dental hygiene education program.
E. A loan made to a recipient who fails to complete the dental hygiene education program shall become due immediately upon termination of the dental hygiene education program. The department, in consultation with the loan recipient, shall establish terms of repayment or alternate service or shall negotiate cancellation terms.
F. The contract shall provide that the department shall forgive a portion of the loan for each year that a loan recipient practices as a licensed dental hygienist in an underserved area. The loan shall be forgiven as follows:
(1) loan terms of one year shall require one year of practice in an underserved area. Upon completion of service, one hundred percent of the loan shall be forgiven; and
(2) loan terms of two years shall require one year of practice in an underserved area for each year of the loan. Upon completion of the first year of service, fifty percent of the loan shall be forgiven. Upon completion of the second year of service, the remainder of the loan shall be forgiven.
G. Loan 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.
H. If a loan recipient completes a dental hygiene education program and does not serve in an underserved area, the department shall assess a penalty of up to three times the principal due, plus eighteen percent interest, unless the department finds acceptable extenuating circumstances for why the loan recipient cannot serve. If the department does not find acceptable extenuating circumstances for the loan recipient's failure to serve in an underserved area, the department shall require immediate repayment of the loan plus the amount of any interest and penalty assessed pursuant to this subsection.
I. The department shall adopt rules to implement the provisions of this section. The rules may provide for the repayment of loans in annual or other periodic installments.
Section 6. DENTAL HYGIENIST STUDENT LOAN FOR SERVICE FUND CREATED--METHOD OF PAYMENT.--The "dental hygienist student loan for service fund" is created in the state treasury. Money appropriated for loans to dental hygiene students pursuant to the Dental Hygienist Student Loan for Service Act shall be credited to the fund and payments of principal and interest on loans made pursuant to that act received by the department shall be deposited with the state treasurer for credit to the fund. Payments for loans shall be disbursed on warrants signed by the secretary of finance and administration upon vouchers signed by the secretary of higher education or the secretary's authorized representative.
Section 7. CANCELLATION.--The department is authorized to cancel any contract made between it and a loan recipient for any reasonable cause deemed sufficient by the department.
Section 8. REPORTS.--The department shall make annual reports to the governor and to the legislature, prior to each regular session, of its activities, the loans granted, the names and addresses of loan recipients and the dental hygiene education programs attended by those recipients, and the names and locations of the practices of the loan recipients who have completed their education and begun service.
- 7 -