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AN ACT

RELATING TO HIGHER EDUCATION; PROHIBITING CONSIDERATION OF

INCOME FROM MILITARY SERVICE IN AWARDS UNDER THE PUBLIC

SERVICE LAW LOAN REPAYMENT ACT; PROVIDING FOR AN APPEAL OF AN

AWARD DETERMINATION.

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

Section 1. Section 21-22F-1 NMSA 1978 (being Laws

2005, Chapter 83, Section 1) is amended to read:

"21-22F-1. SHORT TITLE.-- Chapter 21, Article 22F NMSA

1978 may be cited as the "Public Service Law Loan Repayment

Act"."

Section 2. Section 21-22F-3 NMSA 1978 (being Laws 2005,

Chapter 83, Section 3) is amended to read:

"21-22F-3. DEFINITIONS.--As used in the Public Service

Law Loan Repayment Act:

A. "committee" means the public service law

advisory committee;

B. "department" means the higher education

department;

C. "legal education" means education at an

accredited law school and any bar review preparation courses

for the state bar examination;

D. "loan" means money allocated to defray the

costs incidental to a legal education under a contract

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between the federal government or a commercial lender and a

law school student, requiring either repayment of principal

and interest or repayment in services;

E. "participating attorney" means an attorney who

receives a loan repayment award from the department pursuant

to the provisions of the Public Service Law Loan Repayment

Act; and

F. "public service employment" means employment

with:

(1) an organization that is exempt from

taxation pursuant to Section 501(c)(3) of Title 26 of the

United States Code and that provides for the care and

maintenance of indigent persons in New Mexico through civil

legal services;

(2) the public defender department; or

(3) a New Mexico district attorney's

office."

Section 3. Section 21-22F-5 NMSA 1978 (being Laws 2005,

Chapter 83, Section 5) is amended to read:

"21-22F-5. LOAN REPAYMENT PROGRAM--PARTICIPANT

ELIGIBILITY--AWARD CRITERIA.--

A. An applicant shall be licensed to practice in

New Mexico as an attorney and shall declare an intent to

practice as an attorney in public service employment.

B. Prior to submitting an application to the

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public service law loan repayment program, an applicant shall

apply to all available legal education loan repayment

programs offered by the applicant's law school for which the

applicant qualifies.

C. An applicant who intends to practice as an

attorney in a public service employment position that earns

more than forty-five thousand dollars ($45,000) per year is

not eligible for participation in the public service law loan

repayment program.

D. Prior to receiving a loan repayment award, the

applicant shall file with the department:

(1) a declaration of intent to practice as

an attorney in public service employment;

(2) proof of prior application to all legal

education loan repayment programs offered by the applicant's

law school for which the applicant qualifies; and

(3) documentation that includes the

applicant's total legal education debt, salary, any amounts

received by the applicant from other law loan repayment

programs and other sources of income deemed by the department

as appropriate for consideration; provided that the applicant

shall not be required to disclose amounts of income from

military service.

E. Award criteria shall provide that:

(1) preference in making awards shall be to

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applicants who:

(a) have graduated from the university

of New Mexico law school;

(b) have the greatest financial need

based on legal education indebtedness and salary;

(c) work in public service employment

that has the lowest salaries; and

(d) work in public service employment

in underserved areas of New Mexico that are in greatest need

of attorneys practicing in public service employment;

(2) an applicant's employment as an attorney

in public service employment prior to participation in the

public service law loan repayment program shall not count as

time spent toward the minimum three-year period of service

requirement pursuant to the contract between the

participating attorney and the department acting on behalf of

the state;

(3) award amounts are dependent upon the

applicant's total legal education debt, salary and sources of

income other than income from military service deemed by the

department as appropriate for consideration;

(4) award amounts may be modified based upon

available funding or other special circumstances;

(5) an award shall not exceed the total

legal education debt of any participant;

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(6) award amounts shall be reduced by the

sum of the total award amounts received by the participant

from other legal education loan repayment programs; and

(7) an award determination may be appealed

to the secretary of higher education.

F. The following legal education debts are not

eligible for repayment pursuant to the Public Service Law

Loan Repayment Act:

(1) amounts incurred as a result of

participation in state or law school loan-for-service

programs or other state or law school programs whose purposes

state that service be provided in exchange for financial

assistance;

(2) scholarships that have a service

component or obligation;

(3) personal loans from relatives or

friends; and

(4) loans that exceed individual standard

school expense levels."