HOUSE BILL 102
53rd legislature - STATE OF NEW MEXICO - second session, 2018
INTRODUCED BY
Patricio Ruiloba
AN ACT
RELATING TO TEACHER LOAN REPAYMENT; ALLOCATING REVENUE FOR LOAN REPAYMENT FOR CERTAIN TEACHERS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 6-24-24 NMSA 1978 (being Laws 1995, Chapter 155, Section 24, as amended) is amended to read:
"6-24-24. DISPOSITION OF REVENUE.--
A. As nearly as practical, an amount equal to at least fifty percent of the gross annual revenue from the sale of lottery tickets shall be returned to the public in the form of lottery prizes.
B. No later than the last business day of each month, the authority shall transmit at least [twenty-seven] twenty-nine and seventy-five hundredths percent of the gross revenue of the previous month [until December 31, 2008 and at least thirty percent of the gross revenue of the previous month thereafter] to the state treasurer, who shall deposit it in the lottery tuition fund.
C. No later than the last business day of each month, the authority shall transmit at least twenty-five hundredths percent of the gross revenue of the previous month to the state treasurer, who shall deposit it in the teacher loan repayment fund.
[C.] D. Operating expenses of the lottery include all costs incurred in the operation and administration of the lottery and all costs resulting from any contracts entered into for the purchase or lease of goods or services required by the lottery, including the costs of supplies, materials, tickets, independent audit services, independent studies, data transmission, advertising, promotion, incentives, public relations, communications, commissions paid to lottery retailers, printing, distribution of tickets, purchases of annuities or investments to be used to pay future installments of winning lottery tickets, debt service and payment of any revenue bonds issued, contingency reserves, transfers to the reserve fund and any other necessary costs incurred in carrying out the provisions of the New Mexico Lottery Act."
SECTION 2. Section 21-22H-5 NMSA 1978 (being Laws 2013, Chapter 177, Section 5) is amended to read:
"21-22H-5. LOAN REPAYMENT AWARD CRITERIA--CONTRACT TERMS--PAYMENT.--
A. Loan repayment award criteria shall provide that:
(1) award amounts shall be dependent upon a specific public school's need for the designated high-risk teacher position, as determined by the public education department, the teacher's total teacher education indebtedness and available balances in the teacher loan repayment fund;
(2) preference in making awards shall be to teachers who have graduated from a New Mexico public post-secondary educational institution;
(3) awards shall be made to eligible teachers who fill a designated high-risk teacher position;
(4) award amounts may be modified based upon funding availability or other special circumstances; and
(5) the total amount of awards made to any one teacher shall not exceed the total teacher education indebtedness of that teacher.
B. The following teacher education debts are not eligible for repayment pursuant to the Teacher 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;
(3) loans from a commercial lender;
(4) personal loans from friends or relatives; and
(5) loans that exceed individual standard school expense levels.
C. Every loan repayment award shall be evidenced by a contract between the teacher 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 teacher's federal government lender and shall state the obligations of the teacher under the program, including a minimum two-school-year period of service as a level two or level three-A teacher in a designated high-risk teacher position, quarterly reporting requirements and other obligations established by the department.
D. Teachers who serve a complete school year as a level two or level three-A teacher in a designated high-risk teacher position shall receive credit for one year for the purpose of calculating any loan repayment award amounts. The minimum loan repayment award amount to be paid for each school year completed shall be established by the department.
E. The contract between a teacher and the department shall provide that, if the teacher does not comply with the terms of the contract, the teacher shall reimburse the department for all loan payments made on the teacher's behalf, plus reasonable interest at a rate to be determined by the department, unless the department finds acceptable extenuating circumstances for why the teacher cannot serve or comply with the terms of the contract.
F. Loan repayment awards shall be in the form of payments from the teacher loan repayment fund directly to the federal government lender of a teacher who has received the award and shall be considered a payment on behalf of the teacher pursuant to the contract between the department and the teacher. A loan repayment award shall not obligate the state or the department to the teacher's federal government lender for any other payment and shall not be considered to create any privity of contract between the state or the department and the lender.
G. The department, after consulting with the public education department, shall adopt rules to implement the provisions of the Teacher Loan Repayment Act. The rules:
(1) shall provide a procedure for determining the amount of a loan that will be repaid for each year of service in a designated high-risk teacher position; and
(2) may provide for the disbursement of loan repayment awards to a teacher's federal government lender in annual or other periodic installments."
SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2018.
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