HOUSE BILL 336
54th legislature - STATE OF NEW MEXICO - first session, 2019
RELATING TO HIGHER EDUCATION; REMOVING THE MAXIMUM ANNUAL LOAN REPAYMENT AMOUNT PAYABLE UNDER THE PUBLIC SERVICE LAW LOAN REPAYMENT ACT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 21-22F-6 NMSA 1978 (being Laws 2005, Chapter 83, Section 6) is amended to read:
"21-22F-6. LOAN REPAYMENT CONTRACT TERMS--PAYMENT.--
A. The loan repayment award shall be evidenced by a contract between the participating attorney and the [commission] department acting on behalf of the state. The contract shall state the amount of the award and the obligations of the participating attorney under the public service law loan repayment program, including a minimum three-year period of service, quarterly reporting requirements and other policies established by the [commission] department.
B. A participating attorney shall serve a complete year in order to receive credit for that year. The maximum and minimum credit for a year shall be established by the [commission. The maximum credit for a year shall not exceed seven thousand two hundred dollars ($7,200)] department.
C. If a participating attorney does not comply with the terms of the contract, the [commission] department shall require immediate repayment of the award plus eighteen percent interest and may assess a penalty of up to three times the amount of award disbursed, unless the [commission] department finds acceptable extenuating circumstances for why the participating attorney cannot serve or comply with the terms of the contract. If the [commission] department does not find acceptable extenuating circumstances for the participating attorney's failure to comply with the contract, the [commission] department shall require immediate repayment of the award plus the amount of the penalty.
D. The [commission] department, in consultation with the committee, shall adopt rules to implement the provisions of this section. The rules may provide for the disbursement of loan repayment awards in annual or other periodic installments."
SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2019.