0001| SENATE BILL 391 | 0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, | 0003| 1996 | 0004| INTRODUCED BY | 0005| CARLOS R. CISNEROS | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| AN ACT | 0012| RELATING TO STUDENT LOANS; ENACTING THE PUBLIC LEGAL SERVICES | 0013| ASSISTANCE ACT; PROVIDING EDUCATIONAL LOAN REPAYMENT SUPPORT FOR | 0014| LAWYERS SERVING PUBLIC BODIES OR INDIGENT PERSONS; CREATING AN | 0015| EDUCATIONAL LOAN REPAYMENT ASSISTANCE FUND; MAKING AN | 0016| APPROPRIATION. | 0017| | 0018| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0019| Section 1. SHORT TITLE.--This act may be cited as the | 0020| "Public Legal Services Assistance Act". | 0021| Section 2. PURPOSE OF ACT.--The purpose of the Public | 0022| Legal Services Assistance Act is to enhance the ability of the | 0023| state and its political subdivisions to attract and maintain | 0024| public service lawyers and to provide for legal services for the | 0025| care and maintenance of indigent persons by providing financial | 0001| assistance to law school graduates whose service to the public | 0002| or the indigent is burdened by educational debts. | 0003| Section 3. DEFINITIONS.--As used in the Public Legal | 0004| Services Assistance Act: | 0005| A. "award recipient" means a person selected to | 0006| receive loan repayment assistance under the Public Legal | 0007| Services Assistance Act; | 0008| B. "commission" means the commission on higher | 0009| education; | 0010| C. "one year payment" means an amount equal to | 0011| twelve times the monthly payment required to fully repay the | 0012| award recipient's qualifying loans for a term defined by the | 0013| commission; | 0014| D. "qualified graduate" means any person who is a | 0015| graduate of a fully accredited law school in New Mexico and is a | 0016| resident of the state; | 0017| E. "qualifying employment" means full-time | 0018| employment in the state that substantially uses the legal | 0019| training and skills of the qualified graduate with an | 0020| organization that is exempt from taxation under Paragraph (3), | 0021| (4) or (5) of Subsection (c) of Section 501 of Title 26 of the | 0022| United States Code, and in which the qualified graduate provides | 0023| for the care or maintenance of indigent persons as his primary | 0024| duties; and | 0025| F. "qualifying loans" means educational loans or | 0001| grants of money to defray the costs of education leading to a | 0002| law degree, under a contract between the federal government or a | 0003| commercial lender and a law student, requiring either repayment | 0004| of principal and interest or repayment in services. | 0005| Section 4. FUND CREATED.--There is created in the state | 0006| treasury the "public legal services loan repayment assistance | 0007| fund", which the commission shall administer pursuant to the | 0008| Public Legal Services Assistance Act. The commission shall | 0009| deposit in the fund all amounts specifically appropriated to the | 0010| fund and all other money designated or authorized for deposit in | 0011| the fund. Payments from the fund shall be made upon vouchers | 0012| issued and signed by the commission upon warrants drawn by the | 0013| secretary of finance and administration. | 0014| Section 5. DELEGATION OF DUTIES.--The commission: | 0015| A. may arrange with other agencies for the | 0016| performance of services required by the Public Legal Services | 0017| Assistance Act; | 0018| B. may establish an oversight committee composed of, | 0019| but not limited to, representatives from the state bar of New | 0020| Mexico and the university of New Mexico school of law to perform | 0021| services required by the Public Legal Services Assistance Act; | 0022| and | 0023| C. may adopt regulations and procedures to implement | 0024| the provisions of the Public Legal Services Assistance Act; and | 0025| D. shall establish repayment penalties for those | 0001| individuals who do not comply with the provisions of the Public | 0002| Legal Services Assistance Act. | 0003| Section 6. ELIGIBILITY--AMOUNT OF AWARD.--A qualified | 0004| graduate who has obtained qualifying employment may be awarded | 0005| loan repayment assistance from the public legal services loan | 0006| repayment assistance fund, provided that: | 0007| A. priority shall be given to individuals employed | 0008| in positions for which there is the greatest demonstrated need | 0009| to attract and maintain capable personnel; | 0010| B. no loan repayment award shall exceed the one year | 0011| payment for the award recipient in either of the first two years | 0012| of qualifying employment; | 0013| C. no less than one-third of the appropriation | 0014| available for loan repayment awards in the fiscal year shall be | 0015| awarded to qualified graduates in qualifying employment, unless | 0016| there is an insufficient number of qualified applicants employed | 0017| in those positions; and | 0018| D. an award recipient shall comply with all rules | 0019| and regulations adopted by the commission pursuant to the Public | 0020| Legal Services Assistance Act. | 0021| Section 7. CONDITIONS FOR CONTINUING ELIGIBILITY.--An | 0022| award recipient shall continue to receive loan repayment | 0023| assistance pursuant to the Public Legal Services Assistance Act, | 0024| provided that: | 0025| A. the award recipient maintains residence in the | 0001| state and maintains qualifying employment; and | 0002| B. the award recipient provides all documentation | 0003| required by the commission through rules and regulations adopted | 0004| pursuant to the Public Legal Services Assistance Act, including | 0005| proof of qualifying employment, copies of income tax returns and | 0006| notice of increases in income. | 0007| Section 8. TERMINATION OF ASSISTANCE.--Loan repayment | 0008| assistance to an award recipient shall be terminated upon: | 0009| A. failure by the award recipient to maintain New | 0010| Mexico residency or qualifying employment; or | 0011| B. substantial noncompliance by the award recipient | 0012| with the Public Legal Services Assistance Act or the rules, | 0013| regulations or procedures promulgated by the commission. | 0014| Section 9. PAYMENT OF AWARD.--Loan repayment assistance | 0015| shall occur on a monthly basis and payment shall be made | 0016| directly to the note holder or lending institution. | 0017| Section 10. APPROPRIATION.--Thirty thousand dollars | 0018| ($30,000) is appropriated from the general fund to the public | 0019| legal services loan repayment assistance fund for the purpose of | 0020| implementation of the provisions of the Public Legal Services | 0021| Assistance Act for expenditure in fiscal year 1997. Any | 0022| unexpended or unencumbered balance remaining at the end of | 0023| fiscal year 1997 shall not revert to the general fund. No more | 0024| than three percent of this appropriation shall be used for | 0025| administrative purposes. | 0001|  | 0002| | 0003| FORTY-SECOND LEGISLATURE | 0004| SECOND SESSION, 1996 | 0005| | 0006| | 0007| February 8, 1996 | 0008| | 0009| Mr. President: | 0010| | 0011| Your EDUCATION COMMITTEE, to whom has been referred | 0012| | 0013| SENATE BILL 391 | 0014| | 0015| has had it under consideration and reports same with | 0016| recommendation that it DO PASS, and thence referred to the | 0017| FINANCE COMMITTEE. | 0018| | 0019| Respectfully submitted, | 0020| | 0021| | 0022| | 0023| __________________________________ | 0024| Carlos R. Cisneros, Chairman | 0025| | 0001| | 0002| | 0003| Adopted_______________________ Not Adopted_______________________ | 0004| (Chief Clerk) (Chief Clerk) | 0005| | 0006| | 0007| Date ________________________ | 0008| | 0009| | 0010| The roll call vote was 5 For 1 Against | 0011| Yes: 5 | 0012| No: Lyons | 0013| Excused: Benavides, Carraro, Duran, Scott | 0014| Absent: None | 0015| | 0016| | 0017| S0391ED1 | 0018| | 0019| |