0001| HOUSE BILL 494
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0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003| INTRODUCED BY
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0004| GAIL C. BEAM
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0005|
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0006|
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0007|
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0008| FOR THE HEALTH AND WELFARE REFORM COMMITTEE
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0009|
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0010| AN ACT
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0011| RELATING TO HEALTH; CREATING A SINGLE HEALTH PROFESSIONAL AND
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0012| STUDENT LOAN AND REPAYMENT ACT; PROVIDING OPPORTUNITIES TO
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0013| REPAY EDUCATIONAL LOANS THROUGH SERVICE IN DESIGNATED AREAS
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0014| INADEQUATELY SERVED BY HEALTH PROFESSIONALS; PROVIDING
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0015| PENALTIES; RENAMING A FUND; AMENDING AND REPEALING SECTIONS OF
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0016| THE NMSA 1978.
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0017|
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0018| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0019| Section 1. Section 21-22D-1 NMSA 1978 (being Laws 1995,
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0020| Chapter 144, Section 16) is amended to read:
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0021| "21-22D-1. SHORT TITLE.--[Sections 16 through 25 of
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this act] Chapter 21, Article 22D NMSA 1978 may be cited as
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0023| the "Health Professional and Student Loan and Repayment
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0024| Act"."
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0025| Section 2. Section 21-22D-2 NMSA 1978 (being Laws 1995,
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0001| Chapter 144, Section 17) is amended to read:
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0002| "21-22D-2. PURPOSE.--The purpose of the Health
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0003| Professional and Student Loan and Repayment Act is to
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0004| increase the number of health professionals in underserved
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0005| areas of the state through an educational loan and loan
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0006| repayment program. The act provides for repayment of the
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0007| principal and reasonable interest accrued on loans obtained
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0008| from the federal government or a commercial lender for health
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0009| education purposes."
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0010| Section 3. Section 21-22D-3 NMSA 1978 (being Laws 1995,
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0011| Chapter 144, Section 18) is amended to read:
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0012| "21-22D-3. DEFINITIONS.--As used in the Health
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0013| Professional and Student Loan and Repayment Act:
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0014| A. "allied health profession" means physical
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0015| therapy, occupational therapy, speech-language pathology,
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0016| audiology, pharmacology, nutrition, respiratory care,
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0017| laboratory technology, radiologic technology, mental health
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0018| services, emergency medical services or a licensed or
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0019| certified health profession as defined by the commission;
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0020| [A.] B. "commission" means the commission on
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0021| higher education;
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0022| [B.] C. "health professional" means a primary
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0023| care physician, optometrist, osteopathic physician,
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0024| osteopathic physician's assistant, podiatrist, physician's
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0025| assistant, dentist, nurse, member of an allied health
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0001| profession [as defined in the Allied Health Student Loan for
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Service Act] or a licensed or certified health professional
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0003| as determined by the commission; [and
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C.] D. "loan" means a grant of money to defray
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0005| the costs incidental to a health education, under a contract
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0006| between the state, the federal government or a commercial
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0007| lender and a student or a health professional, requiring
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0008| either repayment of principal and interest or repayment in
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0009| services; and
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0010| E. "student" means a resident of New Mexico who
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0011| is a student enrolled in a school of medicine, nursing
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0012| education program, school of osteopathic medicine or
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0013| osteopathic physician's assistant program or an accredited
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0014| education program for one of the allied health professions set
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0015| forth in Subsection A of this section, provided the program or
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0016| school is approved by the commission."
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0017| Section 4. Section 21-22D-4 NMSA 1978 (being Laws 1995,
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0018| Chapter 144, Section 19) is amended to read:
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0019| "21-22D-4. COMMISSION POWERS AND DUTIES--PARTICIPANT
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0020| ELIGIBILITY--QUALIFICATIONS.--
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0021| A. The commission may grant a loan or an award
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0022| to repay loans obtained for health [educational] education
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0023| expenses of a student or health professional upon such terms
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0024| and conditions as may be imposed by regulations of the
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0025| commission.
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0001| B. Applicants shall be students or licensed or
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0002| certified to practice in New Mexico as health professionals
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0003| and shall be bona fide citizens and residents of the United
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0004| States and of New Mexico. Applicants shall declare their
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0005| intent to practice as health professionals within designated
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0006| health professional shortage areas of the state.
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0007| C. The commission shall make a full and careful
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0008| investigation of the ability, character and qualifications of
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0009| each applicant and determine fitness to become a health
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0010| professional in the health professional loan and loan
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0011| repayment program.
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0012| D. The commission shall assist selected health
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0013| professionals in locating practice positions in designated
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0014| health professional shortage areas."
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0015| Section 5. Section 21-22D-5 NMSA 1978 (being Laws 1995,
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0016| Chapter 144, Section 20) is amended to read:
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0017| "21-22D-5. DELEGATION OF DUTIES.--The commission may
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0018| delegate to other agencies or contract for the performance of
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0019| services required by the provisions of the Health Professional
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0020| and Student Loan and Repayment Act."
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0021| Section 6. Section 21-22D-6 NMSA 1978 (being Laws 1995,
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0022| Chapter 144, Section 21) is amended to read:
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0023| "21-22D-6. AWARD CRITERIA--CONTRACT TERMS--PAYMENT.--
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0024| A. Prior to receiving an award or loan, the
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0025| health professional or student applicant shall file with the
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0001| commission a declaration of intent to practice as a health
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0002| professional in areas of New Mexico designated as underserved
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0003| by the health profession advisory committee.
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0004| B. Award criteria shall provide that:
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0005| (1) amounts shall be dependent upon the
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0006| location of the practice, the applicant's total health
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0007| professional [educational] education needs or indebtedness
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0008| and characteristics of the practice;
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0009| (2) preference in making awards shall be to
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0010| individuals who have graduated from a New Mexico public post-
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0011| secondary educational institution;
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0012| (3) recruitment awards shall be made to
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0013| eligible participants who agree to relocate to an approved
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0014| designated area;
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0015| (4) highest priority shall be given to
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0016| [participants] applicants in practices in which health
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0017| profession vacancies are difficult to fill, practices that
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0018| require regular after hours [call at least every other
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night] calls and practices that have heavy obstetrical
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0020| responsibilities;
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0021| (5) award or loan amounts may be modified
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0022| based upon available funding or other special circumstances;
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0023| and
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0024| (6) an award shall not exceed the total
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0025| medical [educational] education indebtedness of any
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0001| participant.
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0002| C. The following [educational] education debts
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0003| are not eligible for repayment pursuant to the Health
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0004| Professional and Student Loan and Repayment Act:
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0005| (1) amounts incurred as a result of
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0006| participation in other state loan-for-service programs or
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0007| other state programs whose purpose states that service be
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0008| provided in exchange for financial assistance;
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0009| (2) scholarships that have a service
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0010| component or obligation;
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0011| (3) personal loans from friends or relatives;
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0012| and
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0013| (4) loans that exceed individual standard
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0014| school expense levels.
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0015| D. The loan or loan repayment award shall be
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0016| evidenced by a contract between the student or health
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0017| professional and the commission acting on behalf of the state.
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0018| The contract shall provide for the payment by the state of a
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0019| stated sum to the health professional's debtors and shall
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0020| state the obligations of the student or health professional
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0021| under the program, including a minimum two-year period of
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0022| service, quarterly reporting requirements and other policies
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0023| established by the commission.
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0024| E. Recipients shall serve a complete year in order
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0025| to receive credit for that year. The minimum credit for a
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0001| year shall be established by the commission.
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0002| F. If a student or health professional does not
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0003| comply with the terms of the contract, the commission shall
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0004| assess a penalty of [up to] three times the amount of award
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0005| disbursed plus eighteen percent interest, unless the
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0006| commission finds acceptable extenuating circumstances for why
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0007| the health professional cannot serve or comply with the terms
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0008| of the contract. Acceptable extenuating circumstances do not
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0009| include the student's or health professional's preference not
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0010| to practice or continue practicing in the designated health
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0011| professional shortage area or his opportunity or desire to
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0012| practice in the employ, partnership or association of a person
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0013| willing to pay back his health professional education
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0014| indebtedness. If the commission does not find acceptable
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0015| extenuating circumstances for the health professional's
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0016| failure to comply with the contract, the commission shall
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0017| require immediate repayment plus the amount of the penalty.
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0018| G. The commission shall adopt regulations to
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0019| implement the provisions of this section. The regulations may
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0020| provide for the disbursement of loan repayment awards to the
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0021| lenders of health professionals in annual or other periodic
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0022| installments."
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0023| Section 7. Section 21-22D-7 NMSA 1978 (being Laws 1995,
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0024| Chapter 144, Section 22) is amended to read:
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0025| "21-22D-7. CONTRACTS--ENFORCEMENT.--The general form of
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0001| the contract required shall be prepared and approved by the
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0002| attorney general and signed by the student or health
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0003| professional and the designated representative of the
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0004| commission on behalf of the state. The commission is vested
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0005| with full and complete authority and power to sue in its own
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0006| name for any balance due the state from any student or health
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0007| professional on any such contract."
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0008| Section 8. Section 21-22D-8 NMSA 1978 (being Laws 1995,
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0009| Chapter 144, Section 23) is amended to read:
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0010| "21-22D-8. FUND CREATED--METHOD OF PAYMENT.--The "health
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0011| professional and student loan and repayment fund" is
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0012| created in the state treasury. All money appropriated for the
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0013| health professional and student loan and repayment program
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0014| shall be credited to the fund, and all payments for penalties
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0015| or repayment of awards received by the commission shall be
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0016| credited to the fund or shall be deposited with the
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0017| commission's administrative agent. All payments for loans
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0018| and loan repayment awards shall be made upon vouchers signed
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0019| by the designated representative of the commission and upon
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0020| warrant issued by the secretary of finance and
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0021| administration."
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0022| Section 9. Section 21-22D-9 NMSA 1978 (being Laws 1995,
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0023| Chapter 144, Section 24) is amended to read:
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0024| "21-22D-9. CANCELLATION.--The commission may cancel any
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0025| contract made between it and any health professional or
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0001| student for any reasonable cause deemed sufficient by the
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0002| commission."
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0003| Section 10. Section 21-22D-10 NMSA 1978 (being Laws
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0004| 1995, Chapter 144, Section 25) is amended to read:
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0005| "21-22D-10. REPORTS.--The commission shall make annual
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0006| reports to the governor and to the legislature, prior to each
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0007| regular session, of its activities, the loans and loan
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0008| repayment awards granted, the names and addresses of loan
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0009| and loan repayment award recipients, the names and locations
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0010| of the practices of those health professionals who are serving
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0011| in a designated health professional shortage area of the state
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0012| pursuant to the Health Professional and Student Loan and
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0013| Repayment Act and the name of each loan student and loan
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0014| repayment award recipient who is not serving in a designated
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0015| health professional shortage area, the reason the person is
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0016| not serving and the amount owed and paid on the loan and loan
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0017| repayment award."
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0018| Section 11. FUNDS TRANSFERS.--On July 1, 1998, all
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0019| balances in and funds due and accrued to the medical student
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0020| loan for service fund, osteopathic medical student loan for
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0021| service fund, nursing student loan for service fund and allied
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0022| health student loan for service fund are transferred to the
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0023| health professional and student loan and repayment fund
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0024| created in Section 21-22D-8 NMSA 1978 to be expended for the
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0025| purposes of the Health Professional and Student Loan and
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0001| Repayment Act.
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0002| Section 12. REPEAL.--Sections 21-22-1 through 21-22-10,
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0003| 21-22A-1 through 21-22A-10, 21-22B-1 through 21-22B-10 and
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0004| 21-22C-1 through 21-22C-10 NMSA 1978 (being Laws 1975, Chapter
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0005| 244, Sections 1 through 10, Laws 1978, Chapter 109, Sections 1
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0006| through 10, Laws 1987, Chapter 299, Sections 1 through 10 and
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0007| Laws 1994, Chapter 57, Sections 3 through 12, as amended) are
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0008| repealed.
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0009| Section 13. EFFECTIVE DATE.--The effective date of the
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0010| provisions of this act is July 1, 1998.
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0011|
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