0001| HOUSE BILL 811 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| GAIL C. BEAM | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO STUDENT LOANS; ENACTING THE PUBLIC LEGAL SERVICES | 0012| ASSISTANCE ACT; PROVIDING EDUCATIONAL LOAN REPAYMENT SUPPORT | 0013| FOR LAWYERS SERVING PUBLIC BODIES OR INDIGENT PERSONS; CREATING | 0014| AN EDUCATIONAL LOAN REPAYMENT ASSISTANCE FUND; MAKING AN | 0015| APPROPRIATION. | 0016| | 0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0018| Section 1. SHORT TITLE.--This act may be cited as the | 0019| "Public Legal Services Assistance Act". | 0020| Section 2. PURPOSE OF ACT.--The purpose of the Public | 0021| Legal Services Assistance Act is to enhance the ability of the | 0022| state and its political subdivisions to attract and maintain | 0023| public service lawyers and to provide for legal services for | 0024| the care and maintenance of indigent persons by providing | 0025| financial assistance to law school graduates whose service to | 0001| the public or the indigent is burdened by educational debts. | 0002| Section 3. DEFINITIONS.--As used in the Public Legal | 0003| Services Assistance Act: | 0004| A. "award recipient" means a person selected to | 0005| receive loan repayment assistance under the Public Legal | 0006| Services Assistance Act; | 0007| B. "commission" means the commission on higher | 0008| education; | 0009| C. "one year payment" means an amount equal to | 0010| twelve times the monthly payment required to fully repay the | 0011| award recipient's qualifying loans for a term defined by the | 0012| commission; | 0013| D. "qualified graduate" means any person who is a | 0014| graduate of a fully accredited law school in New Mexico and is | 0015| a resident of the state; | 0016| E. "qualifying employment" means full-time | 0017| employment in the state that substantially utilizes the legal | 0018| training and skills of the qualified graduate: | 0019| (1) with the state or with a county, school | 0020| district or municipality, or under contract with the state or | 0021| with a county, school district or municipality, in a position | 0022| for which there is a demonstrated need to attract and maintain | 0023| capable personnel, excluding a judicial clerkship; or | 0024| (2) with an organization that is exempt from | 0025| taxation under Paragraph (3), (4) or (5) of Subsection (c) of | 0001| Section 501 of Title 26 of the United States Code, and in which | 0002| the qualified graduate provides for the care or maintenance of | 0003| indigent persons as his primary duties; and | 0004| F. "qualifying loan" means an educational loan or | 0005| grant of money obtained by a student pursuant to a contract | 0006| between that student and the federal government or a commercial | 0007| lender used to defray the costs of education leading to a juris | 0008| doctor degree and that requires either repayment of principal | 0009| and interest for the loan or repayment in services. | 0010| Section 4. FUND CREATED.--The "public legal services loan | 0011| repayment assistance fund" is created in the state treasury. | 0012| Money in the fund shall not revert at the end of any fiscal | 0013| year. Money appropriated to the fund or accruing to it through | 0014| gifts, grants or bequests shall be deposited in the fund. The | 0015| fund shall be invested as other state funds are invested. | 0016| Disbursements from the fund shall be made upon warrants drawn | 0017| by the secretary of finance and administration pursuant to | 0018| vouchers signed by the executive director of the commission on | 0019| higher education or his designee. Money in the fund shall be | 0020| used to carry out the provisions of the Public Legal Services | 0021| Assistance Act. | 0022| Section 5. DELEGATION OF DUTIES.-- | 0023| A. The commission: | 0024| (1) may arrange with other agencies for the | 0025| performance of services required by the Public Legal Services | 0001| Assistance Act; | 0002| (2) may establish an oversight committee | 0003| composed of, but not limited to, representatives from the state | 0004| bar of New Mexico and the university of New Mexico school of | 0005| law to perform services required by the Public Legal Services | 0006| Assistance Act; | 0007| (3) shall establish repayment penalties for | 0008| individuals who do not comply with the provisions of the Public | 0009| Legal Services Assistance Act; and | 0010| (4) shall adopt regulations and procedures to | 0011| implement the provisions of the Public Legal Services | 0012| Assistance Act. | 0013| Section 6. ELIGIBILITY--AMOUNT OF AWARD.-- | 0014| A. A qualified graduate who has obtained qualifying | 0015| employment may be awarded loan repayment assistance from the | 0016| public legal services loan repayment assistance fund if: | 0017| (1) funds are available and the qualified | 0018| graduate is employed in a position for which there is great | 0019| demonstrated need to attract and maintain capable personnel; | 0020| (2) the loan repayment award does not exceed | 0021| the one-year payment for the award recipient in either of the | 0022| first two years of qualifying employment; | 0023| (3) no less than one-third of the | 0024| appropriation available for loan repayment awards in the fiscal | 0025| year is awarded to qualified graduates in qualifying | 0001| employment, unless an insufficient number of qualified | 0002| applicants are employed in those positions; and | 0003| (4) the award recipient agrees to comply with | 0004| all rules and regulations adopted by the commission pursuant to | 0005| the Public Legal Services Assistance Act. | 0006| Section 7. CONDITIONS FOR CONTINUING ELIGIBILITY.--An | 0007| award recipient shall continue to receive loan repayment | 0008| assistance pursuant to the Public Legal Services Assistance | 0009| Act, if: | 0010| A. the award recipient maintains residence in the | 0011| state and maintains qualifying employment; and | 0012| B. the award recipient provides documentation | 0013| required pursuant to rules and regulations adopted by the | 0014| commission to carry out the provisions of the Public Legal | 0015| Services Assistance Act, including proof of qualifying | 0016| employment, copies of income tax returns and notice of | 0017| increases in income. | 0018| Section 8. TERMINATION OF ASSISTANCE.--Loan repayment | 0019| assistance to an award recipient shall be terminated upon: | 0020| A. failure by the award recipient to maintain New | 0021| Mexico residency or qualifying employment; or | 0022| B. substantial noncompliance by the award recipient | 0023| with the Public Legal Services Assistance Act or the rules, | 0024| regulations or procedures promulgated by the commission. | 0025| Section 9. PAYMENT OF AWARD.--Loan repayment assistance | 0001| shall occur on a monthly basis and payment shall be made | 0002| directly to the noteholder or lending institution. | 0003| Section 10. APPROPRIATION.--Thirty thousand dollars | 0004| ($30,000) is appropriated from the general fund to the public | 0005| legal services loan repayment assistance fund for expenditure | 0006| in fiscal year 1998 for the purpose of carrying out the | 0007| provisions of the Public Legal Services Assistance Act. No | 0008| more than three percent of the appropriation shall be used for | 0009| administrative purposes. Any unexpended or unencumbered | 0010| balance remaining at the end of fiscal year 1998 shall not | 0011| revert to the general fund. | 0012|  | 0013| State of New Mexico | 0014| House of Representatives | 0015| | 0016| FORTY-THIRD LEGISLATURE | 0017| FIRST SESSION, 1997 | 0018| | 0019| | 0020| February 24, 1997 | 0021| | 0022| | 0023| Mr. Speaker: | 0024| | 0025| Your JUDICIARY COMMITTEE, to whom has been referred | 0001| | 0002| HOUSE BILL 811 | 0003| | 0004| has had it under consideration and reports same with | 0005| recommendation that it DO PASS, amended as follows: | 0006| | 0007| 1. On page 3, line 2, after "provides" insert "legal | 0008| services" and after "for" strike the remainder of the line., | 0009| | 0010| and thence referred to the APPROPRIATIONS AND FINANCE | 0011| COMMITTEE. | 0012| | 0013| Respectfully submitted, | 0014| | 0015| | 0016| | 0017| | 0018| | 0019| Thomas P. Foy, Chairman | 0020| | 0021| | 0022| Adopted Not Adopted | 0023| | 0024| (Chief Clerk) (Chief Clerk) | 0025| | 0001| Date | 0002| | 0003| The roll call vote was 9 For 1 Against | 0004| Yes: 9 | 0005| No: Alwin | 0006| Excused: M.P. Garcia, Pederson, Rios | 0007| Absent: None | 0008| | 0009| | 0010| .117685.1 | 0011| G:\BILLTEXT\BILLW_97\H0811 |