0001| SENATE BILL 264 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| RICHARD M. ROMERO | 0005| | 0006| | 0007| | 0008| FOR THE HEALTH CARE REFORM COMMITTEE | 0009| | 0010| AN ACT | 0011| RELATING TO EDUCATION; AMENDING A SECTION OF THE NURSING | 0012| STUDENT LOAN FOR SERVICE ACT TO PROVIDE LOAN REPAYMENT | 0013| PENALTIES FOR FAILURE TO SERVE. | 0014| | 0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0016| Section 1. Section 21-22B-6 NMSA 1978 (being Laws 1987, | 0017| Chapter 299, Section 6, as amended) is amended to read: | 0018| "21-22B-6. NURSING STUDENT LOANS--CONTRACT TERMS-- | 0019| REPAYMENT.-- | 0020| A. Each applicant who is approved for a loan by the | 0021| commission may be granted a loan, in such amounts for such | 0022| periods as determined by the commission, with which to defray | 0023| expenses incurred in obtaining a nursing education; provided | 0024| that the applicant files with the commission a declaration of | 0025| intent to practice as a licensed nurse in areas of New Mexico | 0001| designated as underserved. | 0002| B. The loans shall not exceed the necessary | 0003| expenses incurred while attending a program of nursing and | 0004| shall bear interest at the rate of: | 0005| (1) eighteen percent per year if the student | 0006| completes his nursing education and no portion of the principal | 0007| and interest is forgiven pursuant to Subsection E of this | 0008| section; and | 0009| (2) seven percent per year in all other cases. | 0010| C. The loan shall be evidenced by a contract | 0011| between the student and the commission acting on behalf of the | 0012| state. The contract shall provide for the payment by the state | 0013| of a stated sum covering the costs of a nursing education and | 0014| shall be conditioned upon the repayment of the loan to the | 0015| state, together with interest, over a period negotiated between | 0016| the student and the commission after completion of a nursing | 0017| program. The contract shall further provide that immediately | 0018| upon completion or termination of the student's nursing | 0019| education, all interest then accrued shall be capitalized. | 0020| D. Loans made to students who fail to complete | 0021| their nursing education shall become due, together with | 0022| interest, immediately upon termination of nursing education. | 0023| The commission, in consultation with the student, shall | 0024| establish terms of repayment, alternate service or cancellation | 0025| terms with the commission. | 0001| E. The contract shall provide that the commission | 0002| may forgive a portion of the loan principal and interest for | 0003| each year that a loan recipient practices nursing in areas | 0004| approved by the health profession advisory committee. Loan | 0005| principal and interest shall be forgiven as follows: | 0006| (1) loan terms of one year shall require one | 0007| year of practice in a designated health professional shortage | 0008| area. Upon completion of service, one hundred percent of the | 0009| principal plus accrued interest shall be forgiven; | 0010| (2) loan terms of two years shall require one | 0011| year of practice in a designated health professional shortage | 0012| area for each year of the loan. Upon completion of the first | 0013| year of service, fifty percent of the principal plus accrued | 0014| interest shall be forgiven. Upon completion of the second year | 0015| of service, the remainder of the principal plus accrued | 0016| interest shall be forgiven; and | 0017| (3) for loan terms of three years or more, | 0018| forty percent of the principal plus accrued interest shall be | 0019| forgiven upon completion of the first year of service in a | 0020| designated health professional shortage area, thirty percent of | 0021| the principal plus accrued interest shall be forgiven upon | 0022| completion of the second year of service and the remainder of | 0023| the principal plus accrued interest shall be forgiven upon | 0024| completion of the third year of service. | 0025| F. Recipients shall serve a complete year in order | 0001| to receive credit for that year. The minimum credit for a year | 0002| shall be established by the commission. | 0003| G. If a loan recipient completes his professional | 0004| education and does not serve in a designated health | 0005| professional shortage area, the commission shall assess a | 0006| penalty of up to three times the principal due, plus eighteen | 0007| percent interest, unless the commission finds acceptable | 0008| extenuating circumstances for why the student cannot serve. If | 0009| the commission does not find acceptable extenuating | 0010| circumstances for the student's failure to carry out his | 0011| declared intent to serve in a health professional shortage area | 0012| in the state, the commission shall require immediate repayment | 0013| of the unpaid principal amount of the loan plus accrued | 0014| interest owed the state and the amount of any penalties | 0015| assessed pursuant to this section. | 0016| [G.] H. The commission shall adopt regulations | 0017| to implement the provisions of this section. The regulations | 0018| may provide for the repayment of nursing student loans in | 0019| annual or other periodic installments." | 0020| - 4 - | 0021| | 0022| | 0023| | 0024| | 0025| | 0001| | 0002| | 0003| FORTY-THIRD LEGISLATURE | 0004| FIRST SESSION, 1997 | 0005| | 0006| | 0007| March 10, 1997 | 0008| | 0009| Mr. President: | 0010| | 0011| Your PUBLIC AFFAIRS COMMITTEE, to whom has been | 0012| referred | 0013| | 0014| SENATE BILL 264 | 0015| | 0016| has had it under consideration and reports same with | 0017| recommendation that it DO PASS, and thence referred to the | 0018| JUDICIARY COMMITTEE. | 0019| | 0020| Respectfully submitted, | 0021| | 0022| | 0023| | 0024| | 0025| __________________________________ | 0001| Shannon Robinson, Chairman | 0002| | 0003| | 0004| | 0005| Adopted_______________________ Not | 0006| Adopted_______________________ | 0007| (Chief Clerk) (Chief Clerk) | 0008| | 0009| | 0010| Date ________________________ | 0011| | 0012| | 0013| The roll call vote was 5 For 0 Against | 0014| Yes: 5 | 0015| No: 0 | 0016| Excused: Adair, Boitano, Vernon, Smith | 0017| Absent: None | 0018| | 0019| | 0020| S0264PA1 | 0021| |