1. A. The "health professional loan repayment program" is created and shall be administered by the department. A health professional shall apply for an award on a form provided by the department.

2. B. Health professionals shall be selected to receive awards based on the following criteria:

   1. (1) a health professional shall currently maintain practice in New Mexico or have agreed to relocate to and commence practice in New Mexico within ninety days of the grant of an award. An award shall not be disbursed until the health professional commences practice in New Mexico;
   2. (2) highest priority shall be given to licensed physicians;
   3. (3) designated health professional shortage areas and a health professional's total eligible education debt and characteristics of the practice; and
   4. (4) the number of awards shall be limited to the amount of funds appropriated to the department for the purpose of the health professional loan repayment program.

3. C. Award amounts shall be determined by the department in accordance with the following:

   1. (1) funds shall be disbursed in amounts that result in the payment of the full obligation of all awards provided in a given year;

   2. (2) an award to a licensed physician shall be a minimum of seventy-five thousand dollars ($75,000) per year for four consecutive years, with the exception that:

      1. (a) the total award amount shall not exceed the licensed physician's total eligible education debt;
      2. (b) the award amount shall be prorated based on a four-year award period; and
      3. (c) part-time employment as a licensed physician shall be prorated based on the percentage of hours worked relative to full-time employment; and

   3. (3) an award to a health professional other than a licensed physician shall:

      1. (a) not exceed the health professional's total eligible education debt;
      2. (b) be prorated based on a three-year award period; and
      3. (c) be prorated based on the percentage of hours relative to full-time employment if the health professional maintains part-time employment in the health professional's respective health profession.
4. D. The department shall encumber the full amount of the award during the first year of a health professional's award period at a published schedule as determined by the department.

5. E. The following education debts are not eligible for repayment pursuant to the Health Professional Loan Repayment Act:

   1. (1) amounts incurred as a result of participation in state loan-for-service programs or other state programs whose purpose states that service be provided in exchange for financial assistance;
   2. (2) scholarships that have a service component or obligation;
   3. (3) personal loans; and
   4. (4) loans that exceed individual standard school expense levels.
6. F. The loan repayment award shall be evidenced by a contract between the health professional and the department acting on behalf of the state. The contract shall provide for the payment by the state of a stated sum to the health professional's debtors and shall state the obligations of the health professional under the program, including a minimum four-year period of service for licensed physicians and three-year period of service for health professionals other than licensed physicians, quarterly reporting requirements and other policies established by the department. The department may cancel the contract made between the department and the health professional for any reasonable cause deemed sufficient by the department.
7. G. Recipients shall serve a complete year in order to receive credit for that year. The minimum credit for a year shall be established by the department.
8. H. If a health professional does not comply with the terms of the contract, the department shall assess up to the full amount of award disbursed and may assess a fee of no more than eighteen percent interest of the amount of the award disbursed, unless the department finds acceptable extenuating circumstances for why the health professional cannot serve or comply with the terms of the contract. If the department does not find acceptable extenuating circumstances for the health professional's failure to comply with the contract, the department shall require immediate repayment.
9. I. The department shall promulgate rules to implement the provisions of this section that may provide for the disbursement of awards to the lenders of health professionals in annual or other periodic installments.

History: Laws 1995, ch. 144, § 21; 2005, ch. 321, § 11; 2017, ch. 138, § 2; 2023, ch. 66, § 2; 2026, ch. 45, § 2.

ANNOTATIONS

Compiler’s notes. — House Bill 126, enacted by the Fifty-Third Legislature, First Session, 2017, was vetoed by the governor on March 15, 2017. Pursuant to the First Judicial District Court’s decision in State ex rel. New Mexico Legislative Council v. Honorable Susana Martinez, Governor of the State of New Mexico et al., D-101-CV-2017-01550, and affirmed by S.Ct. Order No. S-1-SC-36731, on April 25, 2018, which held that Article IV, Section 22 of the New Mexico Constitution requires that objections must accompany a returned bill, House Bill 126 was chaptered into law by the Secretary of State.

The 2026 amendment, effective May 20, 2026, required award recipients to be health professionals who currently maintain a practice in New Mexico or agree to relocate and commence practice in New Mexico, required the higher education department to determine and disburse award amounts, and provided additional award criteria; in the section heading, added "Health professional loan repayment program"; deleted former Subsection A and added a new Subsection A; in Subsection B, after the subsection designation, deleted "Award criteria shall provide that" and added "health professionals shall be selected to receive awards based on the following criteria", deleted former Paragraphs B(1) and B(2) and redesignated former Paragraphs B(3) and B(4) as Paragraphs B(1) and B(2), respectively, in Paragraph B(1), after the paragraph designation, deleted "recruitment awards" and added "a health professional", after "shall" deleted "be made to eligible participants who agree" and added "currently maintain practice in New Mexico or have agreed", and after "relocate to" deleted "an approved designated area" and added "and commence practice in New Mexico within ninety days of the grant of an award. An award shall not be disbursed until the health professional commences practice in New Mexico", in Paragraph B(2), after "shall be given to" deleted "participants in practices in which health profession vacancies are difficult to fill, practices that require after hours call at least every other night and practices that have heavy obstetrical responsibilities" and added "licensed physicians", and deleted former Paragraphs B(5) and B(6) and added new Paragraphs B(3) and B(4); added new Subsections C and D and redesignated former Subsections C through G as Subsections E through I, respectively; in Subsection F, after "including a minimum" deleted "three-year" and added "four-year", after "period of service" added "for licensed physicians and three-year period of service for health professionals other than licensed physicians", and after "established by the department", added the last sentence of the subsection; and in Subsection H, after "the department shall assess" deleted "a penalty of", after "up to" deleted "three times", after "the" added "full", after "disbursed" deleted "plus eighteen", and added "and may assess a fee of no more than eighteen", after "percent interest" added "of the amount of the award disbursed", and after "immediate repayment" deleted "plus the amount of the penalty".

The 2023 amendment, effective June 16, 2023, required the higher education department to consult with the department of health when designating areas as underserved for purposes loan payment awards, and increased the minimum period of service; in Subsection A, after "underserved by the department", added "The department shall consult with the department of health when designating areas as underserved."; and in Subsection D, after "including a minimum", deleted "two-year" and added "three-year".

The 2017 amendment, effective March 15, 2017, in Subsection A, after "shall file with the", deleted "commission" and added "higher education department", and replaced "commission" with "department" throughout the section.

The 2005 amendment, effective June 17, 2005, changed "health professional advisory committee" to "commission" in Subsection A.