SB 133 — CLINICIAN LOAN REPAYMENT PROGRAM

(2)"primary health care" means the departmentfirst awardslevel loanof repaymente fundse to17 eligiblebasic cliniciansor whogeneral arehealth newlycare hiredfor employeesan ofindividual's eligiblehealth programs;needs, e e n d 18 including preventive diagnostic and medical treatment services;

and= (3)= thel department] remits19 loanand repaymenta 6l paymentsr directlyi to20 educationalI. lenders on behalf of the newly hired employees of eligible programs;

"recipient" means an eligible clinician with a t e a t loan who is hired by an eligible organization and approved for m m 21 e d loan repayment by the department.

r e 22 c e r c 23 SECTION 3.

[NEW MATERIAL ] DEPARTMENT POWERS AND DUTIES-- e a n b 24 PARTICIPANT ELIGIBILITY--QUALIFICATIONS.-- u [ A.

The department may grant an award to an eligible .213002.4 - 3 - SPAC/SB 133 organization to repay the loans of recipients, obtained for health educational expenses of a recipient upon such terms and conditions as may be imposed by regulations of the department.

developThe planseligible forrecipient andshall coordinatebe thelicensed effortsor ofcertified otherto publicpractice andin privatethe entitiesstate assistingand inprovide theprimary provisioncare ofservices primarywithin designated health care servicesunderserved throughareas eligibleof programs;the state.

provideThe fordepartment technicalshall assistancebe allowed up to eligiblethree programspercent inof theexpenditures areasin ofeach administrativefiscal andyear financialfor management,administration clinicalof services,the outreachloan andrepayment planning;program.

D.SECTION 4.

provide[NEW forMATERIAL distribution] ofDELEGATION financialOF assistanceDUTIES.--The todepartment andmay ondelegate behalfto ofother eligibleagencies programsor thatcontract have applied for andthe demonstratedperformance a need for assistance in order to sustain a e e 17 minimum level of delivery of primary health care services andrequired eby ethe nprovisions dof 18the recruitRural eligiblePrimary cliniciansCare underClinician theLoan loanRepayment repaymentAct. program;

=SECTION =5. l ] 19 and a l r i 20 E.

provide[NEW aMATERIAL program] forAWARD enablingCRITERIA--CONTRACT theTERMS--PAYMENT.-- development t e a t of new primary care health care services or facilities, and m m 21 e d17 rA. e 22 that program:

cAn eligible organization seeking an award to be e re cn 23d (1)18 shallused giveto preferenceoffer loan repayment to communitiesnew thateligible eclinician arecruits n= b= 24l have] few19 orshall nofile community-basedan primaryapplication carewith services;the department.

ua [l (2)r mayi require20 in-kindB. support from local .211668.1 - 4 - communities where primary care health care services or facilities are established;

(3)The maydepartment requireshall primaryestablish careaward healthcriteria, caret servicese ora facilitiest towhich assurecriteria provisionshall ofprovide healththat: care to the medically indigent;

andm (4)m shall21 permite thed implementationr ofe innovative22 and(1) creativeamounts usesshall ofbe localdependent orupon statewidethe healthtype carec resources,e orr both,c other23 thanof thoseclinician listedthe ineligible Paragraphsorganization (2)is andseeking (3)to ofrecruit; this subsection." SECTION 4.

Sectione 24-1A-4a NMSAn 1978b (being24 Laws(2) 1981,recruitment Chapterawards 295,shall Sectionbe 4,made asto amended)u is[ amendedeligible toorganizations read:operating licensed practices in approved .213002.4 - 4 - SPAC/SB 133 health care underserved areas;

"24-1A-4.(3) the eligible organization has demonstrated a need to recruit eligible clinicians;

RULES(4) [AND REGULATIONS ].--Subject to the Stateeligible Rulesorganization Act,has demonstrated the departmentdifficulty shallin adoptfilling rulesclinician [andvacancies regulations ] for recruiting [health care personnel in ]the eligible clinicians for health care underserved areasarea; and shall establish a formula for distribution of financial assistance to eligible programs e e 17 [which] that shall take into account the relative needs of e e n d 18 applicants for assistance;

provided(5) thatthe fundseligible mayorganization nothas bedemonstrated =the =need l ] 19 expended for landfinancial orassistance facilityto acquisitionrecruit oreligible debtclinicians; amortization;

a(6) laward ramounts imay 20 and further provided that a local match of ten percent shall be tmodified ebased aupon tavailable requiredfunding fromor eachother localspecial recipientcircumstances; for each request for m m 21 e d r e 22 assistance." c e r c 23 SECTION 5.

APPROPRIATION.--Threeand million(7) dollarsan eaward ashall nnot bexceed 24 ($3,000,000) is appropriated from the generaltotal fund to the u [ department of health forprofessional expenditureeducation inindebtedness fiscal years 2020 and .211668.1 - 5 - 2021 to fund the department's provision of loanany repaymentrecipient. assistance for the recruitment and hiring of eligible clinicians in accordance with the provisions of Section 24-1A-3.1 NMSA 1978.

AnySECTION unexpended6. or unencumbered balance remaining at the end of fiscal year 2021 shall revert to the general fund.

-[NEW 6MATERIAL - 9 11 13 15 e e 17 e e n d 18 = = l ] 19AWARDS.-- aA. l r i 20 t e a t m m 21 e d r e 22 c e r c 23 e a n b 24 u [ .211668.1

The department shall make awards to eligible organizations.

e e 17 B.

An eligible organization shall have nine months e e n d 18 to recruit eligible clinicians after receiving notification of = = l ] 19 an award.

a l r i 20 C.

The department shall make a full and careful t e a t investigation of the ability, character and qualifications of m m 21 e d each eligible clinician to determine fitness to become a r e 22 c e r c 23 recipient in the loan repayment program.

e a n b 24 D.

The following education debts are not eligible u [ for repayment pursuant to the Rural Primary Care Clinician Loan .213002.4 - 5 - SPAC/SB 133 Repayment Act:

(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) scholarships that have a service component or obligation;

(3) personal loans from friends or relatives;

(4) loans that exceed individual standard school expense levels;

or (5) loans that are being repaid or reduced through other loan repayment programs.

E.

The department shall enter into a loan repayment agreement, evidenced by a contract between the recipient and the department acting on behalf of the state.

The contract shall provide for the payment by the state of a stated sum to e e 17 the recipient's debtors and shall state the obligations of the e e n d 18 recipient under the program, including a minimum two-year = = l ] 19 period of service, quarterly reporting requirements and other a l r i 20 policies established by the department.

t e a t F.

Recipients shall serve a full quarter of service m m 21 e d and shall request approval of that service upon submission of a r e 22 c e r c 23 report certifying completion of the service.

The minimum e a n b 24 credit for a quarter shall be established by the department.

u [ G.

If a recipient does not comply with the terms of .213002.4 - 6 - SPAC/SB 133 the contract, the department shall terminate the contract unless the department finds acceptable extenuating circumstances for why the recipient cannot serve or comply with the terms of the contract, in which case the department may temporarily suspend the contract.

H.

The department shall adopt regulations to implement the provisions of this section.

The regulations may provide for the disbursement of loan repayment awards directly to the lenders of recipients in periodic installments.

SECTION 7.

[NEW MATERIAL ] CONTRACTS--ENFORCEMENT.--The general form of the contract required shall be prepared and approved by the attorney general and signed by the recipient and the designated representative of the department on behalf of the state.

SECTION 8.

[NEW MATERIAL ] FUND CREATED--DISTRIBUTIONS.-- The "rural primary care clinician loan repayment fund" is e e 17 created as a nonreverting fund in the state treasury.

The fund e e n d 18 is composed of appropriations, donations and money earned from = = l ] 19 investment of the fund and otherwise accruing to the fund.

a l r i 20 Money in the fund is appropriated to the department to provide t e a t a revenue stream to finance the activities of the Rural Primary m m 21 e d Care Clinician Loan Repayment Act.

All money appropriated for r e 22 c e r c 23 the loan repayment program shall be credited and deposited to e a n b 24 the fund.

All payments for awards shall be made upon vouchers u [ signed by the designated representative of the department and .213002.4 - 7 - SPAC/SB 133 upon warrant issued by the secretary of finance and administration.

Balances remaining in the fund at the end of a fiscal year shall not revert.

SECTION 9.

[NEW MATERIAL ] CANCELLATION.--The department may cancel any contract made between it and any recipient for any reasonable cause deemed sufficient by the department.

SECTION 10.

[NEW MATERIAL] REPORTS.--The department shall make annual reports to the governor and to the legislature, prior to each regular session, of its activities, the awards granted, the names and addresses of award recipients, the names and locations of the practices of those recipients who are serving in a designated health care underserved area of the state pursuant to the Rural Primary Care Clinician Loan Repayment Act.

- 8 - e e 17 e e n d 18 = = l ] 19 a l r i 20 t e a t m m 21 e d r e 22 c e r c 23 e a n b 24 u [ .213002.4