HOUSE BILL 262

56th legislature - STATE OF NEW MEXICO - second session, 2024

INTRODUCED BY

Joanne J. Ferrary

 

 

 

FOR THE LEGISLATIVE HEALTH AND HUMAN SERVICES COMMITTEE

 

AN ACT

RELATING TO VETERINARY MEDICINE; MAKING NON-COMPETE PROVISIONS IN VETERINARIAN AND VETERINARY TECHNICIAN AGREEMENTS UNENFORCEABLE.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. [NEW MATERIAL] DEFINITIONS.--As used in this act:

          A. "agreement" means a written contract to which a veterinarian or veterinary technician is a party;

          B. "non-compete provision" means a provision in an agreement that restricts the right of a veterinarian or veterinary technician to provide veterinary care in this state;

          C. "veterinarian" means a person licensed to practice veterinary medicine pursuant to the Veterinary Practice Act;

          D. "veterinary care" means health care services provided to an animal by a veterinarian or veterinary technician; and

          E. "veterinary technician" means a person certified as a veterinary technician pursuant to the Veterinary Practice Act.

     SECTION 2. [NEW MATERIAL] ENFORCEABILITY OF A NON-COMPETE PROVISION--OTHER PROVISIONS VOID.--

          A. A non-compete provision in an agreement shall be unenforceable upon the termination of:

                (1) the agreement;

                (2) a renewal or extension of the agreement; or

                (3) a veterinarian or veterinary technician's employment with a party seeking to enforce the agreement.

          B. A provision in an agreement for veterinary care to be rendered in this state is void, unenforceable and against public policy if the provision:

                (1) makes the agreement subject to the laws of another state; or

                (2) requires any litigation arising out of the agreement to be conducted in another state.

     SECTION 3. [NEW MATERIAL] ENFORCEABILITY OF OTHER PROVISION.--Nothing in this act shall be construed to limit the enforceability of:

          A. a provision in an agreement requiring a veterinarian or a veterinary technician who has worked for an employer for an initial period of less than two years to repay all or a portion of:

                (1) a loan;

                (2) relocation expenses;

                (3) a signing bonus or other remuneration to induce the veterinarian or veterinary technician to relocate or establish a veterinary care practice in a specified geographic area; or

                (4) recruiting, education and training expenses;

          B. a nondisclosure provision relating to confidential information and trade secrets; and

          C. any other provision of an agreement that is not in violation of law.

     SECTION 4. APPLICABILITY.--The provisions of this act apply to agreements, or renewals or extensions of agreements, executed on or after July 1, 2024.

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