The proposed bill enacts the "Medical Residency Loan Repayment Act," which aims to provide financial assistance to medical residents and fellows in New Mexico by granting loan repayment awards. The legislation establishes a new medical residency loan repayment fund, which will be financed through appropriations, repayments, and other income sources. The Higher Education Department is tasked with administering the program, which includes defining eligibility criteria for applicants, such as completing a medical residency or fellowship and committing to practice medicine in New Mexico for five consecutive years. The bill outlines the responsibilities of the department, including the authority to grant awards, enforce contracts, and report on program activities.
Additionally, the bill specifies the terms and conditions under which awards are granted, including the types of loans eligible for repayment and the obligations of award recipients. It mandates that contracts be prepared and approved by the department's general counsel, allowing the department to take legal action for any outstanding balances. The legislation also includes an appropriation of $3 million from the general fund for the medical residency loan repayment fund, ensuring that funds are available for the program's implementation starting in fiscal year 2026. The act is set to take effect on July 1, 2025.