The bill establishes the Health Professions Advisory Committee, which will oversee the selection of recipients for loan repayment awards aimed at health professionals practicing in New Mexico or those willing to relocate to the state. The Higher Education Department is responsible for determining and distributing award amounts based on specific criteria outlined in the legislation. Key changes include the creation of the committee, which will consist of seven members from various health and education sectors, and the introduction of new definitions and criteria for the loan repayment program. Licensed physicians may receive up to $75,000 per year for four years, while other health professionals' awards will be calculated based on their training duration. The bill also introduces penalties for recipients who breach contract terms, including potential fees and interest on disbursed amounts.

Furthermore, the bill amends Section 21-22D-8 of the New Mexico Statutes to create a nonreverting "health professional loan repayment fund" in the state treasury, which will be funded through appropriations, distributions, gifts, and grants. At least seventy-five percent of the fund's balance at the end of each fiscal year must be allocated to awards for professionals licensed under the Medical Practice Act. The bill also mandates the department to submit annual reports to the governor and legislature detailing award amounts, the number of awards by profession type, and the practice locations of recipients. Additionally, it repeals Sections 21-22D-2 and 21-22D-9 and appropriates $25 million from the general fund to support the Health Professional Loan Repayment Act for fiscal year 2027 and beyond, with unspent funds not reverting to the general fund.

Statutes affected:
introduced version: 21-22C-4, 21-22D-3, 21-22D-4, 21-22D-5, 21-22D-6, 21-22D-7, 21-22D-8, 21-22D-10