Summary:

 Senate Bill 8 (SB 8) enacts the Veterinary Medical Loan Repayment Act (Act), a program to incentivize veterinarians to practice in underserved areas of New Mexico. It provides loan repayment awards for eligible veterinarians and outlines program administration by the Higher Education Department. The bill creates a dedicated fund and sets penalties for non-compliance. The Act takes effect on July 1, 2025. 

Legislation Overview:

 Senate Bill 8 (SB 8), The Veterinary Medical Loan Repayment Act, introduces a loan repayment program aimed at addressing the shortage of veterinarians, particularly those specializing in food-animal veterinary services, in underserved areas. Key provisions include:

Definitions and Scope
•  Designated underserved area is defined as a municipality or county without sufficient food-animal veterinary services.
•  The Veterinary Medical Loan Repayment Fund (Fund) is established as a nonreverting fund for loan repayment awards.

Eligibility Requirements
•  Applicants must be licensed veterinarians in New Mexico and United States citizens or lawful permanent residents.
•  Must provide food-animal veterinary services full-time in a designated underserved area.

Selection and Award Criteria
•  Up to ten veterinarians per year will be selected by a committee comprising the state veterinarian, New Mexico State University Extension veterinarian, and the chair of the Veterinary Medicine Board.
•  Preference given to graduates of institutions prioritizing New Mexico residents.
•  Annual awards are capped at $15,000 for the first two years and $25,000 for the subsequent two years, with a program maximum of $80,000 per recipient.

Program Obligations
•  Requires a minimum four-year service commitment.
•  Recipients must sign a contract specifying terms, including quarterly reporting.
•  Non-compliance results in penalties of up to three times the award amount, plus 18% interest.

Program Administration
Administered by the Higher Education Department (HED), which will:
•  Promulgate rules for program implementation.
•  Maintain a database of veterinary employment opportunities in underserved areas.
•  Participate in federal loan repayment programs to maximize resources.

Funding and Appropriation
•  Appropriates $5 million from the General Fund to the Fund for fiscal years 2026-2031.

Reports
HED must submit annual reports to the governor and legislature, detailing:
•  Award amounts and recipient completion rates.
•  The geographic distribution of veterinary services.
•  Penalties assessed for non-compliance.

Fiscal Implications 
The $5 million appropriation supports awards for up to 50 veterinarians over five years. Administrative costs are anticipated for managing the program and conducting recipient compliance oversight. The Act aims to reduce costs associated with unmet veterinary needs in underserved areas, particularly in agriculture-dependent regions.
 

Current Law:

 Currently, no state program provides targeted loan repayment incentives for veterinarians in underserved areas. Federal loan repayment programs exist but may not adequately address New Mexico’s specific needs for food-animal veterinary services. The Act fills this gap by establishing a state-level initiative to recruit and retain veterinarians in high-need regions.
 

Amendments:

 Amended February 22, 2025 in SFC:

SFCa/SB 8: The Senate Finance Committee made a significant amendment to SB 8 by removing the appropriation provision. The specific changes are:
	1.	On page 1, lines 16 and 17, the phrase ”; MAKING AN APPROPRIATION” was struck from the bill’s title.
	2.	On page 9, Section 8, which appropriated $5 million from the General Fund to the Veterinary Medical Loan Repayment Fund, was removed in its entirety.

These amendments eliminate the funding mechanism initially proposed to support the Veterinary Medical Loan Repayment Program. Under the original bill, $5 million would have been allocated from the General Fund for fiscal years 2026 through 2031 to finance loan repayment awards for veterinarians working in designated underserved areas. By eliminating this appropriation, the Finance Committee has kept the program in place but left it without an initial funding source.

Without dedicated funding, the effectiveness of the Veterinary Medical Loan Repayment Program is uncertain. The program remains authorized under the bill, but without a financial commitment, there is no guarantee that veterinarians will receive loan repayment assistance. HED may need to seek funding through future appropriations, grants, or private contributions to implement the program.

The removal of funding suggests concerns about the state’s budget or competing priorities within the General Fund. Legislators may have supported the concept of the program but were unwilling to commit financial resources at this time. Alternatively, they may expect funding to be included in a separate appropriations bill rather than embedded in SB 8.

The amendment does not alter the structural provisions of the bill, meaning that the Veterinary Medical Loan Repayment Program still exists as a legal framework. However, the absence of immediate funding could delay or limit its implementation until financial resources are secured.