Summary:

 House Bill 304 (HB 304):  If enacted, the Law Enforcement Officer Loan Repayment Act will provide financial relief to eligible New Mexico county or municipal law enforcement officers by helping them repay their student loans. It also sets up procedures for application, contract enforcement, and ongoing annual reporting, with an eye toward alleviating officer shortages—especially in regions where staffing is hardest to maintain. 

Legislation Overview:

 House Bill 304 (HB 304):  This legislation creates a state-funded loan repayment program to help New Mexico law enforcement officers repay the student loans they incurred for their undergraduate education and any required law enforcement training. It seeks to assist officer recruitment and retention efforts, particularly in areas with staffing shortages.
a)	Key Definitions:
•	Law Enforcement Officer - A person who is employed by a county or municipal law enforcement agency in New Mexico, is authorized to carry a firearm, and is certified under federal law or the Law Enforcement Training Act.
•	Loan - A grant of money from federal, state, or commercial lenders used for undergraduate education or law enforcement training, which requires repayment of principal and interest (or service).
•	Award - The sum of money provided by the program to repay a qualifying law enforcement officer’s student loan.
•	Fund - The “Law Enforcement Officer Loan Repayment Fund,” a special state fund that will be used solely to pay for loan repayment awards.
•	Program - The Law Enforcement Officer Loan Repayment Program administered by the Higher Education Department (HED).
b)	 Who is Eligible?
•	Current Employment - Applicants must already be serving as a certified law enforcement officer in a New Mexico county or municipal law enforcement agency.
•	Loan Requirements - Officers must have student loans for undergraduate education and/or law enforcement training expenses.
•	Minimum Service - Officers must have completed at least three years of service before applying.
c)	Other Criteria:
•	Officers must certify annually that they are still employed in an eligible position.
•	The Higher Education Department may prioritize officers serving in areas with high vacancy rates.
•	Awards may be modified based on available program funding.
d)	 Ineligible Debts:  Certain types of debt cannot be repaid through this program:
•	Loans from other state loan-for-service programs or any program that already requires service in exchange for financial assistance.
•	Scholarships with a service obligation.
•	Personal loans from friends or relatives.
•	Loans above standard school expense levels.
•	Loans eligible for other loan repayment programs (e.g., certain federal programs).
e)	Award Amounts:
•	The maximum award per officer is $25,000 or the officer’s loan balance, whichever is less.
•	The exact amount depends on years of service, geographical need, and available funding.
f)	Contractual Obligations:
•	Loan Repayment Contract
•	Each award is formalized through a contract between the officer and the Higher Education Department.
•	Repayment Terms & Penalties - If the officer fails to comply with the contract’s terms (for example, leaving employment early), the officer must reimburse all funds that have been paid on their behalf, plus interest—unless extenuating circumstances apply.
•	Payment Process - The state pays the officer’s lender directly. This payment does not establish any direct contract between the lender and the state beyond these payments.
g)	Administration of the Program - Higher Education Department:
•	Grants awards, sets rules and procedures, and may delegate tasks.
•	Monitors each award recipient’s continued eligibility.
•	May cancel a contract for any sufficient reason it deems acceptable.
h)	Law Enforcement Officer Loan Repayment Fund:
•	Created in the state treasury.
•	Consists of state appropriations, recovered funds, interest, and other revenues.
This money does not revert to the general fund at the end of each fiscal year.
i)	Reporting Requirements:
•	The Higher Education Department will produce annual reports before each regular legislative session, detailing:
•	Number and dollar amount of awards granted.
•	Job titles and duties of loan recipients.
•	Any contract cancellations or enforcement actions.
The effective date of this act is July 1, 2025.
 

Current Law:

 The proposed legislation is a new section of Chapter 21 NMSA 1978.  The "[NEW MATERIAL] SHORT TITLE.--This act may be cited as the "Law Enforcement Officer Loan Repayment Act"."