A. Occupancy in the New Mexico state veterans’ home and the Fort Bayard medical center veterans’ unit shall be for veterans of service in the armed forces of the United States who have served on active duty pursuant to rules adopted by the secretary of veterans’ services consistent with federal guidelines. To be eligible for admission and continued occupancy, a veteran must be a citizen of the United States who enlisted or was drafted, inducted or commissioned in the armed forces of the United States, who was accepted for and assigned to active duty in the armed forces and was not separated from the armed forces under circumstances amounting to a dishonorable discharge from the armed forces.

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B. Additionally, no more than twenty-five percent of the occupancy in the New Mexico state veterans’ home shall consist of nonveterans from the following categories: (1)     spouses;

(2)     surviving spouses; and

(3)     gold star parents, as defined in the Veterans’ Services Department Act [N.M. Stat. Ann. Chapter 9, Article 22].

C. Whenever a law, rule or regulation of the United States department of veterans affairs or any other law permits the state to receive federal funds for the use and benefit of the New Mexico state veterans’ home, upon acceptance of a veteran of the armed forces of the United States not meeting the requirements of Subsection A of this section, the New Mexico veterans’ home advisory board may adopt rules to authorize such veteran’s acceptance.