D.C. Law 22-97. Health Care Provider Facility Expansion Program Establishment Act of 2018.

D.C. Law 22-97. Health Care Provider Facility Expansion Program Establishment Act of 2018.

AN ACT

To establish the Community Health Care Provider Expansion Program to provide grants to a nonprofit community development financial institution to make loans to health care providers to construct, reconstruct, renovate, rehabilitate, refurbish, expand, upgrade, and equip facilities maintained by the health care providers.

BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as the "Health Care Provider Facility Expansion Program Establishment Act of 2018".

New Chapter 19B of Title 7

New § 7-1941.01

Sec. 2. Definitions.

For the purposes of this act, the term:

(1) "Community development financial institution" shall have the same meaning as provided in section 103(5) of the Riegle Community Development and Regulatory Improvement Act of 1994, approved September 23, 1994 (108 Stat. 2163; 12 U.S.C. § 4702(5)).

(2) "Department" means the Department of Health Care Finance.

(3) "Fund" means the Community Health Care Provider Expansion Revolving Fund established by section 4.

(4) "Health care provider" means a physician, clinic, hospital, or neighborhood health center, licensed by the District, that is responsible for providing primary care and coordinating referrals, when necessary, to other health care providers.

(5) "Program" means the Community Health Care Provider Expansion Program established by section 3.

New § 7-1941.02

Sec. 3. Community Health Care Provider Expansion Program.

There is established the Community Health Care Provider Expansion Program to provide grants to a nonprofit community development financial institution for the purpose of making loans to selected health care providers. The loans shall be for the purpose of covering costs associated with the construction, reconstruction, renovation, rehabilitation, refurbishing, expansion, and upgrade of facilities maintained by the health care providers and the purchase of equipment used at the facilities.

New § 7-1941.03

Sec. 4. Community Health Care Facility Expansion Revolving Fund.

(a) There is established as a special fund the Community Health Care Facility Expansion Revolving Fund ("Fund"), which shall be administered by the Department in accordance with subsection (c) of this section.

(b) Revenues from the following sources shall be deposited into the Fund:

(1) Debt service funds transferred from the grant administrator pursuant to section 5(b)(8); and

(2) Annual appropriations.

(c) Money in the Fund shall be used to support the purposes of the Program.

(d)(1) The money deposited into the Fund shall not revert to the unrestricted fund balance of the General Fund of the District of Columbia at the end of a fiscal year, or at any other time.

(2) Subject to authorization in an approved budget and financial plan, any funds appropriated in the Fund shall be continually available without regard to fiscal year limitation.

New § 7-1941.04

Sec. 5. Grant administrator.

(a) Pursuant to the Grant Administration Act of 2013, effective December 24, 2013 (D.C. Law 20-61; D.C. Official Code § 1-328.11 et seq.), the Department shall select a nonprofit community development financial institution as the grant administrator for the purpose of making loans to health care providers to further the purposes of the Program. The selected grant administrator shall:

(1) Be certified by the U.S. Treasury Community Development Financial Institutions Fund pursuant to section 107 of the Riegle Community Development and Regulatory Improvement Act of 1994, approved September 23, 1994 (108 Stat. 2172; 12 U.S.C. § 4706); and

(2) Have experience financing projects in the health care sector.

(b) The Department shall enter into an agreement with the grant administrator that shall include the following provisions:

(1) That the grant administrator shall be responsible for the receipt, management, and expenditure of grant funds;

(2) That the grant administrator shall maintain books and records pertaining to all monies received and disbursed pursuant to this section and the agreement;

(3) That the grant funds shall be utilized for the purpose of making loans to health care providers to provide the health care providers with improved access to affordable capital to expand and improve their ability to provide preventive or primary care;

(4) That loan recipients shall be chosen by the grant administrator through an application process approved by the Department;

(5) That allowable uses of the loans shall include:

(A) Costs attributable to the proposed construction, reconstruction, renovation, rehabilitation, refurbishing, expansion, upgrading, and equipping of a health care provider's facility and associated professional costs, including furniture, fixtures, equipment, health information technology, acquisition, predevelopment due diligence, operating expenses, and working capital;

(B) Reserves for credit enhancement, including loan guarantees;

(C) Loan loss and debt service reserves and subordinated loans; and

(D) Facility financing, including loans for predevelopment, acquisition and construction, permanent financing, and bridge loans;

(6) That the health care providers shall obtain appropriate recognition provided by the National Committee for Quality Assurance to acknowledge practice as a patient medical home, if eligible;

(7) That all loans will be below prime rate, as determined by the Department;

(8) That all moneys received by the grant administrator as debt service shall be transferred to the Chief Financial Officer for deposit into the Fund pursuant to this act.

(9) That the grant administrator shall report quarterly on transactions involving the use of grant funds in a form and manner specified by the Department, including:

(A) All monies received by the grant administrator from all sources;

(B) Disbursements, loans or credit enhancements made using grant funds; and

(C) The grant funds balance on hand at of the end each month within a given quarter;

(10) That only the reasonable expenses of the administrator, as determined by the Department, incurred in the establishment and administration of the grant funds, including the retention of professionals and consultants, if any, may be paid or reimbursed using the grant funds;

(11) That the grant funds shall be held in trust and used for the purposes set forth in this act; and

(12) That the grant administrator shall require the loan recipients to submit data on a quarterly basis that includes:

(A) The number of individuals served at the facility for which grant funds were expended; and

(B) Other data as determined by the Department.

New § 7-1941.05

Sec. 6. Health care provider facilities location requirements.

A health care provider shall be eligible to receive loans under this act if the health care provider intends to improve existing facilities operated by the health care provider in Wards 7 or Ward 8 or intends to establish new facilities in Ward 7 or Ward 8.

New § 7-1941.06

Sec. 7. Loan documentation.

(a) Loans using grant funds shall be made pursuant to a written loan agreement between the grant administrator and the health care providers and shall specify the terms of the loan, including repayment of principal and interest to the grant administrator.

(b) The loan agreement shall be in a form and contain content as determined by the Department. The loan agreement may include other written documentation as determined by the Department.

New § 7-1941.07

Sec. 8. Applicability.

(a) This act shall apply upon the date of inclusion of its fiscal effect in an approved budget and financial plan.

(b) The Chief Financial Officer shall certify the date of the inclusion of the fiscal effect in an approved budget and financial plan, and provide notice to the Budget Director of the Council of the certification.

(c)(1) The Budget Director shall cause the notice of the certification to be published in the District of Columbia Register.

(2) The date of publication of the notice of the certification shall not affect the applicability of this act.

Sec. 9. Fiscal impact statement.

The Council adopts the fiscal impact statement in the committee report as the fiscal impact statement required by section 4a of the General Legislative Procedures Act of 1975, approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a).

Sec. 10. Effective date.

This act shall take effect following approval by the Mayor (or in the event of veto by the Mayor, action by the Council to override the veto), a 30-day period of congressional review as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of Columbia Register.