Bill Text: NY S05139 | 2021-2022 | General Assembly | Introduced

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Bill Title: Permits the use of monies from the community health care revolving capital fund to enable participating borrowers to operate a financially and operationally sustainable practice.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Engrossed - Dead) 2022-05-04 - referred to ways and means [S05139 Detail]

Download: New_York-2021-S05139-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          5139

                               2021-2022 Regular Sessions

                    IN SENATE

                                    February 25, 2021
                                       ___________

        Introduced  by  Sen.  RIVERA -- read twice and ordered printed, and when
          printed to be committed to the Committee on Health

        AN ACT to amend the public health law, in relation to the use of  monies
          from the community health care revolving capital fund

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivision 2 of section 2815-a of the public  health  law,
     2  as  added  by  section 5 of part J of chapter 60 of the laws of 2015, is
     3  amended to read as follows:
     4    2. Revolving capital  fund.  The  dormitory  authority  shall,  within
     5  amounts  appropriated,  establish  the  community  health care revolving
     6  capital fund. Monies in the revolving capital fund shall be utilized for
     7  the purpose of making loans to  qualifying  participating  borrowers  to
     8  improve  access  to  affordable  capital financing to expand and improve
     9  capacity to provide health care in the State, and to enable  participat-
    10  ing  borrowers  to  operate  a financially and operationally sustainable
    11  practice. Funds shall be transferred by the commissioner to the dormito-
    12  ry authority for deposit in the revolving capital fund in an  amount  as
    13  authorized  by  appropriation.  Monies in the fund shall be: (a) held by
    14  the authority pursuant to this  section  as  custodian  pursuant  to  an
    15  agreement  with  the commissioner until transferred to the administrator
    16  pursuant to this section, and (b) invested by the authority  in  accord-
    17  ance  with the investment guidelines of the authority during said custo-
    18  dial period. All investment income shall be credited to,  and  shall  be
    19  deposited in, the revolving capital fund.
    20    §  2.  Paragraphs c, e, f, and j of subdivision 4 of section 2815-a of
    21  the public health law, as added by section 5 of part J of chapter 60  of
    22  the laws of 2015, are amended to read as follows:
    23    c.  That  monies  in such revolving capital fund shall be utilized for
    24  the purpose of making loans to qualifying  participating  borrowers,  to
    25  provide participating borrowers with improved access to affordable capi-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08170-01-1
        S. 5139                             2

     1  tal  to  expand  and improve preventive or primary care capacity, and to
     2  aid participating borrowers in achieving a financially and operationally
     3  sustainable practice;
     4    e.  That  eligible  uses of funds so loaned to participating borrowers
     5  shall include but not be limited to: (i) eligible costs as described  in
     6  paragraph   (f)  of  this  subdivision,  attributable  to  the  proposed
     7  construction, reconstruction, renovation, rehabilitation,  refurbishing,
     8  expansion,  upgrading and equipping of a participating borrower's commu-
     9  nity-based health care facility; (ii) reserves  for  credit  enhancement
    10  including loan guarantees; (iii) loan loss and debt service reserves and
    11  subordinated  loans;  [and] (iv) facility financing, including loans for
    12  predevelopment, acquisition and construction,  permanent  financing  and
    13  bridge  loans;  and  (v)  additional  noncapital  expenditures which may
    14  include working capital and debt restructuring, retirement and refinanc-
    15  ing;
    16    f. That eligible costs under this section shall include,  but  not  be
    17  limited  to, all hard construction costs and associated professional and
    18  other costs, furniture, fixtures and equipment, including health  infor-
    19  mation  technology,  acquisition,  predevelopment due diligence, initial
    20  operating expenses and working capital associated  with  community-based
    21  health  care  facility  projects.  Working  capital as set forth in this
    22  paragraph may also include  expenses  associated  with  the  sustainable
    23  operation  of  a  community-based  health care practice such as expenses
    24  required to recruit and train staff, redesign facilities to  accommodate
    25  new  protocols,  to purchase, upgrade, or enhance, technology to support
    26  telehealth, and other ancillary costs associated with delivering patient
    27  services. Working capital shall also include  expenses  associated  with
    28  restructuring  or  retiring  debt, including costs to reduce, retire, or
    29  refinance long-term liabilities such as mortgage,  bank  loans,  capital
    30  leases  and  other  liabilities,  payments of debt service for long-term
    31  liabilities, and costs for restructuring  including  professional  fees,
    32  penalties, and interest;
    33    j.  That revolving capital fund monies shall be held in trust and used
    34  for the benefit of eligible community-based health care [facility] capi-
    35  tal projects authorized pursuant to this section; and
    36    § 3. This act shall take effect immediately.