SF 1639

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to capital investments; establishing an
electronic medical record system loan program and
fund; authorizing the sale of state revenue bonds;
appropriating money; proposing coding for new law in
Minnesota Statutes, chapter 62J.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [62J.82] ELECTRONIC MEDICAL RECORD SYSTEM LOAN
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner shall
establish and implement a loan program to help physicians or
physician group practices obtain the necessary finances to
install an interoperable electronic medical record system.
new text end

new text begin Subd. 2. new text end

new text begin Rules. new text end

new text begin The commissioner may adopt rules to
administer the loan program.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

new text begin To be eligible for a loan under
this section, the borrower must:
new text end

new text begin (1) have a signed contract with a vendor;
new text end

new text begin (2) be a physician licensed in this state or a physician
group practice located in this state;
new text end

new text begin (3) provide evidence of financial stability;
new text end

new text begin (4) demonstrate an ability to repay the loan;
new text end

new text begin (5) demonstrate that the borrower has explored possible
alliances or contractual opportunities with other provider
groups located in the same geographical area to become part of
the larger provider group's system; and
new text end

new text begin (6) meet any other requirements the commissioner imposes by
administrative procedure or by rule.
new text end

new text begin Subd. 4. new text end

new text begin Loans. new text end

new text begin (a) The commissioner may make a direct
loan to a provider or provider group that is eligible under
subdivision 3. The total accumulative loan principal must not
exceed $65,000 per loan.
new text end

new text begin (b) The commissioner may prescribe forms, establish an
application process, and, notwithstanding section 16A.1283,
impose a reasonable nonrefundable application fee to cover the
cost of administering the loan program.
new text end

new text begin (c) The loan principal balance outstanding plus all
assessed interest must be repaid no later than 15 years from the
date of the loan.
new text end

Sec. 2.

new text begin [62J.83] ELECTRONIC MEDICAL RECORD SYSTEM LOAN
FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin The electronic medical record
system loan fund is established as a special account in the
state treasury. All application fees, loan repayments, and
other revenue received under section 62J.82 must be credited to
the fund.
new text end

new text begin Subd. 2. new text end

new text begin Bond proceeds account. new text end

new text begin An electronic medical
record system revenue bond proceeds account is established in
the electronic medical record system loan fund. The proceeds of
any bonds issued under section 62J.84 must be credited to the
account. Money in the account is appropriated to the
commissioner to make loans under section 62J.82.
new text end

new text begin Subd. 3. new text end

new text begin Debt service account. new text end

new text begin An electronic medical
record system revenue bond debt service account is established
in the electronic medical record system loan fund. There must
be credited to this debt service account in each fiscal year
from the income to the electronic medical record system loan
fund an amount sufficient to increase the balance on hand in the
debt service account on each December 1 to an amount equal to
the full amount of principal and interest to come due on all
outstanding bonds issued under section 62J.84 to and including
the second following July 1. The assets of the account are
pledged to and may only be used to pay principal and interest on
bonds issued under section 62J.84. Money in the debt service
account is appropriated to the commissioner of finance to pay
principal and interest on bonds issued under section 62J.84.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin Money in the electronic medical
record system loan fund not otherwise appropriated is
appropriated to the commissioner of health to administer the
loan program.
new text end

Sec. 3.

new text begin [62J.84] ELECTRONIC MEDICAL RECORD SYSTEM REVENUE
BONDS.
new text end

new text begin Subdivision 1. new text end

new text begin Bonding authority. new text end

new text begin Upon request of the
commissioner of health, the commissioner of finance may sell and
issue state revenue bonds to make loans under section 62J.82, to
establish a reserve fund or funds, and to pay the cost of
issuance of the bonds.
new text end

new text begin Subd. 2. new text end

new text begin Amount. new text end

new text begin The principal amount of the bonds
issued for the purposes specified in subdivision 1 must not
exceed $5,000,000.
new text end

new text begin Subd. 3. new text end

new text begin Procedure. new text end

new text begin The commissioner of finance may sell
and issue the bonds on the terms and conditions the commissioner
determines to be in the best interests of the state. The bonds
may be sold at public or private sale. The commissioner of
finance may enter any agreements or pledges the commissioner
determines necessary or useful to sell the bonds that are not
inconsistent with sections 62J.82 to 62J.84. Sections 16A.672
to 16A.675 apply to the bonds.
new text end

new text begin Subd. 4. new text end

new text begin Revenue sources. new text end

new text begin The bonds are payable only
from the following sources:
new text end

new text begin (1) loan repayments credited to the electronic medical
record system loan fund;
new text end

new text begin (2) the principal and any investment earnings on the assets
of the debt service account; and
new text end

new text begin (3) other revenues pledged to the payment of the bonds.
new text end

new text begin Subd. 5. new text end

new text begin Refunding bonds. new text end

new text begin The commissioner of finance
may issue bonds to refund outstanding bonds issued under
subdivision 1, including the payment of any redemption premiums
on the bonds and any interest accrued or to accrue to the first
redemption date after delivery of the refunding bonds. The
proceeds of the refunding bonds may, in the discretion of the
commissioner of finance, be applied to the purchases or payment
at maturity of the bonds to be refunded, or the redemption of
the outstanding bonds on the first redemption date after
delivery of the refunding bonds and may, until so used, be
placed in escrow to be applied to the purchase, retirement, or
redemption. Refunding bonds issued under this subdivision must
be issued and secured in the manner provided by the commissioner
of finance.
new text end

new text begin Subd. 6. new text end

new text begin Not a general or moral obligation. new text end

new text begin Bonds issued
under this section are not public debt, and the full faith,
credit, and taxing powers of the state are not pledged for their
payment. The bonds may not be paid directly in whole or in part
from a tax of statewide application on any class of property,
income, transaction, or privilege. Payment of the bonds is
limited to the revenues explicitly authorized to be pledged
under this section. The state neither makes nor has a moral
obligation to pay the bonds if the pledged revenues and other
legal security for them are insufficient.
new text end

new text begin Subd. 7. new text end

new text begin Trustee. new text end

new text begin The commissioner of finance may
contract with and appoint a trustee for bondholders. The
trustee has the powers and authority vested in it by the
commissioner of finance under the bond and trust indentures.
new text end

new text begin Subd. 8. new text end

new text begin Pledges. new text end

new text begin Any pledge made by the commissioner of
finance is valid and binding from the time the pledge is made.
The money or property pledged and later received by the
commissioner of finance is immediately subject to the lien of
the pledge without any physical delivery of the property or
money or further act, and the lien of any pledge is valid and
binding as against all parties having claims of any kind in
tort, contract, or otherwise against the commissioner of
finance, whether or not those parties have notice of the lien or
pledge. Neither the order nor any other instrument by which a
pledge is created need be recorded.
new text end

new text begin Subd. 9. new text end

new text begin Bonds; purchase and cancellation. new text end

new text begin The
commissioner of finance, subject to agreements with bondholders
that may then exist, may, out of any money available for the
purpose, purchase bonds of the commissioner at a price not
exceeding:
new text end

new text begin (1) if the bonds are then redeemable, the redemption price
then applicable plus accrued interest to the next interest
payment date thereon; or
new text end

new text begin (2) if the bonds are not redeemable, the redemption price
applicable on the first date after the purchase upon which the
bonds become subject to redemption plus accrued interest to that
date.
new text end

new text begin Subd. 10. new text end

new text begin State pledge against impairment of contracts.
new text end

new text begin The state pledges and agrees with the holders of any bonds that
the state will not limit or alter the rights vested in the
commissioner of finance to fulfill the terms of any agreements
made with the bondholders, or in any way impair the rights and
remedies of the holders until the bonds, together with interest
on them, with interest on any unpaid installments of interest,
and all costs and expenses in connection with any action or
proceeding by or on behalf of the bondholders, are fully met and
discharged. The commissioner of finance may include this pledge
and agreement of the state in any agreement with the holders of
bonds issued under this section.
new text end

Sec. 4. new text begin APPROPRIATION.
new text end

new text begin $....... is appropriated from the general fund to the
commissioner of finance for transfer to the electronic medical
record system loan fund to capitalize the fund. The
appropriation is available until expended.
new text end