Section 6E1/2: Massachusetts Health Information Technology Revolving Loan Fund
Section 6E1/2. (a) There shall be established and set up on the books of the corporation the Massachusetts Health Information Technology Revolving Loan Fund, hereinafter referred to as the fund, the proceeds of which shall be used to provide zero-interest loans to health care providers and community-based behavioral health organizations to implement health information technology. There shall be credited to the fund any appropriations or other monies authorized by the general court and specifically designated to be credited to the fund; proceeds of any bonds or notes of the commonwealth issued for the purpose; any federal grants or loans; any private gifts, grants or donations made available; and any income derived from the investment of amounts credited to the fund. The director of the institute shall pursue and maximize all opportunities to qualify for federal financial participation. The institute shall seek, to the greatest extent possible, private gifts, grants and donations to the fund. The fund shall be held in an account or accounts separate from other funds. The fund shall be administered by the institute without further appropriation. Amounts credited to the fund shall be available for reasonable expenditure by the corporation, for purposes as the corporation determines are necessary to support the dissemination and development of health information technology in the commonwealth, including, but not limited to, the loan program established in this section. Any funds remaining in the fund at the end of a fiscal year shall be carried forward into the following fiscal year and shall remain available for expenditure without further appropriation.
(b) The institute shall make available zero interest loan funding from the Massachusetts Health Information Technology Revolving Loan Fund to health care providers to assist with the development and implementation of an interoperable health information technology system that meets all federal and state requirements. The institute shall make the loans available through banks approved to do business in the commonwealth by the division of banks. The institute shall enter into agreements with the lenders to make loans. The institute, in consultation with the state treasurer, shall develop a lender partnership program and lender agreement that requires, at a minimum, (1) that a bank must be adequately capitalized, consistent with the requirements of 209 CMR 47.00 et seq. and as defined under the prompt corrective action provisions of the Federal Deposit Insurance Act, 12 U.S.C. section 1831(o), and the Federal Deposit Insurance Corporation's Capital Adequacy Regulations, 12 CFR section 325.103; (2) the institute shall specify lending standards, including without limitation, those for determining eligibility, including the eligibility standards set forth in this subsection, size and number of loans, and (3) that all loans made under the program must be zero interest loans; provided, however, that the program may provide for reasonable application and administrative fees to be paid to lending banks under the program. A reasonable amount of administrative costs may be expended annually from the fund for the administration of the program. Any application or other fees imposed and collected under this program shall be deposited in the Massachusetts Health Information Technology Revolving Loan Fund for the duration of the loan program. The institute may make adjustments necessary to loan applications to account for reimbursements received under any other state or federal programs. To be eligible for a loan under this section, a health care provider, at a minimum, shall provide the participating lending institution with the following information: (A) the amount of the loan requested and a description of the purpose or project for which the loan proceeds will be used; (B) a price quote from a vendor; (C) a description of the health care provider or entities and other groups participating in the project; (D) evidence of financial condition and ability to repay the loan; and (E) a description of how the loan funds will be used to bring the health care provider into compliance with federal and state requirements. Loans shall be repaid over a 5–year term according to a schedule to be established through institute regulations. The attorney general shall enforce collection of any loans in default.
The institute shall promulgate regulations necessary for the operation of this program.