General Assembly Substitute Bill No. 405
February Session, 2012 *_____SB00405CE____032712____*
General Assembly
Substitute Bill No. 405
February Session, 2012
*_____SB00405CE____032712____*
AN ACT CONCERNING TARGETED HEALTH AREAS.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective from passage) (a) On or after October 1, 2012, the Commissioner of Economic and Community Development, in consultation with the Commissioners of Public Health and Social Services, and a representative designated by the Connecticut State Medical Society shall, within available resources, designate as targeted health areas not more than ten municipalities that have (1) a medically-underserved population, or (2) a population with a high rate of chronic disease. Said commissioners and representative shall identify any needed medical specialty in any municipality designated as a targeted health area.
(b) Not later than October 1, 2017, and annually thereafter, the Commissioner of Economic and Community Development, in consultation with the Commissioners of Public Health and Social Services, shall evaluate whether any municipality designated as a targeted health area pursuant to subsection (a) of this section still meets the criteria for such designation. The Commissioner of Economic and Community Development may remove the designation of any municipality that no longer meets the criteria for such designation, provided no such designation shall be removed less than five years after the original date of the municipality's designation as a targeted health area.
Sec. 2. (NEW) (Effective October 1, 2012) (a) There is established within the Department of Economic and Community Development the Targeted Health Area program. Said program shall provide licensed physicians and physician offices providing primary care services or any needed medical specialty identified pursuant to section 1 of this act, with various forms of financial assistance, using a streamlined application process to expedite the delivery of such assistance. A licensed physician shall be eligible for assistance through said program if, as of the effective date of this section, such physician: (1) Is engaged in the active practice of primary care for adults or children or any needed medical specialty identified pursuant to section 1 of this act, and (2) practices in a municipality designated as a targeted health area pursuant to section 1 of this act. A physician office providing primary care services shall be eligible for assistance through said program if, as of the effective date of this section, such office: (A) Provides primary care services to adults or children or any needed medical specialty identified pursuant to section 1 of this act, (B) is located in an area designated as a targeted health area pursuant to section 1 of this act, and (C) is in good standing with the payment of all state and local taxes and with all state agencies.
(b) The Targeted Health Area program shall consist of various components, including (1) a revolving loan fund, as described in subsection (d) of this section, to support licensed physicians and physician offices providing primary care services or any needed medical specialty identified pursuant to section 1 of this act, (2) a licensed physician hiring incentive component, as described in subsection (e) of this section, to support the hiring of licensed physicians by physician offices providing primary care services, or any needed medical specialty identified pursuant to section 1 of this act, and (3) a matching grant component, as described in subsection (f) of this section, to provide capital to licensed physicians or physician offices providing primary care services that can match the state grant amount. The Commissioner of Economic and Community Development shall work with eligible licensed physicians and physician offices providing primary care services or any needed medical specialty identified pursuant to section 1 of this act, to provide a package of assistance using not only the financial assistance provided by the Targeted Health Area program, but also any other appropriate tax credit or state program. Notwithstanding the provisions of section 32-5a of the general statutes, regarding relocation limits, the department may require as a condition of receiving financial assistance pursuant to this section, that a licensed physician or physician office providing primary care services or any needed medical specialty identified pursuant to section 1 of this act receiving such assistance shall not relocate, as defined in said section 32-5a, for five years after receiving such assistance. All other conditions and penalties imposed pursuant to said section 32-5a shall continue to apply to such licensed physician or physician office.
(c) The commissioner, in consultation with the officers of the Connecticut State Medical Society, shall establish a streamlined application process for the Targeted Health Area program. The licensed physician or physician office providing primary care services or any needed medical specialty identified pursuant to section 1 of this act may receive assistance pursuant to said program not later than thirty days after submitting a completed application to the department. Any such licensed physician or physician office, which meets the eligibility criteria in subsection (a) of this section, may apply to said program. The commissioner shall give priority for available funding to such licensed physicians and physician office in a manner that best addresses the health needs of the targeted health areas.
(d) (1) There is established as part of the Targeted Health Area program a revolving loan fund to provide loans to licensed physicians and physician offices providing primary care services or any needed medical specialty identified pursuant to section 1 of this act. Such loans shall be used for acquisition of medical equipment, construction or leasehold improvements, working capital or other business-related expenses, as authorized by the commissioner.
(2) Loans from the revolving loan fund may be in amounts from ten thousand dollars to a maximum of one hundred thousand dollars, shall carry a maximum repayment rate of four per cent and shall be for a term of not more than ten years. The department shall review and approve loan terms, conditions and collateral requirements in a manner that best addresses the health needs of the targeted health areas.
(3) Any such licensed physician or physician office meeting the eligibility criteria in subsection (a) of this section may apply for assistance from the revolving loan fund, but the commissioner shall give priority to such licensed physicians or physician offices that best address the health needs of the targeted health areas.
(e) (1) There is established as part of the Targeted Health Area program a licensed physician hiring incentive component to provide loans for hiring licensed physicians for physician offices providing primary care services or any needed medical specialty identified pursuant to section 1 of this act meeting the eligibility criteria in subsection (a) of this section, with the option of loan forgiveness based on the retention of any licensed physician hired and retained for not less than twelve consecutive months. Such loans may be used for training, marketing, working capital or other expenses, as approved by the commissioner, that support hiring such licensed physician.
(2) Loans under the licensed physician hiring incentive component may be in amounts from ten thousand dollars to a maximum of two hundred fifty thousand dollars. Payments on such loans may be deferred, and all or part of any such loan may be forgiven, based upon the commissioner's assessment of the physician office's attainment of hiring goals. The department shall review and approve loan terms, conditions and collateral requirements in a manner that prioritizes hiring licensed physicians that best address the health needs of the targeted health areas.
(f) (1) There is established as part of the Targeted Health Area program a matching grant component to provide grants for capital to physician offices providing primary care services or any needed medical specialty identified pursuant to section 1 of this act meeting the eligibility criteria in subsection (a) of this section. Such physician offices shall match any state funds awarded under this program. Grant funds may be used for ongoing or new training, working capital, acquisition of medical equipment, construction or leasehold improvements or other business-related expenses authorized by the commissioner.
(2) Matching grants provided under the matching grant component may be in amounts from ten thousand dollars to a maximum of one hundred thousand dollars. The commissioner shall prioritize applicants for matching grants in a manner that best address the health needs of the applicant's targeted health area.
(g) Not later than June 30, 2013, and every six months thereafter, the commissioner shall provide a report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue and bonding, appropriations, commerce, public health and human services. Such report shall include available data on (1) the number of licensed physicians or physician offices providing primary care services or any needed medical specialty identified pursuant to section 1 of this act that applied to the Targeted Health Area program, (2) the number of such licensed physicians or physician offices that received assistance under said program, (3) the amounts and types of assistance provided, and (4) the total number of licensed physicians employed at such physician offices on the date of application and the number proposed to be hired, if any. The contents of such report shall also be included in the department's annual report.
Sec. 3. (NEW) (Effective July 1, 2012) (a) For the purposes described in subsection (b) of this section, the State Bond Commission shall have the power, from time to time, to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate ten million dollars, provided five million dollars of said authorization shall be effective July 1, 2013.
(b) The proceeds of the sale of said bonds, to the extent of the amount stated in subsection (a) of this section, shall be used by the Department of Economic and Community Development for the purpose of the Targeted Health Area program established pursuant to section 2 of this act, provided (1) two million dollars of the amount stated in subsection (a) of this section may be used, in each of fiscal years 2013 and 2014, for the revolving loan fund established pursuant to subsection (d) of section 2 of this act, (2) one million dollars of the amount stated in subsection (a) of this section may be used, in each of fiscal years 2013 and 2014, for the licensed physician hiring incentive component established pursuant to subsection (e) of section 2 of this act, and (3) two million dollars of the amount stated in subsection (a) of this section may be used, in each of fiscal years 2013 and 2014, for the matching grant component established pursuant to subsection (f) of section 2 of this act. Any time at which an amount in subdivision (1), (2) or (3) of this subsection is used for a component of the Targeted Health Area program other than that specified in said subdivision (1), (2) or (3), the Commissioner of Economic and Community Development shall report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue and bonding, appropriations, commerce, public health and human services, detailing the amount of the proceeds of the sale of said bonds that was so used and how such amount was divided among said components.
(c) All provisions of section 3-20 of the general statutes, or the exercise of any right or power granted thereby, which are not inconsistent with the provisions of this section are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section, and temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with said section 3-20 and from time to time renewed. Such bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds. None of said bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization which is signed by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission, in its discretion, may require. Said bonds issued pursuant to this section shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on said bonds as the same become due, and accordingly and as part of the contract of the state with the holders of said bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the State Treasurer shall pay such principal and interest as the same become due.
This act shall take effect as follows and shall amend the following sections:
Section 1 from passage New section
Sec. 2 October 1, 2012 New section
Sec. 3 July 1, 2012 New section
This act shall take effect as follows and shall amend the following sections:
Section 1
from passage
New section
Sec. 2
October 1, 2012
New section
Sec. 3
July 1, 2012
New section
Statement of Legislative Commissioners:
In subsection (a) of section 2, "shall be" and ", such office" were inserted for clarity, in subsections (b), (c), (d)(3), (e)(2) and (g) of section 2, "or any needed medical specialty identified pursuant to section 1 of this act" was deleted to avoid redundancy and repetition, in subsection (c) of section 2, ", which meets" was inserted for clarity, and in subsection (g) "employed at" was inserted for clarity.
CE Joint Favorable Subst.-LCO
CE
Joint Favorable Subst.-LCO