§ 2817. Community health centers capital program. 1. Definitions. As
used in this section, unless the context clearly requires otherwise, the
following terms shall have the following meanings:

(a) "Community health center" means a not-for-profit corporation that
is licensed under this article as a diagnostic and treatment center,
which license is valid and in full force and effect, and that provides a
comprehensive range of primary health care services in one or more
freestanding sites, or a not-for-profit corporation that has applied for
licensure under this article as a diagnostic and treatment center and
that intends to provide a comprehensive range of primary health care
services in one or more freestanding sites.

(b) "Program" means the community health centers program authorized by
this section.

(c) "Program funds" means state funds available for the purposes of
this section.

(d) "Matching funds" means any funds other than state funds (whether
derived from non-governmental or federal or local governmental sources),
which are available for the purposes of this section.

(e) "Community health center project" or "project" means the
construction, reconstruction, renovation, rehabilitation, refurbishing,
expansion, upgrading, or equipping of a community health center under
this section.

2. Agreements. The commissioner is authorized to make funds available
for community health center projects. The commissioner shall contract
with one or more not-for-profit administrators, each of which shall be a
not-for-profit corporation having demonstrated interest, expertise and
experience in the development and financing of primary care and
preventive services in low income communities. The not-for-profit
administrator shall award program funds and available matching funds to,
or for the benefit of, community health centers which apply for such
funds in accordance with this section. The commissioner and the
not-for-profit administrator shall enter into an agreement for the
purpose of administering the program and matching funds. Such agreement
shall provide, without limitation, for the following:

(a) the receipt, management and expenditure of program funds and
matching funds;

(b) the solicitation of capital proposals to be submitted by or on
behalf of community health centers;

(c) the solicitation of matching funds;

(d) the process by which the capital proposals are reviewed, evaluated
and funded; and

(e) the reasonable expenses of the not-for-profit administrator
incurred in the establishment and administration of this program,
including retention of professionals and consultants.

3. Matching funds. (a) To leverage the benefit of program funds
available pursuant to this section for community health center projects,
each allocation of program funds awarded to, or for the benefit of, a
community health center shall be matched by an equal or greater amount
of matching funds and shall be conditioned on the availability of such
matching funds for the community health center project.

(b) Matching funds shall be deemed available for the purposes of this
section when the funds are deposited with the not-for-profit
administrator, or are irrevocably committed for the community health
center project pursuant to a valid, binding and enforceable contract,
enforceable by the not-for-profit administrator for the benefit of the
community health center project.

(c) Matching funds may be obtained by the not-for-profit administrator
or may be otherwise provided for a particular community health center
project. In each such circumstance, or combination thereof, the
requirements of paragraph (b) of this subdivision shall apply.

4. Community health center projects. (a) An application to the
not-for-profit administrator may be submitted by or on behalf of a
community health center which meets the criteria for receiving funds set
forth in this section.

(b) The application shall specify in detail acceptable to the
not-for-profit administrator the proposed construction, reconstruction,
renovation, rehabilitation, refurbishing, expansion, upgrading and
equipping of a community health center.

(c) The application shall identify available sources of funds for the
community health center project, including matching funds, if any. It
shall also identify any expenses already incurred in connection with the
community health center project, and whether any reimbursement therefor
is sought in connection with the application.

(d) To receive an award of funds for the proposed community health
center project, the applicant, and if the applicant is not a community
health center, the community health center and the applicant, shall
enter into an agreement with the not-for-profit administrator governing
the disbursement of funds, construction of the proposed project, and any
requirements of the program under the agreement between the commissioner
and the not-for-profit administrator or otherwise required by law. The
agreement may include provisions for the repayment of all or a portion
of funds.

5. Funding criteria. A community health center project may be funded
under this section provided the community health center meets the
criteria established in either of the following paragraphs:

(a) The community health center is a federally-qualified health center
as defined in 42 U.S.C. section 1395x (aa); or

(b) The community health center (i) has applied to the United States
Department of Health and Human Services for designation as a
federally-qualified health center, (ii) is eligible for such
designation, and (iii) is located in, serves or intends to serve a
designated medically-underserved community as defined in 42 U.S.C.
section 295p, a health professional shortage area as defined in 42
U.S.C. section 254e or a medically-underserved population as defined in
42 U.S.C. section 254b. A community health center that received funding
pursuant to this paragraph, and does not secure designation as a
federally-qualified health center within two years of its receipt of
funds shall repay such funds as directed by the not-for-profit
administrator.

6. Administration of funds. (a) Program funds shall be received and
held by the not-for-profit administrator under this section and the
agreement with the commissioner. Program funds shall be held in trust
and used for the benefit of the community health center projects. All
investment income shall be credited to, and any repayments of program
funds shall be deposited in, the trust accounts established by the
not-for-profit administrator for such purpose, and spent only for the
purposes set forth in this section.

(b) Notwithstanding the foregoing, the not-for-profit administrator
may withdraw from the funds held by it under this section, subject to
the agreement with the commissioner, amounts sufficient to pay or
reimburse its expenses as provided in paragraph (e) of subdivision two
of this section.

(c) The not-for-profit administrator shall maintain books and records
pertaining to all moneys received and disbursed pursuant to this
section. The agreement between the commissioner and the not-for-profit
administrator shall provide for the distribution of funds upon the
termination thereof. All remaining program funds, including earnings and
repayments, if any, not subject to binding agreement for the expenditure
thereof, shall be paid at the direction of the commissioner to the state
comptroller to the credit of the general fund. Upon termination of the
agreement, matching funds held by the not-for-profit administrator not
subject to binding agreement for the expenditure thereof, shall be
applied consistent with the terms of the receipt of such matching funds,
or returned to the donor.