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U.S. Code > Title 42 The Public Health and Welfare > CHAPTER 6A—PUBLIC HEALTH SERVICE > SUBCHAPTER XXVIII—HEALTH INFORMATION TECHNOLOGY AND QUALITY > Part B—Incentives for the Use of Health Information Technology > § 300jj-34. Competitive grants to States and Indian tribes for the development of loan programs to facilitate the widespread adoption of certified EHR technology

U.S. Code

§ 300jj-34. Competitive grants to States and Indian tribes for the development of loan programs to facilitate the widespread adoption of certified EHR technology

(a) In general
The National Coordinator may award competitive grants to eligible entities for the establishment of programs for loans to health care providers to conduct the activities described in subsection (e).
(b) Eligible entity defined
For purposes of this subsection, the term “eligible entity” means a State or Indian tribe (as defined in the Indian Self-Determination and Education Assistance Act [25 U.S.C. 450 et seq.]) that—
(1) submits to the National Coordinator an application at such time, in such manner, and containing such information as the National Coordinator may require;
(2) submits to the National Coordinator a strategic plan in accordance with subsection (d) and provides to the National Coordinator assurances that the entity will update such plan annually in accordance with such subsection;
(3) provides assurances to the National Coordinator that the entity will establish a Loan Fund in accordance with subsection (c);
(4) provides assurances to the National Coordinator that the entity will not provide a loan from the Loan Fund to a health care provider unless the provider agrees to—
(A) submit reports on quality measures adopted by the Federal Government (by not later than 90 days after the date on which such measures are adopted), to—
(i) the Administrator of the Centers for Medicare & Medicaid Services (or his or her designee), in the case of an entity participating in the Medicare program under title XVIII of the Social Security Act [42 U.S.C. 1395 et seq.] or the Medicaid program under title XIX of such Act [42 U.S.C. 1396 et seq.]; or
(ii) the Secretary in the case of other entities;
(B) demonstrate to the satisfaction of the Secretary (through criteria established by the Secretary) that any certified EHR technology purchased, improved, or otherwise financially supported under a loan under this section is used to exchange health information in a manner that, in accordance with law and standards (as adopted under section 300jj–14 of this title) applicable to the exchange of information, improves the quality of health care, such as promoting care coordination; and [1]
(C) comply with such other requirements as the entity or the Secretary may require;
(D) include a plan on how health care providers involved intend to maintain and support the certified EHR technology over time;
(E) include a plan on how the health care providers involved intend to maintain and support the certified EHR technology that would be purchased with such loan, including the type of resources expected to be involved and any such other information as the State or Indian Tribe, respectively, may require; and
(5) agrees to provide matching funds in accordance with subsection (h).
(c) Establishment of fund
For purposes of subsection (b)(3), an eligible entity shall establish a certified EHR technology loan fund (referred to in this subsection as a “Loan Fund”) and comply with the other requirements contained in this section. A grant to an eligible entity under this section shall be deposited in the Loan Fund established by the eligible entity. No funds authorized by other provisions of this subchapter to be used for other purposes specified in this subchapter shall be deposited in any Loan Fund.
(d) Strategic plan
(1) In general
For purposes of subsection (b)(2), a strategic plan of an eligible entity under this subsection shall identify the intended uses of amounts available to the Loan Fund of such entity.
(2) Contents
A strategic plan under paragraph (1), with respect to a Loan Fund of an eligible entity, shall include for a year the following:
(A) A list of the projects to be assisted through the Loan Fund during such year.
(B) A description of the criteria and methods established for the distribution of funds from the Loan Fund during the year.
(C) A description of the financial status of the Loan Fund as of the date of submission of the plan.
(D) The short-term and long-term goals of the Loan Fund.
(e) Use of funds
Amounts deposited in a Loan Fund, including loan repayments and interest earned on such amounts, shall be used only for awarding loans or loan guarantees, making reimbursements described in subsection (g)(4)(A), or as a source of reserve and security for leveraged loans, the proceeds of which are deposited in the Loan Fund established under subsection (c). Loans under this section may be used by a health care provider to—
(1) facilitate the purchase of certified EHR technology;
(2) enhance the utilization of certified EHR technology (which may include costs associated with upgrading health information technology so that it meets criteria necessary to be a certified EHR technology);
(3) train personnel in the use of such technology; or
(4) improve the secure electronic exchange of health information.
(f) Types of assistance
Except as otherwise limited by applicable State law, amounts deposited into a Loan Fund under this section may only be used for the following:
(1) To award loans that comply with the following:
(A) The interest rate for each loan shall not exceed the market interest rate.
(B) The principal and interest payments on each loan shall commence not later than 1 year after the date the loan was awarded, and each loan shall be fully amortized not later than 10 years after the date of the loan.
(C) The Loan Fund shall be credited with all payments of principal and interest on each loan awarded from the Loan Fund.
(2) To guarantee, or purchase insurance for, a local obligation (all of the proceeds of which finance a project eligible for assistance under this subsection) if the guarantee or purchase would improve credit market access or reduce the interest rate applicable to the obligation involved.
(3) As a source of revenue or security for the payment of principal and interest on revenue or general obligation bonds issued by the eligible entity if the proceeds of the sale of the bonds will be deposited into the Loan Fund.
(4) To earn interest on the amounts deposited into the Loan Fund.
(5) To make reimbursements described in subsection (g)(4)(A).
(g) Administration of loan funds
(1) Combined financial administration
An eligible entity may (as a convenience and to avoid unnecessary administrative costs) combine, in accordance with applicable State law, the financial administration of a Loan Fund established under this subsection with the financial administration of any other revolving fund established by the entity if otherwise not prohibited by the law under which the Loan Fund was established.
(2) Cost of administering fund
Each eligible entity may annually use not to exceed 4 percent of the funds provided to the entity under a grant under this section to pay the reasonable costs of the administration of the programs under this section, including the recovery of reasonable costs expended to establish a Loan Fund which are incurred after February 17, 2009.
(3) Guidance and regulations
The National Coordinator shall publish guidance and promulgate regulations as may be necessary to carry out the provisions of this section, including—
(A) provisions to ensure that each eligible entity commits and expends funds allotted to the entity under this section as efficiently as possible in accordance with this subchapter and applicable State laws; and
(B) guidance to prevent waste, fraud, and abuse.
(4) Private sector contributions
(A) In general
A Loan Fund established under this section may accept contributions from private sector entities, except that such entities may not specify the recipient or recipients of any loan issued under this subsection. An eligible entity may agree to reimburse a private sector entity for any contribution made under this subparagraph, except that the amount of such reimbursement may not be greater than the principal amount of the contribution made.
(B) Availability of information
An eligible entity shall make publicly available the identity of, and amount contributed by, any private sector entity under subparagraph (A) and may issue letters of commendation or make other awards (that have no financial value) to any such entity.
(h) Matching requirements
(1) In general
The National Coordinator may not make a grant under subsection (a) to an eligible entity unless the entity agrees to make available (directly or through donations from public or private entities) non-Federal contributions in cash to the costs of carrying out the activities for which the grant is awarded in an amount equal to not less than $1 for each $5 of Federal funds provided under the grant.
(2) Determination of amount of non-Federal contribution
In determining the amount of non-Federal contributions that an eligible entity has provided pursuant to subparagraph (A),[2] the National Coordinator may not include any amounts provided to the entity by the Federal Government.
(i) Effective date
The Secretary may not make an award under this section prior to January 1, 2010.

[1] So in original. The word “and” probably should appear at end of subpar. (D).

[2] So in original. Probably means “paragraph (1),”.
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