KRS 154.20-190: Rural hospital operations and facilities revolving loan fund.

(1) As used in this section:

(a) "Authority" means the Kentucky Economic Development Finance Authority;

(b) "Qualifying former hospital" means a hospital facility:

1. At a locat ion that closed within thirty -six (36) months prior to an

application for a loan; and

2. For which the former owner or new owner has obtained a certificate of

need to open a new hospital or other health facility as defined in KRS

216B.015 that provides inpatient care at the closed location; and

(c) "Rural hospital" means any hospital or qualifying former hospital located

within a county of the Commonwealth having a population of less than fifty

thousand (50,000) according to the most recent annual estimates of the

resident population issued by the United States Census Bureau.

(2) (a) The rural hospital operations and facilities revolving loan fund is established.

The authority shall provide loans to a rural hospital not to exceed one million

dollars ($1,000, 000) for any project within a rural hospital and shall not

exceed more than two million dollars ($2,000,000) every five (5) years.

(b) Any loan issued by the authority shall not exceed a twenty (20) year term and

shall be utilized by the Cabinet for Economic Development to assist a rural

hospital in providing needed direct health care services for the citizens of the

Commonwealth by:

1. Maintaining or upgrading the hospital's facilities;

2. Maintaining or increasing the current staff of the rural hospital;

3. Reopening a qualifying former hospital; or

4. Providing health care services that are not currently available to citizens.

(c) The authority shall consider a group with multiple locations eligible under this

section as if each separate location is a separate entity for purposes of

determining eligibility and applicable loan limits.

(3) The Cabinet for Economic Development shall:

(a) Determine the terms and conditions of each loan, including the repayment to

be deposited back in the revolving loan fund for issuance of future loans to

other rural hospitals;

(b) Monitor the performance of the rural hospital; and

(c) By November 1, 2023, an d by each November 1 thereafter, report to the

Interim Joint Committee on Appropriations and Revenue information about

each outstanding loan issued, including:

1. The name and location of the rural hospital;

2. The amount of principal originally loaned;

3. The terms of the loan and whether the rural hospital is currently meeting

those terms; and

4. How the rural hospital used the loan related to facilities, staff, or

additional services.

(4) (a) The fund created in subsection (2) of this section shall be a trust and agency

account.

(b) The Cabinet for Economic Development shall administer the fund.

(c) The fund shall consist of appropriations, contributions, donations, gifts, or

federal funds.

(d) Notwithstanding KRS 45.229, any moneys remaining in the fund at the close

of the fiscal year shall not lapse but shall be carried forward into the

succeeding fiscal year.

(e) Any interest earnings of the fund shall become a part of the fund and shall not

lapse.

(f) Moneys deposited in the fund are hereby appropriate d for the sole purpose of

providing loans to rural hospitals.