Department; authority; powers and duties.

A. The department and the authority shall administer the loan programs and contracts for services established pursuant to the provisions of the Primary Care Capital Funding Act. The department and authority shall: (1) enter into joint powers agreements with each other or other appropriate public agencies to carry out the provisions of that act; and (2) apply to any appropriate federal, state or local governmental agency or private organization for grants and gifts to carry out the provisions of that act or to fund allied community-based health care programs. B. The department or authority may, instead of a loan, contract for services with an eligible entity to provide free or reduced fee primary care services for sick and medically indigent persons as reasonably adequate legal consideration for money from the fund to the entity so it may acquire or construct a capital project to provide the services. C. The department and authority may: (1) make and enter into contracts and agreements necessary to carry out their powers and duties pursuant to the provisions of the Primary Care Capital Funding Act; and (2) do all things necessary or appropriate to carry out the provisions of the Primary Care Capital Funding Act. D. The authority is responsible for all financial duties of the programs, including: (1) administering the fund; (2) accounting for all money received, controlled or disbursed for capital projects in accordance with the provisions of the Primary Care Capital Funding Act; (3) evaluating and approving loans and contracts for services, including determining financial capacity of an eligible entity; (4) enforcing contract provisions of loans and contracts for services, including the ability to sue to recover money or property owed the state; (5) determining requirements for repayment of loans, including interest rates, loan terms, payment schedules and other financial aspects of a loan and relevant terms of a contract for services; (6) ensuring the authority's interest in any project by the filing of a lien equal to the total of the authority's financial participation in the project; and (7) performing other duties in accordance with the provisions of the Primary Care Capital Funding Act, rules promulgated pursuant to that act or joint powers agreements entered into with the department. E. The department is responsible for the following duties: (1) defining sick and medically indigent persons for purposes of the Primary Care Capital Funding Act; (2) establishing priorities for loans and contracts for services; (3) determining the appropriateness of the project; (4) evaluating the capability of an applicant to provide and maintain primary care or hospice services; (5) selecting recipients of loans and persons with whom to contract for services; (6) determining that capital projects comply with all state and federal licensing; and (7) contracting with an eligible entity to provide primary care services without charge or at a reduced fee for sick and medically indigent persons as defined by the department. F. The authority may make a loan to an eligible entity to acquire, construct, renovate or otherwise improve a capital project or to fund operating capital, provided there is a finding: (1) by the department that the project will provide primary care services to sick and medically indigent persons as defined by the department; and (2) by the authority that there is adequate protection, including loan guarantees, real property liens, title insurance, security interests in or pledges of accounts and other assets, loan covenants and warranties or restrictions on other encumbrances and pledges for the state funds extended for the loan. G. The authority may make a loan to a school-based health center that operates in a school district or to a telehealth site for a capital project; provided, however, that the loan shall not exceed the amount in the account reserved for school-based health center or telehealth site funding.