Bill Text: NJ A1812 | 2012-2013 | Regular Session | Introduced
Bill Title: "New Jersey Broadband and Electronic Health Information Network Authority Act."
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-01-10 - Introduced, Referred to Assembly Health and Senior Services Committee [A1812 Detail]
Download: New_Jersey-2012-A1812-Introduced.html
STATE OF NEW JERSEY
215th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2012 SESSION
Sponsored by:
Assemblyman HERB CONAWAY, JR.
District 7 (Burlington)
SYNOPSIS
"New Jersey Broadband and Electronic Health Information Network Authority Act."
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act establishing the "New Jersey Broadband and Electronic Health Information Network Authority" and supplementing P.L.2007, c.330 (C.26:1A-132 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "New Jersey Broadband and Electronic Health Information Network Authority Act."
2. The Legislature finds and declares that:
a. The use of broadband Internet service to access news and information, exchange personal communication, conduct electronic commerce, and interact with federal, state, and local governmental entities has greatly expanded in recent years;
b. In particular, the use of broadband Internet service to implement an electronic health information network has been shown to be an effective means of promoting a more affordable, safe, and accessible health care system by improving communication among many different health care entities, including, but not limited to, hospitals, clinics, pharmacies, and health care professionals;
c. States such as Delaware and Kentucky have established statewide health information networks that have demonstrated the feasibility of using such networks to facilitate the sharing of health records and information among health care providers and to address the needs of residents for timely, reliable, and relevant health care information;
d. In other states such as Virginia, Wisconsin, Illinois, and Michigan, public authorities and commissions have been established to oversee and promote the overall development of broadband Internet service in their respective jurisdictions in order to provide their residents with greater access to broadband services; and
e. In recognition of the need for a Statewide electronic health information network, and the growing importance of broadband Internet service to the economic and social life of the residents of this State, it is in the public interest to establish an independent authority to promote the development of broadband infrastructure projects, and to specifically oversee and develop a Statewide electronic health information network utilizing the State's broadband capacity and the bonding capacity of the authority as a funding mechanism to expedite the development of such a network.
3. As used in this act:
"Authority" means the New Jersey Broadband and Electronic Health Information Network Authority established pursuant to section 4 of this act.
"Broadband developer" means a person selected by the authority to acquire, construct, develop, and create any part of a broadband infrastructure project.
"Broadband infrastructure project" or "project" means all facilities, hardware, and software, and other intellectual property necessary to provide an electronic health information network, and other related broadband services in this State, including, but not limited to, voice, video, and data.
"Broadband operator" means a person selected by the authority to operate any part of a broadband infrastructure.
"Broadband services" means those services, including, but not limited to, voice, video, and data, that provide capacity for transmission of information at rates in excess of 200 kilobits per second in at least one direction regardless of the technology or medium used, including wireless, copper wire, fiber optic cable, or coaxial cable. If voice transmission capacity is offered in conjunction with other services utilizing transmission at rates in excess of 200 kilobits per second, the voice transmission capacity rate may be less than 200 kilobits per second.
"Development costs" or "costs" means the costs associated with a broadband infrastructure project that have been approved by the authority, including, but not limited to, the costs for planning, acquiring, leasing, constructing, maintaining, and operating a broadband infrastructure project.
"Electronic health information network" means a system that utilizes certain broadband services to provide a secure, integrated method of storing, sending, and accessing health information, records, and data to, and by, health care organizations, health care professionals, public and private payers, and patients, and that links together components of the health care delivery system in this State.
"Health care organization" means: an organization located in this State which is authorized or permitted by law, whether directly or indirectly through a holding corporation, partnership or other entity, to provide health care-related services, including, but not limited to, hospital, outpatient, public health, home health care, residential care, assisted living, hospice, blood bank, alcohol or drug abuse, half-way house, diagnostic, treatment, rehabilitation, extended care, skilled nursing care, nursing care, intermediate care, tuberculosis care, chronic disease care, maternity, mental health, boarding or sheltered care or day care services, services provided by a physician in his office, or any other service offered in connection with health care services or by an entity affiliated with a health care organization or an integrated delivery system; or a health insurance carrier.
"Health insurance carrier" means an entity subject to the insurance laws and regulations of this State, or subject to the jurisdiction of the Commissioner of Banking and Insurance, which contracts or offers to contract to provide, deliver, arrange for, pay for, or reimburse any of the costs of health care services, including, but not limited to, an insurance company, health service corporation, hospital service corporation, medical service corporation, health maintenance organization, dental service corporation, and dental plan organization.
"Health insurance plan" means any hospital and medical expense insurance policy, health, hospital or medical service corporation contract or certificate, or health maintenance organization subscriber contract or certificate, or dental or vision plan.
4. a. There is hereby established in, but not of, the Department of Health and Senior Services, a public body corporate and politic, with corporate succession, to be known as the "New Jersey Broadband and Electronic Health Information Network Authority." The authority shall constitute a political subdivision of the State established as an instrumentality exercising public and essential governmental functions, and the exercise by the authority of the powers conferred by this act shall be deemed and held to be an essential governmental function.
b. The authority shall consist of seven members as follows:
(1) the Chief Technology Officer of the New Jersey Office of Information Technology, or his designee, who shall serve ex officio; and
(2) six public members, as follows:
(a) two public members, who shall be appointed by the Governor, one each with demonstrated professional expertise, knowledge, and skill in the academic and business fields relating to the work of the authority, respectively;
(b) two public members, who shall be appointed by the President of the Senate, one each with demonstrated professional expertise, knowledge, and skill in the technology and financial fields relating to the work of the authority, respectively; and
(c) two public members, who shall be appointed by the Speaker of the General Assembly, including one member with expertise in electronic health information technology and one member who is licensed or otherwise authorized to practice as a health care professional pursuant to Title 45 of the Revised Statutes.
The appointments of the public members shall be made no later than the 60th day after the effective date of this act, and the appointments of the public members by the Governor shall be made with the advice and consent of the Senate.
The Governor shall designate a public member as chair of the authority.
c. The public members shall serve for a term of five years; except that, of the public members first appointed, those appointed by the Governor shall serve for a term of three years, and those appointed by the President of the Senate and by the Speaker of the General Assembly shall serve for a term of two years. Vacancies in the membership of the authority shall be filled in the same manner as the original appointments were made.
Any public member of the authority may be removed from office for cause after a public hearing, as follows: by the Governor if the public member was appointed pursuant to subparagraph (a) of paragraph (2) of subsection b. of this section; by the President of the Senate if the public member was appointed pursuant to subparagraph (b) of paragraph (2) of subsection b. of this section; and by the Speaker of the General Assembly if the public member was appointed pursuant to subparagraph (c) of paragraph (2) of subsection b. of this section.
d. The members of the authority shall serve without compensation, but the authority may reimburse its members for necessary expenses incurred in the discharge of their official duties.
e. The authority, upon the first appointment of its members and thereafter on or after April 30 in each year, shall annually elect from among its members a vice chairman who shall hold office until April 30 next ensuing and shall continue to serve after the expiration of the term of the vice chairman's successor and until the vice chairman's successor shall have been appointed and qualified. The authority may also appoint, retain and employ, without regard to the provisions of Title 11A, Civil Service, of the New Jersey Statutes, such officers, agents, and employees as it may require, and it shall determine their qualifications, terms of office, duties, services, and compensation.
f. The powers of the authority shall be vested in the members thereof in office from time to time, and a majority of the total authorized membership of the authority shall constitute a quorum at any meeting thereof. Action may be taken and motions and resolutions adopted by the authority at any meeting thereof by the affirmative vote of a majority of the members present, unless in any case the bylaws of the authority shall require a larger number. No vacancy in the membership of the authority shall impair the right of a quorum to exercise all the rights and perform all the duties of the authority.
g. Each member and such person as may be designated by the authority as its chief financial officer, shall execute a bond to be conditioned upon the faithful performance of the duties of such member or officer, as the case may be, in such form and amount as may be prescribed by the Attorney General. Such bonds shall be filed in the office of the Secretary of State. At all times thereafter, the members and the chief financial officer, if any, of the authority shall maintain such bonds in full force and effect. All costs of such bonds shall be borne by the authority.
h. No trustee, director, or officer of a health care organization may serve as a member of the authority.
i. At least two true copies of the minutes of every meeting of the authority shall be forthwith delivered by and under the certification of the secretary thereof, to the Governor. No action taken at such meeting by the authority shall have force or effect until 10 days, exclusive of Saturdays, Sundays, and public holidays, after such copies of the minutes shall have been so delivered or at such earlier time as the Governor shall sign a statement of approval thereof. If, in the 10-day period, the Governor returns a copy of the minutes with veto of any action taken by the authority or any member thereof at such meeting, such action shall be null and of no effect. If the Governor shall not return the minutes within the 10-day period, any action therein recited shall have force and effect according to the wording thereof. At any time prior to the expiration of the 10-day period, the Governor may sign a statement of approval of each, or any such action of the authority.
The powers conferred in this subsection upon the Governor shall be exercised with due regard for the rights of the holders of bonds of the authority at any time outstanding.
5. The authority shall have power:
a. To adopt bylaws for the regulation of its affairs and the conduct of its business and to alter and revise such bylaws from time to time at its discretion;
b. To adopt and have an official seal and alter the same at pleasure;
c. To maintain an office at such place or places within the State as it may designate;
d. To sue and be sued in its own name;
e. To borrow money and to issue bonds and notes to fund the operations of the authority, to finance or refinance part or all of the development costs of broadband infrastructure projects, including, but not limited to, a Statewide electronic health information network, to refinance existing debt for technology that constitutes a part of or is related to broadband infrastructure projects, and to secure bonds and notes by mortgage, assignment, or pledge of any of its revenues and assets;
f. To make loans and to enter into partnership arrangements with broadband developers and broadband operators in order to acquire, construct, maintain, and operate all or portions of broadband infrastructure projects;
g. To set construction, operation, and financing standards for broadband infrastructure projects in connection with authority financing and to provide for inspections to determine compliance with those standards;
h. To oversee the development of a Statewide electronic health information network in order to ensure that the network is designed to:
(1) promote more efficient and effective communication among multiple health care providers, including, but not limited to, hospitals, physicians, payers, employers, pharmacies, laboratories, and other health care entities;
(2) create efficiencies in the provision of health care by improving data capture and storage through methods that include the increased utilization of existing State assets, and reduce administrative, billing, and data collection costs;
(3) eliminate redundancy of tests, treatments, and procedures;
(4) create the ability to monitor community health status; and
(5) provide reliable information to health care consumers and purchasers regarding the quality and cost-effectiveness of health care, health insurance plans, and health care providers, including, but not limited to, health care professionals, hospitals, nursing homes, and other health care facilities;
i. To acquire in the name of the authority by purchase or otherwise, on such terms and conditions and in such manner as it may deem proper, any land or interest therein and other property which it may determine is reasonably necessary for any broadband infrastructure project; and to hold and use the same and to sell, convey, lease, or otherwise dispose of property so acquired, that is no longer necessary for the authority's purposes, for fair consideration after public notice;
j. To receive and accept, from any federal or other public agency or governmental entity, grants or loans for, or in aid of, the acquisition or construction of any broadband infrastructure project, and to receive and accept aid or contributions from any other source, of either money, property, labor, or other things of value, to be held, used, and applied only for the purposes for which such grants, loans, and contributions may be made;
k. To prepare or cause to be prepared plans, specifications, designs, and estimates of costs of the broadband infrastructure projects, and of the technology that constitutes a part of or is related to such projects, and for the construction of such projects under the provisions of this act, and from time to time to modify such plans, specifications, designs, or estimates;
l. By contract or contracts with and for broadband developers only, to construct, acquire, reconstruct, rehabilitate and improve, and furnish and equip broadband infrastructure projects. The authority, in the exercise of its authority to make and enter into contracts and agreements necessary or incidental to the performance of its duties and the execution of its powers, shall adopt standing rules and procedures providing that, except as hereinafter provided, no contract on behalf of the authority shall be entered into for the doing of any work, or for the hiring of equipment or vehicles, under which the sum to be expended exceeds the adjusted amount determined by the Governor as provided in subsection j. of section 5 of P.L.1972, c.29 (C.26:2I-5) with respect to contracts of the New Jersey Health Care Facilities Financing Authority, unless the authority shall first publicly advertise for bids therefor, and shall award the contract to the lowest responsible bidder; provided, however, that such advertising shall not be required if the contract to be entered into is one for the furnishing or performing of services of a professional nature or for the supplying of any product or the rendering of any service by a public utility subject to the jurisdiction of the Board of Public Utilities, and tariffs and schedules of the charges, made, charged, or exacted by the public utility for any such products to be supplied or services to be rendered, are filed with the board;
m. To determine the location and character of any broadband infrastructure project to be undertaken, subject to the provisions of this act, and subject to State health and environmental laws, to construct, reconstruct, maintain, repair, lease as lessee or lessor, and regulate the same and operate the same in the event of default by a broadband operator of its obligations and agreements with the authority; to enter into contracts for any or all such purposes; and to enter into contracts for the management and operation of a broadband infrastructure project in the event of default as herein provided. The authority shall use its best efforts to conclude its position as an operator as herein provided as soon as is practicable;
n. To establish rules and regulations for the use of a broadband infrastructure project or any portion thereof;
o. Generally to fix and revise, from time to time, and to charge and collect rates, rents, fees, and other charges for the use of, and for the services furnished or to be furnished by, those portions of a broadband infrastructure project financed by the authority pursuant to this act, and to contract with holders of its bonds and with any other person, party, association, corporation, or other body, public or private, in respect thereof;
p. To develop and manage a master patient index and a health insurance claims database;
q. To enter into agreements, credit agreements or contracts, execute any and all instruments, and do and perform any and all acts or things necessary, convenient, or desirable for the purposes of the authority or to carry out any power expressly given in this act;
r. To invest any moneys held in reserve or sinking funds, or any moneys not required for immediate use or disbursement, at the discretion of the authority, in such obligations as are authorized by resolution of the authority;
s. To obtain, or aid in obtaining, from any department or agency of the United States any insurance or guarantee as to, or of, or for the payment or repayment of interest or principal, or both, or any part thereof, on any loan or any instrument evidencing or securing the same, made or entered into pursuant to the provisions of this act; and notwithstanding any other provisions of this act, to enter into agreement, contract, or any other instrument whatsoever with respect to any such insurance or guarantee, and accept payment in such manner and form as provided therein in the event of default by the borrower;
t. To obtain from any department or agency of the United States or a private insurance company any insurance or guarantee as to, or of, or for the payment or repayment of interest or principal, or both, or any part thereof, on any bonds issued by the authority pursuant to the provisions of this act; and notwithstanding any other provisions of this act, to enter into any agreement, contract, or any other instrument whatsoever with respect to any such insurance or guarantee, except to the extent that such action would in any way impair or interfere with the authority's ability to perform and fulfill the terms of any agreement made with the holders of the bonds of the authority;
u. To receive and accept, from any department or agency of the United States or of the State or from any other entity, any grant, appropriation, or other moneys to be used for or applied to any corporate purpose of the authority, including without limitation the meeting of debt service obligations of the authority in respect of its bonds;
v. To develop or design other initiatives in furtherance of its purposes;
w. To report and make recommendations to the Office for e-HIT established pursuant to section 8 of P.L.2007, c.330 (C.17:1D-1); and
x. To perform any and all other activities in furtherance of the purposes of the authority.
6. a. Each worker employed in the construction or rehabilitation of any broadband infrastructure project undertaken in connection with loans, loan guarantees, expenditures, investments, tax exemptions, or other incentives or financial assistance approved, provided, authorized, facilitated, or administered by the authority, or undertaken to fulfill any condition of receiving any of the incentives or financial assistance, shall be paid not less than the prevailing wage rate for the worker's craft or trade, as determined by the Commissioner of Labor and Workforce Development pursuant to P.L.1963, c.150 (C.34:11-56.25 et seq.).
b. The Commissioner of Labor and Workforce Development shall determine the prevailing wage rate in the locality in which the construction or rehabilitation is to be performed for each craft, trade, or classification of worker employed in the construction or rehabilitation, as if the construction or rehabilitation is "public work" as defined in section 2 of P.L.1963, c.150 (C.34:11-56.26).
c. For the purpose of implementing the provisions of this section, the Commissioner of Labor and Workforce Development shall, and a worker employed in the performance of work subject to this act or the employer or any designated representative of the worker may, exercise all rights, powers, or duties granted or imposed upon them by P.L.1963, c.150 (C.34:11-56.25 et seq.).
d. The authority shall, in consultation with the Commissioner of Labor and Workforce Development, adopt rules and regulations, consistent with the rules and regulations adopted by the Commissioner of Labor and Workforce Development pursuant to P.L.1963, c.150 (C.34:11-56.25 et seq.), requiring that not less than the prevailing wage be paid to workers employed in the construction or rehabilitation of projects undertaken in connection with loans, loan guarantees, expenditures, investments, incentives, or other financial assistance provided, authorized, or administered by the authority. The prevailing wage rate shall be the rate determined by the Commissioner of Labor and Workforce Development pursuant to the provisions of P.L.1963, c.150 (C.34:11-56.25 et seq.).
7. a. The authority is authorized from time to time to issue its bonds for any corporate purpose and to fund and refund the same all as provided in this act. Such bonds may, at the discretion of the authority, be designated as "bonds," "notes," "bond anticipation notes," or otherwise.
b. Except as may otherwise be expressly provided by the authority, every issue of authority bonds shall be general obligations of the authority payable from any revenues or moneys of the authority, subject only to any agreements with the holders of particular bonds pledging any particular revenues or moneys. Notwithstanding that bonds may be payable from a special fund, they shall be fully negotiable within the meaning of Title 12A, the Uniform Commercial Code, of the New Jersey Statutes, subject only to any provisions of the bonds for registration.
c. The bonds may be issued as serial bonds or as term bonds, or the authority, in its discretion, may issue bonds of both types. The bonds shall be authorized by resolution of the members of the authority and shall bear such date or dates, mature at such time or times, not exceeding 50 years from their respective dates, bear interest at such rate or rates, be payable at such time or times, be in such denominations, be in such form, either coupon or registered, carry such registration privileges, be executed in such manner, be payable in lawful money of the United States of America at such place or places, and be subject to such terms of redemption, as such resolution or resolutions may provide. The bonds may be sold at public or private sale for such price or prices as the authority shall determine. Pending preparation of the definitive bonds, the authority may issue interim receipts or certificates which shall be exchanged for such definitive bonds.
d. Any resolution or resolutions authorizing any bonds or any issue of bonds may contain provisions, which shall be a part of the contract with the holders of the bonds to be authorized, as to:
(1) pledging all or any part of the revenues of a broadband infrastructure project or any revenue-producing contract or contracts made by the authority with any individual, partnership, corporation, or association or other body, public or private, to secure the payment of the bonds or of any particular issue of bonds, subject to such agreements with bondholders as may then exist;
(2) the rentals, fees, and other charges to be charged, and the amounts to be raised in each year thereby, and the use and disposition of the revenues;
(3) the setting aside of reserves or sinking funds, and the regulation and disposition thereof;
(4) the limitations on the right of the authority or its agent to restrict and regulate the use of a project;
(5) the limitations on the purpose to which the proceeds of sale of any issue of bonds then or thereafter to be issued may be applied and pledging such proceeds to secure the payment of the bonds or any issue of the bonds;
(6) the limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured, and the refunding of outstanding bonds;
(7) the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which such consent may be given;
(8) limitations on the amount of moneys derived from a project to be expended for operating, administrative, or other expenses of the authority; and
(9) defining the acts or omissions to act which shall constitute a default in the duties of the authority to holders of its obligations and providing the rights and remedies of such holders in the event of a default.
e. Neither the members of the authority nor any person executing the bonds shall be liable personally on the bonds or be subject to any personal liability or accountability by reason of the issuance thereof.
f. The authority shall have power out of any funds available therefor to purchase its bonds. The authority may hold, pledge, cancel, or resell such bonds, subject to and in accordance with agreements with bondholders.
8. In the discretion of the authority, any bonds issued under the provisions of this act may be secured by a trust agreement by and between the authority and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within or without the State. Such trust agreement or the resolution providing for the issuance of such bonds may pledge or assign the revenues or other moneys or securities to be received or proceeds of any contract or contracts pledged. Such trust agreement or resolution providing for the issuance of such bonds may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including particularly such provisions as have hereinabove been specifically authorized to be included in any resolution or resolutions of the authority authorizing bonds thereof. Any bank or trust company incorporated under the laws of this State which may act as depositary of the proceeds of bonds or revenues or other moneys or securities may furnish such indemnifying bonds or pledge such securities as may be required by the authority. Any such trust agreement may set forth the rights and remedies of the bondholders and of the trustee or trustees, and may restrict the individual right of action by bondholders. In addition to the foregoing, any such trust agreement or resolution may contain such other provisions as the authority may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of such trust agreement or resolution may be treated as project costs.
9. Bonds issued under the provisions of this act shall not be deemed to constitute a debt or liability of the State or of any political subdivision thereof other than the authority, nor a pledge of the faith and credit of the State or of any such political subdivision, other than the authority, but shall be payable solely from the funds herein provided. All such bonds shall contain on the face thereof a statement to the effect that neither the State of New Jersey nor the authority shall be obligated to pay the same or the interest thereon except from revenues or other moneys of the authority and that neither the faith and credit nor the taxing power of the State of New Jersey or of any political subdivision thereof other than the authority is pledged to the payment of the principal of or the interest on such bonds. The issuance of bonds under the provisions of this act shall not directly or indirectly or contingently obligate the State or any political subdivision thereof to levy or to pledge any form of taxation whatever therefor.
10. The authority is authorized to fix, revise, charge, and collect rates, rents, fees, and charges for the use of and for the services furnished or to be furnished by each broadband infrastructure project and to contract with any person, partnership, association, or corporation, or other body, public or private, in respect thereof. Such rates, rents, fees, and charges shall be fixed and adjusted in respect of the aggregate of rents, rates, fees, and charges from such project so as to provide funds sufficient with other revenues or moneys, if any:
a. To pay the cost of maintaining, repairing, and operating the project and each and every portion thereof, to the extent that the payment of such cost has not otherwise been adequately provided for;
b. To pay the principal of, and the interest on, outstanding bonds of the authority issued in respect of such project as the same shall become due and payable; and
c. To create and maintain reserves required or provided for in any resolution authorizing, or trust agreement securing, such bonds of the authority.
Such rates, rents, fees, and charges shall not be subject to supervision or regulation by any department, commission, board, body, bureau, or agency of this State other than the authority. A sufficient amount of the revenues derived in respect of a project, except such part of such revenues as may be necessary to pay the cost of maintenance, repair, and operation and to provide reserves for renewals, replacements, extensions, enlargements, and improvements as may be provided for in the resolution authorizing the issuance of any bonds of the authority or in the trust agreement securing the same, shall be set aside at such regular intervals as may be provided in such resolution or trust agreement in a sinking or other similar fund which is hereby pledged to, and charged with, the payment of the principal of, and the interest on, such bonds as the same shall become due, and the redemption price or the purchase price of bonds retired by call or purchase as therein provided. Such pledge shall be valid and binding from the time when the pledge is made; the rates, rents, fees, and charges and other revenues or other moneys or securities so pledged and thereafter received by the authority shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the authority, irrespective of whether such parties have notice thereof. Neither the resolution nor any trust agreement by which a pledge is created need be filed or recorded except in the records of the authority. The use and disposition of moneys to the credit of such sinking or other similar fund shall be subject to the provisions of the resolution authorizing the issuance of such bonds or of such trust agreement. Except as may otherwise be provided in such resolution or such trust agreement, such sinking or other similar fund shall be a fund for all such bonds issued to finance projects of a health care organization without distinction or priority of one over another; provided the authority in any such resolution or trust agreement may provide that such sinking or other similar fund shall be the fund for a particular project at a health care organization and for the bonds issued to finance a particular project and may, additionally, permit and provide for the issuance of bonds having a subordinate lien in respect of the security herein authorized to other bonds of the authority, and, in such case, the authority may create separate sinking or other similar funds in respect to such subordinate lien bonds.
11. All moneys received by the authority pursuant to this act, whether as proceeds from the sale of bonds or as revenues, shall be deemed to be trust funds to be held and applied solely as provided in this act. Any officer with whom, or any bank or trust company with which, such moneys shall be deposited shall act as trustee of such moneys and shall hold and apply the same for the purposes hereof, subject to such regulations as this act and the resolution authorizing the bonds of any issue or the trust agreement securing such bonds may provide.
12. Any holder of bonds issued under the provisions of this act or any of the coupons appertaining thereto, and the trustee or trustees under any trust agreement, except to the extent the rights herein given may be restricted by any resolution authorizing the issuance of, or any such trust agreement securing, such bonds, may, either at law or in equity, by suit, action, proceeding in lieu of prerogative writ, or other proceedings, protect and enforce any and all rights under the laws of the State or granted hereunder or under such resolution or trust agreement, and may enforce and compel the performance of all duties required by this act or by such resolution or trust agreement to be performed by the authority or by any officer, employee or agent thereof, including the fixing, charging, and collecting of the rates, rents, fees, and charges herein authorized and required by the provisions of such resolution or trust agreement to be fixed, established, and collected.
13. a. The authority is hereby authorized to provide for the issuance of bonds of the authority for the purpose of refunding any bonds of the authority then outstanding, including the payment of any redemption premium thereon and any interest accrued or to accrue to the earliest or subsequent date of redemption, purchase, or maturity of such bonds, and, if deemed advisable by the authority, for the additional purpose of paying all or any part of the cost of constructing and acquiring additions, improvements, extensions, or enlargements of a project or any portion thereof and for making payments to reserve funds therefor.
b. The proceeds of any such bonds issued for the purpose of refunding outstanding bonds may, in the discretion of the authority, be applied to the purchase or retirement at maturity or redemption of such outstanding bonds either on their earliest or any subsequent redemption date or upon the purchase or at the maturity thereof and may, pending such application, be placed in escrow to be applied to such purchase or retirement at maturity or redemption on such date as may be determined by the authority.
c. Any such escrowed proceeds, pending such use, may be invested and reinvested as permitted by the applicable resolution or trust agreement. The interest, income, and profits, if any, earned or realized on any such investment may also be applied to the payment of outstanding bonds to be refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of such proceeds and interest, income, and profits, if any, earned or realized on the investments thereof may be returned to the authority for use by it in any lawful manner.
d. All such bonds shall be subject to the provisions of this act in the same manner and to the same extent as other bonds issued pursuant to this act.
14. Bonds and notes issued by the authority under the provisions of this act are hereby made securities in which the State and all political subdivisions of the State, their officers, boards, commissions, departments or other agencies, all banks, bankers, savings banks, trust companies, savings and loan associations, investment companies and other persons carrying on a banking business, all insurance companies, insurance associations, and other persons carrying on an insurance business, and all administrators, executors, guardians, trustees and other fiduciaries, and all other persons whatsoever who now are or may hereafter be authorized to invest in bonds or other obligations of the State, may properly and legally invest any funds, including capital belonging to them or within their control; and said bonds, notes, or other securities or obligations are hereby made securities which may properly and legally be deposited with and received by any State or municipal officers or agency of the State for any purpose for which the deposit of bonds or other obligations of the State is now or may hereafter be authorized by law.
15. Bonds may be issued under the provisions of this act without obtaining the consent of any department, division, commission, board, bureau, agency, or officer of the State, and without any other proceedings or the happening of any other conditions or things than those proceedings, conditions, and things which are specifically required by this act.
16. The exercise of the powers granted by this act shall be in all respects for the benefit of the people of this State, for the increase of their commerce, welfare and prosperity, and for the improvement of their health and living conditions, and as the operation and maintenance of a project by the authority or its agent shall constitute the performance of an essential public function, neither the authority nor its agent shall be required to pay any taxes or assessments upon or in respect of a project or any property acquired or used by the authority or its agent under the provisions of this act or upon the income therefrom, and any bonds issued under the provisions of this act, their transfer and the income therefrom, including any profit made on the sale thereof, shall at all times be exempt from taxation except for transfer, inheritance, and estate taxes.
17. The State of New Jersey does pledge to and agree with the holders of the bonds issued pursuant to the authority contained in this act, and with those parties who may enter into contracts with the authority pursuant to the provisions of this act, that the State will not limit, alter, or restrict the rights hereby vested in the authority to maintain, construct, reconstruct, and operate any project as defined in this act or to establish and collect such rents, fees, receipts, or other charges as may be convenient or necessary to produce sufficient revenues to meet the expenses of maintenance and operation thereof and to fulfill the terms of any agreements made with the holders of bonds authorized by this act, and with the parties who may enter into contracts with the authority pursuant to the provisions of this act, or in any way impair the rights or remedies of the holders of such bonds or such parties until the bonds, together with interest thereon, are fully paid and discharged and such contracts are fully performed on the part of the authority. The authority as a public body corporate and politic shall have the right to include the pledge herein made in its bonds and contracts.
18. On or before March 31 in each year, the authority shall make an annual report of its activities for the preceding calendar year to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature. Each such report shall set forth a complete operating and financial statement covering the authority's operations during the year. The authority shall cause an audit of its books and accounts to be made at least once in each year by certified public accountants and cause a copy thereof to be filed with the Secretary of State and the State Comptroller.
19. Except as otherwise expressly provided in this act, any member, officer, agent, or employee of the authority, or member of the immediate family thereof, who has an interest, either directly or indirectly, in any contract or transaction of another party with the authority, or in the purchase, sale or lease of any property, either real or personal, to or from the authority, shall be guilty of a crime of the fourth degree.
20. The State Comptroller and the Comptroller's legally authorized representatives are hereby authorized and empowered from time to time to examine the accounts, books, and records of the authority, including its receipts, disbursements, contracts, sinking funds, investments, and any other matters relating thereto and to its financial standing.
21. The authority shall be entitled to call to its assistance and avail itself of the services of such employees of any State department or agency as it may require and as may be available to it for said purpose.
22. This act shall be liberally construed to effect the purpose thereof.
23. Nothing contained in this act shall be deemed or construed to create or constitute a debt, liability, or a loan or pledge of the credit, of the State.
24. The foregoing sections of this act shall be deemed to provide an additional and alternative method for the doing of the things authorized thereby, and shall be regarded as supplemental and additional to powers conferred by other laws, and shall not be regarded as in derogation of any powers now existing; provided, however, that the issuance of bonds or refunding bonds under the provisions of this act need not comply with the requirements of any other law applicable to the issuance of bonds.
25. All laws, or parts thereof, inconsistent with this act are hereby declared to be inapplicable to the provisions of this act, except as otherwise provided.
26. The provisions of this act shall be severable, and if any of its provisions shall be held to be unconstitutional or otherwise invalid, the decision of the court shall not affect the validity of any of the remaining provisions of this act.
27. This act shall take effect immediately.
STATEMENT
This bill establishes the "New Jersey Broadband and Electronic Health Information Network Authority" to promote the development of broadband Internet services and broadband infrastructure in the State that are necessary to provide a Statewide electronic health information network.
The bill provides specifically as follows:
· The authority is to consist of seven members, including the Chief Technology Officer of the New Jersey Office of Information Technology, or his designee, as an ex officio member, and six public members, as follows:
-- two public members, to be appointed by the Governor, one each with demonstrated professional expertise, knowledge, and skill in the academic and business fields relating to the work of the authority, respectively;
-- two public members, to be appointed by the President of the Senate, one each with demonstrated professional expertise, knowledge, and skill in the technology and financial fields relating to the work of the authority, respectively; and
-- two public members, to be appointed by the Speaker of the General Assembly, including one member with expertise in electronic health information technology and one member who is licensed or otherwise authorized to practice as a health care professional pursuant to Title 45 of the Revised Statutes.
· The authority is authorized to issue bonds and notes to finance or refinance all or part of the development of the authority's operations and projects. The bonds or notes issued by the authority will not be a debt or liability of the State.
· The authority is authorized to impose and collect rates, rents, charges, and fees for the services furnished by those portions of the broadband infrastructure projects financed by the authority, in conjunction with any financing that may be issued by the authority.
· The authority, in connection with its development of a Statewide electronic health information network, is to be responsible for overseeing the development of the network in such a way as to ensure that the network is designed to:
-- promote more efficient and effective communication among multiple health care providers, including, but not limited to, hospitals, physicians, payers, employers, pharmacies, laboratories, and other health care entities;
-- create efficiencies in the provision of health care by eliminating redundancy in data capture and storage, and reduce administrative, billing, and data collection costs;
-- create the ability to monitor community health status; and
-- provide reliable information to health care consumers and purchasers regarding the quality and cost-effectiveness of health care, health plans, and health care providers.
· The authority is required to report and make recommendations to the Office for e-HIT established pursuant to section 8 of P.L.2007, c.330 (C.17:1D-1) with regard to the development of a Statewide health information network.
In addition, the bill:
-- defines "broadband infrastructure project" to include broadband services in this State related to the provision of an electronic health information network;
-- defines "health care organization" to include health insurance carriers authorized to operate in this State;
-- prohibits a trustee, director, or officer of a health care organization from serving as a member of the authority;
-- provides for the authority to fund the provision of broadband Internet services to residential, commercial, public, and nonprofit customers in this State that are related to the development of a Statewide electronic health information network;
-- authorizes the authority to develop and manage a master patient index and a health insurance claims database; and
-- authorizes the authority to report to the Office for e-HIT established pursuant to section 8 of P.L.2007, c.330 (C.17:1D-1).
