HB2509 94TH GENERAL ASSEMBLY

LRB094 10743 MKM 41163 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB2509

Introduced 2/17/2005, by Rep. Robert Rita

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 105/5.640 new

Creates the Hospital Basic Services Preservation Act. Establishes the Hospital Basic Services Preservation Fund to collateralize basic services loans from financial institutions for capital projects necessary to maintain certain basic services required for the efficient and effective operation of essential community hospital providers that may not otherwise be able to meet the credit standards of the financial institution. Requires hospitals receiving the loans to account for moneys received and ensure that those moneys are used for the basic services for which the loan was provided. Requires the State Treasurer to promulgate rules to administer the loan program. Amends the State Finance Act to create the Hospital Basic Services Preservation Fund.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning hospitals.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Hospital Basic Services Preservation Act.

Section 5. Definitions. As used in this Act:

"Basic services" means emergency room and obstetrical services provided within a hospital. "Basic services" is limited to the emergency and obstetric units and services provided by those units.

"Eligible expenses" means expenses for expanding obstetrical or emergency units, updating equipment, repairing essential equipment, and purchasing new equipment that will increase the quality of basic services provided. "Eligible expenses" does not include expenses related to cosmetic upgrades, staff expansion or salary, or structural expansion of any unit or department of a hospital.

"Essential community hospital provider" means a facility meeting criteria established by rule by the State Treasurer.

Section 10. Hospital Basic Services Preservation Fund.

There is created in the State treasury the Hospital Basic Services Preservation Fund. The Fund shall be administered by the State Treasurer to collateralize loans from financial institutions for capital projects necessary to maintain certain basic services required for the efficient and effective operation of essential community hospital providers who otherwise may not be able to meet financial institution credit standards for issuance of a standard commercial loan. The Fund shall consist of all public and private moneys donated or transferred to the Fund for the purpose of enabling essential community hospitals to continue to provide basic quality heath care services that are subject to and meet standards of need under the Health Facilities Planning Act. All public funds deposited into the Fund shall be subject to appropriation by the General Assembly.

Section 15. Basic services loans. The State Treasurer may collateralize basic service loans for essential community hospitals for eligible expenses related to completing, attaining, or upgrading basic services, including, but not limited to, delivery, installation, staff training, and other eligible expenses as defined by the State Treasurer by rule. Applicants for collateralization of loans under this Act must show proof of approval by the Illinois Health Facilities Planning Board for any project to be collateralized under this Act. The total cost for any one project to be undertaken by the applicants shall not exceed $10,000,000 and the amount of each basic services loan collateralized under this Act shall not exceed $5,000,000. Expenditures related to basic service loans shall not exceed the amount available in the Fund necessary to collateralize the loans. The terms of any basic services loan collateralized under this Act must be approved by the State Treasurer in accordance with standards established by the Treasurer by rule.

Section 20. Responsibility of hospitals. Each hospital that receives a loan collateralized under this Act shall take the necessary measures, as defined by the Treasurer by rule, to account for all moneys and to ensure that they are spent on the basic services for which the loan was approved. Any hospital receiving a loan collateralized under this Act is not eligible for collateralization of another basic services loan under this Act within 10 years after the deposit of funds awarded under the first collateralized loan.

Section 25. Rules. The State Treasurer shall promulgate rules necessary for the administration of this Act, including rules concerning the criteria, standards, and procedures for loans collateralized under this Act.

Section 90. The State Finance Act is amended by adding Section 5.640 as follows:

(30 ILCS 105/5.640 new)

Sec. 5.640. The Hospital Basic Services Preservation Fund.