State of Illinois
92nd General Assembly
Legislation

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92_SB1656eng

 
SB1656 Engrossed                               LRB9215591BDpk

 1        AN ACT concerning hospitals.

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

 4        Section  5.  The  Hospital  District  Law  is  amended by
 5    changing Sections 3 and 15 and  by  adding  Section  15.3  as
 6    follows:

 7        (70 ILCS 910/3) (from Ch. 23, par. 1253)
 8        Sec.  3. (a) "Hospital" means any hospital for in-patient
 9    and out-patient medical or surgical care of persons  in  need
10    thereof.
11        (b)  "Public  Hospital"  means  a  hospital  owned  by  a
12    Hospital  District or other public agency which is used or is
13    intended for use by the public including paupers.
14        (c)  "Facilities" means and includes real estate and  any
15    and  all  forms  of tangible and intangible personal property
16    and services used or useful as an  aid,  or  constituting  an
17    advantage  or convenience to the safe and efficient operation
18    or maintenance of a public hospital.  "Facilities" shall also
19    include, but not be limited to,  any  clinics,  dispensaries,
20    physician  offices,  surgery  centers, diagnostic facilities,
21    and  congregate  housing  units,   assisted   living   units,
22    sheltered care facilities, and ambulance facilities.
23        (d)  "Municipality"    means   any   city,   village   or
24    incorporated town of the State of Illinois.
25        (e)  "Hospital District" means  a  municipal  corporation
26    created   and  established  under  Section  4  of  this  Act.
27    "District" and "Hospital District" are synonymous.
28        (f)  "Board of Directors" and "Board" mean the  board  of
29    directors  of  an established District or a District proposed
30    to be established.
31        (g)  "Public  Agency"  means  any  municipality,  county,
 
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 1    township,  tuberculosis  sanitarium  district,  or  political
 2    subdivision that maintains a public hospital.
 3    (Source: P.A. 89-104, eff. 7-7-95.)

 4        (70 ILCS 910/15) (from Ch. 23, par. 1265)
 5        Sec.  15.   A  Hospital  District  shall   constitute   a
 6    municipal  corporation  and  body  politic separate and apart
 7    from any other municipality, the State  of  Illinois  or  any
 8    other  public  or  governmental  agency  and  shall  have and
 9    exercise the following governmental  powers,  and  all  other
10    powers  incidental,  necessary,  convenient,  or desirable to
11    carry out and effectuate such express powers.
12        1.  To establish and maintain  a  hospital  and  hospital
13    facilities  within  or  outside  its corporate limits, and to
14    construct, acquire, develop, expand, extend and  improve  any
15    such  hospital  or hospital facility.  If a Hospital District
16    utilizes its authority to levy a tax pursuant to  Section  20
17    of  this  Act for the purpose of establishing and maintaining
18    hospitals or hospital  facilities,  such  District  shall  be
19    prohibited  from  establishing  and  maintaining hospitals or
20    hospital facilities located outside of its district unless so
21    authorized by referendum.  To approve the  provision  of  any
22    service  and to approve any contract or other arrangement not
23    prohibited  by  a  hospital  licensed  under   the   Hospital
24    Licensing  Act, incorporated under the General Not-For-Profit
25    Corporation Act, and exempt from taxation under paragraph (3)
26    of subsection (c) of Section  501  of  the  Internal  Revenue
27    Code.
28        2.  To  acquire  land  in  fee simple, rights in land and
29    easements upon, over or across land and  leasehold  interests
30    in land and tangible and intangible personal property used or
31    useful   for   the   location,   establishment,  maintenance,
32    development, expansion, extension or improvement of any  such
33    hospital  or  hospital  facility.  Such acquisition may be by
 
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 1    dedication, purchase, gift, agreement, lease, use or  adverse
 2    possession or by condemnation.
 3        3.  To  operate,  maintain  and  manage such hospital and
 4    hospital facility, and to make and enter into  contracts  for
 5    the  use, operation or management of and to provide rules and
 6    regulations for the operation,  management  or  use  of  such
 7    hospital or hospital facility.
 8        Such  contracts  may include the lease by the District of
 9    all or any portion of  its  facilities  to  a  not-for-profit
10    corporation  organized  by the District's board of directors.
11    The rent to be paid pursuant to any such lease shall be in an
12    amount deemed appropriate by the board of directors.  Any  of
13    the  remaining  assets  which  are  not the subject of such a
14    lease may be conveyed and transferred to  the  not-for-profit
15    corporation  organized  by  the District's board of directors
16    provided  that  the  not-for-profit  corporation  agrees   to
17    discharge  or assume such debts, liabilities, and obligations
18    of the District  as  determined  to  be  appropriate  by  the
19    District's board of directors.
20        4.  To  fix,  charge  and  collect  reasonable  fees  and
21    compensation for the use or occupancy of such hospital or any
22    part thereof, or any hospital facility, and for nursing care,
23    medicine,  attendance,  or  other  services furnished by such
24    hospital or hospital facilities, according to the  rules  and
25    regulations prescribed by the board from time to time.
26        5.  To  borrow  money  and  to  issue  general obligation
27    bonds, revenue bonds, notes, certificates, or other evidences
28    of indebtedness for the purpose of accomplishing any  of  its
29    corporate purposes, subject to compliance with any conditions
30    or limitations set forth in this Act or the Health Facilities
31    Planning Act or otherwise provided by the constitution of the
32    State of Illinois.
33        6.  To  employ or enter into contracts for the employment
34    of any person, firm, or  corporation,  and  for  professional
 
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 1    services,  necessary  or  desirable for the accomplishment of
 2    the  corporate  objects  of  the  District  or   the   proper
 3    administration,  management,  protection  or  control  of its
 4    property.
 5        7.  To maintain such hospital  for  the  benefit  of  the
 6    inhabitants of the area comprising the District who are sick,
 7    injured,  or maimed regardless of race, creed, religion, sex,
 8    national origin or color, and to adopt such reasonable  rules
 9    and  regulations as may be necessary to render the use of the
10    hospital of the greatest benefit to the greatest  number;  to
11    exclude from the use of the hospital all persons who wilfully
12    disregard any of the rules and regulations so established; to
13    extend  the  privileges  and  use  of the hospital to persons
14    residing outside the area of the District upon such terms and
15    conditions as the board of directors prescribes by its  rules
16    and regulations.
17        8.  To  police its property and to exercise police powers
18    in respect thereto or in respect to the  enforcement  of  any
19    rule or regulation provided by the ordinances of the District
20    and  to  employ  and  commission  police  officers  and other
21    qualified persons to enforce the same.
22        The use of any such hospital or hospital  facility  of  a
23    District  shall  be  subject to the reasonable regulation and
24    control of the District and upon such  reasonable  terms  and
25    conditions as shall be established by its board of directors.
26        A  regulatory  ordinance  of a District adopted under any
27    provision of this Section may provide  for  a  suspension  or
28    revocation  of any rights or privileges within the control of
29    the  District  for  a  violation  of  any   such   regulatory
30    ordinance.
31        Nothing  in  this  Section or in other provisions of this
32    Act shall be construed to authorize the District or board  to
33    establish  or  enforce  any  regulation or rule in respect to
34    hospitalization or in the operation or  maintenance  of  such
 
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 1    hospital  or  any hospital facilities within its jurisdiction
 2    which is in  conflict  with  any  federal  or  state  law  or
 3    regulation applicable to the same subject matter.
 4        9.  To  provide  for  the  benefit of its employees group
 5    life, health, accident, hospital and  medical  insurance,  or
 6    any  combination  of  such types of insurance, and to further
 7    provide for its employees by the establishment of  a  pension
 8    or retirement plan or system; to effectuate the establishment
 9    of  any  such insurance program or pension or retirement plan
10    or system, a  Hospital  District  may  make,  enter  into  or
11    subscribe  to  agreements,  contracts, policies or plans with
12    private insurance  companies.   Such  insurance  may  include
13    provisions  for  employees who rely on treatment by spiritual
14    means alone through prayer for healing  in  accord  with  the
15    tenets   and   practice   of   a   well-recognized  religious
16    denomination.  The board of directors of a Hospital  District
17    may  provide  for payment by the District of a portion of the
18    premium or charge for such insurance  or  for  a  pension  or
19    retirement  plan  for  employees with the employee paying the
20    balance of such premium or charge.  If the board of directors
21    of a Hospital District undertakes a plan  pursuant  to  which
22    the  Hospital  District  pays  a  portion  of such premium or
23    charge, the board  shall  provide  for  the  withholding  and
24    deducting  from the compensation of such employees as consent
25    to joining such insurance program or  pension  or  retirement
26    plan or system, the balance of the premium or charge for such
27    insurance or plan or system.
28        If the board of directors of a Hospital District does not
29    provide for a program or plan pursuant to which such District
30    pays  a  portion  of  the  premium  or  charge  for any group
31    insurance program or pension or retirement  plan  or  system,
32    the  board may provide for the withholding and deducting from
33    the compensation of such employees  as  consent  thereto  the
34    premium  or  charge  for  any  group  life, health, accident,
 
SB1656 Engrossed            -6-                LRB9215591BDpk
 1    hospital  and  medical  insurance  or  for  any  pension   or
 2    retirement plan or system.
 3        A  Hospital  District  deducting from the compensation of
 4    its employees for any group insurance program or  pension  or
 5    retirement  plan  or  system,  pursuant  to this Section, may
 6    agree to receive  and  may  receive  reimbursement  from  the
 7    insurance   company   for   the   cost   of  withholding  and
 8    transferring such amount to the company.
 9        10.  Except as provided  in  Section  15.3,  to  sell  at
10    public  auction  or  by sealed bid and convey any real estate
11    held by  the  District  which  the  board  of  directors,  by
12    ordinance  adopted  by  at least 2/3rds of the members of the
13    board then holding office, has determined  to  be  no  longer
14    necessary  or  useful  to,  or for the best interests of, the
15    District.
16        An ordinance directing the  sale  of  real  estate  shall
17    include the legal description of the real estate, its present
18    use,  a statement that the property is no longer necessary or
19    useful to, or for the best interests of,  the  District,  the
20    terms  and  conditions of the sale, whether the sale is to be
21    at public auction or sealed bid,  and  the  date,  time,  and
22    place  the  property  is to be sold at auction or sealed bids
23    opened.
24        Before making a sale by  virtue  of  the  ordinance,  the
25    board of directors shall cause notice of the proposal to sell
26    to  be  published  once each week for 3 successive weeks in a
27    newspaper published, or,  if  none  is  published,  having  a
28    general  circulation,  in the district, the first publication
29    to be not less than 30 days before the day  provided  in  the
30    notice  for  the  public sale or opening of bids for the real
31    estate.
32        The notice of the proposal to sell shall include the same
33    information included in the ordinance directing the sale  and
34    shall  advertise  for  bids  therefor.  A sale of property by
 
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 1    public auction shall be held at the property to be sold at  a
 2    time  and  date  determined  by  the board of directors.  The
 3    board of directors may accept the high bid or any  other  bid
 4    determined  to  be in the best interests of the district by a
 5    vote of 2/3rds of the board then holding  office,  but  by  a
 6    majority  vote  of  those holding office, they may reject any
 7    and all bids.
 8        The chairman and secretary  of  the  board  of  directors
 9    shall  execute  all documents necessary for the conveyance of
10    such real property sold pursuant to the foregoing authority.
11        11.  To establish and administer a program of  loans  for
12    postsecondary  students pursuing degrees in accredited public
13    health-related educational programs at public institutions of
14    higher education.  If  a  student  is  awarded  a  loan,  the
15    individual  shall  agree  to  accept  employment  within  the
16    hospital district upon graduation from the public institution
17    of  higher  education.  For the purposes of this Act, "public
18    institutions of higher education"  means  the  University  of
19    Illinois;   Southern   Illinois   University;  Chicago  State
20    University;  Eastern  Illinois  University;  Governors  State
21    University; Illinois State University; Northeastern  Illinois
22    University;  Northern  Illinois  University; Western Illinois
23    University; the public community colleges of the  State;  and
24    any other public colleges, universities or community colleges
25    now  or  hereafter  established  or authorized by the General
26    Assembly.   The  district's  board  of  directors  shall   by
27    resolution   provide   for  eligibility  requirements,  award
28    criteria, terms of financing, duration of employment accepted
29    within the district  and  such  other  aspects  of  the  loan
30    program   as   its   establishment   and  administration  may
31    necessitate.
32        12.  To establish and maintain congregate housing  units;
33    to acquire land in fee simple and leasehold interests in land
34    for the location, establishment, maintenance, and development
 
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 1    of  those  housing  units;  to  borrow  funds  and  give debt
 2    instruments, real estate mortgages, and security interests in
 3    personal property, contract rights, and general  intangibles;
 4    and  to enter into any contract required for participation in
 5    any federal or State programs.
 6    (Source: P.A. 89-4, eff. 1-1-96; 89-104, eff. 7-7-95; 89-626,
 7    eff. 8-9-96.)

 8        (70 ILCS 910/15.3 new)
 9        Sec. 15.3.  Disposition of facilities.
10        (a)  Notwithstanding any other provisions  of  this  Act,
11    the  board  of directors of a Hospital District, by public or
12    private offer, may provide for the transfer, sale, lease,  or
13    other disposition of a public hospital and its facilities, in
14    whole or in part, as provided in this Section.
15        (b)  The board of directors, by resolution, may authorize
16    a  Hospital  District  to enter into contracts and agreements
17    for the transfer, sale, lease, or other disposition, in whole
18    or in part, at one time or from time to time  of  the  public
19    hospital   and   its   facilities  to  a  public  or  private
20    corporation or other entity, hospital, health care  facility,
21    unit of local government, or institution of higher education,
22    provided,  unless  the  board  of directors in the resolution
23    expressly finds and determines otherwise, that the  transfer,
24    sale,  lease,  or other disposition does not adversely affect
25    access  to  the  hospital  by  inhabitants  of  the  Hospital
26    District.  At  least  10  days  before  the  adoption  of   a
27    resolution  under  this  subsection,  the  board of directors
28    shall make the proposed resolution conveniently available for
29    public inspection and shall hold at least one public  hearing
30    on the proposed resolution.  At least 10 days before the time
31    of  the  public  hearing,  notice  of  the  hearing  shall be
32    published  in  one  or   more   newspapers   having   general
33    circulation  in the Hospital District. The notice shall state
 
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 1    the date, time and place of the public hearing and the  place
 2    where copies of the proposed resolution will be available for
 3    examination.
 4        (c)  After   entering  into  and  giving  effect  to  the
 5    contracts and agreements with respect to any transfer,  sale,
 6    lease,   or  other  disposition  under  subsection  (b),  the
 7    Hospital District may continue to exist and to own,  operate,
 8    and  maintain facilities, whether or not a public hospital of
 9    the Hospital District continues to exist after the  transfer,
10    sale,  lease, or other disposition. In addition, the Hospital
11    District may  continue  to  exist  and  to  exercise  powers,
12    functions,  and  authority  under  this  Act  as the board of
13    directors may find desirable or necessary, for up to 3 years,
14    to give effect  to  such  transfer,  sale,  lease,  or  other
15    disposition  and, as applicable, related to the facilities to
16    continue  to  be  owned,  operated,  and  maintained  by  the
17    Hospital District. The board of  directors  of  the  Hospital
18    District may continue the Hospital District for up to 3 years
19    to  initiate  the  ownership,  operations, and maintenance of
20    other facilities and thereafter to continue to own,  operate,
21    and maintain the other facilities.
22        (d)  If,  before  a transfer, sale, lease, or disposition
23    of  the  public  hospital  under  subsection  (b),  a   labor
24    organization  has been recognized by the Hospital District as
25    the exclusive representative of the majority of employees  in
26    a  bargaining unit for purposes of collective bargaining, and
27    if a transferee, purchaser, or lessor subject to the National
28    Labor Relations Act  retains  or  hires  a  majority  of  the
29    employees  in  the  bargaining  unit, the purchaser or lessor
30    shall recognize  the  labor  organization  as  the  exclusive
31    representative   of   the   majority  of  employees  in  that
32    bargaining  unit  for  purposes  of  collective   bargaining,
33    provided  the  labor  organization  makes  a  timely  written
34    assertion of its representational capacity to the transferee,
 
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 1    purchaser or lessor.

 2        Section  99.  Effective date.  This Act takes effect upon
 3    becoming law.

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