State of Illinois
92nd General Assembly
Legislation

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92_SB2241enr

 
SB2241 Enrolled                                LRB9216107Accd

 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 15 and 21.2 as follows:

 6        (70 ILCS 910/15) (from Ch. 23, par. 1265)
 7        Sec.   15.  A   Hospital   District  shall  constitute  a
 8    municipal corporation and body  politic  separate  and  apart
 9    from  any  other  municipality,  the State of Illinois or any
10    other public  or  governmental  agency  and  shall  have  and
11    exercise  the  following  governmental  powers, and all other
12    powers incidental, necessary,  convenient,  or  desirable  to
13    carry out and effectuate such express powers.
14        1.  To  establish  and  maintain  a hospital and hospital
15    facilities within or outside its  corporate  limits,  and  to
16    construct,  acquire,  develop, expand, extend and improve any
17    such hospital or hospital facility.  If a  Hospital  District
18    utilizes  its  authority to levy a tax pursuant to Section 20
19    of this Act for the purpose of establishing  and  maintaining
20    hospitals  or  hospital  facilities,  such  District shall be
21    prohibited from establishing  and  maintaining  hospitals  or
22    hospital facilities located outside of its district unless so
23    authorized  by  referendum.   To approve the provision of any
24    service and to approve any contract or other arrangement  not
25    prohibited   by   a  hospital  licensed  under  the  Hospital
26    Licensing Act, incorporated under the General  Not-For-Profit
27    Corporation Act, and exempt from taxation under paragraph (3)
28    of  subsection  (c)  of  Section  501 of the Internal Revenue
29    Code.
30        2.  To acquire land in fee simple,  rights  in  land  and
31    easements  upon,  over or across land and leasehold interests
 
SB2241 Enrolled            -2-                 LRB9216107Accd
 1    in land and tangible and intangible personal property used or
 2    useful  for   the   location,   establishment,   maintenance,
 3    development,  expansion, extension or improvement of any such
 4    hospital or hospital facility.  Such acquisition  may  be  by
 5    dedication,  purchase, gift, agreement, lease, use or adverse
 6    possession or by condemnation.
 7        3.  To operate, maintain and  manage  such  hospital  and
 8    hospital  facility,  and to make and enter into contracts for
 9    the use, operation or management of and to provide rules  and
10    regulations  for  the  operation,  management  or use of such
11    hospital or hospital facility.
12        Such contracts may include the lease by the  District  of
13    all  or  any  portion  of  its facilities to a not-for-profit
14    corporation organized by the District's board  of  directors.
15    The rent to be paid pursuant to any such lease shall be in an
16    amount  deemed appropriate by the board of directors.  Any of
17    the remaining assets which are not  the  subject  of  such  a
18    lease  may  be conveyed and transferred to the not-for-profit
19    corporation organized by the District's  board  of  directors
20    provided   that  the  not-for-profit  corporation  agrees  to
21    discharge or assume such debts, liabilities, and  obligations
22    of  the  District  as  determined  to  be  appropriate by the
23    District's board of directors.
24        4.  To  fix,  charge  and  collect  reasonable  fees  and
25    compensation for the use or occupancy of such hospital or any
26    part thereof, or any hospital facility, and for nursing care,
27    medicine, attendance, or other  services  furnished  by  such
28    hospital  or  hospital facilities, according to the rules and
29    regulations prescribed by the board from time to time.
30        5.  To borrow  money  and  to  issue  general  obligation
31    bonds, revenue bonds, notes, certificates, or other evidences
32    of  indebtedness  for the purpose of accomplishing any of its
33    corporate purposes, subject to compliance with any conditions
34    or limitations set forth in this Act or the Health Facilities
 
SB2241 Enrolled            -3-                 LRB9216107Accd
 1    Planning Act or otherwise provided by the constitution of the
 2    State of  Illinois  and  to  execute,  deliver,  and  perform
 3    mortgages and security agreements to secure such borrowing.
 4        6.  To  employ or enter into contracts for the employment
 5    of any person, firm, or  corporation,  and  for  professional
 6    services,  necessary  or  desirable for the accomplishment of
 7    the  corporate  objects  of  the  District  or   the   proper
 8    administration,  management,  protection  or  control  of its
 9    property.
10        7.  To maintain such hospital  for  the  benefit  of  the
11    inhabitants of the area comprising the District who are sick,
12    injured,  or maimed regardless of race, creed, religion, sex,
13    national origin or color, and to adopt such reasonable  rules
14    and  regulations as may be necessary to render the use of the
15    hospital of the greatest benefit to the greatest  number;  to
16    exclude from the use of the hospital all persons who wilfully
17    disregard any of the rules and regulations so established; to
18    extend  the  privileges  and  use  of the hospital to persons
19    residing outside the area of the District upon such terms and
20    conditions as the board of directors prescribes by its  rules
21    and regulations.
22        8.  To  police its property and to exercise police powers
23    in respect thereto or in respect to the  enforcement  of  any
24    rule or regulation provided by the ordinances of the District
25    and  to  employ  and  commission  police  officers  and other
26    qualified persons to enforce the same.
27        The use of any such hospital or hospital  facility  of  a
28    District  shall  be  subject to the reasonable regulation and
29    control of the District and upon such  reasonable  terms  and
30    conditions as shall be established by its board of directors.
31        A  regulatory  ordinance  of a District adopted under any
32    provision of this Section may provide  for  a  suspension  or
33    revocation  of any rights or privileges within the control of
34    the  District  for  a  violation  of  any   such   regulatory
 
SB2241 Enrolled            -4-                 LRB9216107Accd
 1    ordinance.
 2        Nothing  in  this  Section or in other provisions of this
 3    Act shall be construed to authorize the District or board  to
 4    establish  or  enforce  any  regulation or rule in respect to
 5    hospitalization or in the operation or  maintenance  of  such
 6    hospital  or  any hospital facilities within its jurisdiction
 7    which is in  conflict  with  any  federal  or  state  law  or
 8    regulation applicable to the same subject matter.
 9        9.  To  provide  for  the  benefit of its employees group
10    life, health, accident, hospital and  medical  insurance,  or
11    any  combination  of  such types of insurance, and to further
12    provide for its employees by the establishment of  a  pension
13    or retirement plan or system; to effectuate the establishment
14    of  any  such insurance program or pension or retirement plan
15    or system, a  Hospital  District  may  make,  enter  into  or
16    subscribe  to  agreements,  contracts, policies or plans with
17    private insurance  companies.   Such  insurance  may  include
18    provisions  for  employees who rely on treatment by spiritual
19    means alone through prayer for healing  in  accord  with  the
20    tenets   and   practice   of   a   well-recognized  religious
21    denomination.  The board of directors of a Hospital  District
22    may  provide  for payment by the District of a portion of the
23    premium or charge for such insurance  or  for  a  pension  or
24    retirement  plan  for  employees with the employee paying the
25    balance of such premium or charge.  If the board of directors
26    of a Hospital District undertakes a plan  pursuant  to  which
27    the  Hospital  District  pays  a  portion  of such premium or
28    charge, the board  shall  provide  for  the  withholding  and
29    deducting  from the compensation of such employees as consent
30    to joining such insurance program or  pension  or  retirement
31    plan or system, the balance of the premium or charge for such
32    insurance or plan or system.
33        If the board of directors of a Hospital District does not
34    provide for a program or plan pursuant to which such District
 
SB2241 Enrolled            -5-                 LRB9216107Accd
 1    pays  a  portion  of  the  premium  or  charge  for any group
 2    insurance program or pension or retirement  plan  or  system,
 3    the  board may provide for the withholding and deducting from
 4    the compensation of such employees  as  consent  thereto  the
 5    premium  or  charge  for  any  group  life, health, accident,
 6    hospital  and  medical  insurance  or  for  any  pension   or
 7    retirement plan or system.
 8        A  Hospital  District  deducting from the compensation of
 9    its employees for any group insurance program or  pension  or
10    retirement  plan  or  system,  pursuant  to this Section, may
11    agree to receive  and  may  receive  reimbursement  from  the
12    insurance   company   for   the   cost   of  withholding  and
13    transferring such amount to the company.
14        10.  Except as provided  in  Section  15.3,  to  sell  at
15    public  auction  or  by sealed bid and convey any real estate
16    held by  the  District  which  the  board  of  directors,  by
17    ordinance  adopted  by  at least 2/3rds of the members of the
18    board then holding office, has determined  to  be  no  longer
19    necessary  or  useful  to,  or for the best interests of, the
20    District.
21        An ordinance directing the  sale  of  real  estate  shall
22    include the legal description of the real estate, its present
23    use,  a statement that the property is no longer necessary or
24    useful to, or for the best interests of,  the  District,  the
25    terms  and  conditions of the sale, whether the sale is to be
26    at public auction or sealed bid,  and  the  date,  time,  and
27    place  the  property  is to be sold at auction or sealed bids
28    opened.
29        Before making a sale by  virtue  of  the  ordinance,  the
30    board of directors shall cause notice of the proposal to sell
31    to  be  published  once each week for 3 successive weeks in a
32    newspaper published, or,  if  none  is  published,  having  a
33    general  circulation,  in the district, the first publication
34    to be not less than 30 days before the day  provided  in  the
 
SB2241 Enrolled            -6-                 LRB9216107Accd
 1    notice  for  the  public sale or opening of bids for the real
 2    estate.
 3        The notice of the proposal to sell shall include the same
 4    information included in the ordinance directing the sale  and
 5    shall  advertise  for  bids  therefor.  A sale of property by
 6    public auction shall be held at the property to be sold at  a
 7    time  and  date  determined  by  the board of directors.  The
 8    board of directors may accept the high bid or any  other  bid
 9    determined  to  be in the best interests of the district by a
10    vote of 2/3rds of the board then holding  office,  but  by  a
11    majority  vote  of  those holding office, they may reject any
12    and all bids.
13        The chairman and secretary  of  the  board  of  directors
14    shall  execute  all documents necessary for the conveyance of
15    such real property sold pursuant to the foregoing authority.
16        11.  To establish and administer a program of  loans  for
17    postsecondary  students pursuing degrees in accredited public
18    health-related educational programs at public institutions of
19    higher education.  If  a  student  is  awarded  a  loan,  the
20    individual  shall  agree  to  accept  employment  within  the
21    hospital district upon graduation from the public institution
22    of  higher  education.  For the purposes of this Act, "public
23    institutions of higher education"  means  the  University  of
24    Illinois;   Southern   Illinois   University;  Chicago  State
25    University;  Eastern  Illinois  University;  Governors  State
26    University; Illinois State University; Northeastern  Illinois
27    University;  Northern  Illinois  University; Western Illinois
28    University; the public community colleges of the  State;  and
29    any other public colleges, universities or community colleges
30    now  or  hereafter  established  or authorized by the General
31    Assembly.   The  district's  board  of  directors  shall   by
32    resolution   provide   for  eligibility  requirements,  award
33    criteria, terms of financing, duration of employment accepted
34    within the district  and  such  other  aspects  of  the  loan
 
SB2241 Enrolled            -7-                 LRB9216107Accd
 1    program   as   its   establishment   and  administration  may
 2    necessitate.
 3        12.  To establish and maintain congregate housing  units;
 4    to acquire land in fee simple and leasehold interests in land
 5    for the location, establishment, maintenance, and development
 6    of  those  housing  units;  to  borrow  funds  and  give debt
 7    instruments, real estate mortgages, and security interests in
 8    personal property, contract rights, and general  intangibles;
 9    and  to enter into any contract required for participation in
10    any federal or State programs.
11    (Source: P.A. 92-534, eff. 5-14-02.)

12        (70 ILCS 910/21.2) (from Ch. 23, par. 1271.2)
13        Sec. 21.2.  The corporate  authorities  of  any  Hospital
14    District  may  enter  into  installment  purchase  and  lease
15    agreements  and  issue debt certificates under subsection (b)
16    of Section 17 of the Local Government Debt Reform Act and may
17    issue and  sell  revenue  bonds,  payable  from  the  revenue
18    derived  from  the operation of the hospital, for the purpose
19    of (1) constructing, reconstructing,  repairing,  remodeling,
20    extending,  equipping,  or  improving  a  hospital  building,
21    buildings,  or facilities and acquiring a site or sites for a
22    hospital building, buildings, or facilities, (1.5)  financing
23    operations  and  working  cash,  or  (2)  refunding  any such
24    revenue bonds theretofore  issued  from  time  to  time  when
25    considered  necessary or advantageous in the public interest.
26    These bonds shall  be  authorized  by  an  ordinance  without
27    submission  thereof to the electors of the Hospital District,
28    shall mature at such time not to exceed  40  years  from  the
29    date  of  issue, and bear such rate of interest not to exceed
30    the greater of (i) the maximum rate authorized  by  the  Bond
31    Authorization  Act,  as  amended at the time of the making of
32    the contract, or (ii)  9%  per  annum,  payable  annually  or
33    semiannually, as the corporate authorities may determine, and
 
SB2241 Enrolled            -8-                 LRB9216107Accd
 1    may  be  sold  by the corporate authorities in such manner as
 2    they deem best in the public interest.  However,  such  bonds
 3    shall  be  sold  at  such price that the interest cost of the
 4    proceeds therefrom will not exceed the  greater  of  (i)  the
 5    maximum  rate  authorized  by  the Bond Authorization Act, as
 6    amended at the time of the making of the contract, or (ii) 9%
 7    per annum if issued on or after the effective  date  of  this
 8    amendatory  Act,  based on the average maturity of such bonds
 9    and computed according to standard tables of bond values.  No
10    member of the Board or hospital administration shall have any
11    personal economic interest in any bonds issued in  accordance
12    with this Section.
13        The  corporate  authorities of any such Hospital District
14    availing itself of the provisions of this Section shall adopt
15    an ordinance  describing  in  a  general  way  the  building,
16    buildings, or facilities, or additions or extensions thereto,
17    to   be   constructed,  reconstructed,  repaired,  remodeled,
18    extended, equipped or improved, and the site or sites  to  be
19    acquired.  Such ordinance shall set out the estimated cost of
20    such   construction,   reconstruction,   repair,  remodeling,
21    extension, equipment, improvement or acquisition and fix  the
22    amount  of revenue bonds proposed to be issued, the maturity,
23    interest rate, and all details in respect thereof,  including
24    any  provision  for  redemption  prior  to  maturity, with or
25    without premium, and upon such notice as may be  provided  by
26    the   ordinance.    Such  ordinance  may  also  contain  such
27    provisions and covenants which shall be part of the  contract
28    between  the  Hospital District and the holders of such bonds
29    as may be  considered  necessary  and  advisable  as  to  the
30    operation,  maintenance,  and  management  of the hospital or
31    hospitals,  the  establishment  and  maintenance  of  sinking
32    funds, reserve funds,  and  other  special  funds,  including
33    construction  funds, the fixing and collection of rents, fees
34    and charges for the use of the facilities of the hospital  or
 
SB2241 Enrolled            -9-                 LRB9216107Accd
 1    hospitals  sufficient to produce revenue adequate to maintain
 2    such funds and to pay the  bonds  at  maturity  and  accruing
 3    interest thereon, the issuance thereafter of additional bonds
 4    payable  from  the  revenues  derived  from  the  hospital or
 5    hospitals, the kind and amount of  insurance,  including  use
 6    and  occupancy  insurance, if any, to be carried, the cost of
 7    which shall be payable only from the  revenues  derived  from
 8    the  hospital  or  hospitals  and such other covenants deemed
 9    necessary or desirable to assure the successful operation and
10    maintenance of the  hospital  or  hospitals  and  the  prompt
11    payment  of  the  principal of and interest upon the bonds so
12    authorized.
13        Revenue bonds issued under this Section shall  be  signed
14    by  the  chairman  and  secretary  of the Board or such other
15    officers as the Board may by ordinance direct  to  sign  such
16    bonds,  and  shall  be  payable from revenue derived from the
17    operation of the hospital or hospitals.  These bonds may  not
18    in  any  event  constitute  an  indebtedness  of the Hospital
19    District within the meaning of any  constitutional  provision
20    or limitation.  It shall be plainly written or printed on the
21    face  of  each  bond  that the bond has been issued under the
22    provisions of this Section,  that  the  bond,  including  the
23    interest  thereon, is payable from the revenue pledged to the
24    payment  thereof,  and  that  it  does  not   constitute   an
25    indebtedness  or  obligation  of the Hospital District within
26    the meaning of any constitutional or statutory limitation  or
27    provision.  No holder of any such revenue bond may compel any
28    exercise  of the taxing power of the Hospital District to pay
29    such bond or interest thereon.
30        The District may not issue any bonds under  this  Section
31    unless  a public hearing, with adequate notice to the public,
32    is held prior to the issuance of the  bonds.  Notice  of  the
33    hearing  giving  the  purpose,  time and place of the hearing
34    shall be published at least once, not more than 30  nor  less
 
SB2241 Enrolled            -10-                LRB9216107Accd
 1    than  15  days  before the hearing, in one or more newspapers
 2    published in the  district,  and  if  there  is  none,  in  a
 3    newspaper   published   in  the  county  and  having  general
 4    circulation in the district.
 5        With respect to instruments  for  the  payment  of  money
 6    issued  under  this  Section  either before, on, or after the
 7    effective date of this amendatory Act  of  1989,  it  is  and
 8    always  has  been  the  intention of the General Assembly (i)
 9    that  the  Omnibus  Bond  Acts  are  and  always  have   been
10    supplementary   grants  of  power  to  issue  instruments  in
11    accordance with the Omnibus  Bond  Acts,  regardless  of  any
12    provision  of  this Act that may appear to be or to have been
13    more restrictive than those Acts, (ii) that the provisions of
14    this Section  are  not  a  limitation  on  the  supplementary
15    authority  granted  by  the Omnibus Bond Acts, and (iii) that
16    instruments   issued   under   this   Section   within    the
17    supplementary  authority granted by the Omnibus Bond Acts are
18    not invalid because of any provision of  this  Act  that  may
19    appear  to  be  or  to  have been more restrictive than those
20    Acts.
21    (Source: P.A. 89-104, eff. 7-7-95.)

22        Section 99.  Effective date.  This Act takes effect  upon
23    becoming law.

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