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92nd General Assembly

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Public Act 92-0611

SB2241 Enrolled                                LRB9216107Accd

    AN ACT concerning hospitals.

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

    Section  5.   The  Hospital  District  Law  is amended by
changing Sections 15 and 21.2 as follows:

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

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

    Section  99.  Effective date.  This Act takes effect upon
becoming law.
    Passed in the General Assembly June 01, 2002.
    Approved July 03, 2002.
    Effective July 03, 2002.

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