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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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