Public Act 094-0648
 		





HB2509 Enrolled
LRB094 10743 MKM 41163 b






    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 7. Hospital Basic Services Review Board.  
    (a) The Hospital Basic Services Review Board is created for 
the purpose of reviewing and recommending to the State 
Treasurer essential community hospitals  seeking  
collateralization of basic service loans for eligible expenses 
related to completing, attaining, or upgrading basic services.
    (b) The Board shall consist of 5 members as follows: one 
member appointed by the Governor; one member appointed by the 
Speaker of the House of Representatives; one member appointed 
by the President of the Senate; one member appointed by the 
Minority Leader of the House of Representatives; and one member 
appointed by the Minority Leader of the Senate. The members of 
the Board shall serve at the pleasure of their appointing 
authorities. Vacancies shall be filled in the same manner as 
the original appointment.
    (c) The Department of Public Health shall provide staff 
assistance to the Board as is reasonably required in order for 
the Board to carry out its responsibilities.
 
    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 health 
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. 
    (a) Essential community hospitals seeking 
collateralization of loans under this Act must apply to the 
Illinois Health Facilities Planning Board on a form prescribed 
by the   Illinois Health Facilities Planning Board by rule. The 
Illinois Health Facilities Planning Board shall review the 
application and, if it approves the applicant's plan, shall 
forward the application and its approval to the Hospital Basic 
Services Review Board. 
    (b) Upon receipt of the applicant's application and 
approval from the Illinois Health Facilities Planning Board, 
the Hospital Basic Services Review Board shall request from the 
applicant and the applicant shall submit to the Hospital Basic 
Services Review Board all of the following information:
        (1) A copy of the hospital's last audited financial 
    statement.
        (2) The percentage of the hospital's patients each year 
    who are  Medicaid patients.
        (3) The percentage of the hospital's patients each year 
    who are Medicare patients.
        (4) The percentage of the hospital's patients each year 
    who are  uninsured.
        (5) The percentage of services provided by the hospital 
    each year for which the hospital expected payment but for 
    which no payment was received.
        (6) Any other information required by the Hospital 
    Basic Services Review Board by rule.
The Hospital Basic Services Review Board shall review the 
applicant's original application, the approval of the Illinois 
Health Facilities Planning Board, and the information provided 
by the applicant to the Hospital Basic Services Review Board 
under this Section and make a recommendation to the State 
Treasurer to accept or deny the application.
    (c) If the Hospital Basic Services Review Board recommends 
that the application be accepted, the State Treasurer may 
collateralize the applicant's basic service loan 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. 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 State 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 State 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.

 
    Section 90. The State Finance Act is amended by adding 
Section
5.640 and by changing Section 8h as follows:


 
    (30 ILCS 105/5.640 new)


    Sec. 5.640. The Hospital Basic Services Preservation Fund.
 
    (30 ILCS 105/8h)


    Sec. 8h. Transfers to General Revenue Fund.  
    (a) Except as provided in subsection (b), notwithstanding 
any other
State law to the contrary, the Governor


may, through 
June 30, 2007, from time to time direct the State Treasurer and 
Comptroller to transfer
a specified sum from any fund held by 
the State Treasurer to the General
Revenue Fund in order to 
help defray the State's operating costs for the
fiscal year.  
The total transfer under this Section from any fund in any

fiscal year shall not exceed the lesser of (i) 8% of the 
revenues to be deposited
into the fund during that fiscal year 
or (ii) an amount that leaves a remaining fund balance of 25% 
of the July 1 fund balance of that fiscal year. In fiscal year 
2005 only, prior to calculating the July 1, 2004 final 
balances, the Governor may calculate and direct the State 
Treasurer with the Comptroller to transfer additional amounts 
determined by applying the formula authorized in Public Act 
93-839 to the funds balances on July 1, 2003.
No transfer may 
be made from a fund under this Section that would have the

effect of reducing the available balance in the fund to an 
amount less than
the amount remaining unexpended and unreserved 
from the total appropriation
from that fund estimated to be 
expended for that fiscal year.  This Section does not apply to 
any
funds that are restricted by federal law to a specific use, 
to any funds in
the Motor Fuel Tax Fund, the Hospital Provider 
Fund, the Medicaid Provider Relief Fund, or the Reviewing Court 
Alternative Dispute Resolution Fund,  or the Hospital Basic 
Services Preservation Fund, or to any
funds to which subsection 
(f) of Section 20-40 of the Nursing and Advanced Practice 
Nursing Act applies.  Notwithstanding any
other provision of 
this Section, for fiscal year 2004,
the total transfer under 
this Section from the Road Fund or the State
Construction 
Account Fund shall not exceed the lesser of (i) 5% of the 
revenues to be deposited
into the fund during that fiscal year 
or (ii) 25% of the beginning balance in the fund.
For fiscal 
year 2005 through fiscal year 2007, no amounts may be 
transferred under this Section from the Road Fund, the State 
Construction Account Fund, the Criminal Justice Information 
Systems Trust Fund, the Wireless Service Emergency Fund, or the 
Mandatory Arbitration Fund.

    In determining the available balance in a fund, the 
Governor


may include receipts, transfers into the fund, and 
other
resources anticipated to be available in the fund in that 
fiscal year.


    The State Treasurer and Comptroller shall transfer the 
amounts designated
under this Section as soon as may be 
practicable after receiving the direction
to transfer from the 
Governor.


    (b) This Section does not apply to any fund established 
under the Community Senior Services and Resources Act.

(Source: P.A. 93-32, eff. 6-20-03; 93-659, eff. 2-3-04; 93-674, 
eff. 6-10-04; 93-714, eff. 7-12-04; 93-801, eff. 7-22-04; 
93-839, eff. 7-30-04; 93-1054, eff. 11-18-04; 93-1067, eff. 
1-15-05.)