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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.