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Illinois Compiled Statutes
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() 65 ILCS 5/Art. 11 Div. 23
(65 ILCS 5/Art. 11 Div. 23 heading)
DIVISION 23.
HOSPITALS IN CITIES OF LESS THAN 100,000
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65 ILCS 5/11-23-1
(65 ILCS 5/11-23-1) (from Ch. 24, par. 11-23-1)
Sec. 11-23-1.
Whenever at least 100 electors of a city with a population of less
than 100,000 present a petition to the city clerk of the city asking
that an annual tax, not to exceed .06% of the value, as equalized or
assessed by the Department of Revenue, be levied each
year on all taxable property of the city for the establishment and
maintenance of a public hospital, or for the purchase and maintenance of
an existing nonsectarian public hospital, within the city, the city clerk
shall certify the proposition for submission at an election in accordance
with the general
election law. The proposition shall be in substantially the following form: "Shall a
....% tax, for establishing and maintaining (or for purchasing and
maintaining) a public hospital be levied against the taxable property of
the city of ....?" and shall specify the rate
of taxation mentioned in the petition. If a majority of all votes cast
on the proposition are in favor of the proposition, the tax specified in
the notice shall be levied and collected annually in the same manner as
are other general taxes in the city, and shall be known as the hospital
fund. However, municipalities authorized to levy this tax on July 1,
1967, shall have a rate limit of .06%, or the limit in effect on July 1,
1967, whichever is greater. Thereafter, the city council shall include
an appropriation in the annual appropriation ordinance of such sums of
money as may be necessary to defray all necessary expenses and
liabilities of the hospital. This annual hospital tax shall be in
addition to the amount authorized to be levied for general purposes
under Section 8-3-1 and shall be exclusive thereof and not included
within any limitation of rate or amount for other municipal purposes.
The foregoing limitations upon tax rates may be increased or
decreased under the referendum provisions of the General Revenue Law of
Illinois.
(Source: P.A. 81-1489; 81-1509.)
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65 ILCS 5/11-23-2
(65 ILCS 5/11-23-2) (from Ch. 24, par. 11-23-2)
Sec. 11-23-2.
In case an annual hospital tax has been levied and
collected under this Division 23 for 3 or more consecutive years, and
the city has not established or maintained, or purchased and maintained,
a hospital in accordance with this Division 23, the mayor of the city,
with the approval of the city council, may authorize the payment of all
funds in the city treasury derived from that tax, to any nonsectarian
public hospital within or without the corporate limits of the city
maintained for the use and benefit of the inhabitants of the city who
are sick or are injured or maimed. These funds, when so turned over to
such a hospital, shall be used solely for its maintenance under the sole
control of the management of the hospital. Thereafter, funds derived
from this annual hospital tax shall be turned over to that hospital as
soon as received by the city, until the city council shall provide
otherwise by an ordinance approved by a majority of the electors voting
thereon at any election. The city council may order
such ordinance certified by the clerk and submitted by the proper election
authority to the voters at any election in accordance with the general election law.
The management of such a hospital shall submit to the city council a
semi-annual report of the expenditure of such funds as have been
received from the city from the hospital tax.
(Source: P.A. 81-1489.)
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65 ILCS 5/11-23-3
(65 ILCS 5/11-23-3) (from Ch. 24, par. 11-23-3)
Sec. 11-23-3.
In the event any municipality has
established a city public
hospital in accordance with the provisions of Section 11-23-1 and in the
further event the corporate authorities shall
determine that the hospital
is no longer needed for the purposes for which it was established or that
those purposes would be better served through the operation of the city
hospital by a corporation, hospital, health care
facility, unit of local government or institution of higher education, the
corporate authorities by ordinance may authorize the
transfer, sale or lease of the hospital to such corporation, hospital,
health care facility, unit of local government or institution of higher
education within or without
the corporate limits of the city, or may authorize the sale or lease of the
hospital to any mental health clinic which obtains any portion of its funds
from the Department of Human Services (as successor to the Department of
Mental Health and Developmental Disabilities). Such
transfer, sale or lease may be on such terms and under such conditions as
the corporate authorities may deem proper without
regard to any provisions of
Division 9 of Article 8 or Divisions 75, 76, 77 and 78 of this Article 11.
At least 10 days prior to the adoption of an ordinance under this
Section the corporate authorities shall make the proposed ordinance
conveniently available for public inspection and shall hold at least one
public hearing thereon. Notice of this hearing shall be published in one
or more newspapers published in the municipality, or if there is none
published in the municipality, in a newspaper having general circulation in
the municipality, at least 10 days prior to the time of the public hearing.
Such notice shall state the time and place of the hearing and the place
where copies of the proposed ordinance will be accessible for examination.
If a city public hospital is transferred, sold or leased as authorized
by this section and if no bonds issued under the provisions of Section
11-23-6 or Section 11-23-13 are outstanding, the city council may transfer
any excess funds remaining in the Hospital Fund to the general fund of the
city to be expended for capital expenditures only and not for operating
expenses of the city.
In the event that prior to the sale or lease of the hospital pursuant
to this Section, a labor organization has been recognized by the hospital
as the exclusive representative of the majority of employees in a
bargaining unit for purposes of collective bargaining, and in the further
event that a purchaser or lessor subject to the National Labor Relations
Act retains or hires a majority of the employees in such a bargaining unit,
such purchaser or lessor shall recognize the labor organization as the
exclusive representative of the majority of employees in that bargaining
unit for purposes of collective bargaining, provided that the labor
organization makes a timely written assertion of its representational
capacity to the purchaser or lessor.
(Source: P.A. 89-507, eff. 7-1-97.)
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65 ILCS 5/11-23-4
(65 ILCS 5/11-23-4) (from Ch. 24, par. 11-23-4)
Sec. 11-23-4.
When such a city council has decided to establish and
maintain, or to purchase and maintain, a public hospital under this
Division 23, the mayor, with the approval of the city council, shall
appoint a board of 3 directors for the hospital.
One of the directors shall hold office for one year, one for 2 years,
and one for 3 years, from the first day of July following their
appointments. At their first regular meeting the directors shall cast lots
for the respective terms. Before the first day of July each year
thereafter, the mayor, with the approval of the city council, shall appoint
one director to take the place of the retiring director, who shall hold
office for 3 years, and until his successor is appointed.
The city council may, by resolution, increase the membership of the
board to 5 directors. Such resolution shall not affect the terms of the
incumbent directors. Before the first day of July following the adoption of
such resolution the mayor with the approval of the city council, shall
appoint 3 directors, one to succeed the incumbent whose term expires and
the 2 additional provided for in the resolution, for terms of 3, 4 and 5
years from July 1 of the year of the appointment. Thereafter, upon the
expiration of the term of any director his successor shall be appointed for
a term of 5 years and until his successor is appointed for a like term.
If the city council has, by previous resolution, increased the
membership of the board to 5 directors, the city council may by new
resolution increase the membership of the board by 2 new members in any one
year up to a maximum of 11 directors. Such new resolution shall not affect
the terms of incumbent directors. Before the first day of July following
the adoption of the new resolution the mayor with the approval of the city
council shall appoint a sufficient number of directors so that there will
be a successor for the full term of each incumbent whose term expires, and
the 2 additional provided for in the resolution for terms of 4 and 5 years
from July 1 of the year of appointment. Thereafter, upon the expiration of
the term of any director, his successor shall be appointed for a term of 5
years and until his successor is appointed and qualified for a like term.
The mayor, with the consent of the city council, may remove any director
for misconduct or neglect of duty. Vacancies in the board of directors,
however occasioned, shall be filled for the unexpired term in like manner
as original appointments. No director shall receive compensation for
serving as a director. No director shall be interested, either directly or
indirectly, in the purchase or sale of any supplies for the hospital.
(Source: P.A. 97-813, eff. 7-13-12.)
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65 ILCS 5/11-23-5
(65 ILCS 5/11-23-5) (from Ch. 24, par. 11-23-5)
Sec. 11-23-5.
Immediately after their appointment the directors shall meet
to organize by the election of one of their number president and one as
secretary and by the election of such other officers as they may deem
necessary. They shall adopt such by-laws, rules, and regulations for their
own guidance and for the government of the hospital as may be expedient and
not inconsistent with ordinances of the city. They have the exclusive
control of the expenditure of all money collected to the credit of the
hospital fund. All money received for the hospital shall be deposited in
the city treasury to the credit of the hospital fund, and drawn upon by the
proper city officers upon the proper authenticated vouchers of the hospital
board. The board has the power to purchase or lease ground and to occupy,
lease, or erect appropriate buildings for the use of the hospital. It has
the exclusive control of the supervision, care, and custody of the grounds,
leases, and buildings constructed, leased, or set apart for that purpose.
The board has the power to appoint a suitable superintendent or matron, or
both, and necessary assistants, to fix their compensation and to remove
such appointees. The board in general shall carry out the spirit and intent
of this Division 23 in establishing and maintaining or in purchasing and
maintaining a public hospital. The board is authorized 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. One or all of the directors shall visit and
examine the hospital at least twice each month and the board shall make
monthly reports of its condition to the city council.
(Source: P.A. 86-739.)
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65 ILCS 5/11-23-6
(65 ILCS 5/11-23-6) (from Ch. 24, par. 11-23-6)
Sec. 11-23-6.
The corporate authorities of a city specified in this
Division 23 may provide that bonds of the city be issued for the purpose
of (1) constructing and equipping a hospital building or buildings, (2)
purchasing and maintaining an existing nonsectarian public hospital
within the city's corporate limits, or of (3) reconstructing, repairing,
remodeling, and improving, or of (4) extending and equipping, an
existing hospital building or buildings now owned and operated by the
city. These bonds shall be authorized by an ordinance and shall mature
at such time, not to exceed 20 years from their date of issue, and bear
such rate of interest, not to exceed the maximum rate authorized by the
Bond Authorization Act, as amended at the time of the making of the
contract, payable annually or semi-annually, as the corporate authorities may determine.
The ordinance providing for the issuance of these bonds shall be
submitted to the electors of the city at an election conducted in accordance
with the general election law. The proposition shall be certified by the
municipal clerk and submitted by the proper election authority. If a majority
of the votes cast on this proposition are favorable, the bonds shall be
issued for the purpose and in the amount specified in the ordinance. Prior
to July 1, 1944, however, in the event that aid is to be received from any
agency of the Federal Government in the construction of the project for
which these bonds are to be issued and a declaration of that fact is set
forth in the ordinance providing for the issuance of the bonds, the
ordinance shall become effective immediately upon passage, without
submission to the electors and notwithstanding any provision in this Code
or in any other law to the contrary. The declaration of the corporate
authorities that the project is to be paid for either in whole or in part
by a grant from a Federal agency, as set forth in the ordinance, is
conclusive. These bonds shall be signed by the president and secretary of
the hospital board and by the mayor and city clerk, or commissioner of
accounts and finance of the city, and shall be payable out of the taxes to
be collected for hospital purposes in that city.
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. 86-4.)
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65 ILCS 5/11-23-7
(65 ILCS 5/11-23-7) (from Ch. 24, par. 11-23-7)
Sec. 11-23-7.
Every hospital established or purchased under this Division
23 shall be maintained for the benefit of the inhabitants of the city in
which it is established who are sick, injured, or maimed. But every
inhabitant of that city shall pay to the hospital board, or to such officer
as it shall designate, reasonable compensation for occupancy, nursing,
care, medicines, or attendance, according to the rules and regulations
prescribed by the board. The hospital shall always be subject to such
reasonable rules and regulations as the hospital board may adopt in order
to render the use of the hospital of the greatest benefit to the greatest
number. The board may exclude from the use of the hospital all inhabitants
and persons who wilfully violate those rules and regulations. The board may
extend the privileges and use of the hospital to persons residing outside
of the city but within this state, upon such terms and conditions as the
board may prescribe by its rules and regulations.
(Source: Laws 1961, p. 576.)
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65 ILCS 5/11-23-8
(65 ILCS 5/11-23-8) (from Ch. 24, par. 11-23-8)
Sec. 11-23-8.
The board of directors, in the name of the city, shall
receive and collect from such inhabitants or persons the compensation
specified in Section 11-23-7 as often as once in each month. The board
shall pay over to the city treasurer all compensation received or collected
during the month, and shall take the city treasurer's receipt therefor. At
the city council's regular monthly meeting the board shall also report to
the city council the names of persons or inhabitants from whom this
compensation has been received or collected, the amount so received or
collected from each, and the date when so received or collected.
The board of directors shall make an annual report to the city council
on or before the second Monday in June, stating (1) the condition of their
trust on the first day of June of that year, (2) the various sums of money
received from the hospital fund and from other sources, (3) how that money
has been expended and for what purposes, (4) the number of patients, and
(5) such other statistics, information, and suggestions as they may deem of
general interest.
(Source: Laws 1961, p. 576.)
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65 ILCS 5/11-23-9
(65 ILCS 5/11-23-9) (from Ch. 24, par. 11-23-9)
Sec. 11-23-9.
When such a hospital is so established or purchased, the
physicians, nurses, attendants, patients, all persons approaching or coming
within the limits of the hospital, and all furniture and other articles
used or brought there shall be subject to such rules and regulations as the
board of directors may prescribe.
(Source: Laws 1961, p. 576.)
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65 ILCS 5/11-23-10
(65 ILCS 5/11-23-10) (from Ch. 24, par. 11-23-10)
Sec. 11-23-10.
Any person desiring to donate property for the benefit of
such a hospital may vest the title to the property so donated in the board
of directors created under this Division 23. That board or its successor
shall hold and control this property, when accepted, according to the terms
of the deed, gift or legacy of the property, and shall be a
trustee of the property.
(Source: P.A. 83-388.)
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65 ILCS 5/11-23-11
(65 ILCS 5/11-23-11) (from Ch. 24, par. 11-23-11)
Sec. 11-23-11.
All physicians who are recognized as legal practitioners by
the Department of Professional Regulation shall have equal privileges in
treating patients in such a hospital.
(Source: P.A. 85-1209.)
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65 ILCS 5/11-23-12
(65 ILCS 5/11-23-12) (from Ch. 24, par. 11-23-12)
Sec. 11-23-12.
All public hospitals which were established and maintained,
or purchased and maintained, under "An Act in relation to the
establishment, purchase and maintenance of public hospitals in cities of
less than one hundred thousand inhabitants," approved June 30, 1919, as
amended, and which were being maintained immediately prior to January 1,
1942, shall be treated as properly established or purchased under this
Division 23 and may be continued to be maintained under this Division 23.
All cities whose electors have approved the levy of an annual tax for
establishing and maintaining, or purchasing and maintaining, a public
hospital under that Act may continue to levy the tax under this Division 23
without submitting the question of its levy to the electors for approval.
The directors, other officers, and employees appointed under that Act who
were in office or employed immediately prior to January 1, 1942 shall
continue in their offices and employments under this Division 23 until the
respective terms for which they were appointed have expired, subject to the
provisions of this Division 23 as to removal.
(Source: Laws 1961, p. 576.)
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65 ILCS 5/11-23-13
(65 ILCS 5/11-23-13) (from Ch. 24, par. 11-23-13)
Sec. 11-23-13.
The corporate authorities of any city with a population of
less than 100,000 which has established a public hospital is authorized to
issue and sell revenue bonds payable from the revenue derived from the
operation of the hospital for the purpose of (1) reconstructing, repairing,
remodeling, or extending, or (2) equipping or improving an existing
hospital building or buildings, or any addition or extension thereto or (3)
constructing and equipping a new hospital to replace an existing hospital
and acquiring a site therefor, or (4) refunding any such revenue bonds
theretofore issued from time to time when deemed necessary or advantageous
in the public interest. These bonds shall be authorized by an ordinance
without submission thereof to the electors of the city, 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 maximum rate authorized by the Bond
Authorization Act, as amended at the time of the making of the contract,
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
7% per annum, based on the average maturity of such bonds and computed
according to standard tables of bond values.
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.
The amendatory Acts of 1971, 1972 and 1973 are not a limit upon any
municipality which is a home rule unit.
(Source: P.A. 86-4.)
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65 ILCS 5/11-23-14
(65 ILCS 5/11-23-14) (from Ch. 24, par. 11-23-14)
Sec. 11-23-14.
The corporate authorities of any such city availing itself
of the provisions of Section 11-23-13 shall adopt an ordinance describing
in a general way the building or buildings, or addition or extension
thereto, to be constructed, reconstructed, repaired, remodeled, extended,
equipped or improved. Such ordinance shall set out the estimated cost of
such construction, reconstruction, repair, remodeling, extension, equipment
or improvement and fix the amount of revenue bonds proposed to be issued,
the maturity, interest rate, and all details in respect thereof and may
contain such provisions and covenants which shall be part of the contract
between the city and the holders of such bonds as may be deemed necessary
and advisable as to the operation, maintenance, and management of the
hospital, the establishment and maintenance of sinking funds, reserve
funds, and other special funds, including construction funds, the fixing
and collecting of rents, fees and charges for the use of the facilities of
the hospital 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, the kind and amount of insurance, including use and
occupancy insurance, to be carried, the cost of which shall be payable only
from the revenues derived from the hospital, and such other covenants
deemed necessary or desirable to assure the successful operation and
maintenance of the hospital and the prompt payment of the principal of and
interest upon the bonds so authorized. Revenue bonds issued under this
Division 23 shall be signed by the president and secretary of the hospital
board and by the mayor and city clerk or commissioner of accounts and
finance of the city and shall be payable from revenue derived from the
operation of the public hospital. These bonds shall not in any event
constitute an indebtedness of the city 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 Sections 11-23-13 and 11-23-14, 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 city within the meaning of any constitutional or statutory limitation
or provision. No holder of any such revenue bond has the right to compel
any exercise of the taxing power of the city to pay such bond or interest
thereon. This ordinance shall be published and shall take effect as
provided in Section 1-2-4.
(Source: Laws 1965, p. 847.)
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65 ILCS 5/11-23-15
(65 ILCS 5/11-23-15) (from Ch. 24, par. 11-23-15)
Sec. 11-23-15.
Revenue bonds issued on or after March 1, 1965 under
Sections 11-23-13 and 11-23-14 may be redeemed by the municipality issuing
them on such terms, at such time, upon such notice and with or without
premium all as may be provided in the ordinance authorizing them.
Revenue bonds issued prior to March 1, 1965 under Sections 11-23-13 and
11-23-14 may be redeemed on any interest-paying date, by proceeding as
follows: (1) a written notice shall be mailed to the holder of such bond 30
days prior to an interest-paying date, notifying the holder that the bond
will be redeemed on the next interest-paying date; or (2) if the holder of
such bond is unknown, then a notice describing the bond to be redeemed and
the date of its redemption shall be published 30 days prior to an
interest-paying date in one or more newspapers published in the city, or,
if no newspaper is published therein, then in one or more newspapers having
a general circulation within the city. When notice has been mailed to the
holder of such bond, or when notice has been published in a newspaper in
case the holder of the bond is unknown, the bond shall cease bearing
interest from and after the next interest-paying date.
(Source: Laws 1965, p. 13.)
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