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Public Act 92-0534
SB1656 Enrolled LRB9215591BDpk
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 3 and 15 and by adding Section 15.3 as
follows:
(70 ILCS 910/3) (from Ch. 23, par. 1253)
Sec. 3. (a) "Hospital" means any hospital for in-patient
and out-patient medical or surgical care of persons in need
thereof.
(b) "Public Hospital" means a hospital owned by a
Hospital District or other public agency which is used or is
intended for use by the public including paupers.
(c) "Facilities" means and includes real estate and any
and all forms of tangible and intangible personal property
and services used or useful as an aid, or constituting an
advantage or convenience to the safe and efficient operation
or maintenance of a public hospital. "Facilities" shall also
include, but not be limited to, any clinics, dispensaries,
physician offices, surgery centers, diagnostic facilities,
and congregate housing units, assisted living units,
sheltered care facilities, and ambulance facilities.
(d) "Municipality" means any city, village or
incorporated town of the State of Illinois.
(e) "Hospital District" means a municipal corporation
created and established under Section 4 of this Act.
"District" and "Hospital District" are synonymous.
(f) "Board of Directors" and "Board" mean the board of
directors of an established District or a District proposed
to be established.
(g) "Public Agency" means any municipality, county,
township, tuberculosis sanitarium district, or political
subdivision that maintains a public hospital.
(Source: P.A. 89-104, eff. 7-7-95.)
(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.
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. 89-4, eff. 1-1-96; 89-104, eff. 7-7-95; 89-626,
eff. 8-9-96.)
(70 ILCS 910/15.3 new)
Sec. 15.3. Disposition of facilities.
(a) Notwithstanding any other provisions of this Act,
the board of directors of a Hospital District, by public or
private offer, may provide for the transfer, sale, lease, or
other disposition of a public hospital and its facilities, in
whole or in part, as provided in this Section.
(b) The board of directors, by resolution, may authorize
a Hospital District to enter into contracts and agreements
for the transfer, sale, lease, or other disposition, in whole
or in part, at one time or from time to time of the public
hospital and its facilities to a public or private
corporation or other entity, hospital, health care facility,
unit of local government, or institution of higher education,
provided, unless the board of directors in the resolution
expressly finds and determines otherwise, that the transfer,
sale, lease, or other disposition does not adversely affect
access to the hospital by inhabitants of the Hospital
District. At least 10 days before the adoption of a
resolution under this subsection, the board of directors
shall make the proposed resolution conveniently available for
public inspection and shall hold at least one public hearing
on the proposed resolution. At least 10 days before the time
of the public hearing, notice of the hearing shall be
published in one or more newspapers having general
circulation in the Hospital District. The notice shall state
the date, time and place of the public hearing and the place
where copies of the proposed resolution will be available for
examination.
(c) After entering into and giving effect to the
contracts and agreements with respect to any transfer, sale,
lease, or other disposition under subsection (b), the
Hospital District may continue to exist and to own, operate,
and maintain facilities, whether or not a public hospital of
the Hospital District continues to exist after the transfer,
sale, lease, or other disposition. In addition, the Hospital
District may continue to exist and to exercise powers,
functions, and authority under this Act as the board of
directors may find desirable or necessary, for up to 3 years,
to give effect to such transfer, sale, lease, or other
disposition and, as applicable, related to the facilities to
continue to be owned, operated, and maintained by the
Hospital District. The board of directors of the Hospital
District may continue the Hospital District for up to 3 years
to initiate the ownership, operations, and maintenance of
other facilities and thereafter to continue to own, operate,
and maintain the other facilities.
(d) If, before a transfer, sale, lease, or disposition
of the public hospital under subsection (b), a labor
organization has been recognized by the Hospital District as
the exclusive representative of the majority of employees in
a bargaining unit for purposes of collective bargaining, and
if a transferee, purchaser, or lessor subject to the National
Labor Relations Act retains or hires a majority of the
employees in the bargaining unit, the 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 the labor organization makes a timely written
assertion of its representational capacity to the transferee,
purchaser or lessor.
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly March 22, 2002.
Approved May 14, 2002.
Effective May 14, 2002.
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