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92nd General Assembly

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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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