Full Text of SB0290 95th General Assembly
SB0290 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 SB0290
Introduced 2/7/2007, by Sen. David Luechtefeld SYNOPSIS AS INTRODUCED: |
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Amends the Hospital District Law. Provides that a hospital district may issue bonds, notes, or other obligations, or enter into a line of credit, secured by property taxes, unencumbered accounts receivable, or other revenues. Allows the district to establish a line of credit in connection with those borrowings. Provides that the Treasurer may accept a linked-deposit proposal from an eligible institution, subject to certain restrictions. Effective immediately.
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A BILL FOR
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SB0290 |
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LRB095 06244 HLH 28913 b |
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| AN ACT concerning local government.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Hospital District Law is amended by adding | 5 |
| Section 21.3 as follows: | 6 |
| (70 ILCS 910/21.3 new) | 7 |
| Sec. 21.3. Issuance of certain notes, bonds, or other | 8 |
| obligations.
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| (a) A hospital district may issue notes, bonds, or other | 10 |
| obligations, or enter into a line of credit, secured by and | 11 |
| payable from one or more of these sources: property taxes, | 12 |
| unencumbered accounts receivable, or other revenues, in an | 13 |
| amount not to exceed the greater of the following amounts if | 14 |
| the source is pledged: (i) 85% of the amount of property taxes | 15 |
| most recently levied, (ii) 85% of unencumbered accounts | 16 |
| receivable of the district (in substantially the manner set | 17 |
| forth in Section 21.1 of this Act), (iii) 85% of other revenues | 18 |
| (in substantially the manner set forth in Section 21.2 of this | 19 |
| Act), or (iv) 85% of amounts unpaid under third-party | 20 |
| reimbursement or payment programs (including but not limited to | 21 |
| State or federal Medicare or Medicaid payments or programs). | 22 |
| All moneys so borrowed shall be repaid within 24 months after | 23 |
| the date of issuance. In connection with obligations issued |
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SB0290 |
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LRB095 06244 HLH 28913 b |
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| under this Section, the district may establish a line of credit | 2 |
| with a bank or other financing source. | 3 |
| (b) Borrowings authorized under this Section shall bear | 4 |
| interest at a rate not to exceed the maximum rate authorized by | 5 |
| the Bond Authorization Act, from the date of issuance until | 6 |
| paid, and are not required to be approved by referendum. The | 7 |
| authorization to borrow provided in this Section is in addition | 8 |
| to powers granted in other laws. | 9 |
| (c) Before borrowing or establishing a line of credit under | 10 |
| this Section, the hospital district shall authorize the | 11 |
| borrowing or line of credit by ordinance. The ordinance shall | 12 |
| set forth facts demonstrating the need for the borrowing or | 13 |
| line of credit, state the amount to be borrowed, establish a | 14 |
| maximum interest rate limit not to exceed that set forth in | 15 |
| subsection (b) of this Section, and provide a date by which the | 16 |
| borrowed funds shall be repaid. The ordinance shall authorize | 17 |
| and direct the relevant officials to make arrangements to set | 18 |
| apart and hold, as applicable, the moneys that will be used to | 19 |
| repay the borrowing. In addition, the ordinance may authorize | 20 |
| the relevant officials to make partial repayments of the | 21 |
| borrowing as the moneys become available and may contain any | 22 |
| other terms, restrictions, or limitations desirable or | 23 |
| necessary to give effect to this Section 21.3. | 24 |
| (d) The State Treasurer may, in his or her discretion, | 25 |
| accept a proposal from an eligible institution that provides | 26 |
| for a linked-deposit. This linked-deposit calls for the |
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SB0290 |
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LRB095 06244 HLH 28913 b |
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| subscription or purchase outright of obligations, placed by the | 2 |
| State Treasurer with an eligible lending institution, provided | 3 |
| the institution agrees to lend the value of the deposit to | 4 |
| eligible hospital districts that are entitled to reimbursement | 5 |
| from the State's Medicaid program.
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| Section 99. Effective date. This Act takes effect upon | 7 |
| becoming law.
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