Illinois Compiled Statutes
Chapter 70 - SPECIAL DISTRICTS
70 ILCS 910/ - Hospital District Law.

(70 ILCS 910/1) (from Ch. 23, par. 1251)
Sec. 1.

This Act may be cited as the Hospital District Law.

(Source: P.A. 86-1475.)
 
(70 ILCS 910/2) (from Ch. 23, par. 1252)
Sec. 2.

The establishment, maintenance and operation of safe and accessible
hospitals within the State of Illinois and the creation of Hospital
Districts having powers necessary or desirable for the establishment and
continued maintenance and operation of such hospitals are declared and
determined to be in the interest of public health.

(Source: Laws 1949, p. 361.)
 
(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, 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. 92-534, eff. 5-14-02.)
 
(70 ILCS 910/4) (from Ch. 23, par. 1254)
Sec. 4.

A Hospital District may be created, incorporated and managed as
provided in this Act and may exercise the powers herein granted or
necessarily implied. A Hospital District may include municipalities or
territory not in municipalities or both or territory in one or more
counties; provided, that the provisions of this Act shall not be effective
in counties having a population of more than 1,000,000 inhabitants. The
territory of any municipality shall not be divided and the territory
contained within the corporate limits of an existing Hospital District
shall not be incorporated in another Hospital District.

(Source: Laws 1965, p. 2148.)
 
(70 ILCS 910/5) (from Ch. 23, par. 1255)
Sec. 5.

Wherever the creation of a Hospital District is desired,
2,500 or more of the voters residing within the area or 10% of the legal
voters residing within the area, whichever is higher, may file with the
circuit clerk of the county in which the territory or the greater part
thereof is situated, a petition requesting the creation thereof,
addressed to the circuit court of the county. In case such area includes
2 or more civil townships (or congressional townships in counties under
commission form of government) or parts thereof, such petition shall be
signed by 10% of the legal voters residing in each such township or part
thereof. In case the proposed District, which shall be contiguous, is
situated in 2 or more counties, the petition shall be filed in the
office of the circuit clerk of the county in which the greater part of
the area is situated, and the circuit court of the county shall set the
petition for hearing. The petition shall set forth (1) a description of
the territory to be embraced in the proposed District, (2) the names of
the municipalities located within the area, (3) the name of the proposed
District, (4) the population of the district which shall not be less
than 25,000 inhabitants unless the district includes at least one entire
county or at least 6 contiguous townships within a county or adjoining
counties, in which event the population of the district shall not be less
than 10,000 inhabitants, and (5) a request that the question be
submitted to the electors residing within the limits of the proposed
Hospital District whether they will establish a Hospital District under
this Act to be known as .... Hospital District for the purpose of
constructing and maintaining a public hospital. The petitioners in and
by the petition shall designate one or more persons to represent them on
the petition, and in the proceedings thereon in the circuit court, with
authority to amend, to move to dismiss, or to withdraw the petition. The
circuit court shall set the petition for hearing within not less than 30
nor more than 40 days after the filing of the petition with the circuit
clerk.
Notice shall be given by the circuit court of the time and place
where the hearing will be held, by publication on 3 separate days in one
or more newspapers having a general circulation within the territory
proposed to be incorporated as a Hospital District, the first of which
publications shall be not less than 20 days prior to the date set for
the hearing and if there is no such newspaper, then such notice shall be
posted in 10 of the most public places in such territory, not less than
20 days prior to the date set for the hearing. This notice shall include
a description of the territory as set out in the petition, names of
municipalities located therein and the name of the proposed District and
the question of creating such area into a Hospital District.
The filing fee on the petition and costs of printing and publication
or posting of notices of public hearing thereon shall be paid in advance
by the petitioners, and, if a district be organized under this Act, they
shall be reimbursed out of the funds received by the District from
taxation or other sources.

(Source: P.A. 85-1362.)
 
(70 ILCS 910/6) (from Ch. 23, par. 1256)
Sec. 6.

The court may continue the hearing on the petition from time
to time. Should it appear at such public hearing that a part only of any
municipality is included within the territory described in the petition
then the petition shall be amended upon motion of the petitioners either
to include or exclude all of such municipality, and such motion shall be
allowed by the court. Upon such public hearing the petitioners may also
move to otherwise amend the petition or to dismiss or to withdraw it,
and any such motion shall be allowed by the court. If such petition is
not dismissed or withdrawn, the court by written order shall find and
determine whether such territory meets the requirements of this Act, and
the sufficiency of the petition as filed or amended, and of the
proceedings thereon.
Should 2 or more petitions covering in part the same territory be
filed prior to the public hearing, such petitions shall be consolidated
for public hearing, and hearing upon the first petition which is filed
may be continued to permit the giving of notice of any such subsequent
petition or petitions. At the public hearing upon such petitions, the
petitioners in the petition first filed may move to amend such petition
to include any part of the territory described in the subsequent
petition or petitions, either as originally filed or as amended. Any
such motion shall be allowed by the court. The public hearing shall
proceed upon the first petition as originally filed or as so amended,
and further proceedings upon any such other petitions subsequently filed
shall be stayed and held in abeyance until the termination of all
proceedings upon the first petition, or any such petition may be
dismissed or withdrawn upon motion of the petitioners therein by their
representatives.
If such territory, petition and proceedings meet the requirements of
this Act, the court shall in, and by the order finding and determining
the sufficiency of the petition and that the territory meets the
requirements of the Act or by a separate order, order the proposition
submitted to referendum in accordance with the general election law. The
clerk of the circuit court shall certify the order and the proposition to
the appropriate election officials who shall submit the proposition to the
voters at an election in accordance with the general election law.

(Source: P.A. 81-1489.)
 
(70 ILCS 910/7) (from Ch. 23, par. 1257)
Sec. 7.

In addition to the requirements of the general election law,
notice of the referendum shall state briefly the purpose of the referendum
and shall include a description of the
territory. The notice shall further state that any such District upon its
establishment shall have the powers, objects and purposes provided by this
Act, including the power to levy a tax of not to exceed .075 per cent of
value, as equalized or assessed by the Department of Revenue, of all taxable
property within the area of the District, for hospital operation and
maintenance and other corporate purposes, and the
power to issue tax secured bonds in the manner provided in this Act.
Each legal voter residing within the territory shall have a right to cast
a ballot at such election. The proposition shall be in substantially the
following form:

--------------------------------------------------------------
Shall "An Act providing for
the creation and operation of
Hospital Districts" approved
July 15, 1949, be adopted,
and the.... Hospital District YES
be established?
If established, the Hospital
District will have the powers,
objects and purposes provided ---------------------
by the Act, including the power
to levy a tax of not to exceed
.075 per cent of the value of
taxable property, as equalized NO
or assessed by the Department of
Revenue, for hospital operation
and maintenance and other
corporate purposes.

--------------------------------------------------------------
The court shall cause the order
determining and declaring results of the election to be entered of record
in the court and a certified copy thereof shall be filed with
the circuit clerk of each such other county who shall cause the same to
be filed in the records of the court of such county.

(Source: P.A. 83-343.)
 
(70 ILCS 910/8) (from Ch. 23, par. 1258)
Sec. 8.

If a majority of the voters voting upon the question of the
adoption of this Act and the establishment of a Hospital District shall be
favorable, the inhabitants thereof shall be deemed to have accepted the
provisions of this Act, and the territory shall thenceforth be deemed an
organized Hospital District under this Act, having the name stated in the
petition which shall be evidenced by an order to be entered of record by
the court.

(Source: Laws 1967, p. 3716.)
 
(70 ILCS 910/9) (from Ch. 23, par. 1259)
Sec. 9.

Within 90 days after the order declaring the result of such
election has been entered, the Board of Directors shall cause a certified
copy of such order to be filed in the office of the county clerk of each
county in which the District is situated and in the office of the Secretary
of State, and the Secretary of State shall thereupon issue a certificate of
incorporation to such District, which certificate of incorporation shall be
recorded in the office of the recorder of the
county in which the
proceedings were had. Such requirements of filing and recording are
directory, and failure to file within apt time shall not vitiate such
organization.

(Source: P.A. 83-358.)
 
(70 ILCS 910/10) (from Ch. 23, par. 1260)
Sec. 10.

Petitions for annexation; petitions to detach previously annexed
territory.
A petition for annexation of land to a Hospital District
shall be signed by not less than 10% or 50 voters, whichever is fewer,
residing within the territory therein described proposed for annexation
and shall be filed with the circuit clerk of the county in which the
District or the greater portion thereof is situated, and shall be
addressed to the circuit court. A hearing shall be held thereon as nearly
as possible as in the case of a formation petition. If upon the
hearing, the court finds that the petition is sufficient it shall certify
the proposition to the proper election
officials, who shall submit the question to the voters at an election in
accordance with the general election law. The proposition shall be
substantially
in the following form:

--------------------------------------------------------------
Shall (description of territory) YES
be annexed to the.... Hospital ------------------------
District?
NO

--------------------------------------------------------------

If a majority of the votes cast on the proposition
in the District and in
the territory described in the petition respectively, are in favor of
annexation the court shall by order declare the territory annexed and
shall describe the altered boundaries of the District.
In addition to the above, within 60 days after the entry of an order
by a court under Section 8 of this Act evidencing the organization of a
Hospital District, not less than 50% of the legal voters residing within
any municipality or any civil township (or congressional township in
counties under commission form of government) or such fractional part of
either type of township as is included within such District may file a
petition for the detachment of such territory with the circuit clerk of
the county in which the District or the greater portion thereof is
situated addressed to the circuit court for such county; provided, that
such detachment is not permissible if it will destroy the contiguity of
the territory of the District. In the case of a hospital district created
prior to September 15, 1950 with territory located partially within two
different counties, where less than 10% of the population of the district
is located in one county, the legal voters residing in that part of the
hospital district located within the county representing less than 10% of
the population of said hospital district may file a petition for detachment
at any time. A hearing shall be held thereon as nearly as possible as in
the case of a formation petition. If upon the hearing,
the court finds that the petition is sufficient it shall certify the proposition
to the proper election officials, who shall submit the question to the voters
at an election in
accordance with the general election law. The proposition shall be
substantially
in the following form:

--------------------------------------------------------------
Shall the (described) territory YES
be detached from the.... Hospital ----------------------
District?
NO

--------------------------------------------------------------
If a majority of the votes cast on the proposition
are in favor of
detachment of the territory, the court shall by order declare the
territory detached and shall describe the altered boundaries of the
District.
If territory is disconnected from a district, the property owners in such
territory are still responsible for the proportionate debt of any outstanding
bonded indebtedness at the time of disconnection.
Also in addition, within 24 months after the effective date of this
amendatory Act of the 91st General Assembly, the legal voters residing within a
hospital district
may file a petition for detachment from the hospital district where (i) the
territory sought to be detached was added to the hospital district by way of
annexation; and (ii) the equalized assessed valuation of the territory sought
to be detached constitutes less than 25% of the equalized assessed valuation of
the hospital district. The petition must be signed by not less than 5% of the
legal voters of the territory sought to be detached.
Detachment is not permissible if it would destroy the contiguity
of the territory of the District. A hearing shall be held on the petition as
nearly
as possible as in the case of a formation petition. If upon the hearing, the
court finds that the petition is sufficient, it shall certify the proposition
to the proper election officials, who shall submit the question to the legal
voters of the territory proposed to be detached at an election in accordance
with the general election law. The proposition
shall
be substantially in the following form:

--------------------------------------------------------------
Shall the (described) territory YES
be detached from the.... Hospital ----------------------
District?
NO

--------------------------------------------------------------
If a majority of the votes cast on the proposition are in favor of
detachment
of the territory, the court shall by order declare the territory detached and
shall describe the altered boundaries of the District.
If territory is disconnected from a district, the property owners in that
territory are still responsible for the proportionate debt of any outstanding
bonded indebtedness at the time of disconnection.

(Source: P.A. 91-449, eff. 8-6-99.)
 
(70 ILCS 910/11) (from Ch. 23, par. 1261)
Sec. 11.

Every District so established shall be governed by a board of 9
directors appointed in districts wholly contained within a single county by
the presiding officer of the county board
with the advice and consent of the county board. If the district
is located in more than one county, the
number of directors who are residents of a county shall be in proportion,
as nearly as practicable, to the number of residents of the district who
reside in that county in relation to the total population of the district.
A director appointed initially in a new district shall be a resident of
whichever county is entitled to representation in order to bring about the
proportional representation required herein, and he shall be appointed by
the county board of that county, or in the case of a home rule county as
defined by Article VII, Section 6 of the Constitution of 1970, the chief
executive officer of that county, with the advice and consent of the county
board.
Upon expiration of the term of a director who is in office
on the effective date of this amendatory Act, the successor shall be
a resident of whichever county is entitled to such representation in
order to bring about the proportional representation required herein,
and he shall be appointed by the county board of that county, or in the
case of a home rule county as defined by Article VII, Section 6 of
the Constitution of 1970, the chief executive officer of that county,
with the advice and consent of the county board.
Thereafter, each director shall be succeeded by a resident
of the same county who shall be appointed by the same appointing
authority; however, the provisions of the preceding paragraph shall
apply to the appointment of the successor to each director who is
in office at the time of the publication of each decennial Federal
census of population.
Each director should be selected because of his particular interest in
the field of public health. The appropriate appointing authority in its
selection of directors shall give due consideration to a fair
representation throughout the District. A director must reside within the
territory of the District. Should any director cease to so reside, then his
office shall be deemed vacated, and shall be filled by appointment for the
remainder of the term as hereinafter provided.
All initial appointments of directors shall be made within 60 days after
the determination of the result of the election. Each appointment shall be
in writing and filed and made a matter of record in the office of the
county clerk wherein the organization proceedings are filed. A director
shall qualify within 10 days after appointment by acceptance and the taking
of the constitutional oath of office, both to be in writing and similarly
filed for record in the office of the county clerk. In the appointment of
the first board of directors of such District, the appropriate appointing
authority shall appoint 3 members to serve for terms of one year, 3 for
terms of 2 years and 3 for terms of 3 years. All members appointed
thereafter shall be appointed for terms of 3 years except where an
appointment is made to fill a vacancy in which case the appointment shall
be for the remaining term of the position vacant. A director shall continue
to serve after the expiration of his term until his successor has been
appointed and qualified.

(Source: P.A. 79-1454.)
 
(70 ILCS 910/12) (from Ch. 23, par. 1262)
Sec. 12.

All courts shall take judicial notice of the existence of a
Hospital District and of the area of jurisdiction of an existing District.

(Source: Laws 1949, p. 361.)
 
(70 ILCS 910/13) (from Ch. 23, par. 1263)
Sec. 13.
Qualification and removal of directors.
(a) The qualification of individuals to serve on the board
of directors of any Hospital District shall be determined in accordance
with Sections 3 and 3.2 of the Public Officer Prohibited Activities Act.
(a-5) Notwithstanding the provisions of subsection (a), at least one
member of the board of directors may be a member of a district hospital
medical staff.
(b) Should it appear to the appointing authority that any member of the
board of directors of a Hospital District may be disqualified, guilty of
misconduct or malfeasance in office or unwilling or unable to act, the
appointing authority shall notify the member of that fact in writing and it
shall then be the duty of the member to show cause why he should not be
removed from office. Any such person shall be given a hearing by the
circuit court and, after such hearing, if the circuit court finds such a
charge should be sustained, it shall remove the person so charged from
office, and a vacancy shall thereupon exist for the unexpired term of such
office.

(Source: P.A. 90-197, eff. 1-1-98.)
 
(70 ILCS 910/14) (from Ch. 23, par. 1264)
Sec. 14.

The board of directors of a District shall possess and exercise
all of its legislative and executive powers. Within thirty days after the
appointment of the initial directors, the board shall meet. The time and
place of the first meeting of the board shall be designated by the circuit
court. At its first meeting the board shall elect a chairman from its
members and select a secretary, treasurer and such officers or employees as
it deems expedient or necessary for the accomplishment of its corporate
objects. The secretary and treasurer need not be members of the Board. At
the meeting the board, by ordinance, shall define the first and subsequent
fiscal years of the District, and shall adopt a corporate seal and by-laws,
which shall determine the times for the annual election of officers and of
other regular and special meetings of the board and shall contain the rules
for the transaction of other business of the District and for amending such
by-laws.
Each director of any such District shall devote such time to the duties
of such office as the faithful discharge thereof may require and shall
serve without compensation.

(Source: Laws 1967, p. 3716.)
 
(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 and to execute, deliver, and perform
mortgages and security agreements to secure such borrowing.
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. 92-534, eff. 5-14-02; 92-611, eff. 7-3-02.)
 
(70 ILCS 910/15.1) (from Ch. 23, par. 1265.1)
Sec. 15.1.


A hospital district also has power to organize, join, incorporate,
belong to, or participate in hospital service organizations organized as
not for profit corporations or as co-operatives and organized solely for
providing laundry services to member hospitals, institutions or facilities
providing public health or nursing care services under a license granted by
the State of Illinois.

(Source: P.A. 77-114.)
 
(70 ILCS 910/15.2) (from Ch. 23, par. 1265.2)
Sec. 15.2.

Purchases made pursuant to this Act shall be made in
compliance with the "Local Government Prompt Payment Act", approved by the
Eighty-fourth General Assembly.

(Source: P.A. 84-731.)
 
(70 ILCS 910/15.3)
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.

(Source: P.A. 92-534, eff. 5-14-02.)
 
(70 ILCS 910/15.4)
Sec. 15.4. Eminent domain. Notwithstanding any other provision of this Law, any power granted under this Law to acquire property by condemnation or eminent domain is subject to, and shall be exercised in accordance with, the Eminent Domain Act.

(Source: P.A. 94-1055, eff. 1-1-07.)
 
(70 ILCS 910/16) (from Ch. 23, par. 1266)
Sec. 16. In all cases where land in fee simple, rights in land, air or
water, easements or other interests in land, air, or water or property or
property rights are acquired by a District by condemnation, the procedure
shall be, as nearly as may be, in accordance with that provided for the
exercise of the right of eminent domain under the Eminent Domain Act.

(Source: P.A. 94-1055, eff. 1-1-07.)
 
(70 ILCS 910/17) (from Ch. 23, par. 1267)
Sec. 17.

Action of the board of directors of a Hospital District of a
legislative character shall be in the form of an ordinance, and after
adoption shall be filed with the secretary and shall be made a matter of
public record in the office of the District. Other action of the board
may be by resolution, motion or in other appropriate form, and executive
or ministerial duties may be delegated to one or more directors or to an
authorized officer, employee, agent, attorney, or other representative of
the District. A majority of the directors appointed and qualified shall
constitute a quorum to do business.
The enacting clause of any ordinance shall be substantially as
follows: "Be it ordained by the board of directors of.... Hospital
District."

(Source: P.A. 81-1509.)
 
(70 ILCS 910/18) (from Ch. 23, par. 1268)
Sec. 18.

The Board shall provide for the proper and safe keeping of its
permanent records and for the recording of the corporate action of the
District. It shall keep a true and accurate account of its receipts and an
annual audit shall be made of its books, records and accounts. All officers
and employees authorized to receive or retain the custody of money or to
sign vouchers, checks, warrants or evidences of indebtedness binding upon
the District shall furnish surety bond for the faithful performance of
their duties and the faithful accounting for all moneys that may come into
their hands in an amount to be fixed and in a form to be approved by the
board.

(Source: Laws 1949, p. 361.)
 
(70 ILCS 910/19) (from Ch. 23, par. 1269)
Sec. 19.

Whenever an ordinance shall be adopted by the board of directors
of a District by a two-thirds vote of the membership to change the name of
such District, a certified copy of such ordinance shall be filed in the
office of the county clerk of the county wherein such District or any
portion thereof is located and in the office of the Secretary of State and
thereupon such change of name of such District shall be effective.

(Source: Laws 1949, p. 361.)
 
(70 ILCS 910/20) (from Ch. 23, par. 1270)
Sec. 20.

Except as otherwise provided in this Section, every
District created under this Act is empowered to levy and
collect a general tax on all of the taxable property within the
corporate limits of the District for the purposes of paying the cost of
operating and maintaining the hospital or any hospital facility of the
District, and any other corporate expenses of the District. The
aggregate amount of such tax for one year, exclusive of the amount
levied for bonded indebtedness or interest thereupon, shall not exceed
the rate of .075 per cent of the value, as equalized or assessed by the
Department of Revenue, of all the taxable property in the District.
The board of directors of any Hospital District shall annually within
the first quarter of the fiscal year adopt an appropriation ordinance
appropriating such sums of money as are deemed necessary to pay the
costs of operating and maintaining the hospital facilities located
within the corporate limits of the District and under the jurisdiction
thereof and other expenses of the District and specifying the purpose of
each appropriation made.
After the adoption of the appropriation ordinance and on or before
the first Tuesday in December of each year,
the board of directors shall ascertain the total amount of the
appropriations legally made which are to be provided for from the tax levy
for that year. Then, by an ordinance specifying in detail the purposes for
which such appropriations have been made and the amounts appropriated for
such purposes, the board of directors shall levy not to exceed the total
amount so ascertained upon all the property subject to taxation within the
District as the same is assessed and equalized for state and county
purposes for the current year. A certified copy of such ordinance shall be
filed on or before the last Tuesday in December with the clerk of
each county wherein the District or any part thereof is located.
The provisions of the Illinois Municipal Budget Law shall have no
application to Hospital Districts organized under this Act.
No District shall levy and collect a tax pursuant to this Section in
excess of the rate required to retire debt existing as of the effective
date of this amendatory Act of 1983 if more than half of the territory of the
District lies within a non home rule county with a population over 500,000
and if no part of the territory lies within a home rule county.

(Source: P.A. 87-17.)
 
(70 ILCS 910/21) (from Ch. 23, par. 1271)
Sec. 21.

A District may secure the necessary funds to finance part or
all of the cost of acquiring, establishing, constructing, developing,
expanding, extending or further improving a hospital or hospital
facilities within its corporate limits, through the issuance of bonds,
the principal amount of which at any one time outstanding may not exceed
5.75% of the value, as equalized or assessed by the Department of Revenue,
of all taxable property located within its corporate
limits or, until January 1, 1983, if greater, the sum that is produced by
multiplying the district's 1978 equalized assessed valuation by the debt
limitation percentage in effect on January 1, 1979. However, no such District
may issue bonds the principal amount
of which, together with all other outstanding bonds, exceeds 1-1/2% of
the value, as equalized or assessed by the Department of Revenue, of all
taxable property located within its corporate
limits, unless the proposition to issue such bonds has been submitted to
the legal voters of such District at an election and has been approved by
a majority of those voting upon the proposition.
The question of issuing bonds in excess of 1-1/2% of the value of all
taxable property located within the limits of the District must be
submitted at an election. The Board of Directors shall certify the proposition
to the proper election officials, who shall submit the proposition to the
voters at an election in accordance with the general election law. The
proposition shall be substantially as follows:

--------------------------------------------------------------
Shall.... Hospital District be YES
authorized to issue bonds in the amount ---------------------
of $.... for the purpose of....? NO

--------------------------------------------------------------
If a majority of the voters voting
upon such question vote in favor thereof, the board of directors has the
authority to adopt an ordinance providing for the issuance of the bonds.
The ordinance must prescribe all details of the bonds and must state
the time or times when bonds, and the interest thereon, become payable.
The bonds are payable within 20 years from the date thereof and the
interest payable thereon may not exceed
the maximum rate authorized by the Bond Authorization Act, as amended at the
time of the making of the contract. The
ordinance must provide for the levy and collection of a direct annual
tax upon all the taxable property within the corporate limits of such
District sufficient to meet the principal and interest of the bonds as
they mature, which tax is in addition to and in excess of any other tax
authorized to be levied by the District.
A certified copy of the ordinance providing for the issuance of bonds
authorized by this Section must be filed with the county clerk of each
county in which the District or any portion thereof is situated and
constitutes the basis for the extension and collection of the tax
necessary to pay the principal of and interest upon the bonds issued
under the ordinance as they mature.
Such bonds may be made registrable as to principal and may not be
sold at less than par and accrued interest and are considered to be
negotiable instruments. They must be executed by the chairman of the
District and its secretary and must be sealed with the corporate seal of
the District. The facsimile signatures of the chairman and the secretary
of the District may be used on all interest coupons attached to the
bonds instead of their actual signatures. In case any officer whose
signature appears on the bonds, or any portion thereof, or in facsimile
form to any coupons attached to the bonds, or any portion thereof,
ceases to hold office before delivery of the bonds, his signature,
nevertheless, is valid and sufficient for all purposes, as if he had
remained in office until after the bonds had been delivered.
A Hospital District may apply for and receive the grant or loan of
money or other financial aid from the state or federal government or
from any State or federal agency, department, bureau or board, necessary
or useful for the undertaking, performance or execution of any of its
corporate objects or purposes. Any such District may undertake the
acquisition, establishment, construction, development or improvement of
a hospital within its corporate limits and hospital facilities
incidental or appurtenant thereto, in cooperation with or as a joint
enterprise with the state or federal governments or with both the state
and federal governments acting or represented by any State or federal
agency, department, bureau or board.
The District may not issue any bonds under this Section unless a public
hearing, with adequate notice to the public, is held prior to the issuance
of the bonds. Notice of the hearing giving the purpose, time and place of
the hearing shall be published at least once, not more than 30 nor less
than 15 days before the hearing, in one or more newspapers published in
the district, and if there is none, in a newspaper published in the county
and having general circulation in the district.
No District shall issue bonds or levy and collect a tax pursuant to this
Section other than to retire debt existing as of the effective date of
this amendatory Act of 1983, if more than half of the territory of the District
lies within a non home rule county with a population over 500,000 and if
no part of the territory lies within a home rule county.
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.)
 
(70 ILCS 910/21.1) (from Ch. 23, par. 1271.1)
Sec. 21.1.

Without submitting the question to the voters of the district and
without complying with Section 21 of this Act, a Hospital District may
borrow money and issue its notes secured by and payable solely from
unencumbered accounts receivable of the District as follows:
Whenever the district considers it advisable and in the interest of the
district to borrow funds secured by such accounts receivable, the Board may
from time to time and pursuant to an appropriate ordinance issue notes to
evidence such borrowings. Any ordinance authorizing the issuance of such
notes shall specify the principal amount, denomination, rate of interest
(a rate not to exceed the maximum rate authorized by the Bond Authorization
Act, as amended at the time of the making of the contract), form of note, and
such other terms as are necessary in
connection with the issue of such notes. Notes shall mature in not to
exceed 5 years from date of issue. Interest thereon shall be payable
semiannually. There shall be attached to such ordinance a list of the
accounts receivable pledged to the payment of principal of and interest on
such notes. Each such note may be extended once for at least 3 years from
its maturity date.
The district may provide for the registration of the notes in the name
of the owner either as to principal or interest or as to both principal and
interest on such terms and conditions as its Board may determine by the
ordinance authorizing their issue. No member of the Board or hospital
administration shall have any personal economic interest in any notes
issued in accordance with this Section.
The notes shall be made redeemable at any time prior to maturity at the
option of the district, in the manner and by the terms fixed by the
ordinance authorizing the issuance thereof. The notes may be executed in
the name of the district by the chairman of the Board and attested by the
secretary thereof or shall be executed by such other officer or officers as
may be designated in and by the ordinance authorizing the issue thereof and
attested by the secretary thereof and be sealed with the district's
corporate seal.
All notes issued under this Section shall be payable solely from the
accounts receivable pledged for the payment thereof and each note shall
state that fact upon its face, and shall also state that it does not
constitute an obligation of the district within the meaning of any
provision of the Constitution or statutes of the State of Illinois and that
no holder of any such note may compel any exercise of the taxing power of
the Hospital District to pay such note or interest thereon.
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.)
 
(70 ILCS 910/21.2) (from Ch. 23, par. 1271.2)
Sec. 21.2.

The corporate authorities of any Hospital District may enter
into installment purchase and lease agreements and issue debt certificates
under subsection (b) of Section 17 of the Local Government Debt Reform Act
and may
issue and sell revenue bonds, payable from the revenue derived from the
operation of the hospital, for the purpose of (1) constructing,
reconstructing, repairing, remodeling, extending, equipping, or improving
a hospital building, buildings,
or facilities and acquiring a
site or sites for a
hospital building, buildings, or facilities,
(1.5) financing operations and working
cash,
or (2) refunding
any such revenue bonds
theretofore issued from time to time when considered necessary or
advantageous in the public interest. These bonds shall be authorized by
an ordinance without submission thereof to the electors of the Hospital
District, 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 greater of (i)
the maximum rate authorized by the Bond Authorization Act, as amended at
the time of the making of the contract, or (ii) 9% per annum, 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 the greater of (i) the maximum rate authorized by the Bond
Authorization Act, as amended at the time of the making of the contract, or
(ii) 9% per annum if issued on or after the effective date of this
amendatory Act, based on the average maturity of such bonds and computed
according to standard tables of bond values. No member of the Board or
hospital administration shall have any personal economic interest in any
bonds issued in accordance with this Section.
The corporate authorities of any such Hospital District availing
itself of the provisions of this Section shall adopt an ordinance
describing in a general way the building, buildings, or
facilities, or additions or
extensions thereto, to be constructed, reconstructed, repaired,
remodeled, extended, equipped or improved, and the site or sites to be
acquired. Such ordinance shall set out the estimated cost of such
construction, reconstruction, repair, remodeling, extension, equipment,
improvement or acquisition and fix the amount of revenue bonds proposed
to be issued, the maturity, interest rate, and all details in respect
thereof, including any provision for redemption prior to maturity, with
or without premium, and upon such notice as may be provided by the
ordinance. Such ordinance may also contain such provisions and
covenants which shall be part of the contract between the Hospital
District and the holders of such bonds as may be considered necessary
and advisable as to the operation, maintenance, and management of the
hospital or hospitals, the establishment and maintenance of sinking
funds, reserve funds, and other special funds, including construction
funds, the fixing and collection of rents, fees and charges for the use
of the facilities of the hospital or hospitals 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 or hospitals,
the kind and amount of insurance, including use and occupancy insurance,
if any, to be carried, the cost of which shall be payable only from the
revenues derived from the hospital or hospitals and such other covenants
deemed necessary or desirable to assure the successful operation and
maintenance of the hospital or hospitals and the prompt payment of the
principal of and interest upon the bonds so authorized.
Revenue bonds issued under this Section shall be signed by the
chairman and secretary of the Board or such other officers as the Board
may by ordinance direct to sign such bonds, and shall be payable from
revenue derived from the operation of the hospital or hospitals. These
bonds may not in any event constitute an indebtedness of the Hospital
District 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 this Section,
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 Hospital District within the
meaning of any constitutional or statutory limitation or provision. No
holder of any such revenue bond may compel any exercise of the taxing
power of the Hospital District to pay such bond or interest thereon.
The District may not issue any bonds under this Section unless a public
hearing, with adequate notice to the public, is held prior to the issuance
of the bonds. Notice of the hearing giving the purpose, time and place of
the hearing shall be published at least once, not more than 30 nor less
than 15 days before the hearing, in one or more newspapers published in
the district, and if there is none, in a newspaper published in the county
and having general circulation in the district.
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. 92-611, eff. 7-3-02.)
 
(70 ILCS 910/21.3)
Sec. 21.3. Lines of credit.
(a) A hospital district may enter into a line of credit secured by and payable from one or more of these sources: property taxes, unencumbered accounts receivable, or other revenues, in an amount not to exceed the greater of the following amounts if the source is pledged: (i) 85% of the amount of property taxes most recently levied, (ii) 85% of unencumbered accounts receivable of the district (in substantially the manner set forth in Section 21.1 of this Act), (iii) 85% of other revenues (in substantially the manner set forth in Section 21.2 of this Act), or (iv) 85% of amounts unpaid under third-party reimbursement or payment programs (including but not limited to State or federal Medicare or Medicaid payments or programs). All moneys so borrowed shall be repaid within 24 months.
(b) Before establishing a line of credit under this Section, the hospital district shall authorize the line of credit by ordinance. The ordinance shall set forth facts demonstrating the need for the line of credit, state the amount to be borrowed, establish a maximum interest rate limit not to exceed the maximum rate authorized by the Bond Authorization Act, and provide a date by which the borrowed funds shall be repaid. The ordinance shall authorize and direct the relevant officials to make arrangements to set apart and hold, as applicable, the moneys that will be used to repay the borrowing. In addition, the ordinance may authorize the relevant officials to make partial repayments on the line of credit as the moneys become available and may contain any other terms, restrictions, or limitations desirable or necessary to give effect to this Section 21.3.

(Source: P.A. 95-366, eff. 8-23-07.)
 
(70 ILCS 910/22) (from Ch. 23, par. 1272)
Sec. 22.

Any person, desiring to donate property for the benefit of a
hospital, constructed or to be constructed under this Act, may vest title
to the property so donated in the board of directors created under this
Act, and the Board of Directors shall hold and control the property so
received and accepted according to the terms of the deed, gift or
legacy of the property, and shall be a trustee of the property and shall
take title to all property it may acquire in the name of the District and
shall control such property for the purposes provided in this Act.

(Source: P.A. 83-388.)
 
(70 ILCS 910/23) (from Ch. 23, par. 1273)
Sec. 23.

In case any Hospital District organized hereunder shall be
coterminous with or shall include within its corporate limits in whole or
in part any pre-existing public agency authorized to own, operate and
maintain a public hospital and to levy taxes for any such purpose, then
such public agency shall cease to exercise any power in respect to
hospitals within such Hospital District from and after the date that it
receives written notice from the Director of Public Health to cease
operation of its hospital, which notice shall be given only after the
Director of Public Health has ascertained that the Hospital District has
placed its hospital facilities in operation, and such public agency shall
not thereafter own, operate, maintain, manage, control or have an interest
in any public hospital within the corporate limits of said Hospital
District. The Director of Public Health, upon request of the Board of
Directors of any Hospital District, shall ascertain whether its hospital
facilities are in operation so that it may supersede the power of any
public agency to operate a hospital within the boundaries of the District.
Where in any case any pre-existing public agency is in fact owning,
operating and maintaining a public hospital located within the corporate
limits of a Hospital District organized under this Act, such public agency
shall be paid and reimbursed, upon such terms as may be agreed upon by its
corporate authorities and the Board of Directors of such Hospital District,
its actual expenditures theretofore made in acquiring the land for any such
hospital and in acquiring, constructing, improving or developing any
existing hospital facilities, not including funds advanced for that purpose
or otherwise paid or expended either directly or indirectly by State or
Federal governments. The terms of payment shall provide for reimbursement
in full within not less than twenty years from the date of such agreement.
In case the amount and terms of reimbursement cannot be determined or
agreed upon between the corporate authorities of any existing public agency
and the Board of Directors of the Hospital District, the Board of Directors
of such Hospital District shall cause a description of the existing
hospital facilities to be made, together with an estimate of all actual
expenditures made by the public agency therefor and shall tender payment of
the total amount so estimated in writing to the corporate authorities of
such public agency. Such tender shall provide for payment by the District
of the amount tendered within ten years from date thereof, and that portion
of said sum to be paid on and after twelve months from the date of such
tender shall bear interest at
a rate not to exceed the maximum rate authorized by the Bond Authorization
Act, as amended at the time of the making of the contract. In
case such a tender is not accepted in writing by the corporate authorities
of such public agency within thirty days after the same is made, the
Hospital District by its Board of Directors shall file a petition in the
Circuit Court of the county in which the Hospital District and such public
agency or the major portions thereof are situated, making such public
agency a party defendant thereto, setting forth a description of the
hospital facilities, the estimated amount of expenditures made by the
defendants thereon, the fact that a tender had been made for the payment of
the actual expenditures in accordance with the estimate, and praying that
it be determined by the Circuit Court the true amount of such expenditures
by said public agency. A copy of such petition shall be served upon the
presiding officer of such public agency within five days after filing of
the petition and upon presentation to the court of proof of such service
said petition shall be set down for hearing within not more than sixty days
from the date of filing said petition. The hearing thereon may be continued
from time to time upon the request of either party within the discretion of
the Circuit Court and upon the hearing the Circuit Court shall consider
such evidence as may be submitted by either party and shall determine the
amount of such actual expenditures made by the public agency for the
existing hospital facilities. The amount so determined shall be conclusive
as between said parties and shall be paid by the Hospital District within
five years after the entry of the order by the Circuit Court and that
portion of the amount which is not to be paid within twelve months from
date of the order shall bear interest at
a rate not to exceed the maximum rate authorized by the Bond Authorization
Act, as amended at the time of the making of the contract, and the public
agency shall accept said sums in full payment for all
existing hospital facilities owned by it and said public agency shall from
and after the entry of the order of the Circuit Court and receipt of notice
from the Director of Public Health cease to exercise any power in respect
to public hospitals within the corporate limits of the said Hospital
District.
Any money received by a public agency pursuant to this section shall be
used to discharge any debt resulting from the construction, operation or
maintenance of its public hospital, and the balance shall be used for its
general corporate purposes.
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.)
 
(70 ILCS 910/25) (from Ch. 23, par. 1275)
Sec. 25.

In case the board of directors of any hospital district organized
under this Act finds: (i) that all or any part of the need for
hospital
services of the inhabitants of the District can be better served on a
permanent basis by the ownership and operation of the hospital's facilities
by a not-for-profit corporation organized by the District's board of directors,
or by the facilities of another hospital or hospitals,
publicly or privately operated, and located in or not more than 20 miles
from the boundaries of the district; (ii) that provision of
hospital
services by such not-for-profit corporation or other hospital or hospitals
will result in a permanent
net improvement of quality of overall hospital services for the
inhabitants of the District; and (iii) that such not-for-profit
corporation
or other hospital or
hospitals have entered into binding contracts with the District to so
provide such hospital services on a permanent basis to the inhabitants
of the District and discharge or assume all debts, liabilities, and
obligations of the District in return for conveyance and transfer to
such not-for-profit corporation or hospital or hospitals all assets
of the District,
or that the hospital district has entered into a binding contract with a
fire protection district, health care foundation, or other entity that
provides emergency or medical services to the general public, operating
wholly or partially within the boundaries of the hospital district, to
convey all of the hospital district's assets to a fire protection district,
health care foundation, or other entity, so long as the entity accepting
the hospital district's assets assumes all of the hospital district's
outstanding indebtedness, and the amount of this indebtedness does not exceed
the amount of the hospital district's assets,
such contracts
subject to completion of dissolution of the District as provided in this
Section and to take effect immediately upon completion of dissolution of
the District, provided that the Department of Public Health shall be a
party to such contracts as a trustee for the inhabitants' interests
following dissolution of the District, the District may be dissolved in
the following manner:
The board of directors of the District shall propose an ordinance
finding and determining that the foregoing conditions exist and that the
best interest of the inhabitants of the District does not require
continuation of the District. The board of directors shall officially
invite the State Comprehensive Health Planning Agency to review and
comment upon the proposed ordinance and shall provide whatever
documentation is required by the agency for purposes of review and
comment. At any time after receipt of a report from the State
Comprehensive Health Planning Agency or 30 days after extending an
invitation to the agency, if no report has been submitted, the board of
directors may proceed to adopt the proposed ordinance. A certified copy
of the ordinance and the report of the Comprehensive Health Planning
Agency, if submitted previous to adoption of the ordinance, shall be
filed with the Circuit Court of the County in which the District is
located. The circuit court shall set the ordinance for hearing within
not less than 30 nor more than 40 days after the filing of the ordinance
with the circuit clerk.
Notice shall be given by the circuit court of the time and place
where the hearing will be held, by publication on 3 separate days in one
or more newspapers published within the District, the first of these
publications shall be not less than 20 days before the date set for
the hearing, and if there is no such newspaper, then notice shall
be posted in 10 of the most public places in the District, not less than
20 days before the date set for the hearing. This notice shall include
a description of the findings of the board as set out in the ordinance,
the names of the municipalities within the District, and the proposed
effective date of the dissolution.
The court may continue the hearing on the ordinance from time to
time. Upon such public hearing the board of directors may also move to
otherwise amend the ordinance or to dismiss or to withdraw it, and any
such motion shall be allowed by the court. If such ordinance is not
dismissed or withdrawn, the court by written order shall find and
determine whether the facts stated in the ordinance are true and, if so,
shall so certify to the board of directors of the District.
If the court also determines that the District has entered into a binding
contract with a not-for-profit corporation pursuant to which such corporation
is to provide hospital services on a permanent basis to the inhabitants
of the District, then the court shall so certify and the ordinance shall
not be subject to the referendum
provisions of this Section and the District shall be dissolved. If the
court does not determine that such a contract exists,
the ordinance and certificate shall be published once in a daily or
weekly newspaper or newspapers of general circulation published within
the District or, if there be no such newspaper published in the
District, then in a newspaper of general circulation published in a
county wherein the District is located. Such publication of the ordinance
shall be accompanied by a notice of (1) the specific number of voters required
to sign a petition requesting the submission to the electors of the question
of the dissolution of the District; (2) the time in which such petition
must be filed; and (3) the date of the prospective referendum. The secretary
of the Board shall provide a petition form to any individual requesting
one. Unless a petition is filed with
the board within 30 days after such publication containing the signatures
of 1,000 electors or 10% of the registered voters of the
District, whichever is lower, requesting that the question of the
dissolution of the District be submitted to a referendum, the District
shall be deemed to be dissolved at the expiration of that 30 day period.
If such a petition is filed then the question of the dissolution of the
District shall be submitted to the electors of the District and the
board of directors shall certify the question to the proper election
officials, who shall submit the question to the voters at an election in
accordance with the general election law.
The proposition shall read substantially as follows:
The board of directors of the District shall cause the result of the
referendum
to be entered upon the corporate records of the District.
If a majority of the ballots cast on the proposition
are marked "yes"
the District shall be dissolved. But if a majority of the ballots cast
on the proposition are marked "no", the corporate authorities shall proceed
with the affairs of the District as though the dissolution ordinance had
never been adopted, and, in such case, the proposition shall not be
again considered for a period of 2 years. When the business and affairs
of any such District have been closed up after the dissolution thereof
such fact shall be certified by the chairman of its board of directors
to the county clerk and recorder of the county or counties in which the
District was situated and to the Secretary of State.

(Source: P.A. 87-1006.)

Structure Illinois Compiled Statutes