Robinson, IL. (ECWd) –
This week, the Crawford (County) Memorial Hospital District will celebrate an open house for a clinic it opened in Newton, Illinois. Newton is located in Jasper County.
This district levies a property tax to property owners in Crawford County.
The district was formed in 1958 and the referendum and court order establishing the district indicate the corporate boundaries encompass all of Crawford County.
Up until now, the district has only operated inside its corporate boundaries.
The Hospital District Law governs hospital districts and grants certain powers to these districts. Since the district is not a home-rule unit of local government, it operates under “Dillon’s Rule” which is named after Iowa Supreme Court Justice John Forest Dillon in 1868. Under Dillon’s Rule, a local government must look for where the legislature granted it permission to do something (as opposed to looking for something stating they cannot do what they wanted to do). In essence, this district can only do those things that it has been granted permission to do, no matter how much it is wanted or needed, and, if there is any reasonable doubt whether a power has been conferred on a local government, then the power has not been conferred.
Dillon’s rule says that local governments have three types of powers:
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- Those granted in express words,
- Those necessarily or fairly implied in or incident to the powers expressly granted, and
- Those essential to the declared objects and purposes of the corporation, not simply convenient, but indispensable.
Looking at the Hospital District Law, you will find Section 15, paragraph 1, which states (emphasis ours):
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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.
This district has utilized its authority to levy a tax, and they are now conducting business outside its corporate boundaries.
There is no referendum approved by the voters granting the district the powers to operate outside its corporate boundaries. Therefore, the clinic it opened in Newton, Illinois, appears to be in direct violation of the Hospital District Law. It is doing something the law prohibits them from doing (and prohibits it in clear language).
When asked how the district could open and operate the Newton clinic considering the plain language of Section 15(1), Doug Florkowski, Crawford Memorial Hospital District’s Chief Executive Officer, stated: “CMH’s appropriated funds are used for the purposes of bond indebtedness and workers compensation/general liability insurance expenses.”
That did not answer the question presented. The law does not say if a tax is levied and only goes to pay bonds, workers comp, and insurance then you can operate outside your boundaries. It says what it means; that if a tax is levied, you are prohibited from operating outside the district boundaries unless and until a referendum is approved by the voters to do so.
We are exploring options on how this can be fixed and will follow up at a later date. We do know it cannot continue as it is currently operating, at least according to the Hospital District Law.
