HOSPITAL DISTRICT LAW

Amends the Illinois Health Facilities Authority Act to create the financially distressed provider refunding bond program. Provides that the Authority may issue limited obligation bonds solely for the purpose of enabling a qualifying provider to refinance all or a portion of its outstanding indebtedness that was previously issued to finance or refinance the cost of a health facility (but not including working capital, accounts receivable, and operating expenses), if the debt to be refinanced meets certain criteria. Provides that a "qualifying provider" means a participating health institution that is either: (i) designated as a provider under the Critical Access Hospital program or (ii) demonstrates, to the reasonable written satisfaction of the Director of the Bureau of the Budget, that, for its last 3 fiscal years for which audited financial statements have been prepared, State funding accounted for an annual average of at least 40% of its operating revenues. Amends the State Finance Act to create the Financially Distressed Provider Credit Enhancement Fund. As soon as practical in fiscal year 2004, and each fiscal year thereafter, provides that moneys shall be transferred from the Tobacco Settlement Recovery Fund to the Financially Distressed Provider Credit Enhancement Fund equal to the debt service reserve requirement.