101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3680

 

Introduced 2/14/2020, by Sen. William E. Brady

 

SYNOPSIS AS INTRODUCED:
 
110 ILCS 305/0.05 new
110 ILCS 520/1.5 new
110 ILCS 660/5-3 new
110 ILCS 665/10-3 new
110 ILCS 670/15-3 new
110 ILCS 675/20-3 new
110 ILCS 680/25-3 new
110 ILCS 685/30-3 new
110 ILCS 690/35-3 new
110 ILCS 947/65.110 new

    Amends various Acts relating to the governance of public universities in Illinois. Requires each university to transition into a nonpublic institution of higher education beginning on July 1, 2020. Requires the governing board of each university to develop and implement a 6-year plan for this transition. Sets forth provisions concerning the plan and transition. Amends the Higher Education Student Assistance Act. Requires the Illinois Student Assistance Commission to award grants to students in financial need who are enrolled for at least 15 credit hours in an institution of higher learning. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3680LRB101 16899 NHT 66298 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The University of Illinois Act is amended by
5adding Section 0.05 as follows:
 
6    (110 ILCS 305/0.05 new)
7    Sec. 0.05. Transition to nonpublic university.
8    (a) Beginning on July 1, 2020, the University of Illinois
9shall transition into a nonpublic institution of higher
10education. The Board of Trustees of the University of Illinois
11shall develop and implement a 6-year plan for this transition.
12This plan shall include all of the following:
13        (1) A date upon which the University shall be deemed to
14    be a nonpublic institution of higher education.
15        (2) The appointment, by the Board of Trustees, of a
16    governing board to oversee the nonpublic university.
17        (3) A determination of all books, records, funds, and
18    other property of any kind or nature belonging or in any
19    way appertaining to the University that this State shall be
20    required to transfer to the University.
21        (4) How employees, along with their health care,
22    retirement, and all other benefits, as well as any
23    collective bargaining agreements, are to be addressed.

 

 

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1        (5) Recommendations concerning the changes to
2    statutory law needed to effectuate and reflect this
3    transition.
4    A copy of this plan shall be filed with the General
5Assembly as provided in Section 3.1 of the General Assembly
6Organization Act.
7    (b) On the date selected by the Board of Trustees under
8subdivision (1) of subsection (a) of this Section, all of the
9following shall apply:
10        (1) The Board of Trustees is abolished and the terms of
11    all members end, and all of the powers, duties, assets,
12    liabilities, employees, contracts, property, records,
13    pending business, and unexpended appropriations of the
14    Board of Trustees shall be transferred to the governing
15    board appointed under subdivision (2) of subsection (a) of
16    this Section.
17        (2) All rules, standards, policies, and procedures of
18    the University shall continue in effect until they are
19    modified or abolished by the governing board appointed
20    under subdivision (2) of subsection (a) of this Section.
21        (3) The authority of the Board of Higher Education over
22    public institutions of higher education does not include
23    authority over the University.
24        (4) All references in statutes and rules to the
25    University as a State university, a public university, or
26    an institution of higher education funded or supported by

 

 

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1    this State shall be deemed to not refer to the University,
2    and all references to private or nonpublic institutions of
3    higher education in statutes and rules shall be deemed to
4    refer to the University.
5        (5) All books, records, funds, and other property of
6    any kind or nature belonging or in any way appertaining to
7    the University are the property of the University, and this
8    State shall be deemed to have no ownership interest.
 
9    Section 10. The Southern Illinois University Management
10Act is amended by adding Section 1.5 as follows:
 
11    (110 ILCS 520/1.5 new)
12    Sec. 1.5. Transition to nonpublic university.
13    (a) Beginning on July 1, 2020, Southern Illinois University
14shall transition into a nonpublic institution of higher
15education. The Board of Trustees of Southern Illinois
16University shall develop and implement a 6-year plan for this
17transition. This plan shall include all of the following:
18        (1) A date upon which the University shall be deemed to
19    be a nonpublic institution of higher education.
20        (2) The appointment, by the Board of Trustees, of a
21    governing board to oversee the nonpublic university.
22        (3) A determination of all books, records, funds, and
23    other property of any kind or nature belonging or in any
24    way appertaining to the University that this State shall be

 

 

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1    required to transfer to the University.
2        (4) How employees, along with their health care,
3    retirement, and all other benefits, as well as any
4    collective bargaining agreements, are to be addressed.
5        (5) Recommendations concerning the changes to
6    statutory law needed to effectuate and reflect this
7    transition.
8    A copy of this plan shall be filed with the General
9Assembly as provided in Section 3.1 of the General Assembly
10Organization Act.
11    (b) On the date selected by the Board of Trustees under
12subdivision (1) of subsection (a) of this Section, all of the
13following shall apply:
14        (1) The Board of Trustees is abolished and the terms of
15    all members end, and all of the powers, duties, assets,
16    liabilities, employees, contracts, property, records,
17    pending business, and unexpended appropriations of the
18    Board of Trustees shall be transferred to the governing
19    board appointed under subdivision (2) of subsection (a) of
20    this Section.
21        (2) All rules, standards, policies, and procedures of
22    the University shall continue in effect until they are
23    modified or abolished by the governing board appointed
24    under subdivision (2) of subsection (a) of this Section.
25        (3) The authority of the Board of Higher Education over
26    public institutions of higher education does not include

 

 

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1    authority over the University.
2        (4) All references in statutes and rules to the
3    University as a State university, a public university, or
4    an institution of higher education funded or supported by
5    this State shall be deemed to not refer to the University,
6    and all references to private or nonpublic institutions of
7    higher education in statutes and rules shall be deemed to
8    refer to the University.
9        (5) All books, records, funds, and other property of
10    any kind or nature belonging or in any way appertaining to
11    the University are the property of the University, and this
12    State shall be deemed to have no ownership interest.
 
13    Section 15. The Chicago State University Law is amended by
14adding Section 5-3 as follows:
 
15    (110 ILCS 660/5-3 new)
16    Sec. 5-3. Transition to nonpublic university.
17    (a) Beginning on July 1, 2020, Chicago State University
18shall transition into a nonpublic institution of higher
19education. The Board of Trustees of Chicago State University
20shall develop and implement a 6-year plan for this transition.
21This plan shall include all of the following:
22        (1) A date upon which the University shall be deemed to
23    be a nonpublic institution of higher education.
24        (2) The appointment, by the Board of Trustees, of a

 

 

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1    governing board to oversee the nonpublic university.
2        (3) A determination of all books, records, funds, and
3    other property of any kind or nature belonging or in any
4    way appertaining to the University that this State shall be
5    required to transfer to the University.
6        (4) How employees, along with their health care,
7    retirement, and all other benefits, as well as any
8    collective bargaining agreements, are to be addressed.
9        (5) Recommendations concerning the changes to
10    statutory law needed to effectuate and reflect this
11    transition.
12    A copy of this plan shall be filed with the General
13Assembly as provided in Section 3.1 of the General Assembly
14Organization Act.
15    (b) On the date selected by the Board of Trustees under
16subdivision (1) of subsection (a) of this Section, all of the
17following shall apply:
18        (1) The Board of Trustees is abolished and the terms of
19    all members end, and all of the powers, duties, assets,
20    liabilities, employees, contracts, property, records,
21    pending business, and unexpended appropriations of the
22    Board of Trustees shall be transferred to the governing
23    board appointed under subdivision (2) of subsection (a) of
24    this Section.
25        (2) All rules, standards, policies, and procedures of
26    the University shall continue in effect until they are

 

 

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1    modified or abolished by the governing board appointed
2    under subdivision (2) of subsection (a) of this Section.
3        (3) The authority of the Board of Higher Education over
4    public institutions of higher education does not include
5    authority over the University.
6        (4) All references in statutes and rules to the
7    University as a State university, a public university, or
8    an institution of higher education funded or supported by
9    this State shall be deemed to not refer to the University,
10    and all references to private or nonpublic institutions of
11    higher education in statutes and rules shall be deemed to
12    refer to the University.
13        (5) All books, records, funds, and other property of
14    any kind or nature belonging or in any way appertaining to
15    the University are the property of the University, and this
16    State shall be deemed to have no ownership interest.
 
17    Section 20. The Eastern Illinois University Law is amended
18by adding Section 10-3 as follows:
 
19    (110 ILCS 665/10-3 new)
20    Sec. 10-3. Transition to nonpublic university.
21    (a) Beginning on July 1, 2020, Eastern Illinois University
22shall transition into a nonpublic institution of higher
23education. The Board of Trustees of Eastern Illinois University
24shall develop and implement a 6-year plan for this transition.

 

 

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1This plan shall include all of the following:
2        (1) A date upon which the University shall be deemed to
3    be a nonpublic institution of higher education.
4        (2) The appointment, by the Board of Trustees, of a
5    governing board to oversee the nonpublic university.
6        (3) A determination of all books, records, funds, and
7    other property of any kind or nature belonging or in any
8    way appertaining to the University that this State shall be
9    required to transfer to the University.
10        (4) How employees, along with their health care,
11    retirement, and all other benefits, as well as any
12    collective bargaining agreements, are to be addressed.
13        (5) Recommendations concerning the changes to
14    statutory law needed to effectuate and reflect this
15    transition.
16    A copy of this plan shall be filed with the General
17Assembly as provided in Section 3.1 of the General Assembly
18Organization Act.
19    (b) On the date selected by the Board of Trustees under
20subdivision (1) of subsection (a) of this Section, all of the
21following shall apply:
22        (1) The Board of Trustees is abolished and the terms of
23    all members end, and all of the powers, duties, assets,
24    liabilities, employees, contracts, property, records,
25    pending business, and unexpended appropriations of the
26    Board of Trustees shall be transferred to the governing

 

 

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1    board appointed under subdivision (2) of subsection (a) of
2    this Section.
3        (2) All rules, standards, policies, and procedures of
4    the University shall continue in effect until they are
5    modified or abolished by the governing board appointed
6    under subdivision (2) of subsection (a) of this Section.
7        (3) The authority of the Board of Higher Education over
8    public institutions of higher education does not include
9    authority over the University.
10        (4) All references in statutes and rules to the
11    University as a State university, a public university, or
12    an institution of higher education funded or supported by
13    this State shall be deemed to not refer to the University,
14    and all references to private or nonpublic institutions of
15    higher education in statutes and rules shall be deemed to
16    refer to the University.
17        (5) All books, records, funds, and other property of
18    any kind or nature belonging or in any way appertaining to
19    the University are the property of the University, and this
20    State shall be deemed to have no ownership interest.
 
21    Section 25. The Governors State University Law is amended
22by adding Section 15-3 as follows:
 
23    (110 ILCS 670/15-3 new)
24    Sec. 15-3. Transition to nonpublic university.

 

 

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1    (a) Beginning on July 1, 2020, Governors State University
2shall transition into a nonpublic institution of higher
3education. The Board of Trustees of Governors State University
4shall develop and implement a 6-year plan for this transition.
5This plan shall include all of the following:
6        (1) A date upon which the University shall be deemed to
7    be a nonpublic institution of higher education.
8        (2) The appointment, by the Board of Trustees, of a
9    governing board to oversee the nonpublic university.
10        (3) A determination of all books, records, funds, and
11    other property of any kind or nature belonging or in any
12    way appertaining to the University that this State shall be
13    required to transfer to the University.
14        (4) How employees, along with their health care,
15    retirement, and all other benefits, as well as any
16    collective bargaining agreements, are to be addressed.
17        (5) Recommendations concerning the changes to
18    statutory law needed to effectuate and reflect this
19    transition.
20    A copy of this plan shall be filed with the General
21Assembly as provided in Section 3.1 of the General Assembly
22Organization Act.
23    (b) On the date selected by the Board of Trustees under
24subdivision (1) of subsection (a) of this Section, all of the
25following shall apply:
26        (1) The Board of Trustees is abolished and the terms of

 

 

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1    all members end, and all of the powers, duties, assets,
2    liabilities, employees, contracts, property, records,
3    pending business, and unexpended appropriations of the
4    Board of Trustees shall be transferred to the governing
5    board appointed under subdivision (2) of subsection (a) of
6    this Section.
7        (2) All rules, standards, policies, and procedures of
8    the University shall continue in effect until they are
9    modified or abolished by the governing board appointed
10    under subdivision (2) of subsection (a) of this Section.
11        (3) The authority of the Board of Higher Education over
12    public institutions of higher education does not include
13    authority over the University.
14        (4) All references in statutes and rules to the
15    University as a State university, a public university, or
16    an institution of higher education funded or supported by
17    this State shall be deemed to not refer to the University,
18    and all references to private or nonpublic institutions of
19    higher education in statutes and rules shall be deemed to
20    refer to the University.
21        (5) All books, records, funds, and other property of
22    any kind or nature belonging or in any way appertaining to
23    the University are the property of the University, and this
24    State shall be deemed to have no ownership interest.
 
25    Section 30. The Illinois State University Law is amended by

 

 

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1adding Section 20-3 as follows:
 
2    (110 ILCS 675/20-3 new)
3    Sec. 20-3. Transition to nonpublic university.
4    (a) Beginning on July 1, 2020, Illinois State University
5shall transition into a nonpublic institution of higher
6education. The Board of Trustees of Illinois State University
7shall develop and implement a 6-year plan for this transition.
8This plan shall include all of the following:
9        (1) A date upon which the University shall be deemed to
10    be a nonpublic institution of higher education.
11        (2) The appointment, by the Board of Trustees, of a
12    governing board to oversee the nonpublic university.
13        (3) A determination of all books, records, funds, and
14    other property of any kind or nature belonging or in any
15    way appertaining to the University that this State shall be
16    required to transfer to the University.
17        (4) How employees, along with their health care,
18    retirement, and all other benefits, as well as any
19    collective bargaining agreements, are to be addressed.
20        (5) Recommendations concerning the changes to
21    statutory law needed to effectuate and reflect this
22    transition.
23    A copy of this plan shall be filed with the General
24Assembly as provided in Section 3.1 of the General Assembly
25Organization Act.

 

 

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1    (b) On the date selected by the Board of Trustees under
2subdivision (1) of subsection (a) of this Section, all of the
3following shall apply:
4        (1) The Board of Trustees is abolished and the terms of
5    all members end, and all of the powers, duties, assets,
6    liabilities, employees, contracts, property, records,
7    pending business, and unexpended appropriations of the
8    Board of Trustees shall be transferred to the governing
9    board appointed under subdivision (2) of subsection (a) of
10    this Section.
11        (2) All rules, standards, policies, and procedures of
12    the University shall continue in effect until they are
13    modified or abolished by the governing board appointed
14    under subdivision (2) of subsection (a) of this Section.
15        (3) The authority of the Board of Higher Education over
16    public institutions of higher education does not include
17    authority over the University.
18        (4) All references in statutes and rules to the
19    University as a State university, a public university, or
20    an institution of higher education funded or supported by
21    this State shall be deemed to not refer to the University,
22    and all references to private or nonpublic institutions of
23    higher education in statutes and rules shall be deemed to
24    refer to the University.
25        (5) All books, records, funds, and other property of
26    any kind or nature belonging or in any way appertaining to

 

 

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1    the University are the property of the University, and this
2    State shall be deemed to have no ownership interest.
 
3    Section 35. The Northeastern Illinois University Law is
4amended by adding Section 25-3 as follows:
 
5    (110 ILCS 680/25-3 new)
6    Sec. 25-3. Transition to nonpublic university.
7    (a) Beginning on July 1, 2020, Northeastern Illinois
8University shall transition into a nonpublic institution of
9higher education. The Board of Trustees of Northeastern
10Illinois University shall develop and implement a 6-year plan
11for this transition. This plan shall include all of the
12following:
13        (1) A date upon which the University shall be deemed to
14    be a nonpublic institution of higher education.
15        (2) The appointment, by the Board of Trustees, of a
16    governing board to oversee the nonpublic university.
17        (3) A determination of all books, records, funds, and
18    other property of any kind or nature belonging or in any
19    way appertaining to the University that this State shall be
20    required to transfer to the University.
21        (4) How employees, along with their health care,
22    retirement, and all other benefits, as well as any
23    collective bargaining agreements, are to be addressed.
24        (5) Recommendations concerning the changes to

 

 

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1    statutory law needed to effectuate and reflect this
2    transition.
3    A copy of this plan shall be filed with the General
4Assembly as provided in Section 3.1 of the General Assembly
5Organization Act.
6    (b) On the date selected by the Board of Trustees under
7subdivision (1) of subsection (a) of this Section, all of the
8following shall apply:
9        (1) The Board of Trustees is abolished and the terms of
10    all members end, and all of the powers, duties, assets,
11    liabilities, employees, contracts, property, records,
12    pending business, and unexpended appropriations of the
13    Board of Trustees shall be transferred to the governing
14    board appointed under subdivision (2) of subsection (a) of
15    this Section.
16        (2) All rules, standards, policies, and procedures of
17    the University shall continue in effect until they are
18    modified or abolished by the governing board appointed
19    under subdivision (2) of subsection (a) of this Section.
20        (3) The authority of the Board of Higher Education over
21    public institutions of higher education does not include
22    authority over the University.
23        (4) All references in statutes and rules to the
24    University as a State university, a public university, or
25    an institution of higher education funded or supported by
26    this State shall be deemed to not refer to the University,

 

 

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1    and all references to private or nonpublic institutions of
2    higher education in statutes and rules shall be deemed to
3    refer to the University.
4        (5) All books, records, funds, and other property of
5    any kind or nature belonging or in any way appertaining to
6    the University are the property of the University, and this
7    State shall be deemed to have no ownership interest.
 
8    Section 40. The Northern Illinois University Law is amended
9by adding Section 30-3 as follows:
 
10    (110 ILCS 685/30-3 new)
11    Sec. 30-3. Transition to nonpublic university.
12    (a) Beginning on July 1, 2020, Northern Illinois University
13shall transition into a nonpublic institution of higher
14education. The Board of Trustees of Northern Illinois
15University shall develop and implement a 6-year plan for this
16transition. This plan shall include all of the following:
17        (1) A date upon which the University shall be deemed to
18    be a nonpublic institution of higher education.
19        (2) The appointment, by the Board of Trustees, of a
20    governing board to oversee the nonpublic university.
21        (3) A determination of all books, records, funds, and
22    other property of any kind or nature belonging or in any
23    way appertaining to the University that this State shall be
24    required to transfer to the University.

 

 

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1        (4) How employees, along with their health care,
2    retirement, and all other benefits, as well as any
3    collective bargaining agreements, are to be addressed.
4        (5) Recommendations concerning the changes to
5    statutory law needed to effectuate and reflect this
6    transition.
7    A copy of this plan shall be filed with the General
8Assembly as provided in Section 3.1 of the General Assembly
9Organization Act.
10    (b) On the date selected by the Board of Trustees under
11subdivision (1) of subsection (a) of this Section, all of the
12following shall apply:
13        (1) The Board of Trustees is abolished and the terms of
14    all members end, and all of the powers, duties, assets,
15    liabilities, employees, contracts, property, records,
16    pending business, and unexpended appropriations of the
17    Board of Trustees shall be transferred to the governing
18    board appointed under subdivision (2) of subsection (a) of
19    this Section.
20        (2) All rules, standards, policies, and procedures of
21    the University shall continue in effect until they are
22    modified or abolished by the governing board appointed
23    under subdivision (2) of subsection (a) of this Section.
24        (3) The authority of the Board of Higher Education over
25    public institutions of higher education does not include
26    authority over the University.

 

 

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1        (4) All references in statutes and rules to the
2    University as a State university, a public university, or
3    an institution of higher education funded or supported by
4    this State shall be deemed to not refer to the University,
5    and all references to private or nonpublic institutions of
6    higher education in statutes and rules shall be deemed to
7    refer to the University.
8        (5) All books, records, funds, and other property of
9    any kind or nature belonging or in any way appertaining to
10    the University are the property of the University, and this
11    State shall be deemed to have no ownership interest.
 
12    Section 45. The Western Illinois University Law is amended
13by adding Section 35-3 as follows:
 
14    (110 ILCS 690/35-3 new)
15    Sec. 35-3. Transition to nonpublic university.
16    (a) Beginning on July 1, 2020, Western Illinois University
17shall transition into a nonpublic institution of higher
18education. The Board of Trustees of Western Illinois University
19shall develop and implement a 6-year plan for this transition.
20This plan shall include all of the following:
21        (1) A date upon which the University shall be deemed to
22    be a nonpublic institution of higher education.
23        (2) The appointment, by the Board of Trustees, of a
24    governing board to oversee the nonpublic university.

 

 

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1        (3) A determination of all books, records, funds, and
2    other property of any kind or nature belonging or in any
3    way appertaining to the University that this State shall be
4    required to transfer to the University.
5        (4) How employees, along with their health care,
6    retirement, and all other benefits, as well as any
7    collective bargaining agreements, are to be addressed.
8        (5) Recommendations concerning the changes to
9    statutory law needed to effectuate and reflect this
10    transition.
11    A copy of this plan shall be filed with the General
12Assembly as provided in Section 3.1 of the General Assembly
13Organization Act.
14    (b) On the date selected by the Board of Trustees under
15subdivision (1) of subsection (a) of this Section, all of the
16following shall apply:
17        (1) The Board of Trustees is abolished and the terms of
18    all members end, and all of the powers, duties, assets,
19    liabilities, employees, contracts, property, records,
20    pending business, and unexpended appropriations of the
21    Board of Trustees shall be transferred to the governing
22    board appointed under subdivision (2) of subsection (a) of
23    this Section.
24        (2) All rules, standards, policies, and procedures of
25    the University shall continue in effect until they are
26    modified or abolished by the governing board appointed

 

 

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1    under subdivision (2) of subsection (a) of this Section.
2        (3) The authority of the Board of Higher Education over
3    public institutions of higher education does not include
4    authority over the University.
5        (4) All references in statutes and rules to the
6    University as a State university, a public university, or
7    an institution of higher education funded or supported by
8    this State shall be deemed to not refer to the University,
9    and all references to private or nonpublic institutions of
10    higher education in statutes and rules shall be deemed to
11    refer to the University.
12        (5) All books, records, funds, and other property of
13    any kind or nature belonging or in any way appertaining to
14    the University are the property of the University, and this
15    State shall be deemed to have no ownership interest.
 
16    Section 50. The Higher Education Student Assistance Act is
17amended by adding Section 65.110 as follows:
 
18    (110 ILCS 947/65.110 new)
19    Sec. 65.110. Illinois Grant Program.
20    (a) Beginning with the 2020-2021 academic year, the
21Commission shall, each year, consider applications for grant
22assistance under this Section. An applicant is eligible for a
23grant under this Section if the Commission finds that the
24applicant meets all of the following qualifications:

 

 

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1        (1) He or she is a United States citizen or eligible
2    noncitizen.
3        (2) He or she is a resident of this State or, if a
4    dependent for income tax purposes, the parent whose
5    information is used on the Free Application for Federal
6    Student Aid is a resident of this State. State residency
7    shall be determined by the filing of a State income tax
8    return.
9        (3) If a male, he has complied with federal Selective
10    Service registration requirements.
11        (4) He or she has not been incarcerated.
12        (5) He or she is enrolled, for at least 15 credit
13    hours, in an institution of higher learning and has not
14    earned a bachelor's degree yet. A grant recipient must
15    submit proof to the Commission each semester that he or she
16    is still enrolled in the institution of higher learning.
17        (6) He or she demonstrates financial need, as
18    determined by the Commission.
19        (7) He or she maintains satisfactory academic
20    progress, as determined by the institution.
21        (8) He or she is not in default on any educational loan
22    or does not owe a refund on any State or federal
23    educational grant.
24    (b) Each year the Commission shall award grants under this
25Section among applicants qualified pursuant to subsection (a)
26of this Section. The Commission shall receive funding for the

 

 

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1grants through appropriations. The amount to be appropriated
2for the grant program for the 2026 fiscal year and each fiscal
3year thereafter shall equal the total amount appropriated to
4State universities from the General Revenue Fund for the 2020
5fiscal year, with the amount appropriated for the grant program
6for the 2021 fiscal year through the 2025 fiscal year being
7equal to a percentage of the total amount appropriated to State
8universities from the General Revenue Fund for the 2020 fiscal
9year, with that percentage increasing each of those fiscal
10years until the amount appropriated for the grant program for
11the 2026 fiscal year equals 100% of the total amount
12appropriated to State universities from the General Revenue
13Fund for the 2020 fiscal year. No amounts may be appropriated
14to State universities from the General Revenue Fund beginning
15with the 2026 fiscal year, with the amount appropriated to
16State universities from the General Revenue Fund for the 2021
17fiscal year through the 2025 fiscal year being reduced in an
18amount at least equal to the amount being appropriated for the
19grant program for that particular fiscal year. The amount of
20each grant shall equal the amount appropriated for the grant
21program for a given fiscal year divided by the number of
22applicants who qualify for a grant.
23    (c) The total amount of grant assistance awarded by the
24Commission under this Section to an individual in any given
25fiscal year, when added to other financial assistance awarded
26to that individual for that year, shall not exceed the cost of

 

 

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1attendance at the institution at which the student is enrolled.
2    (d) Payment of any grant under this Section shall be
3determined by the Commission. All grant funds distributed in
4accordance with this Section shall be paid to the institution
5on behalf of the recipients. Grant funds are applicable toward
6tuition for 2 semesters or 3 quarters of enrollment within an
7academic year.
8    (e) Prior to receiving grant assistance for any academic
9year, each recipient of a grant under this Section shall be
10required by the Commission to sign an agreement under which the
11recipient agrees to the following terms:
12        (1) If a grant recipient graduates from an institution
13    in 4 years or less, he or she must repay one-half of the
14    total amount of grants received under this Section.
15        (2) If a grant recipient does not graduate from an
16    institution in 4 years or less, he or she must repay the
17    total amount of grants received under this Section
18    immediately over a 10-year period, with interest equal to
19    the prime commercial rate of interest as from time to time
20    is publicly announced by the largest commercial banking
21    institution located in this State measured in terms of
22    total assets, but in no event may the amount he or she is
23    required to repay each year exceed 6% of his or her annual
24    income. However, if the grant recipient graduates from an
25    institution within that 10-year period, the Commission
26    shall forgive one-half of the total amount of grants

 

 

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1    received under this Section and adjust the amount he or she
2    must repay.
3        (3) If the grant recipient resides in this State
4    immediately following graduation from an institution, the
5    Commission shall forgive, for each year of residency,
6    one-eighth of the remaining grant amount owed.
7    Each recipient shall, upon request of the Commission,
8provide the Commission with evidence that he or she is
9fulfilling or has fulfilled the terms of the agreement provided
10for in this subsection (e).
11    The Commission is authorized to establish rules relating to
12its collection activities for repayment of grants under this
13Section, including the imposition of reasonable collection
14fees.
15    (f) A recipient of a grant under this Section is not in
16violation of the agreement entered into pursuant to subsection
17(e) of this Section if the recipient (i) is serving as a member
18of the armed services of the United States; (ii) is enrolled in
19a graduate program following graduation from an institution;
20(iii) is temporarily totally disabled, as established by sworn
21affidavit of a qualified physician; or (iii) cannot fulfill the
22obligation due to his or her death, disability, or
23incompetency, as established by sworn affidavit of a qualified
24physician. No claim for repayment may be filed against the
25estate of such a decedent or incompetent. Any extension of the
26period during which the obligation must be fulfilled is subject

 

 

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1to limitations of duration as established by the Commission.
2    (h) The Commission shall administer the grant program
3established by this Section and shall make all necessary and
4proper rules not inconsistent with this Section for its
5effective implementation.
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.