HB5767 94TH GENERAL ASSEMBLY

LRB094 15343 NHT 50534 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB5767

Introduced 02/24/06, by Rep. Richard P. Myers - Chapin Rose

SYNOPSIS AS INTRODUCED:

20 ILCS 3005/3.5 new
110 ILCS 947/140

Amends the Governor's Office of Management and Budget Act and the Higher Education Student Assistance Act. Provides that the Illinois Student Assistance Commission may not sell its loans or the attendant loan origination and servicing rights nor may any other State agency, including the Governor's Office of Management and Budget, or a State official sell the loans or the attendant loan origination and servicing rights. Provides that all student loans of the Commission and the attendant loan origination and servicing rights are inalienable and must remain as assets of the Commission. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning education.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Governor's Office of Management and Budget Act is amended by adding Section 3.5 as follows:

(20 ILCS 3005/3.5 new)

Sec. 3.5. Sale of ISAC loans prohibited. The Office may not sell student loans of the Illinois Student Assistance Commission or the attendant loan origination and servicing rights.

Section 10. The Higher Education Student Assistance Act is amended by changing Section 140 as follows:

(110 ILCS 947/140)

Sec. 140. Powers and duties. The Commission shall have the following powers in furtherance of the programs authorized by this Act:

(a) To adopt rules and regulations governing the purchasing and , servicing, and selling of eligible loans and any other matters relating to the activities of the guaranteed loan programs.

(b) To perform such other acts as may be necessary or appropriate in connection with the making, purchasing, and servicing, and selling of eligible loans.

(c) To sue and be sued in the name of the Commission.

(d) To make, purchase, service, sell, or otherwise deal in, at prices and on terms and conditions determined by the Commission, eligible loans, including loans guaranteed by the Commission. The Commission, however, may not sell its loans or the attendant loan origination and servicing rights nor may any other State agency or a State official sell the loans or the attendant loan origination and servicing rights. All student loans of the Commission and the attendant loan origination and servicing rights are inalienable and must remain as assets of the Commission.

(e) To issue bonds to make or acquire eligible loans or to refund the bonds of the Commission and to provide for the security and payment of those bonds and for the rights of the holders thereof.

(f) To retain in accounts designated in the resolution or resolutions authorizing the bonds of the Commission and to disburse therefrom all proceeds from the sale of the bonds of the Commission issued pursuant to this Act, all eligible loans receipts received by the Commission, and all earnings received by the Commission from any authorized investment.

(g) To hire and retain such attorneys, accountants, financial advisors, and other employees as may be required by the Commission, to determine their qualifications, to define their duties, to fix their compensation, and to pay that compensation from the proceeds from the sale of the bonds of the Commission issued pursuant to this Act and from the earnings received by the Commission from any authorized investment as provided in the resolution or resolutions authorizing the bonds, all notwithstanding any other provisions of this Act or any other law.

(h) To enter into contracts, to execute instruments, to invest and to accumulate assets, to incur liabilities, and to do all things necessary or incidental to the proper management of such affairs and the proper conduct of such business as are authorized under this Act.

(Source: P.A. 87-997.)

Section 99. Effective date. This Act takes effect upon becoming law.