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90_SB0878ren
110 ILCS 947/20
Amends the Higher Education Assistance Act. Provides
that the Illinois Student Assistance Commission may
administer a program of grant assistance as authorized by
other statutes that may be referenced in the Higher Education
Assistance Act. Provides that the Commission may receive,
hold, and disburse funds made available by individuals for
the purposes for which those funds were made available.
LRB9003362THpk
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1 AN ACT relating to prepaid tuition contracts, amending a
2 named Act.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 1. Short title. This Act may be cited as the
6 Illinois Prepaid Tuition Act.
7 Section 5. Purpose. The General Assembly finds and
8 declares that the general welfare and security of the State
9 are enhanced by access to higher education for all residents
10 of the State who desire that education and who demonstrate
11 the qualifications necessary to pursue that education.
12 Furthermore, it is desirable that residents of the State who
13 seek to pursue higher education be able to choose attendance
14 at the higher education institution that offers programs and
15 services most suitable to their needs. Accordingly,
16 endeavors that serve the higher education needs of the people
17 of the State represent an essential function of State
18 government.
19 During the past decade, students have been paying more
20 and borrowing more to finance the increasing cost of higher
21 education at Illinois colleges and universities as well as at
22 similar institutions nationwide. Federal and state
23 governments' capacity to fund college scholarships and grants
24 cannot fully meet the current and future demand for higher
25 education nor is it reasonable to expect that paying for
26 college is solely a governmental responsibility. It is --
27 and has always been -- a shared responsibility among the
28 student, the family, State government, and the federal
29 government. Consequently, the intent of this Act is to both
30 encourage and better enable Illinois families to help
31 themselves finance the cost of higher education, specifically
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1 through a program that provides Illinois families with a
2 method of State tax-free and federally tax-deferred savings
3 for college tuition.
4 Section 10. Definitions. In this Act:
5 "Illinois public university" means the University of
6 Illinois, Illinois State University, Chicago State
7 University, Governors State University, Southern Illinois
8 University, Northern Illinois University, Eastern Illinois
9 University, Western Illinois University, or Northeastern
10 Illinois University.
11 "Illinois community college" means a public community
12 college as defined in Section 1-2 of the Public Community
13 College Act.
14 "MAP-eligible institution" means a public institution of
15 higher education or a nonpublic institution of higher
16 education whose students are eligible to receive need-based
17 student financial assistance through State Monetary Award
18 Program (MAP) grants administered by the Illinois Student
19 Assistance Commission under the Higher Education Student
20 Assistance Act and whose students also are eligible to
21 receive benefits under Section 529(a) of the Internal Revenue
22 Code of 1986, as specified by the federal Small Business Act
23 of 1996 and subsequent amendments to this federal law.
24 "Illinois prepaid tuition contract" or "contract" means a
25 contract entered into between the State and a Purchaser under
26 Section 45 to provide for the higher education of a qualified
27 beneficiary.
28 "Illinois prepaid tuition program" or "program" means the
29 program created in Section 15.
30 "Purchaser" means a person who makes or has contracted to
31 make payments under an Illinois prepaid tuition contract.
32 "Public institution of higher education" means an
33 Illinois public university or Illinois community college.
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1 "Nonpublic institution of higher education" means any
2 MAP-eligible educational organization, other than a public
3 institution of higher education, that provides a minimum of
4 an organized 2-year program at the postsecondary level and
5 that operates in conformity with standards substantially
6 equivalent to those of public institutions of higher
7 education. "Nonpublic institution of higher education" does
8 not include any educational organization used principally for
9 sectarian instruction, as a place of religious teaching or
10 worship, or for any religious denomination for the training
11 of ministers, rabbis, or other professional persons in the
12 field of religion.
13 "Qualified beneficiary" means (i) anyone who has been a
14 resident of this State for at least 12 months prior to the
15 date of the contract, or (ii) a nonresident, so long as the
16 purchaser has been a resident of the State for at least 12
17 months prior to the date of the contract, or (iii) any person
18 less than one year of age who is a relative of an Illinois
19 resident.
20 "Tuition" means the quarter or semester charges imposed
21 on a qualified beneficiary to attend a MAP-eligible
22 institution.
23 "Mandatory Fees" means those quarter or semester fees
24 imposed upon all students enrolled at a MAP-eligible
25 institution.
26 "Registration Fees" means the charges derived by
27 combining tuition and mandatory fees.
28 "Contract Unit" means 15 credit hours of instruction at a
29 MAP-eligible institution.
30 "Panel" means the advisory panel created under Section
31 20.
32 "Commission" means the Illinois Student Assistance
33 Commission.
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1 Section 15. Creation of Illinois prepaid tuition
2 program. There is created the Illinois prepaid tuition
3 program to be administered by the Illinois Student Assistance
4 Commission. This program is to be administered so that the
5 full cost of tuition and mandatory fees at Illinois public
6 universities and Illinois community colleges may be paid in
7 advance of enrollment through the prior purchase of an
8 Illinois prepaid tuition contract. The Commission may enter
9 into contracts as may be necessary to provide for
10 administration of the program and shall develop and implement
11 rules and regulations necessary for the efficient
12 administration of the program.
13 All reasonable charges incidental to the administration
14 of the program by the Commission shall be paid in the initial
15 start-up period for the program's operation from the General
16 Revenue Fund, pursuant to appropriations made for that
17 purpose by the General Assembly. Those charges and expenses
18 in subsequent years shall be paid exclusively from the
19 Illinois Prepaid Tuition Trust Fund established by Section 35
20 of this Act.
21 Section 20. Advisory Panel. The Illinois prepaid
22 tuition program shall be administered by the Illinois Student
23 Assistance Commission, with advice and counsel from an
24 advisory panel appointed by the Commission. The Illinois
25 prepaid tuition program shall be administratively housed
26 within the Commission, and the advisory panel shall have such
27 duties as are specified in this Act.
28 The advisory panel shall consist of 7 members who are
29 appointed by the Commission, including one recommended by the
30 State Treasurer, one recommended by the State Comptroller,
31 one recommended by the Director of the Bureau of the Budget,
32 and one recommended by the Executive Director of the Board of
33 Higher Education. Each panel member shall possess knowledge,
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1 skill, and experience in at least one of the following areas
2 of expertise: accounting, actuarial practice, risk
3 management, or investment management. Members shall serve
4 3-year terms except that, in making the initial appointments,
5 the Commission shall appoint 2 members to serve for 2 years,
6 2 members to serve for 3 years, and 3 members to serve for 4
7 years. Any person appointed to fill a vacancy on the panel
8 shall be appointed in a like manner and shall serve for only
9 the unexpired term. Advisory panel members shall be eligible
10 for reappointment and shall serve until a successor is
11 appointed and confirmed. Panel members shall serve without
12 compensation but shall be reimbursed for expenses. Before
13 being installed as a member of the advisory panel, each
14 nominee shall file verified written statements of economic
15 interest with the Secretary of State as required by the
16 Illinois Governmental Ethics Act and with the Board of Ethics
17 as required by Executive Order of the Governor.
18 The advisory panel shall meet at least twice annually.
19 At least once each year the Commission Chairman shall
20 designate a time and place at which the advisory panel shall
21 meet publicly with the Illinois Student Assistance Commission
22 to discuss issues and concerns relating to the Illinois
23 prepaid tuition program.
24 Section 25. Additional powers of the Commission. The
25 Commission has the following specific powers relating to
26 administration of the Illinois prepaid tuition program:
27 (1) To direct funds to be invested, if not required
28 for immediate disbursement.
29 (2) To require a reasonable length of State
30 residence for qualified beneficiaries of Illinois prepaid
31 tuition contracts.
32 (3) To annually restrict the number of participants
33 in any prepaid tuition plan authorized by the Commission,
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1 provided that any person denied participation solely on
2 the basis of such restriction shall be given priority
3 consideration when opportunities to participate in the
4 plan are offered during the subsequent year.
5 (4) To appropriately segregate contributions and
6 payments to the Illinois prepaid tuition program into
7 various accounts and funds.
8 (5) To solicit and accept gifts, grants, loans, and
9 other financial assistance from any appropriate source,
10 and to participate in any other way in any governmental
11 program that will carry out the express purposes of this
12 Section.
13 (6) To require and collect administrative fees and
14 charges in connection with any transaction and to impose
15 reasonable penalties, including default, for delinquent
16 payments or for entering into an Illinois prepaid tuition
17 contract on a fraudulent basis.
18 (7) To impose reasonable time limits on use of the
19 Illinois prepaid tuition benefits provided by the
20 program, so long as those limitations are specified
21 within the Illinois prepaid tuition contract.
22 (8) To indicate the terms and conditions under
23 which Illinois prepaid tuition contracts may be
24 terminated and to impose reasonable fees and charges for
25 such termination, so long as those terms and conditions
26 are specified within the Illinois prepaid tuition
27 contract.
28 (9) To provide for the receipt of contributions to
29 the program in lump sum or installment payments.
30 (10) To require that purchasers of Illinois prepaid
31 tuition contracts verify in writing or by any other
32 method acceptable to the Commission any requests for
33 contract conversions, substitutions, transfers,
34 cancellations, refund requests, or contract changes of
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1 any nature.
2 Section 30. Advisory Panel duties and responsibilities.
3 (a) Advice and review. The panel shall offer advice and
4 counseling regarding the investments of the Illinois prepaid
5 tuition program with the objective of obtaining the best
6 possible return on investments consistent with actuarial
7 soundness of the program. The panel is required to annually
8 review and advise the Commission on provisions of the
9 strategic investment plan for the prepaid tuition program.
10 The panel is also charged with reviewing and advising the
11 Commission with regard to the annual report that describes
12 the current financial condition of the program. The panel at
13 its own discretion also may advise the Commission on other
14 aspects of the program.
15 (b) Investment plan. The Commission annually shall
16 adopt a comprehensive investment plan for purposes of this
17 Section. The comprehensive investment plan shall specify the
18 investment policies to be utilized by the Commission in its
19 administration of the Illinois Prepaid Tuition Trust Fund
20 created by Section 35. The Commission may direct that assets
21 of those Funds be placed in savings accounts or may use the
22 same to purchase fixed or variable life insurance or annuity
23 contracts, securities, evidence of indebtedness, or other
24 investment products pursuant to the comprehensive investment
25 plan and in such proportions as may be designated or approved
26 under that plan. Those insurance, annuity, savings, and
27 investment products shall be underwritten and offered in
28 compliance with applicable federal and State laws, rules, and
29 regulations by persons who are authorized thereunder to
30 provide those services. The Commission shall delegate
31 responsibility for preparing the comprehensive investment
32 plan to the Executive Director of the Commission. Nothing in
33 this Section shall preclude the Commission from contracting
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1 with a private corporation or institution to provide such
2 services as may be a part of the comprehensive investment
3 plan or as may be deemed necessary for implementation of the
4 comprehensive investment plan, including, but not limited to,
5 providing consolidated billing, individual and collective
6 record keeping and accounting, and asset purchase, control,
7 and safekeeping.
8 (c) Program management. The Commission may not delegate
9 its management functions, but may arrange to compensate for
10 personalized investment advisory services rendered with
11 respect to any or all of the investments under its control an
12 investment advisor registered under Section 8 of the Illinois
13 Securities Law of 1953 or any bank or other entity authorized
14 by law to provide those services. Nothing contained herein
15 shall preclude the Commission from subscribing to general
16 investment research services available for purchase or use by
17 others. The Commission also shall have authority to
18 compensate for accounting, computing, and other necessary
19 services.
20 (d) Annual report. The Commission shall annually
21 prepare or cause to be prepared a report setting forth in
22 appropriate detail an accounting of all Illinois prepaid
23 tuition program funds and a description of the financial
24 condition of the program at the close of each fiscal year.
25 Included in this report shall be an evaluation by at least
26 one nationally recognized actuary of the financial viability
27 of the program. This report shall be submitted to the
28 Governor, the President of the Senate, the Speaker of the
29 House of Representatives, the Auditor General, and the Board
30 of Higher Education on or before March 1 of the subsequent
31 fiscal year. This report also shall be made available to
32 purchasers of Illinois prepaid tuition contracts and shall
33 contain complete Illinois prepaid tuition contract sales
34 information, including, but not limited to, projected
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1 postsecondary enrollment data for qualified beneficiaries.
2 (e) Marketing plan. Selection of a marketing agent for
3 the Illinois prepaid tuition program must be approved by the
4 Commission. At least once every 3 years, the Commission
5 shall solicit proposals for marketing of the Illinois prepaid
6 tuition program in accordance with the Illinois Securities
7 Law of 1953 and any applicable provisions of federal law.
8 The entity designated pursuant to this paragraph shall serve
9 as a centralized marketing agent for the program and shall
10 have exclusive responsibility for marketing the program. No
11 contract for marketing the Illinois prepaid tuition program
12 shall extend for longer than 3 years. Any materials produced
13 for the purpose of marketing the program shall be submitted
14 to the Executive Director of the Commission for approval
15 before they are made public. Any Illinois MAP-eligible
16 institution may distribute marketing materials produced for
17 the program, so long as the Executive Director of the
18 Commission approves the distribution in advance. Neither the
19 State nor the Commission shall be liable for
20 misrepresentation of the program by a marketing agent.
21 (f) Accounting and audit. The Commission shall annually
22 cause to be prepared an accounting of the trust and shall
23 transmit a copy of the accounting to the Governor, the
24 President of the Senate, the Speaker of the House, and the
25 minority leaders of the Senate and House of Representatives.
26 The Commission shall also make available this accounting of
27 the trust to any purchaser of an Illinois prepaid tuition
28 contract, upon request. The accounts of the Illinois prepaid
29 tuition program shall be subject to annual audits by the
30 Auditor General or a certified public accountant appointed by
31 the Auditor General.
32 Section 35. Illinois Prepaid Tuition Trust Fund.
33 (a) The Illinois Prepaid Tuition Trust Fund is created
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1 as the repository of all moneys received by the Commission in
2 conjunction with the Illinois prepaid tuition program. The
3 Illinois Prepaid Tuition Trust Fund also shall be the
4 official repository of all contributions, appropriations,
5 interest and dividend payments, gifts, or other financial
6 assets received by the Commission in connection with
7 operation of the Illinois prepaid tuition program. All such
8 moneys shall be deposited in the Illinois Prepaid Tuition
9 Trust Fund and held by the State Treasurer as ex-officio
10 custodian thereof, outside of the State Treasury, separate
11 and apart from all public moneys or funds of this State.
12 All interest or other earnings accruing or received on
13 amounts in the Illinois Prepaid Tuition Trust Fund shall be
14 credited to and retained by the Fund. Moneys, interest, or
15 other earnings paid into the Fund shall not be transferred or
16 allocated by the Commission, the State Treasurer, or the
17 State Comptroller to any other fund, nor shall the Governor
18 authorize any such transfer or allocation, while any
19 contracts are outstanding. In addition, no moneys, interest,
20 or other earnings paid into the Fund shall be used,
21 temporarily or otherwise, for interfund borrowing or be
22 otherwise used or appropriated except as expressly authorized
23 in this Act.
24 The Illinois Prepaid Tuition Trust Fund and each
25 individual participant account that may be created in that
26 Fund in conjunction with the Illinois prepaid tuition program
27 shall be subject to audit in the same manner as funds and
28 accounts belonging to the State of Illinois and shall be
29 protected by the official bond given by the State Treasurer.
30 (b) The Commission from time to time shall direct the
31 State Treasurer to invest moneys in the Illinois Prepaid
32 Tuition Trust Fund that are not needed for immediate
33 disbursement, in accordance with provisions of the investment
34 plan approved by the Commission.
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1 (c) The Executive Director of the Commission shall, at
2 such times and in such amounts as shall be necessary, prepare
3 and send to the State Comptroller vouchers requesting payment
4 from the Illinois Prepaid Tuition Trust Fund for: (i) tuition
5 and fee payments to MAP-eligible institutions on behalf of
6 qualified beneficiaries of Illinois prepaid tuition
7 contracts, and (ii) payments associated with administration
8 of the Illinois prepaid tuition program.
9 (d) The Governor shall indicate in a separate document
10 submitted concurrent with each annual State budget the
11 estimated amount of moneys in the Illinois Prepaid Tuition
12 Trust Fund which shall be necessary and sufficient, during
13 that State fiscal year, to discharge all obligations
14 anticipated under Illinois prepaid tuition contracts. The
15 Governor also shall indicate in a separate document submitted
16 concurrent with each annual State budget the amount of moneys
17 from the Illinois Prepaid Tuition Trust Fund necessary to
18 cover anticipated expenses associated with administration of
19 the program. The Commission shall obtain concurrence from a
20 nationally recognized actuary as to all amounts necessary for
21 the program to meet its obligations. These amounts shall be
22 certified annually to the Governor by the Commission no later
23 than January 30.
24 During the first 18 months of operation of the Illinois
25 prepaid tuition program, the Governor shall request an
26 appropriation to the Commission from general funds sufficient
27 to pay for start-up costs associated with establishment of
28 the program. This appropriation constitutes a loan that shall
29 be repaid to the General Revenue Fund within 5 years by the
30 Commission from prepaid tuition program contributions.
31 Subsequent program administrative costs shall be provided
32 from reasonable fees and charges equitably assessed to
33 purchasers of prepaid tuition contracts.
34 (e) If the Commission determines that there are
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1 insufficient moneys in the Illinois Prepaid Tuition Trust
2 Fund to pay contractual obligations in the next succeeding
3 fiscal year, the Commission shall certify the amount
4 necessary to meet these obligations to the Board of Higher
5 Education, the Governor, the President of the Senate, and the
6 Speaker of the House of Representatives. The Governor shall
7 submit the amount so certified to the General Assembly as
8 soon as practicable, but no later than the end of the current
9 State fiscal year.
10 (f) In the event the Commission, with the concurrence of
11 the Governor, determines the program to be financially
12 infeasible, the Commission may discontinue, prospectively,
13 the operation of the program. Any qualified beneficiary who
14 has been accepted by and is enrolled or will within 5 years
15 enroll at a MAP-eligible institution shall be entitled to
16 exercise the complete benefits specified in the Illinois
17 prepaid tuition contract. All other contract holders shall
18 receive an appropriate refund of all contributions and
19 accrued interest up to the time that the program is
20 discontinued.
21 Section 45. Illinois prepaid tuition contracts.
22 (a) The Commission may enter into an Illinois prepaid
23 tuition contract with a purchaser under which the Commission
24 contracts on behalf of the State to pay full tuition and
25 mandatory fees at an Illinois public university or Illinois
26 community college for a qualified beneficiary to attend the
27 MAP-eligible institution to which the qualified beneficiary
28 is admitted. Each contract shall contain terms, conditions,
29 and provisions that the Commission determines to be necessary
30 for ensuring the educational objectives and sustainable
31 financial viability of the Illinois prepaid tuition program.
32 (b) Each contract shall have one designated purchaser
33 and one designated qualified beneficiary. Unless otherwise
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1 specified in the contract, the purchaser owns the contract
2 and retains any tax liability for its assets only until the
3 first distribution of benefits. Once a partial benefit of the
4 contract has been disbursed, any tax liability attributable
5 to the contract and its assets becomes a tax liability of the
6 qualified beneficiary, unless otherwise specified in the
7 contract. Contracts shall be purchased in units of 15 credit
8 hours at any MAP-eligible institution.
9 (c) Without exception, benefits may be received by a
10 qualified beneficiary of an Illinois prepaid tuition contract
11 no earlier than 3 years from the date the contract is
12 purchased.
13 (d) A prepaid tuition contract shall contain, but is not
14 limited to, provisions for (i) refunds or withdrawals in
15 certain circumstances, with or without interest or penalties;
16 (ii) conversion of the contract at the time of distribution
17 from accrued prepayment value at one type of MAP-eligible
18 institution to the accrued prepayment value at a different
19 type of MAP-eligible institution; (iii) portability of the
20 accrued value of the prepayment value for use at an
21 out-of-state higher education institution; (iv)
22 transferability of the contract benefits within the qualified
23 beneficiary's immediate family; and (v) a specified benefit
24 period during which the contract may be redeemed.
25 (e) Each Illinois prepaid tuition contract also shall
26 contain, at minimum, all of the following:
27 (1) The amount of payment or payments and the
28 number of payments required from a purchaser on behalf of
29 a qualified beneficiary.
30 (2) The terms and conditions under which purchasers
31 shall remit payments, including, but not limited to, the
32 date or dates upon which each payment shall be due.
33 (3) Provisions for late payment charges and for
34 default.
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1 (4) Provisions for penalty fees payable incident to
2 an authorized withdrawal.
3 (5) The name, date of birth, and social security
4 number of the qualified beneficiary on whose behalf the
5 contract is drawn and the terms and conditions under
6 which the contract may be transferred to another
7 qualified beneficiary.
8 (6) The name and social security number of any
9 person who may terminate the contract, together with
10 terms that specify whether the contract may be terminated
11 by the purchaser, the qualified beneficiary, a specific
12 designated person, or any combination of these persons.
13 (7) The terms and conditions under which a contract
14 may be terminated, the name and social security number of
15 the person entitled to any refund due as a result of the
16 termination of the contract pursuant to those terms and
17 conditions, and the method for determining the amount of
18 a refund.
19 (8) The time limitations, if any, within which the
20 qualified beneficiary must claim his or her benefits
21 through the program.
22 (9) Other terms and conditions determined by the
23 Commission to be appropriate.
24 (f) In addition to the contract provisions set forth in
25 subsection (e), each Illinois prepaid tuition contract shall
26 include:
27 (1) The number of credit hours contracted by the
28 purchaser.
29 (2) The type of MAP-eligible institution and the
30 prepaid tuition plan toward which the credit hours shall
31 be applied.
32 (3) The explicit contractual obligation of the
33 Commission to the qualified beneficiary to provide a
34 specific number of credit hours of undergraduate
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1 instruction at a MAP-eligible institution, not to exceed
2 the median number of credit hours required for the
3 conference of a degree that corresponds to the plan
4 purchased on behalf of the qualified beneficiary.
5 (g) The Commission shall indicate by rule the conditions
6 under which refunds are payable to a contract purchaser.
7 Generally, no refund shall exceed the amount paid into the
8 Illinois Prepaid Tuition Trust Fund by the purchaser. In the
9 event that a contract is converted from a Public University
10 Plan described in subsection (j) of this Section to a
11 Community College Plan described in subsection (k) of this
12 Section, the refund amount shall be reduced by the amount
13 transferred to the Illinois community college on behalf of
14 the qualified beneficiary. Except where the Commission may
15 otherwise rule, refunds may exceed the amount paid into the
16 Illinois Prepaid Tuition Trust Fund only under the following
17 circumstances:
18 (1) If the qualified beneficiary is awarded a grant
19 or scholarship, the terms of which duplicate the benefits
20 included in the Illinois prepaid tuition contract, then
21 moneys paid for the purchase of the contract shall be
22 returned to the purchaser, in semester installments that
23 coincide with the matriculation by the qualified
24 beneficiary, in an amount equal to the lesser of (i) the
25 original purchase price plus 2% interest compounded
26 annually, or (ii) the current cost of tuition and
27 mandatory fees at the MAP-eligible institution where the
28 qualified beneficiary is enrolled.
29 (2) In the event of the death or total disability
30 of the qualified beneficiary, moneys paid for the
31 purchase of the Illinois prepaid tuition contract shall
32 be returned to the purchaser together with all accrued
33 earnings.
34 (3) If an Illinois prepaid tuition contract is
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1 converted from a Public University Plan to a Community
2 College Plan, then the amount refunded shall be the value
3 of the original Illinois prepaid tuition contract minus
4 the value of the contract after conversion.
5 No refund shall be authorized under an Illinois prepaid
6 tuition contract for any semester partially attended but not
7 completed.
8 Moneys paid into or out of the Illinois Prepaid Tuition
9 Trust Fund by or on behalf of the purchaser or the qualified
10 beneficiary of an Illinois prepaid tuition contract are
11 exempt from all claims of creditors of the purchaser or
12 beneficiary, so long as the contract has not been terminated.
13 The State or any State agency, county, municipality, or
14 other political subdivision, by contract or collective
15 bargaining agreement, may agree with any employee to remit
16 payments toward the purchase of Illinois prepaid tuition
17 contracts through payroll deductions made by the appropriate
18 officer or officers of the entity making the payments. Such
19 payments shall be held and administered in accordance with
20 this Act.
21 (h) Nothing in this Act shall be construed as a promise
22 or guarantee that a qualified beneficiary will be admitted to
23 a MAP-eligible institution or to a particular MAP-eligible
24 institution, will be allowed to continue enrollment at a
25 MAP-eligible institution after admission, or will be
26 graduated from a MAP-eligible institution.
27 (i) The Commission shall develop and make prepaid
28 tuition contracts available under a minimum of at least 2
29 independent plans to be known as the Public University Plan
30 and the Community College Plan.
31 Contracts shall be purchased in units of 15 credit hours
32 at either an Illinois public university or an Illinois
33 community college. The minimum purchase amount per qualified
34 beneficiary shall be one unit or 15 credit hours. The
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1 maximum purchase amount shall be 9 units (or 135 credit
2 hours) for the Public University Plan and 4 units (or 60
3 credit hours) for the Community College Plan.
4 (j) Public University Plan. Through the Public
5 University Plan, the Illinois prepaid tuition contract shall
6 provide prepaid registration fees, which include full tuition
7 costs as well as mandatory fees, for a specified number of
8 undergraduate credit hours, not to exceed the maximum number
9 of credit hours required for the conference of a
10 baccalaureate degree. In determining the cost of
11 participation in the Public University Plan, the Commission
12 shall reference the combined mean-weighted current
13 registration fees from all Illinois public universities.
14 In the event that a qualified beneficiary for whatever
15 reason chooses to attend an Illinois community college, the
16 qualified beneficiary may convert the average number of
17 credit hours required for the conference of an associate
18 degree from the Public University Plan to the Community
19 College Plan and may retain the remaining Public University
20 Plan credit hours or may request a refund for prepaid credit
21 hours in excess of those required for conference of an
22 associate degree. In determining the amount of any refund,
23 the Commission also shall recognize the current relative
24 credit hour cost of the 2 plans when making any conversion.
25 Qualified beneficiaries shall bear the cost of any
26 laboratory or other non-mandatory fees associated with
27 enrollment in specific courses. Qualified beneficiaries who
28 are not Illinois residents shall bear the difference in cost
29 between in-state registration fees guaranteed by the prepaid
30 tuition contract and tuition and other charges assessed upon
31 out-of-state students by the MAP-eligible institution.
32 (k) Community College Plan. Through the Community
33 College Plan, the Illinois prepaid tuition contract shall
34 provide prepaid registration fees, which include full tuition
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1 costs as well as mandatory fees, for a specified number of
2 undergraduate credit hours, not to exceed the maximum number
3 of credit hours required for the conference of an associate
4 degree. In determining the cost of participation in the
5 Community College Plan, the Commission shall reference the
6 combined mean-weighted current registration fees from all
7 Illinois community colleges.
8 In the event that a qualified beneficiary for whatever
9 reason chooses to attend an Illinois public university, the
10 qualified beneficiary's prepaid tuition contract shall be
11 converted for use at that Illinois public university by
12 referencing the current average mean-weighted credit hour
13 value of registration fees at Illinois community colleges
14 relative to the corresponding value of registration fees at
15 Illinois public universities.
16 Qualified beneficiaries shall bear the cost of any
17 laboratory or other non-mandatory fees associated with
18 enrollment in specific courses. Qualified beneficiaries who
19 are not Illinois residents shall bear the difference in cost
20 between in-state registration fees guaranteed by the prepaid
21 tuition contract and tuition and other charges assessed upon
22 out-of-state students by the MAP-eligible institution.
23 (l) A qualified beneficiary may apply the benefits of
24 any Illinois prepaid tuition contract toward a nonpublic
25 institution of higher education. In the event that a
26 qualified beneficiary for whatever reason chooses to attend a
27 nonpublic institution of higher education, the qualified
28 beneficiary's prepaid tuition contract shall be converted for
29 use at that nonpublic institution of higher education by
30 referencing the current average mean-weighted credit hour
31 value of registration fees purchased under the contract. The
32 Commission shall transfer, or cause to have transferred, this
33 amount, less a transfer fee, to the nonpublic institution on
34 behalf of the beneficiary. In the event that the cost of
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1 registration charged to the beneficiary at the nonpublic
2 institution of higher education is less than the aggregate
3 value of the Illinois prepaid tuition contract, any remaining
4 amount shall be transferred in subsequent semesters until the
5 transfer value is fully depleted.
6 (m) A qualified beneficiary may apply the benefits of
7 any Illinois prepaid tuition contract toward an eligible
8 out-of-state college or university. Institutional eligibility
9 for out-of-state colleges and universities shall be
10 determined by the Commission, but in making those
11 determinations the Commission shall recognize that the
12 benefits of an Illinois prepaid tuition contract may not be
13 used at any postsecondary educational institution that is
14 both operated for-profit and located outside of Illinois. In
15 the event that a qualified beneficiary for whatever reason
16 chooses to attend an eligible out-of-state college or
17 university, the qualified beneficiary's prepaid tuition
18 contract shall be converted for use at that college or
19 university by referencing the current average mean-weighted
20 credit hour value of registration fees purchased under the
21 contract. The Commission shall transfer, or cause to have
22 transferred, this amount, less a transfer fee, to the college
23 or university on behalf of the beneficiary. In the event
24 that the cost of registration charged to the beneficiary at
25 the eligible out-of-state college or university is less than
26 the aggregate value of the Illinois prepaid tuition contract,
27 any remaining amount shall be transferred in subsequent
28 semesters until the transfer value is fully depleted.
29 (n) Illinois prepaid tuition contracts may be purchased
30 either by lump sum or by installments. All installment
31 contracts shall be for 5 years, except that contracts that
32 purchase at least 120 credit hours may be payable, by
33 installments, over a 10-year period. No penalty shall be
34 assessed for early payment of installment contracts.
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1 (o) The Commission shall annually adjust the price of
2 new contracts, in accordance with the annual changes in
3 registration fees at Illinois public universities and
4 community colleges.
5 Section 50. Confidentiality and disclosure. Information
6 that (i) identifies the purchasers or qualified beneficiaries
7 of any Illinois prepaid tuition contract or any terms or
8 provisions of any such contract as those terms and provisions
9 relate to a particular purchaser or qualified beneficiary, or
10 (ii) discloses any other matter relating to the participation
11 of any such purchaser or qualified beneficiary in the
12 Illinois prepaid tuition program or in any independent plan
13 under which that program is administered, is exempt from
14 inspection, copying, or disclosure under the Freedom of
15 Information Act. The Commission may authorize the program's
16 records administrator to release such information to
17 appropriate personnel at the MAP-eligible institution at
18 which the beneficiary may enroll or is enrolled or to another
19 state or federal agency, for purposes that the Commission
20 deems appropriate, in accordance with applicable state and
21 federal law. However, any such institution or agency to which
22 that information is released shall ensure the continued
23 confidentiality of the information.
24 Section 55. Tax exemption. The assets of the Illinois
25 Prepaid Tuition Trust Fund and its income and operation shall
26 be exempt from all taxation by the State of Illinois and any
27 of its subdivisions. The accrued earnings of Illinois
28 prepaid tuition contracts once disbursed on behalf of an
29 eligible beneficiary shall be similarly exempt from all
30 taxation by the State of Illinois and any of its
31 subdivisions, so long as they are used for educational
32 purposes in accordance with the provisions of an Illinois
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1 prepaid tuition contract.
2 Section 60. Securities Registration Exemption. Illinois
3 prepaid tuition contracts shall be exempt from registration
4 under the Illinois Securities Law of 1953. However no
5 contract may be sold or otherwise transferred by the
6 purchaser or qualified beneficiary without the prior approval
7 of the Commission, except in accordance with the terms
8 explicitly set forth in the contract.
9 Section 65. Construction. Nothing in this Act or in an
10 Illinois prepaid tuition contract shall be construed as a
11 promise or guarantee by the Program or the State that a
12 person will be admitted to any MAP-eligible institution or to
13 a particular MAP-eligible institution, will be allowed to
14 continue to attend a MAP-eligible institution after having
15 been admitted, or will be graduated from a MAP-eligible
16 institution.
17 Section 70. Scholarships, grants, or monetary
18 assistance. No contributions toward the purchase of an
19 Illinois prepaid tuition contract authorized by this Section
20 shall be considered in evaluating the financial situation of
21 the student beneficiary of the contract or be deemed a
22 financial resource of or a form of financial aid or
23 assistance to the student beneficiary, for purposes of
24 determining the eligibility of the student beneficiary for
25 any scholarship, grant or monetary assistance awarded by the
26 Commission, the State, or any agency thereof; nor shall
27 contributions toward the purchase of an Illinois prepaid
28 tuition contract reduce the amount of any scholarship, grant,
29 or monetary assistance that the student beneficiary is
30 eligible to be awarded by the Illinois Student Assistance
31 Commission, the State, or any agency thereof in accordance
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1 with the provisions of any other Section of this Act or any
2 other law of the State.
3 Section 90. The Freedom of Information Act is amended by
4 changing Section 7 as follows:
5 (5 ILCS 140/7) (from Ch. 116, par. 207)
6 Sec. 7. Exemptions.
7 (1) The following shall be exempt from inspection and
8 copying:
9 (a) Information specifically prohibited from
10 disclosure by federal or State law or rules and
11 regulations adopted under federal or State law.
12 (b) Information that, if disclosed, would
13 constitute a clearly unwarranted invasion of personal
14 privacy, unless the disclosure is consented to in writing
15 by the individual subjects of the information. The
16 disclosure of information that bears on the public duties
17 of public employees and officials shall not be considered
18 an invasion of personal privacy. Information exempted
19 under this subsection (b) shall include but is not
20 limited to:
21 (i) files and personal information maintained
22 with respect to clients, patients, residents,
23 students or other individuals receiving social,
24 medical, educational, vocational, financial,
25 supervisory or custodial care or services directly
26 or indirectly from federal agencies or public
27 bodies;
28 (ii) personnel files and personal information
29 maintained with respect to employees, appointees or
30 elected officials of any public body or applicants
31 for those positions;
32 (iii) files and personal information
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1 maintained with respect to any applicant, registrant
2 or licensee by any public body cooperating with or
3 engaged in professional or occupational
4 registration, licensure or discipline;
5 (iv) information required of any taxpayer in
6 connection with the assessment or collection of any
7 tax unless disclosure is otherwise required by State
8 statute; and
9 (v) information revealing the identity of
10 persons who file complaints with or provide
11 information to administrative, investigative, law
12 enforcement or penal agencies; provided, however,
13 that identification of witnesses to traffic
14 accidents, traffic accident reports, and rescue
15 reports may be provided by agencies of local
16 government, except in a case for which a criminal
17 investigation is ongoing, without constituting a
18 clearly unwarranted per se invasion of personal
19 privacy under this subsection.
20 (c) Records compiled by any public body for
21 administrative enforcement proceedings and any law
22 enforcement or correctional agency for law enforcement
23 purposes or for internal matters of a public body, but
24 only to the extent that disclosure would:
25 (i) interfere with pending or actually and
26 reasonably contemplated law enforcement proceedings
27 conducted by any law enforcement or correctional
28 agency;
29 (ii) interfere with pending administrative
30 enforcement proceedings conducted by any public
31 body;
32 (iii) deprive a person of a fair trial or an
33 impartial hearing;
34 (iv) unavoidably disclose the identity of a
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1 confidential source or confidential information
2 furnished only by the confidential source;
3 (v) disclose unique or specialized
4 investigative techniques other than those generally
5 used and known or disclose internal documents of
6 correctional agencies related to detection,
7 observation or investigation of incidents of crime
8 or misconduct;
9 (vi) constitute an invasion of personal
10 privacy under subsection (b) of this Section;
11 (vii) endanger the life or physical safety of
12 law enforcement personnel or any other person; or
13 (viii) obstruct an ongoing criminal
14 investigation.
15 (d) Criminal history record information maintained
16 by State or local criminal justice agencies, except the
17 following which shall be open for public inspection and
18 copying:
19 (i) chronologically maintained arrest
20 information, such as traditional arrest logs or
21 blotters;
22 (ii) the name of a person in the custody of a
23 law enforcement agency and the charges for which
24 that person is being held;
25 (iii) court records that are public;
26 (iv) records that are otherwise available
27 under State or local law; or
28 (v) records in which the requesting party is
29 the individual identified, except as provided under
30 part (vii) of paragraph (c) of subsection (1) of
31 this Section.
32 "Criminal history record information" means data
33 identifiable to an individual and consisting of
34 descriptions or notations of arrests, detentions,
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1 indictments, informations, pre-trial proceedings, trials,
2 or other formal events in the criminal justice system or
3 descriptions or notations of criminal charges (including
4 criminal violations of local municipal ordinances) and
5 the nature of any disposition arising therefrom,
6 including sentencing, court or correctional supervision,
7 rehabilitation and release. The term does not apply to
8 statistical records and reports in which individuals are
9 not identified and from which their identities are not
10 ascertainable, or to information that is for criminal
11 investigative or intelligence purposes.
12 (e) Records that relate to or affect the security
13 of correctional institutions and detention facilities.
14 (f) Preliminary drafts, notes, recommendations,
15 memoranda and other records in which opinions are
16 expressed, or policies or actions are formulated, except
17 that a specific record or relevant portion of a record
18 shall not be exempt when the record is publicly cited and
19 identified by the head of the public body. The exemption
20 provided in this paragraph (f) extends to all those
21 records of officers and agencies of the General Assembly
22 that pertain to the preparation of legislative documents.
23 (g) Trade secrets and commercial or financial
24 information obtained from a person or business where the
25 trade secrets or information are proprietary, privileged
26 or confidential, or where disclosure of the trade secrets
27 or information may cause competitive harm, including all
28 information determined to be confidential under Section
29 4002 of the Technology Advancement and Development Act.
30 Nothing contained in this paragraph (g) shall be
31 construed to prevent a person or business from consenting
32 to disclosure.
33 (h) Proposals and bids for any contract, grant, or
34 agreement, including information which if it were
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1 disclosed would frustrate procurement or give an
2 advantage to any person proposing to enter into a
3 contractor agreement with the body, until an award or
4 final selection is made. Information prepared by or for
5 the body in preparation of a bid solicitation shall be
6 exempt until an award or final selection is made.
7 (i) Valuable formulae, designs, drawings and
8 research data obtained or produced by any public body
9 when disclosure could reasonably be expected to produce
10 private gain or public loss.
11 (j) Test questions, scoring keys and other
12 examination data used to administer an academic
13 examination or determined the qualifications of an
14 applicant for a license or employment.
15 (k) Architects' plans and engineers' technical
16 submissions for projects not constructed or developed in
17 whole or in part with public funds and for projects
18 constructed or developed with public funds, to the extent
19 that disclosure would compromise security.
20 (l) Library circulation and order records
21 identifying library users with specific materials.
22 (m) Minutes of meetings of public bodies closed to
23 the public as provided in the Open Meetings Act until the
24 public body makes the minutes available to the public
25 under Section 2.06 of the Open Meetings Act.
26 (n) Communications between a public body and an
27 attorney or auditor representing the public body that
28 would not be subject to discovery in litigation, and
29 materials prepared or compiled by or for a public body in
30 anticipation of a criminal, civil or administrative
31 proceeding upon the request of an attorney advising the
32 public body, and materials prepared or compiled with
33 respect to internal audits of public bodies.
34 (o) Information received by a primary or secondary
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1 school, college or university under its procedures for
2 the evaluation of faculty members by their academic
3 peers.
4 (p) Administrative or technical information
5 associated with automated data processing operations,
6 including but not limited to software, operating
7 protocols, computer program abstracts, file layouts,
8 source listings, object modules, load modules, user
9 guides, documentation pertaining to all logical and
10 physical design of computerized systems, employee
11 manuals, and any other information that, if disclosed,
12 would jeopardize the security of the system or its data
13 or the security of materials exempt under this Section.
14 (q) Documents or materials relating to collective
15 negotiating matters between public bodies and their
16 employees or representatives, except that any final
17 contract or agreement shall be subject to inspection and
18 copying.
19 (r) Drafts, notes, recommendations and memoranda
20 pertaining to the financing and marketing transactions of
21 the public body. The records of ownership, registration,
22 transfer, and exchange of municipal debt obligations, and
23 of persons to whom payment with respect to these
24 obligations is made.
25 (s) The records, documents and information relating
26 to real estate purchase negotiations until those
27 negotiations have been completed or otherwise terminated.
28 With regard to a parcel involved in a pending or actually
29 and reasonably contemplated eminent domain proceeding
30 under Article VII of the Code of Civil Procedure,
31 records, documents and information relating to that
32 parcel shall be exempt except as may be allowed under
33 discovery rules adopted by the Illinois Supreme Court.
34 The records, documents and information relating to a real
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1 estate sale shall be exempt until a sale is consummated.
2 (t) Any and all proprietary information and records
3 related to the operation of an intergovernmental risk
4 management association or self-insurance pool or jointly
5 self-administered health and accident cooperative or
6 pool.
7 (u) Information concerning a university's
8 adjudication of student or employee grievance or
9 disciplinary cases, to the extent that disclosure would
10 reveal the identity of the student or employee and
11 information concerning any public body's adjudication of
12 student or employee grievances or disciplinary cases,
13 except for the final outcome of the cases.
14 (v) Course materials or research materials used by
15 faculty members.
16 (w) Information related solely to the internal
17 personnel rules and practices of a public body.
18 (x) Information contained in or related to
19 examination, operating, or condition reports prepared by,
20 on behalf of, or for the use of a public body responsible
21 for the regulation or supervision of financial
22 institutions or insurance companies, unless disclosure is
23 otherwise required by State law.
24 (y) Information the disclosure of which is
25 restricted under Section 5-108 of the Public Utilities
26 Act.
27 (z) Manuals or instruction to staff that relate to
28 establishment or collection of liability for any State
29 tax or that relate to investigations by a public body to
30 determine violation of any criminal law.
31 (aa) Applications, related documents, and medical
32 records received by the Experimental Organ
33 Transplantation Procedures Board and any and all
34 documents or other records prepared by the Experimental
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1 Organ Transplantation Procedures Board or its staff
2 relating to applications it has received.
3 (bb) Insurance or self insurance (including any
4 intergovernmental risk management association or self
5 insurance pool) claims, loss or risk management
6 information, records, data, advice or communications.
7 (cc) Information and records held by the Department
8 of Public Health and its authorized representatives
9 relating to known or suspected cases of sexually
10 transmissible disease or any information the disclosure
11 of which is restricted under the Illinois Sexually
12 Transmissible Disease Control Act.
13 (dd) Information the disclosure of which is
14 exempted under Section 7 of the Radon Mitigation Act.
15 (ee) Firm performance evaluations under Section 55
16 of the Architectural, Engineering, and Land Surveying
17 Qualifications Based Selection Act.
18 (ff) Information the disclosure of which is
19 restricted and exempted under Section 50 of the Illinois
20 Prepaid Tuition Act.
21 (2) This Section does not authorize withholding of
22 information or limit the availability of records to the
23 public, except as stated in this Section or otherwise
24 provided in this Act.
25 (Source: P.A. 87-241; 87-673; 87-895; 88-444.)
26 Section 99. Effective date. This Act takes effect upon
27 becoming law.