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90_SB0878eng
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.
21 "Illinois prepaid tuition contract" or "contract" means a
22 contract entered into between the State and a Purchaser under
23 Section 45 to provide for the higher education of a qualified
24 beneficiary.
25 "Illinois prepaid tuition program" or "program" means the
26 program created in Section 15.
27 "Purchaser" means a person who makes or has contracted to
28 make payments under an Illinois prepaid tuition contract.
29 "Public institution of higher education" means an
30 Illinois public university or Illinois community college.
31 "Nonpublic institution of higher education" means any
32 MAP-eligible educational organization, other than a public
33 institution of higher education, that provides a minimum of
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1 an organized 2-year program at the postsecondary level and
2 that operates in conformity with standards substantially
3 equivalent to those of public institutions of higher
4 education. "Nonpublic institution of higher education" does
5 not include any educational organization used principally for
6 sectarian instruction, as a place of religious teaching or
7 worship, or for any religious denomination for the training
8 of ministers, rabbis, or other professional persons in the
9 field of religion.
10 "Qualified beneficiary" means (i) anyone who has been a
11 resident of this State for at least 12 months prior to the
12 date of the contract, or (ii) a nonresident, so long as the
13 purchaser has been a resident of the State for at least 12
14 months prior to the date of the contract, or (iii) any person
15 less than one year of age who is a relative of an Illinois
16 resident.
17 "Tuition" means the quarter or semester charges imposed
18 on a qualified beneficiary to attend a MAP-eligible
19 institution.
20 "Mandatory Fees" means those quarter or semester fees
21 imposed upon all students enrolled at a MAP-eligible
22 institution.
23 "Registration Fees" means the charges derived by
24 combining tuition and mandatory fees.
25 "Contract Unit" means 15 credit hours of instruction at a
26 MAP-eligible institution.
27 "Board" means the Prepaid Tuition Review Board created
28 under Section 20.
29 "Commission" means the Illinois Student Assistance
30 Commission.
31 Section 15. Creation of Illinois prepaid tuition
32 program. There is created the Illinois prepaid tuition
33 program to be administered by the Illinois Student Assistance
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1 Commission in conjunction with the Prepaid Tuition Review
2 Board. This program is to be administered so that the full
3 cost of tuition and mandatory fees at Illinois public
4 universities and Illinois community colleges may be paid in
5 advance of enrollment through the prior purchase of an
6 Illinois prepaid tuition contract. The Commission may enter
7 into contracts as may be necessary to provide for
8 administration of the program and shall develop and implement
9 rules and regulations necessary for the efficient
10 administration of the program.
11 All reasonable charges incidental to the administration
12 of the program by the Commission shall be paid in the initial
13 year of the program's operation from the General Revenue
14 Fund, pursuant to appropriations made for that purpose by the
15 General Assembly. Those charges and expenses in subsequent
16 years shall be paid exclusively from the Illinois Prepaid
17 Tuition Trust Fund established by Section 35 of this Act.
18 Section 20. Prepaid Tuition Review Board. The Illinois
19 prepaid tuition program shall be administered by the Illinois
20 Student Assistance Commission in conjunction with the Prepaid
21 Tuition Review Board. The Illinois prepaid tuition program
22 shall be administratively housed within the Commission, and
23 the Board shall have responsibility for oversight of the
24 program as specified in this Section.
25 The Board shall consist of 3 members who are appointed by
26 the Governor and subject to confirmation by the Senate. Each
27 member shall possess knowledge, skill, and experience in at
28 least one of the following areas of expertise: accounting,
29 actuarial practice, risk management, or investment
30 management. Members shall serve three-year terms except
31 that, in making the initial appointments, the Governor shall
32 appoint one member to serve for 2 years, one for 3 years, and
33 one for 4 years. Any person appointed to fill a vacancy on
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1 the Board shall be appointed in a like manner and shall serve
2 for only the unexpired term. Members shall be eligible for
3 reappointment and shall serve until a successor is appointed
4 and confirmed. Members of the Board shall serve without
5 compensation but shall be reimbursed for expenses. Before
6 being installed as a full voting member of the Board, each
7 member of the Board shall file verified written statements of
8 economic interests with the Secretary of State as required by
9 the Illinois Governmental Ethics Act and with the Board of
10 Ethics as required by Executive Order of the Governor.
11 The Governor shall appoint a member of the Board to serve
12 as its initial Chairman. Thereafter, the Board shall select
13 a Chairman annually. The Board also shall designate a
14 Secretary-Treasurer who is not a member of the Board. The
15 Secretary-Treasurer shall keep a record of the proceedings of
16 the Board and shall be the custodian of all printed material
17 filed with or by the Board and of its official seal.
18 Notwithstanding the existence of vacancies on the Board, a
19 majority of the members shall constitute a quorum. The Board
20 shall take no official action in the absence of a quorum.
21 The Board shall meet, at a minimum, on a quarterly basis at
22 the call of the Chairman. At least once each year, the Board
23 shall hold a meeting jointly with the Illinois Student
24 Assistance Commission to discuss issues and concerns relating
25 to the Illinois prepaid tuition program. This joint meeting
26 shall be chaired by the Chairman of the Commission.
27 Section 25. Additional powers of the Commission. The
28 Commission has the following specific powers relating to
29 administration of the Illinois prepaid tuition program:
30 (1) To direct funds to be invested, if not required
31 for immediate disbursement.
32 (2) To require a reasonable length of State
33 residence for qualified beneficiaries of Illinois prepaid
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1 tuition contracts.
2 (3) To annually restrict the number of participants
3 in any prepaid tuition plan authorized by the Board,
4 provided that any person denied participation solely on
5 the basis of such restriction shall be given priority
6 consideration when opportunities to participate in the
7 plan are offered during the subsequent year.
8 (4) To appropriately segregate contributions and
9 payments to the Illinois prepaid tuition program into
10 various accounts and funds.
11 (5) To solicit and accept gifts, grants, loans, and
12 other financial assistance from any appropriate source,
13 and to participate in any other way in any governmental
14 program that will carry out the express purposes of this
15 Section.
16 (6) To require and collect administrative fees and
17 charges in connection with any transaction and to impose
18 reasonable penalties, including default, for delinquent
19 payments or for entering into an Illinois prepaid tuition
20 contract on a fraudulent basis.
21 (7) To impose reasonable time limits on use of the
22 Illinois prepaid tuition benefits provided by the
23 program, so long as those limitations are specified
24 within the Illinois prepaid tuition contract.
25 (8) To indicate the terms and conditions under
26 which Illinois prepaid tuition contracts may be
27 terminated and to impose reasonable fees and charges for
28 such termination, so long as those terms and conditions
29 are specified within the Illinois prepaid tuition
30 contract.
31 (9) To provide for the receipt of contributions to
32 the program in lump sum or installment payments.
33 (10) To require that purchasers of Illinois prepaid
34 tuition contracts verify in writing or by any other
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1 method acceptable to the Commission any requests for
2 contract conversions, substitutions, transfers,
3 cancellations, refund requests, or contract changes of
4 any nature.
5 Section 30. Board duties and responsibilities. The
6 Board shall oversee and offer advice and counsel regarding
7 the investments of the Illinois prepaid tuition program with
8 the objective of obtaining the best possible return on
9 investments consistent with actuarial soundness of the
10 program. The Board also has responsibility for approving on
11 a periodic basis, but at least once every 3 years, a
12 marketing agent for the prepaid tuition program; and each
13 year the Board also shall approve an annual report that
14 describes the current financial condition of the prepaid
15 tuition program.
16 (1) Executive Director. The Executive Director of the
17 Illinois Student Assistance Commission shall serve as the
18 chief administrative and operational officer of the Board and
19 the Illinois prepaid tuition program and shall perform other
20 duties assigned by the Board, including, but not limited to,
21 preparation of the annual comprehensive investment plan for
22 consideration by the Commission and the Board. The Executive
23 Director shall be responsible for all investment, management,
24 documentation, public information, and marketing functions
25 associated with the Illinois prepaid tuition program.
26 Nothing in this Section shall preclude the Commission from
27 designating additional Commission personnel to assist the
28 Executive Director with these additional duties and
29 responsibilities.
30 (2) Investment plan. The Commission annually shall
31 submit for Board approval a comprehensive investment plan,
32 for purposes of this Section. The comprehensive investment
33 plan shall specify the investment policies to be utilized by
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1 the Commission in its administration of the Illinois Prepaid
2 Tuition Trust Fund created by Section 35. The Commission may
3 direct that assets of those Funds be placed in savings
4 accounts or may use the same to purchase fixed or variable
5 life insurance or annuity contracts, securities, evidence of
6 indebtedness, or other investment products pursuant to the
7 comprehensive investment plan and in such proportions as may
8 be designated or approved under that plan. Those insurance,
9 annuity, savings, and investment products shall be
10 underwritten and offered in compliance with applicable
11 federal and State laws, rules, and regulations by persons who
12 are authorized thereunder to provide those services. The
13 Commission shall delegate responsibility for preparing the
14 comprehensive investment plan to the Executive Director.
15 Nothing in this Section shall preclude the Commission from
16 contracting with a private corporation or institution to
17 provide such services as may be a part of the comprehensive
18 investment plan or as may be deemed necessary for
19 implementation of the comprehensive investment plan,
20 including, but not limited to, providing consolidated
21 billing, individual and collective record keeping and
22 accounting, and asset purchase, control, and safekeeping.
23 (3) Program management. The Commission and the Board
24 may not delegate their management functions, but may arrange
25 to compensate for personalized investment advisory services
26 rendered with respect to any or all of the investments under
27 their control an investment advisor registered under Section
28 8 of the Illinois Securities Law of 1953 or any bank or other
29 entity authorized by law to provide those services. Nothing
30 contained herein shall preclude either the Commission or the
31 Board from subscribing to general investment research
32 services available for purchase or use by others. The Board
33 also shall have authority to compensate for accounting,
34 computing, and other necessary services.
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1 (4) Annual report. The Commission shall annually
2 prepare or cause to be prepared, for approval by the Board, a
3 report setting forth in appropriate detail an accounting of
4 all Illinois prepaid tuition program funds and a description
5 of the financial condition of the program at the close of
6 each fiscal year. Included in this report shall be an
7 evaluation by at least one nationally recognized actuary of
8 the financial viability of the program. This report, after
9 receiving Board approval, shall be submitted to the Governor,
10 the President of the Senate, the Speaker of the House of
11 Representatives, the Auditor General, and the Board of Higher
12 Education on or before March 1 of the subsequent fiscal year.
13 This report also shall be made available to purchasers of
14 Illinois prepaid tuition contracts and shall contain complete
15 Illinois prepaid tuition contract sales information,
16 including, but not limited to, projected postsecondary
17 enrollment data for qualified beneficiaries.
18 (5) Marketing plan. Selection of a marketing agent for
19 the Illinois prepaid tuition program must be approved by the
20 Board. At least once every 3 years, the Commission shall
21 solicit, for submission to the Board, proposals for marketing
22 of the Illinois prepaid tuition program in accordance with
23 the Illinois Securities Law of 1953 and any applicable
24 provisions of federal law. The entity designated pursuant to
25 this paragraph shall serve as a centralized marketing agent
26 for the program and shall have exclusive responsibility for
27 marketing the program. No contract for marketing the
28 Illinois prepaid tuition program shall extend for longer than
29 3 years. Any materials produced for the purpose of marketing
30 the program shall be submitted to the Executive Director for
31 approval before they are made public. Any Illinois
32 MAP-eligible institution may distribute marketing materials
33 produced for the program, so long as the Executive Director
34 approves the distribution in advance. Neither the State nor
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1 the Board nor the Commission shall be liable for
2 misrepresentation of the program by a marketing agent.
3 (6) Accounting and audit. The Commission shall annually
4 cause to be prepared an accounting of the trust and shall
5 transmit a copy of the accounting to the Board, the Governor,
6 the President of the Senate, the Speaker of the House, and
7 the minority leaders of the Senate and House of
8 Representatives. The Commission shall also make available
9 this accounting of the trust to any purchaser of an Illinois
10 prepaid tuition contract, upon request. The accounts of the
11 Illinois prepaid tuition program shall be subject to annual
12 audits by the Auditor General or a certified public
13 accountant appointed by the Auditor General.
14 Section 35. Illinois Prepaid Tuition Trust Fund.
15 (a) The Illinois Prepaid Tuition Trust Fund is created
16 as the repository of all moneys received by the Board in
17 conjunction with the Illinois prepaid tuition program. The
18 Illinois Prepaid Tuition Trust Fund also shall be the
19 official repository of all contributions, appropriations,
20 interest and dividend payments, gifts, or other financial
21 assets received by the Commission in connection with
22 operation of the Illinois prepaid tuition program. All such
23 moneys shall be deposited in the Illinois Prepaid Tuition
24 Trust Fund and held by the State Treasurer as ex-officio
25 custodian thereof, outside of the State Treasury, separate
26 and apart from all public moneys or funds of this State.
27 All interest or other earnings accruing or received on
28 amounts in the Illinois Prepaid Tuition Trust Fund shall be
29 credited to and retained by the Fund. Moneys, interest, or
30 other earnings paid into the Fund shall not be transferred or
31 allocated by the Commission, the Board, the State Treasurer,
32 or the State Comptroller to any other fund, nor shall the
33 Governor authorize any such transfer or allocation, while any
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1 contracts are outstanding. In addition, no moneys, interest,
2 or other earnings paid into the Fund shall be used,
3 temporarily or otherwise, for interfund borrowing or be
4 otherwise used or appropriated except as expressly authorized
5 in this Act.
6 The Illinois Prepaid Tuition Trust Fund and each
7 individual participant account that may be created in that
8 Fund in conjunction with the Illinois prepaid tuition program
9 shall be subject to audit in the same manner as funds and
10 accounts belonging to the State of Illinois and shall be
11 protected by the official bond given by the State Treasurer.
12 (b) The State Treasurer, from time to time, shall invest
13 moneys in the Illinois Prepaid Tuition Trust Fund that are
14 not needed for immediate disbursement, as directed by the
15 Commission, in accordance with provisions of the investment
16 plan approved by the Board.
17 (c) The Executive Director shall, at such times and in
18 such amounts as shall be necessary, prepare and send to the
19 State Comptroller vouchers requesting payment from the
20 Illinois Prepaid Tuition Trust Fund for: (i) tuition and fee
21 payments to MAP-eligible institutions on behalf of qualified
22 beneficiaries of Illinois prepaid tuition contracts, and (ii)
23 payments associated with administration of the Illinois
24 prepaid tuition program.
25 This Act shall constitute an irrevocable appropriation
26 for all amounts necessary for such purposes, and the
27 irrevocable and continuing authority for and direction to the
28 Board, the Commission, the Executive Director, and the State
29 Treasurer to make the necessary payments out of that Fund for
30 those purposes.
31 (d) The Governor shall indicate in each annual State
32 budget the estimated amount of moneys in the Illinois Prepaid
33 Tuition Trust Fund which shall be necessary and sufficient,
34 during that State fiscal year, to discharge all obligations
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1 anticipated under Illinois prepaid tuition contracts. The
2 Governor also shall indicate in each annual State budget the
3 amount of moneys from the Illinois Prepaid Tuition Trust Fund
4 necessary to cover anticipated expenses associated with
5 administration of the program. The Commission shall obtain
6 concurrence from a nationally recognized actuary as to all
7 amounts necessary for the program to meet its obligations.
8 These amounts shall be certified annually to the Governor by
9 the Commission no later than January 30.
10 During the first year of operation for the Illinois
11 prepaid tuition program, the Governor shall request an
12 appropriation to the Commission from general funds sufficient
13 to pay for start-up costs associated with establishment of
14 the program. Subsequent program administrative costs shall
15 be provided from reasonable fees and charges equitably
16 assessed to purchasers of prepaid tuition contracts.
17 (e) If there are insufficient moneys in the Illinois
18 Prepaid Tuition Trust Fund to discharge all obligations under
19 contracts as they become due, the Governor shall request the
20 General Assembly to transfer from the General Revenue Fund to
21 the Illinois Prepaid Tuition Trust Fund the necessary amount
22 required to fully pay and discharge all obligations arising
23 under the contracts and this Act that otherwise could not be
24 discharged. If for any reason the General Assembly fails to
25 make appropriations for or fails to transfer to the Illinois
26 Prepaid Tuition Trust Fund amounts sufficient for the
27 discharge of obligations arising under contracts or this Act
28 as they become due, this Act shall constitute an irrevocable
29 and continuing appropriation of all amounts necessary for
30 such purposes and the irrevocable and continuing authority
31 for and direction to the State Comptroller and to the State
32 Treasurer to make the necessary transfers and disbursements
33 from the revenues and funds of the State for such purposes.
34 (f) All contracts issued in accordance with this Act
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1 shall be direct, general obligations of the State of Illinois
2 and shall so state on their face, and the full faith and
3 credit of the State of Illinois are pledged for the punctual
4 payment of all payments and obligations under the contracts
5 and this Act as they become due.
6 (g) In the event the Board and the Commission, with the
7 concurrence of the Governor, determine the program to be
8 financially infeasible, the Commission may discontinue,
9 prospectively, the operation of the program. Any qualified
10 beneficiary who has been accepted by and is enrolled or will
11 within 5 years enroll at a MAP-eligible institution shall be
12 entitled to exercise the complete benefits specified in the
13 Illinois prepaid tuition contract. All other contract
14 holders shall receive an appropriate refund of all
15 contributions and accrued interest up to the time that the
16 program is discontinued.
17 Section 45. Illinois prepaid tuition contracts.
18 (a) The Commission may enter into an Illinois prepaid
19 tuition contract with a purchaser under which the Commission
20 contracts on behalf of the State to pay full tuition and
21 mandatory fees at an Illinois public university or Illinois
22 community college for a qualified beneficiary to attend the
23 MAP-eligible institution to which the qualified beneficiary
24 is admitted. Each contract shall contain terms, conditions,
25 and provisions that the Commission determines to be necessary
26 for ensuring the educational objectives and sustainable
27 financial viability of the Illinois prepaid tuition program.
28 (b) Each contract shall have one designated purchaser
29 and one designated qualified beneficiary. Unless otherwise
30 specified in the contract, the purchaser owns the contract
31 and retains any tax liability for its assets only until the
32 first distribution of benefits. Once a partial benefit of the
33 contract has been disbursed, any tax liability attributable
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1 to the contract and its assets becomes a tax liability of the
2 qualified beneficiary, unless otherwise specified in the
3 contract. Contracts shall be purchased in units of 15 credit
4 hours at any MAP-eligible institution.
5 (c) Without exception, benefits may be received by a
6 qualified beneficiary of an Illinois prepaid tuition contract
7 no earlier than 3 years from the date the contract is
8 purchased.
9 (d) A prepaid tuition contract shall contain, but is not
10 limited to, provisions for (i) refunds or withdrawals in
11 certain circumstances, with or without interest or penalties;
12 (ii) conversion of the contract at the time of distribution
13 from accrued prepayment value at one type of MAP-eligible
14 institution to the accrued prepayment value at a different
15 type of MAP-eligible institution; (iii) portability of the
16 accrued value of the prepayment value for use at an
17 out-of-state higher education institution; (iv)
18 transferability of the contract benefits within the qualified
19 beneficiary's immediate family; and (v) a specified benefit
20 period during which the contract may be redeemed.
21 (e) Each Illinois prepaid tuition contract also shall
22 contain, at minimum, all of the following:
23 (1) The amount of payment or payments and the
24 number of payments required from a purchaser on behalf of
25 a qualified beneficiary.
26 (2) The terms and conditions under which purchasers
27 shall remit payments, including, but not limited to, the
28 date or dates upon which each payment shall be due.
29 (3) Provisions for late payment charges and for
30 default.
31 (4) Provisions for penalty fees payable incident to
32 an authorized withdrawal.
33 (5) The name, date of birth, and social security
34 number of the qualified beneficiary on whose behalf the
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1 contract is drawn and the terms and conditions under
2 which the contract may be transferred to another
3 qualified beneficiary.
4 (6) The name and social security number of any
5 person who may terminate the contract, together with
6 terms that specify whether the contract may be terminated
7 by the purchaser, the qualified beneficiary, a specific
8 designated person, or any combination of these persons.
9 (7) The terms and conditions under which a contract
10 may be terminated, the name and social security number of
11 the person entitled to any refund due as a result of the
12 termination of the contract pursuant to those terms and
13 conditions, and the method for determining the amount of
14 a refund.
15 (8) The time limitations, if any, within which the
16 qualified beneficiary must claim his or her benefits
17 through the program.
18 (9) Other terms and conditions determined by the
19 Commission to be appropriate.
20 (f) In addition to the contract provisions set forth in
21 subsection (e), each Illinois prepaid tuition contract shall
22 include:
23 (1) The number of credit hours contracted by the
24 purchaser.
25 (2) The type of MAP-eligible institution and the
26 prepaid tuition plan toward which the credit hours shall
27 be applied.
28 (3) The explicit contractual obligation of the
29 Commission to the qualified beneficiary to provide a
30 specific number of credit hours of undergraduate
31 instruction at a MAP-eligible institution, not to exceed
32 the median number of credit hours required for the
33 conference of a degree that corresponds to the plan
34 purchased on behalf of the qualified beneficiary.
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1 (g) The Commission shall indicate by rule the conditions
2 under which refunds are payable to a contract purchaser.
3 Generally, no refund shall exceed the amount paid into the
4 Illinois Prepaid Tuition Trust Fund by the purchaser. In the
5 event that a contract is converted from a Public University
6 Plan described in subsection (j) of this Section to a
7 Community College Plan described in subsection (k) of this
8 Section, the refund amount shall be reduced by the amount
9 transferred to the Illinois community college on behalf of
10 the qualified beneficiary. Except where the Commission may
11 otherwise rule, refunds may exceed the amount paid into the
12 Illinois Prepaid Tuition Trust Fund only under the following
13 circumstances:
14 (1) If the qualified beneficiary is awarded a
15 scholarship, the terms of which duplicate the benefits
16 included in the Illinois prepaid tuition contract, then
17 moneys paid for the purchase of the contract shall be
18 returned to the purchaser, in semester installments that
19 coincide with the matriculation by the qualified
20 beneficiary, in an amount equal to the lesser of (i) the
21 original purchase price plus 2% interest compounded
22 annually, or (ii) the current cost of tuition and
23 mandatory fees at the MAP-eligible institution where the
24 qualified beneficiary is enrolled.
25 (2) In the event of the death or total disability
26 of the qualified beneficiary, moneys paid for the
27 purchase of the Illinois prepaid tuition contract shall
28 be returned to the purchaser together with all accrued
29 earnings.
30 (3) If an Illinois prepaid tuition contract is
31 converted from a Public University Plan to a Community
32 College Plan, then the amount refunded shall be the value
33 of the original Illinois prepaid tuition contract minus
34 the value of the contract after conversion.
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1 No refund shall be authorized under an Illinois prepaid
2 tuition contract for any semester partially attended but not
3 completed.
4 Moneys paid into or out of the Illinois Prepaid Tuition
5 Trust Fund by or on behalf of the purchaser or the qualified
6 beneficiary of an Illinois prepaid tuition contract are
7 exempt from all claims of creditors of the purchaser or
8 beneficiary, so long as the contract has not been terminated.
9 The State or any State agency, county, municipality, or
10 other political subdivision, by contract or collective
11 bargaining agreement, may agree with any employee to remit
12 payments toward the purchase of Illinois prepaid tuition
13 contracts through payroll deductions made by the appropriate
14 officer or officers of the entity making the payments. Such
15 payments shall be held and administered in accordance with
16 this Act.
17 (h) Nothing in this Act shall be construed as a promise
18 or guarantee that a qualified beneficiary will be admitted to
19 a MAP-eligible institution or to a particular MAP-eligible
20 institution, will be allowed to continue enrollment at a
21 MAP-eligible institution after admission, or will be
22 graduated from a MAP-eligible institution.
23 (i) The Commission shall develop and make prepaid
24 tuition contracts available under a minimum of at least 2
25 independent plans to be known as the Public University Plan
26 and the Community College Plan.
27 Contracts shall be purchased in units of 15 credit hours
28 at either an Illinois public university or an Illinois
29 community college. The minimum purchase amount per qualified
30 beneficiary shall be one unit or 15 credit hours. The
31 maximum purchase amount shall be 9 units (or 135 credit
32 hours) for the Public University Plan and 4 units (or 60
33 credit hours) for the Community College Plan.
34 (j) Public University Plan. Through the Public
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1 University Plan, the Illinois prepaid tuition contract shall
2 provide prepaid registration fees, which include full tuition
3 costs as well as mandatory fees, for a specified number of
4 undergraduate credit hours, not to exceed the maximum number
5 of credit hours required for the conference of a
6 baccalaureate degree. In determining the cost of
7 participation in the Public University Plan, the Commission
8 shall reference the combined mean-weighted current
9 registration fees from all Illinois public universities.
10 In the event that a qualified beneficiary for whatever
11 reason chooses to attend an Illinois community college, the
12 qualified beneficiary may convert the average number of
13 credit hours required for the conference of an associate
14 degree from the Public University Plan to the Community
15 College Plan and may retain the remaining Public University
16 Plan credit hours or may request a refund for prepaid credit
17 hours in excess of those required for conference of an
18 associate degree. In determining the amount of any refund,
19 the Commission also shall recognize the current relative
20 credit hour cost of the 2 plans when making any conversion.
21 In the event that a qualified beneficiary for whatever
22 reason chooses to attend a nonpublic institution of higher
23 education, the qualified beneficiary's prepaid tuition
24 contract shall be converted for use at that nonpublic
25 institution of higher education by referencing the current
26 average mean-weighted credit hour value of registration fees
27 at Illinois public universities relative to the corresponding
28 value of registration fees at nonpublic institutions of
29 higher education.
30 Qualified beneficiaries shall bear the cost of any
31 laboratory or other non-mandatory fees associated with
32 enrollment in specific courses. Qualified beneficiaries who
33 are not Illinois residents shall bear the difference in cost
34 between in-state registration fees guaranteed by the prepaid
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1 tuition contract and tuition and other charges assessed upon
2 out-of-state students by the MAP-eligible institution.
3 (k) Community College Plan. Through the Community
4 College Plan, the Illinois prepaid tuition contract shall
5 provide prepaid registration fees, which include full tuition
6 costs as well as mandatory fees, for a specified number of
7 undergraduate credit hours, not to exceed the maximum number
8 of credit hours required for the conference of an associate
9 degree. In determining the cost of participation in the
10 Community College Plan, the Commission shall reference the
11 combined mean-weighted current registration fees from all
12 Illinois community colleges.
13 In the event that a qualified beneficiary for whatever
14 reason chooses to attend an Illinois public university, the
15 qualified beneficiary's prepaid tuition contract shall be
16 converted for use at that Illinois public university by
17 referencing the current average mean-weighted credit hour
18 value of registration fees at Illinois community colleges
19 relative to the corresponding value of registration fees at
20 Illinois public universities.
21 Qualified beneficiaries shall bear the cost of any
22 laboratory or other non-mandatory fees associated with
23 enrollment in specific courses. Qualified beneficiaries who
24 are not Illinois residents shall bear the difference in cost
25 between in-state registration fees guaranteed by the prepaid
26 tuition contract and tuition and other charges assessed upon
27 out-of-state students by the MAP-eligible institution.
28 (l) A qualified beneficiary may apply the benefits of
29 any Illinois prepaid tuition contract toward a nonpublic
30 institution of higher education. In the event that a
31 qualified beneficiary for whatever reason chooses to attend a
32 nonpublic institution of higher education, the qualified
33 beneficiary's prepaid tuition contract shall be converted for
34 use at that nonpublic institution of higher education by
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1 referencing the current average mean-weighted credit hour
2 value of registration fees purchased under the contract
3 relative to the corresponding value of current registration
4 fees at the nonpublic institution of higher education where
5 the beneficiary is enrolled. The Commission shall transfer,
6 or cause to have transferred, this amount, less a transfer
7 fee, to the nonpublic institution on behalf of the
8 beneficiary. In the event that the cost of registration
9 charged to the beneficiary at the nonpublic institution of
10 higher education is less than the aggregate value of the
11 Illinois prepaid tuition contract, any remaining amount shall
12 be transferred in subsequent semesters until the transfer
13 value is fully depleted.
14 (m) A qualified beneficiary may apply the benefits of
15 any Illinois prepaid tuition contract toward an eligible
16 out-of-state college or university. In the event that a
17 qualified beneficiary for whatever reason chooses to attend
18 an eligible out-of-state college or university, the qualified
19 beneficiary's prepaid tuition contract shall be converted for
20 use at that college or university by referencing the current
21 average mean-weighted credit hour value of registration fees
22 purchased under the contract relative to the corresponding
23 value of current registration fees at the college or
24 university where the beneficiary is enrolled. The Commission
25 shall transfer, or cause to have transferred, this amount,
26 less a transfer fee, to the college or university on behalf
27 of the beneficiary. In the event that the cost of
28 registration charged to the beneficiary at the eligible
29 out-of-state college or university is less than the aggregate
30 value of the Illinois prepaid tuition contract, any remaining
31 amount shall be transferred in subsequent semesters until the
32 transfer value is fully depleted.
33 (n) Illinois prepaid tuition contracts may be purchased
34 either by lump sum or by installments. All installment
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1 contracts shall be for 5 years, except that contracts that
2 purchase at least 120 credit hours may be payable, by
3 installments, over a 10-year period. No penalty shall be
4 assessed for early payment of installment contracts.
5 (o) The Commission shall annually adjust the price of
6 new contracts, in accordance with the annual changes in
7 registration fees at Illinois public universities and
8 community colleges.
9 Section 50. Confidentiality and disclosure. Information
10 that (i) identifies the purchasers or qualified beneficiaries
11 of any Illinois prepaid tuition contract or any terms or
12 provisions of any such contract as those terms and provisions
13 relate to a particular purchaser or qualified beneficiary, or
14 (ii) discloses any other matter relating to the participation
15 of any such purchaser or qualified beneficiary in the
16 Illinois prepaid tuition program or in any independent plan
17 under which that program is administered, is exempt from
18 inspection, copying, or disclosure under the Freedom of
19 Information Act. The Commission may authorize the program's
20 records administrator to release such information to
21 appropriate personnel at the MAP-eligible institution at
22 which the beneficiary may enroll or is enrolled. However,
23 any such institution to which that information is released
24 shall ensure the continued confidentiality of the
25 information.
26 Section 55. Tax exemption. The assets of the Illinois
27 Prepaid Tuition Trust Fund and its income and operation shall
28 be exempt from all taxation by the State of Illinois and any
29 of its subdivisions. The accrued earnings of Illinois
30 prepaid tuition contracts once disbursed on behalf of an
31 eligible beneficiary shall be similarly exempt from all
32 taxation by the State of Illinois and any of its
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1 subdivisions, so long as they are used for educational
2 purposes in accordance with the provisions of an Illinois
3 prepaid tuition contract.
4 Section 60. Securities Registration Exemption. Illinois
5 prepaid tuition contracts shall be exempt from registration
6 under the Illinois Securities Law of 1953. However no
7 contract may be sold or otherwise transferred by the
8 purchaser or qualified beneficiary without the prior approval
9 of the Board, except in accordance with the terms explicitly
10 set forth in the contract.
11 Section 65. Construction. Nothing in this Act or in an
12 Illinois prepaid tuition contract shall be construed as a
13 promise or guarantee by the Program or the State that a
14 person will be admitted to any MAP-eligible institution or to
15 a particular MAP-eligible institution, will be allowed to
16 continue to attend a MAP-eligible institution after having
17 been admitted, or will be graduated from a MAP-eligible
18 institution.
19 Section 70. Scholarships, grants, or monetary
20 assistance. No contributions toward the purchase of an
21 Illinois prepaid tuition contract authorized by this Section
22 shall be considered in evaluating the financial situation of
23 the student beneficiary of the contract or be deemed a
24 financial resource of or a form of financial aid or
25 assistance to the student beneficiary, for purposes of
26 determining the eligibility of the student beneficiary for
27 any scholarship, grant or monetary assistance awarded by the
28 Commission, the State, or any agency thereof; nor shall
29 contributions toward the purchase of an Illinois prepaid
30 tuition contract reduce the amount of any scholarship, grant,
31 or monetary assistance that the student beneficiary is
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1 eligible to be awarded by the Illinois Student Assistance
2 Commission, the State, or any agency thereof in accordance
3 with the provisions of any other Section of this Act or any
4 other law of the State.
5 Section 90. The Freedom of Information Act is amended by
6 changing Section 7 as follows:
7 (5 ILCS 140/7) (from Ch. 116, par. 207)
8 Sec. 7. Exemptions.
9 (1) The following shall be exempt from inspection and
10 copying:
11 (a) Information specifically prohibited from
12 disclosure by federal or State law or rules and
13 regulations adopted under federal or State law.
14 (b) Information that, if disclosed, would
15 constitute a clearly unwarranted invasion of personal
16 privacy, unless the disclosure is consented to in writing
17 by the individual subjects of the information. The
18 disclosure of information that bears on the public duties
19 of public employees and officials shall not be considered
20 an invasion of personal privacy. Information exempted
21 under this subsection (b) shall include but is not
22 limited to:
23 (i) files and personal information maintained
24 with respect to clients, patients, residents,
25 students or other individuals receiving social,
26 medical, educational, vocational, financial,
27 supervisory or custodial care or services directly
28 or indirectly from federal agencies or public
29 bodies;
30 (ii) personnel files and personal information
31 maintained with respect to employees, appointees or
32 elected officials of any public body or applicants
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1 for those positions;
2 (iii) files and personal information
3 maintained with respect to any applicant, registrant
4 or licensee by any public body cooperating with or
5 engaged in professional or occupational
6 registration, licensure or discipline;
7 (iv) information required of any taxpayer in
8 connection with the assessment or collection of any
9 tax unless disclosure is otherwise required by State
10 statute; and
11 (v) information revealing the identity of
12 persons who file complaints with or provide
13 information to administrative, investigative, law
14 enforcement or penal agencies; provided, however,
15 that identification of witnesses to traffic
16 accidents, traffic accident reports, and rescue
17 reports may be provided by agencies of local
18 government, except in a case for which a criminal
19 investigation is ongoing, without constituting a
20 clearly unwarranted per se invasion of personal
21 privacy under this subsection.
22 (c) Records compiled by any public body for
23 administrative enforcement proceedings and any law
24 enforcement or correctional agency for law enforcement
25 purposes or for internal matters of a public body, but
26 only to the extent that disclosure would:
27 (i) interfere with pending or actually and
28 reasonably contemplated law enforcement proceedings
29 conducted by any law enforcement or correctional
30 agency;
31 (ii) interfere with pending administrative
32 enforcement proceedings conducted by any public
33 body;
34 (iii) deprive a person of a fair trial or an
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1 impartial hearing;
2 (iv) unavoidably disclose the identity of a
3 confidential source or confidential information
4 furnished only by the confidential source;
5 (v) disclose unique or specialized
6 investigative techniques other than those generally
7 used and known or disclose internal documents of
8 correctional agencies related to detection,
9 observation or investigation of incidents of crime
10 or misconduct;
11 (vi) constitute an invasion of personal
12 privacy under subsection (b) of this Section;
13 (vii) endanger the life or physical safety of
14 law enforcement personnel or any other person; or
15 (viii) obstruct an ongoing criminal
16 investigation.
17 (d) Criminal history record information maintained
18 by State or local criminal justice agencies, except the
19 following which shall be open for public inspection and
20 copying:
21 (i) chronologically maintained arrest
22 information, such as traditional arrest logs or
23 blotters;
24 (ii) the name of a person in the custody of a
25 law enforcement agency and the charges for which
26 that person is being held;
27 (iii) court records that are public;
28 (iv) records that are otherwise available
29 under State or local law; or
30 (v) records in which the requesting party is
31 the individual identified, except as provided under
32 part (vii) of paragraph (c) of subsection (1) of
33 this Section.
34 "Criminal history record information" means data
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1 identifiable to an individual and consisting of
2 descriptions or notations of arrests, detentions,
3 indictments, informations, pre-trial proceedings, trials,
4 or other formal events in the criminal justice system or
5 descriptions or notations of criminal charges (including
6 criminal violations of local municipal ordinances) and
7 the nature of any disposition arising therefrom,
8 including sentencing, court or correctional supervision,
9 rehabilitation and release. The term does not apply to
10 statistical records and reports in which individuals are
11 not identified and from which their identities are not
12 ascertainable, or to information that is for criminal
13 investigative or intelligence purposes.
14 (e) Records that relate to or affect the security
15 of correctional institutions and detention facilities.
16 (f) Preliminary drafts, notes, recommendations,
17 memoranda and other records in which opinions are
18 expressed, or policies or actions are formulated, except
19 that a specific record or relevant portion of a record
20 shall not be exempt when the record is publicly cited and
21 identified by the head of the public body. The exemption
22 provided in this paragraph (f) extends to all those
23 records of officers and agencies of the General Assembly
24 that pertain to the preparation of legislative documents.
25 (g) Trade secrets and commercial or financial
26 information obtained from a person or business where the
27 trade secrets or information are proprietary, privileged
28 or confidential, or where disclosure of the trade secrets
29 or information may cause competitive harm, including all
30 information determined to be confidential under Section
31 4002 of the Technology Advancement and Development Act.
32 Nothing contained in this paragraph (g) shall be
33 construed to prevent a person or business from consenting
34 to disclosure.
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1 (h) Proposals and bids for any contract, grant, or
2 agreement, including information which if it were
3 disclosed would frustrate procurement or give an
4 advantage to any person proposing to enter into a
5 contractor agreement with the body, until an award or
6 final selection is made. Information prepared by or for
7 the body in preparation of a bid solicitation shall be
8 exempt until an award or final selection is made.
9 (i) Valuable formulae, designs, drawings and
10 research data obtained or produced by any public body
11 when disclosure could reasonably be expected to produce
12 private gain or public loss.
13 (j) Test questions, scoring keys and other
14 examination data used to administer an academic
15 examination or determined the qualifications of an
16 applicant for a license or employment.
17 (k) Architects' plans and engineers' technical
18 submissions for projects not constructed or developed in
19 whole or in part with public funds and for projects
20 constructed or developed with public funds, to the extent
21 that disclosure would compromise security.
22 (l) Library circulation and order records
23 identifying library users with specific materials.
24 (m) Minutes of meetings of public bodies closed to
25 the public as provided in the Open Meetings Act until the
26 public body makes the minutes available to the public
27 under Section 2.06 of the Open Meetings Act.
28 (n) Communications between a public body and an
29 attorney or auditor representing the public body that
30 would not be subject to discovery in litigation, and
31 materials prepared or compiled by or for a public body in
32 anticipation of a criminal, civil or administrative
33 proceeding upon the request of an attorney advising the
34 public body, and materials prepared or compiled with
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1 respect to internal audits of public bodies.
2 (o) Information received by a primary or secondary
3 school, college or university under its procedures for
4 the evaluation of faculty members by their academic
5 peers.
6 (p) Administrative or technical information
7 associated with automated data processing operations,
8 including but not limited to software, operating
9 protocols, computer program abstracts, file layouts,
10 source listings, object modules, load modules, user
11 guides, documentation pertaining to all logical and
12 physical design of computerized systems, employee
13 manuals, and any other information that, if disclosed,
14 would jeopardize the security of the system or its data
15 or the security of materials exempt under this Section.
16 (q) Documents or materials relating to collective
17 negotiating matters between public bodies and their
18 employees or representatives, except that any final
19 contract or agreement shall be subject to inspection and
20 copying.
21 (r) Drafts, notes, recommendations and memoranda
22 pertaining to the financing and marketing transactions of
23 the public body. The records of ownership, registration,
24 transfer, and exchange of municipal debt obligations, and
25 of persons to whom payment with respect to these
26 obligations is made.
27 (s) The records, documents and information relating
28 to real estate purchase negotiations until those
29 negotiations have been completed or otherwise terminated.
30 With regard to a parcel involved in a pending or actually
31 and reasonably contemplated eminent domain proceeding
32 under Article VII of the Code of Civil Procedure,
33 records, documents and information relating to that
34 parcel shall be exempt except as may be allowed under
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1 discovery rules adopted by the Illinois Supreme Court.
2 The records, documents and information relating to a real
3 estate sale shall be exempt until a sale is consummated.
4 (t) Any and all proprietary information and records
5 related to the operation of an intergovernmental risk
6 management association or self-insurance pool or jointly
7 self-administered health and accident cooperative or
8 pool.
9 (u) Information concerning a university's
10 adjudication of student or employee grievance or
11 disciplinary cases, to the extent that disclosure would
12 reveal the identity of the student or employee and
13 information concerning any public body's adjudication of
14 student or employee grievances or disciplinary cases,
15 except for the final outcome of the cases.
16 (v) Course materials or research materials used by
17 faculty members.
18 (w) Information related solely to the internal
19 personnel rules and practices of a public body.
20 (x) Information contained in or related to
21 examination, operating, or condition reports prepared by,
22 on behalf of, or for the use of a public body responsible
23 for the regulation or supervision of financial
24 institutions or insurance companies, unless disclosure is
25 otherwise required by State law.
26 (y) Information the disclosure of which is
27 restricted under Section 5-108 of the Public Utilities
28 Act.
29 (z) Manuals or instruction to staff that relate to
30 establishment or collection of liability for any State
31 tax or that relate to investigations by a public body to
32 determine violation of any criminal law.
33 (aa) Applications, related documents, and medical
34 records received by the Experimental Organ
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1 Transplantation Procedures Board and any and all
2 documents or other records prepared by the Experimental
3 Organ Transplantation Procedures Board or its staff
4 relating to applications it has received.
5 (bb) Insurance or self insurance (including any
6 intergovernmental risk management association or self
7 insurance pool) claims, loss or risk management
8 information, records, data, advice or communications.
9 (cc) Information and records held by the Department
10 of Public Health and its authorized representatives
11 relating to known or suspected cases of sexually
12 transmissible disease or any information the disclosure
13 of which is restricted under the Illinois Sexually
14 Transmissible Disease Control Act.
15 (dd) Information the disclosure of which is
16 exempted under Section 7 of the Radon Mitigation Act.
17 (ee) Firm performance evaluations under Section 55
18 of the Architectural, Engineering, and Land Surveying
19 Qualifications Based Selection Act.
20 (ff) Information the disclosure of which is
21 restricted and exempted under Section 50 of the Illinois
22 Prepaid Tuition Act.
23 (2) This Section does not authorize withholding of
24 information or limit the availability of records to the
25 public, except as stated in this Section or otherwise
26 provided in this Act.
27 (Source: P.A. 87-241; 87-673; 87-895; 88-444.)
28 Section 99. Effective date. This Act takes effect upon
29 becoming law.