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90_SB0878sam001
LRB9003362EGfgam01
1 AMENDMENT TO SENATE BILL 878
2 AMENDMENT NO. . Amend Senate Bill 878 by replacing
3 the title with the following:
4 "AN ACT relating to prepaid tuition contracts, amending a
5 named Act."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 1. Short title. This Act may be cited as the
9 Illinois Prepaid Tuition Act.
10 Section 5. Purpose. The General Assembly finds and
11 declares that the general welfare and security of the State
12 are enhanced by access to higher education for all residents
13 of the State who desire that education and who demonstrate
14 the qualifications necessary to pursue that education.
15 Furthermore, it is desirable that residents of the State who
16 seek to pursue higher education be able to choose attendance
17 at the higher education institution that offers programs and
18 services most suitable to their needs. Accordingly,
19 endeavors that serve the higher education needs of the people
20 of the State represent an essential function of State
21 government.
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1 During the past decade, students have been paying more
2 and borrowing more to finance the increasing cost of higher
3 education at Illinois colleges and universities as well as at
4 similar institutions nationwide. Federal and state
5 governments' capacity to fund college scholarships and grants
6 cannot fully meet the current and future demand for higher
7 education nor is it reasonable to expect that paying for
8 college is solely a governmental responsibility. It is --
9 and has always been -- a shared responsibility among the
10 student, the family, State government, and the federal
11 government. Consequently, the intent of this Act is to both
12 encourage and better enable Illinois families to help
13 themselves finance the cost of higher education, specifically
14 through a program that provides Illinois families with a
15 method of State tax-free and federally tax-deferred savings
16 for college tuition.
17 Section 10. Definitions. In this Act:
18 "Illinois public university" means the University of
19 Illinois, Illinois State University, Chicago State
20 University, Governors State University, Southern Illinois
21 University, Northern Illinois University, Eastern Illinois
22 University, Western Illinois University, or Northeastern
23 Illinois University.
24 "Illinois community college" means a public community
25 college as defined in Section 1-2 of the Public Community
26 College Act.
27 "MAP-eligible institution" means a public institution of
28 higher education or a nonpublic institution of higher
29 education whose students are eligible to receive need-based
30 student financial assistance through State Monetary Award
31 Program (MAP) grants administered by the Illinois Student
32 Assistance Commission under the Higher Education Student
33 Assistance Act.
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1 "Illinois prepaid tuition contract" or "contract" means a
2 contract entered into between the State and a Purchaser under
3 Section 45 to provide for the higher education of a qualified
4 beneficiary.
5 "Illinois prepaid tuition program" or "program" means the
6 program created in Section 15.
7 "Purchaser" means a person who makes or has contracted to
8 make payments under an Illinois prepaid tuition contract.
9 "Public institution of higher education" means an
10 Illinois public university or Illinois community college.
11 "Nonpublic institution of higher education" means any
12 MAP-eligible educational organization, other than a public
13 institution of higher education, that provides a minimum of
14 an organized 2-year program at the postsecondary level and
15 that operates in conformity with standards substantially
16 equivalent to those of public institutions of higher
17 education. "Nonpublic institution of higher education" does
18 not include any educational organization used principally for
19 sectarian instruction, as a place of religious teaching or
20 worship, or for any religious denomination for the training
21 of ministers, rabbis, or other professional persons in the
22 field of religion.
23 "Qualified beneficiary" means (i) anyone who has been a
24 resident of this State for at least 12 months prior to the
25 date of the contract, or (ii) a nonresident, so long as the
26 purchaser has been a resident of the State for at least 12
27 months prior to the date of the contract, or (iii) any person
28 less than one year of age who is a relative of an Illinois
29 resident.
30 "Tuition" means the quarter or semester charges imposed
31 on a qualified beneficiary to attend a MAP-eligible
32 institution.
33 "Mandatory Fees" means those quarter or semester fees
34 imposed upon all students enrolled at a MAP-eligible
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1 institution.
2 "Registration Fees" means the charges derived by
3 combining tuition and mandatory fees.
4 "Contract Unit" means 15 credit hours of instruction at a
5 MAP-eligible institution.
6 "Board" means the Prepaid Tuition Review Board created
7 under Section 20.
8 "Commission" means the Illinois Student Assistance
9 Commission.
10 Section 15. Creation of Illinois prepaid tuition
11 program. There is created the Illinois prepaid tuition
12 program to be administered by the Illinois Student Assistance
13 Commission in conjunction with the Prepaid Tuition Review
14 Board. This program is to be administered so that the full
15 cost of tuition and mandatory fees at Illinois public
16 universities and Illinois community colleges may be paid in
17 advance of enrollment through the prior purchase of an
18 Illinois prepaid tuition contract. The Commission may enter
19 into contracts as may be necessary to provide for
20 administration of the program and shall develop and implement
21 rules and regulations necessary for the efficient
22 administration of the program.
23 All reasonable charges incidental to the administration
24 of the program by the Commission shall be paid in the initial
25 year of the program's operation from the General Revenue
26 Fund, pursuant to appropriations made for that purpose by the
27 General Assembly. Those charges and expenses in subsequent
28 years shall be paid exclusively from the Illinois Prepaid
29 Tuition Trust Fund established by Section 35 of this Act.
30 Section 20. Prepaid Tuition Review Board. The Illinois
31 prepaid tuition program shall be administered by the Illinois
32 Student Assistance Commission in conjunction with the Prepaid
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1 Tuition Review Board. The Illinois prepaid tuition program
2 shall be administratively housed within the Commission, and
3 the Board shall have responsibility for oversight of the
4 program as specified in this Section.
5 The Board shall consist of 3 members who are appointed by
6 the Governor and subject to confirmation by the Senate. Each
7 member shall possess knowledge, skill, and experience in at
8 least one of the following areas of expertise: accounting,
9 actuarial practice, risk management, or investment
10 management. Members shall serve three-year terms except
11 that, in making the initial appointments, the Governor shall
12 appoint one member to serve for 2 years, one for 3 years, and
13 one for 4 years. Any person appointed to fill a vacancy on
14 the Board shall be appointed in a like manner and shall serve
15 for only the unexpired term. Members shall be eligible for
16 reappointment and shall serve until a successor is appointed
17 and confirmed. Members of the Board shall serve without
18 compensation but shall be reimbursed for expenses. Before
19 being installed as a full voting member of the Board, each
20 member of the Board shall file verified written statements of
21 economic interests with the Secretary of State as required by
22 the Illinois Governmental Ethics Act and with the Board of
23 Ethics as required by Executive Order of the Governor.
24 The Governor shall appoint a member of the Board to serve
25 as its initial Chairman. Thereafter, the Board shall select
26 a Chairman annually. The Board also shall designate a
27 Secretary-Treasurer who is not a member of the Board. The
28 Secretary-Treasurer shall keep a record of the proceedings of
29 the Board and shall be the custodian of all printed material
30 filed with or by the Board and of its official seal.
31 Notwithstanding the existence of vacancies on the Board, a
32 majority of the members shall constitute a quorum. The Board
33 shall take no official action in the absence of a quorum.
34 The Board shall meet, at a minimum, on a quarterly basis at
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1 the call of the Chairman. At least once each year, the Board
2 shall hold a meeting jointly with the Illinois Student
3 Assistance Commission to discuss issues and concerns relating
4 to the Illinois prepaid tuition program. This joint meeting
5 shall be chaired by the Chairman of the Commission.
6 Section 25. Additional powers of the Commission. The
7 Commission has the following specific powers relating to
8 administration of the Illinois prepaid tuition program:
9 (1) To direct funds to be invested, if not required
10 for immediate disbursement.
11 (2) To require a reasonable length of State
12 residence for qualified beneficiaries of Illinois prepaid
13 tuition contracts.
14 (3) To annually restrict the number of participants
15 in any prepaid tuition plan authorized by the Board,
16 provided that any person denied participation solely on
17 the basis of such restriction shall be given priority
18 consideration when opportunities to participate in the
19 plan are offered during the subsequent year.
20 (4) To appropriately segregate contributions and
21 payments to the Illinois prepaid tuition program into
22 various accounts and funds.
23 (5) To solicit and accept gifts, grants, loans, and
24 other financial assistance from any appropriate source,
25 and to participate in any other way in any governmental
26 program that will carry out the express purposes of this
27 Section.
28 (6) To require and collect administrative fees and
29 charges in connection with any transaction and to impose
30 reasonable penalties, including default, for delinquent
31 payments or for entering into an Illinois prepaid tuition
32 contract on a fraudulent basis.
33 (7) To impose reasonable time limits on use of the
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1 Illinois prepaid tuition benefits provided by the
2 program, so long as those limitations are specified
3 within the Illinois prepaid tuition contract.
4 (8) To indicate the terms and conditions under
5 which Illinois prepaid tuition contracts may be
6 terminated and to impose reasonable fees and charges for
7 such termination, so long as those terms and conditions
8 are specified within the Illinois prepaid tuition
9 contract.
10 (9) To provide for the receipt of contributions to
11 the program in lump sum or installment payments.
12 (10) To require that purchasers of Illinois prepaid
13 tuition contracts verify in writing or by any other
14 method acceptable to the Commission any requests for
15 contract conversions, substitutions, transfers,
16 cancellations, refund requests, or contract changes of
17 any nature.
18 Section 30. Board duties and responsibilities. The
19 Board shall oversee and offer advice and counsel regarding
20 the investments of the Illinois prepaid tuition program with
21 the objective of obtaining the best possible return on
22 investments consistent with actuarial soundness of the
23 program. The Board also has responsibility for approving on
24 a periodic basis, but at least once every 3 years, a
25 marketing agent for the prepaid tuition program; and each
26 year the Board also shall approve an annual report that
27 describes the current financial condition of the prepaid
28 tuition program.
29 (1) Executive Director. The Executive Director of the
30 Illinois Student Assistance Commission shall serve as the
31 chief administrative and operational officer of the Board and
32 the Illinois prepaid tuition program and shall perform other
33 duties assigned by the Board, including, but not limited to,
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1 preparation of the annual comprehensive investment plan for
2 consideration by the Commission and the Board. The Executive
3 Director shall be responsible for all investment, management,
4 documentation, public information, and marketing functions
5 associated with the Illinois prepaid tuition program.
6 Nothing in this Section shall preclude the Commission from
7 designating additional Commission personnel to assist the
8 Executive Director with these additional duties and
9 responsibilities.
10 (2) Investment plan. The Commission annually shall
11 submit for Board approval a comprehensive investment plan,
12 for purposes of this Section. The comprehensive investment
13 plan shall specify the investment policies to be utilized by
14 the Commission in its administration of the Illinois Prepaid
15 Tuition Trust Fund created by Section 35. The Commission may
16 direct that assets of those Funds be placed in savings
17 accounts or may use the same to purchase fixed or variable
18 life insurance or annuity contracts, securities, evidence of
19 indebtedness, or other investment products pursuant to the
20 comprehensive investment plan and in such proportions as may
21 be designated or approved under that plan. Those insurance,
22 annuity, savings, and investment products shall be
23 underwritten and offered in compliance with applicable
24 federal and State laws, rules, and regulations by persons who
25 are authorized thereunder to provide those services. The
26 Commission shall delegate responsibility for preparing the
27 comprehensive investment plan to the Executive Director.
28 Nothing in this Section shall preclude the Commission from
29 contracting with a private corporation or institution to
30 provide such services as may be a part of the comprehensive
31 investment plan or as may be deemed necessary for
32 implementation of the comprehensive investment plan,
33 including, but not limited to, providing consolidated
34 billing, individual and collective record keeping and
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1 accounting, and asset purchase, control, and safekeeping.
2 (3) Program management. The Commission and the Board
3 may not delegate their management functions, but may arrange
4 to compensate for personalized investment advisory services
5 rendered with respect to any or all of the investments under
6 their control an investment advisor registered under Section
7 8 of the Illinois Securities Law of 1953 or any bank or other
8 entity authorized by law to provide those services. Nothing
9 contained herein shall preclude either the Commission or the
10 Board from subscribing to general investment research
11 services available for purchase or use by others. The Board
12 also shall have authority to compensate for accounting,
13 computing, and other necessary services.
14 (4) Annual report. The Commission shall annually
15 prepare or cause to be prepared, for approval by the Board, a
16 report setting forth in appropriate detail an accounting of
17 all Illinois prepaid tuition program funds and a description
18 of the financial condition of the program at the close of
19 each fiscal year. Included in this report shall be an
20 evaluation by at least one nationally recognized actuary of
21 the financial viability of the program. This report, after
22 receiving Board approval, shall be submitted to the Governor,
23 the President of the Senate, the Speaker of the House of
24 Representatives, the Auditor General, and the Board of Higher
25 Education on or before March 1 of the subsequent fiscal year.
26 This report also shall be made available to purchasers of
27 Illinois prepaid tuition contracts and shall contain complete
28 Illinois prepaid tuition contract sales information,
29 including, but not limited to, projected postsecondary
30 enrollment data for qualified beneficiaries.
31 (5) Marketing plan. Selection of a marketing agent for
32 the Illinois prepaid tuition program must be approved by the
33 Board. At least once every 3 years, the Commission shall
34 solicit, for submission to the Board, proposals for marketing
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1 of the Illinois prepaid tuition program in accordance with
2 the Illinois Securities Law of 1953 and any applicable
3 provisions of federal law. The entity designated pursuant to
4 this paragraph shall serve as a centralized marketing agent
5 for the program and shall have exclusive responsibility for
6 marketing the program. No contract for marketing the
7 Illinois prepaid tuition program shall extend for longer than
8 3 years. Any materials produced for the purpose of marketing
9 the program shall be submitted to the Executive Director for
10 approval before they are made public. Any Illinois
11 MAP-eligible institution may distribute marketing materials
12 produced for the program, so long as the Executive Director
13 approves the distribution in advance. Neither the State nor
14 the Board nor the Commission shall be liable for
15 misrepresentation of the program by a marketing agent.
16 (6) Accounting and audit. The Commission shall annually
17 cause to be prepared an accounting of the trust and shall
18 transmit a copy of the accounting to the Board, the Governor,
19 the President of the Senate, the Speaker of the House, and
20 the minority leaders of the Senate and House of
21 Representatives. The Commission shall also make available
22 this accounting of the trust to any purchaser of an Illinois
23 prepaid tuition contract, upon request. The accounts of the
24 Illinois prepaid tuition program shall be subject to annual
25 audits by the Auditor General or a certified public
26 accountant appointed by the Auditor General.
27 Section 35. Illinois Prepaid Tuition Trust Fund.
28 (a) The Illinois Prepaid Tuition Trust Fund is created
29 as the repository of all moneys received by the Board in
30 conjunction with the Illinois prepaid tuition program. The
31 Illinois Prepaid Tuition Trust Fund also shall be the
32 official repository of all contributions, appropriations,
33 interest and dividend payments, gifts, or other financial
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1 assets received by the Commission in connection with
2 operation of the Illinois prepaid tuition program. All such
3 moneys shall be deposited in the Illinois Prepaid Tuition
4 Trust Fund and held by the State Treasurer as ex-officio
5 custodian thereof, outside of the State Treasury, separate
6 and apart from all public moneys or funds of this State.
7 All interest or other earnings accruing or received on
8 amounts in the Illinois Prepaid Tuition Trust Fund shall be
9 credited to and retained by the Fund. Moneys, interest, or
10 other earnings paid into the Fund shall not be transferred or
11 allocated by the Commission, the Board, the State Treasurer,
12 or the State Comptroller to any other fund, nor shall the
13 Governor authorize any such transfer or allocation, while any
14 contracts are outstanding. In addition, no moneys, interest,
15 or other earnings paid into the Fund shall be used,
16 temporarily or otherwise, for interfund borrowing or be
17 otherwise used or appropriated except as expressly authorized
18 in this Act.
19 The Illinois Prepaid Tuition Trust Fund and each
20 individual participant account that may be created in that
21 Fund in conjunction with the Illinois prepaid tuition program
22 shall be subject to audit in the same manner as funds and
23 accounts belonging to the State of Illinois and shall be
24 protected by the official bond given by the State Treasurer.
25 (b) The State Treasurer, from time to time, shall invest
26 moneys in the Illinois Prepaid Tuition Trust Fund that are
27 not needed for immediate disbursement, as directed by the
28 Commission, in accordance with provisions of the investment
29 plan approved by the Board.
30 (c) The Executive Director shall, at such times and in
31 such amounts as shall be necessary, prepare and send to the
32 State Comptroller vouchers requesting payment from the
33 Illinois Prepaid Tuition Trust Fund for: (i) tuition and fee
34 payments to MAP-eligible institutions on behalf of qualified
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1 beneficiaries of Illinois prepaid tuition contracts, and (ii)
2 payments associated with administration of the Illinois
3 prepaid tuition program.
4 This Act shall constitute an irrevocable appropriation
5 for all amounts necessary for such purposes, and the
6 irrevocable and continuing authority for and direction to the
7 Board, the Commission, the Executive Director, and the State
8 Treasurer to make the necessary payments out of that Fund for
9 those purposes.
10 (d) The Governor shall indicate in each annual State
11 budget the estimated amount of moneys in the Illinois Prepaid
12 Tuition Trust Fund which shall be necessary and sufficient,
13 during that State fiscal year, to discharge all obligations
14 anticipated under Illinois prepaid tuition contracts. The
15 Governor also shall indicate in each annual State budget the
16 amount of moneys from the Illinois Prepaid Tuition Trust Fund
17 necessary to cover anticipated expenses associated with
18 administration of the program. The Commission shall obtain
19 concurrence from a nationally recognized actuary as to all
20 amounts necessary for the program to meet its obligations.
21 These amounts shall be certified annually to the Governor by
22 the Commission no later than January 30.
23 During the first year of operation for the Illinois
24 prepaid tuition program, the Governor shall request an
25 appropriation to the Commission from general funds sufficient
26 to pay for start-up costs associated with establishment of
27 the program. Subsequent program administrative costs shall
28 be provided from reasonable fees and charges equitably
29 assessed to purchasers of prepaid tuition contracts.
30 (e) If there are insufficient moneys in the Illinois
31 Prepaid Tuition Trust Fund to discharge all obligations under
32 contracts as they become due, the Governor shall request the
33 General Assembly to transfer from the General Revenue Fund to
34 the Illinois Prepaid Tuition Trust Fund the necessary amount
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1 required to fully pay and discharge all obligations arising
2 under the contracts and this Act that otherwise could not be
3 discharged. If for any reason the General Assembly fails to
4 make appropriations for or fails to transfer to the Illinois
5 Prepaid Tuition Trust Fund amounts sufficient for the
6 discharge of obligations arising under contracts or this Act
7 as they become due, this Act shall constitute an irrevocable
8 and continuing appropriation of all amounts necessary for
9 such purposes and the irrevocable and continuing authority
10 for and direction to the State Comptroller and to the State
11 Treasurer to make the necessary transfers and disbursements
12 from the revenues and funds of the State for such purposes.
13 (f) All contracts issued in accordance with this Act
14 shall be direct, general obligations of the State of Illinois
15 and shall so state on their face, and the full faith and
16 credit of the State of Illinois are pledged for the punctual
17 payment of all payments and obligations under the contracts
18 and this Act as they become due.
19 (g) In the event the Board and the Commission, with the
20 concurrence of the Governor, determine the program to be
21 financially infeasible, the Commission may discontinue,
22 prospectively, the operation of the program. Any qualified
23 beneficiary who has been accepted by and is enrolled or will
24 within 5 years enroll at a MAP-eligible institution shall be
25 entitled to exercise the complete benefits specified in the
26 Illinois prepaid tuition contract. All other contract
27 holders shall receive an appropriate refund of all
28 contributions and accrued interest up to the time that the
29 program is discontinued.
30 Section 45. Illinois prepaid tuition contracts.
31 (a) The Commission may enter into an Illinois prepaid
32 tuition contract with a purchaser under which the Commission
33 contracts on behalf of the State to pay full tuition and
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1 mandatory fees at an Illinois public university or Illinois
2 community college for a qualified beneficiary to attend the
3 MAP-eligible institution to which the qualified beneficiary
4 is admitted. Each contract shall contain terms, conditions,
5 and provisions that the Commission determines to be necessary
6 for ensuring the educational objectives and sustainable
7 financial viability of the Illinois prepaid tuition program.
8 (b) Each contract shall have one designated purchaser
9 and one designated qualified beneficiary. Unless otherwise
10 specified in the contract, the purchaser owns the contract
11 and retains any tax liability for its assets only until the
12 first distribution of benefits. Once a partial benefit of the
13 contract has been disbursed, any tax liability attributable
14 to the contract and its assets becomes a tax liability of the
15 qualified beneficiary, unless otherwise specified in the
16 contract. Contracts shall be purchased in units of 15 credit
17 hours at any MAP-eligible institution.
18 (c) Without exception, benefits may be received by a
19 qualified beneficiary of an Illinois prepaid tuition contract
20 no earlier than 3 years from the date the contract is
21 purchased.
22 (d) A prepaid tuition contract shall contain, but is not
23 limited to, provisions for (i) refunds or withdrawals in
24 certain circumstances, with or without interest or penalties;
25 (ii) conversion of the contract at the time of distribution
26 from accrued prepayment value at one type of MAP-eligible
27 institution to the accrued prepayment value at a different
28 type of MAP-eligible institution; (iii) portability of the
29 accrued value of the prepayment value for use at an
30 out-of-state higher education institution; (iv)
31 transferability of the contract benefits within the qualified
32 beneficiary's immediate family; and (v) a specified benefit
33 period during which the contract may be redeemed.
34 (e) Each Illinois prepaid tuition contract also shall
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1 contain, at minimum, all of the following:
2 (1) The amount of payment or payments and the
3 number of payments required from a purchaser on behalf of
4 a qualified beneficiary.
5 (2) The terms and conditions under which purchasers
6 shall remit payments, including, but not limited to, the
7 date or dates upon which each payment shall be due.
8 (3) Provisions for late payment charges and for
9 default.
10 (4) Provisions for penalty fees payable incident to
11 an authorized withdrawal.
12 (5) The name, date of birth, and social security
13 number of the qualified beneficiary on whose behalf the
14 contract is drawn and the terms and conditions under
15 which the contract may be transferred to another
16 qualified beneficiary.
17 (6) The name and social security number of any
18 person who may terminate the contract, together with
19 terms that specify whether the contract may be terminated
20 by the purchaser, the qualified beneficiary, a specific
21 designated person, or any combination of these persons.
22 (7) The terms and conditions under which a contract
23 may be terminated, the name and social security number of
24 the person entitled to any refund due as a result of the
25 termination of the contract pursuant to those terms and
26 conditions, and the method for determining the amount of
27 a refund.
28 (8) The time limitations, if any, within which the
29 qualified beneficiary must claim his or her benefits
30 through the program.
31 (9) Other terms and conditions determined by the
32 Commission to be appropriate.
33 (f) In addition to the contract provisions set forth in
34 subsection (e), each Illinois prepaid tuition contract shall
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1 include:
2 (1) The number of credit hours contracted by the
3 purchaser.
4 (2) The type of MAP-eligible institution and the
5 prepaid tuition plan toward which the credit hours shall
6 be applied.
7 (3) The explicit contractual obligation of the
8 Commission to the qualified beneficiary to provide a
9 specific number of credit hours of undergraduate
10 instruction at a MAP-eligible institution, not to exceed
11 the median number of credit hours required for the
12 conference of a degree that corresponds to the plan
13 purchased on behalf of the qualified beneficiary.
14 (g) The Commission shall indicate by rule the conditions
15 under which refunds are payable to a contract purchaser.
16 Generally, no refund shall exceed the amount paid into the
17 Illinois Prepaid Tuition Trust Fund by the purchaser. In the
18 event that a contract is converted from a Public University
19 Plan described in subsection (j) of this Section to a
20 Community College Plan described in subsection (k) of this
21 Section, the refund amount shall be reduced by the amount
22 transferred to the Illinois community college on behalf of
23 the qualified beneficiary. Except where the Commission may
24 otherwise rule, refunds may exceed the amount paid into the
25 Illinois Prepaid Tuition Trust Fund only under the following
26 circumstances:
27 (1) If the qualified beneficiary is awarded a
28 scholarship, the terms of which duplicate the benefits
29 included in the Illinois prepaid tuition contract, then
30 moneys paid for the purchase of the contract shall be
31 returned to the purchaser, in semester installments that
32 coincide with the matriculation by the qualified
33 beneficiary, in an amount equal to the lesser of (i) the
34 original purchase price plus 2% interest compounded
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1 annually, or (ii) the current cost of tuition and
2 mandatory fees at the MAP-eligible institution where the
3 qualified beneficiary is enrolled.
4 (2) In the event of the death or total disability
5 of the qualified beneficiary, moneys paid for the
6 purchase of the Illinois prepaid tuition contract shall
7 be returned to the purchaser together with all accrued
8 earnings.
9 (3) If an Illinois prepaid tuition contract is
10 converted from a Public University Plan to a Community
11 College Plan, then the amount refunded shall be the value
12 of the original Illinois prepaid tuition contract minus
13 the value of the contract after conversion.
14 No refund shall be authorized under an Illinois prepaid
15 tuition contract for any semester partially attended but not
16 completed.
17 Moneys paid into or out of the Illinois Prepaid Tuition
18 Trust Fund by or on behalf of the purchaser or the qualified
19 beneficiary of an Illinois prepaid tuition contract are
20 exempt from all claims of creditors of the purchaser or
21 beneficiary, so long as the contract has not been terminated.
22 The State or any State agency, county, municipality, or
23 other political subdivision, by contract or collective
24 bargaining agreement, may agree with any employee to remit
25 payments toward the purchase of Illinois prepaid tuition
26 contracts through payroll deductions made by the appropriate
27 officer or officers of the entity making the payments. Such
28 payments shall be held and administered in accordance with
29 this Act.
30 (h) Nothing in this Act shall be construed as a promise
31 or guarantee that a qualified beneficiary will be admitted to
32 a MAP-eligible institution or to a particular MAP-eligible
33 institution, will be allowed to continue enrollment at a
34 MAP-eligible institution after admission, or will be
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1 graduated from a MAP-eligible institution.
2 (i) The Commission shall develop and make prepaid
3 tuition contracts available under a minimum of at least 2
4 independent plans to be known as the Public University Plan
5 and the Community College Plan.
6 Contracts shall be purchased in units of 15 credit hours
7 at either an Illinois public university or an Illinois
8 community college. The minimum purchase amount per qualified
9 beneficiary shall be one unit or 15 credit hours. The
10 maximum purchase amount shall be 9 units (or 135 credit
11 hours) for the Public University Plan and 4 units (or 60
12 credit hours) for the Community College Plan.
13 (j) Public University Plan. Through the Public
14 University Plan, the Illinois prepaid tuition contract shall
15 provide prepaid registration fees, which include full tuition
16 costs as well as mandatory fees, for a specified number of
17 undergraduate credit hours, not to exceed the maximum number
18 of credit hours required for the conference of a
19 baccalaureate degree. In determining the cost of
20 participation in the Public University Plan, the Commission
21 shall reference the combined mean-weighted current
22 registration fees from all Illinois public universities.
23 In the event that a qualified beneficiary for whatever
24 reason chooses to attend an Illinois community college, the
25 qualified beneficiary may convert the average number of
26 credit hours required for the conference of an associate
27 degree from the Public University Plan to the Community
28 College Plan and may retain the remaining Public University
29 Plan credit hours or may request a refund for prepaid credit
30 hours in excess of those required for conference of an
31 associate degree. In determining the amount of any refund,
32 the Commission also shall recognize the current relative
33 credit hour cost of the 2 plans when making any conversion.
34 In the event that a qualified beneficiary for whatever
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1 reason chooses to attend a nonpublic institution of higher
2 education, the qualified beneficiary's prepaid tuition
3 contract shall be converted for use at that nonpublic
4 institution of higher education by referencing the current
5 average mean-weighted credit hour value of registration fees
6 at Illinois public universities relative to the corresponding
7 value of registration fees at nonpublic institutions of
8 higher education.
9 Qualified beneficiaries shall bear the cost of any
10 laboratory or other non-mandatory fees associated with
11 enrollment in specific courses. Qualified beneficiaries who
12 are not Illinois residents shall bear the difference in cost
13 between in-state registration fees guaranteed by the prepaid
14 tuition contract and tuition and other charges assessed upon
15 out-of-state students by the MAP-eligible institution.
16 (k) Community College Plan. Through the Community
17 College Plan, the Illinois prepaid tuition contract shall
18 provide prepaid registration fees, which include full tuition
19 costs as well as mandatory fees, for a specified number of
20 undergraduate credit hours, not to exceed the maximum number
21 of credit hours required for the conference of an associate
22 degree. In determining the cost of participation in the
23 Community College Plan, the Commission shall reference the
24 combined mean-weighted current registration fees from all
25 Illinois community colleges.
26 In the event that a qualified beneficiary for whatever
27 reason chooses to attend an Illinois public university, the
28 qualified beneficiary's prepaid tuition contract shall be
29 converted for use at that Illinois public university by
30 referencing the current average mean-weighted credit hour
31 value of registration fees at Illinois community colleges
32 relative to the corresponding value of registration fees at
33 Illinois public universities.
34 Qualified beneficiaries shall bear the cost of any
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1 laboratory or other non-mandatory fees associated with
2 enrollment in specific courses. Qualified beneficiaries who
3 are not Illinois residents shall bear the difference in cost
4 between in-state registration fees guaranteed by the prepaid
5 tuition contract and tuition and other charges assessed upon
6 out-of-state students by the MAP-eligible institution.
7 (l) A qualified beneficiary may apply the benefits of
8 any Illinois prepaid tuition contract toward a nonpublic
9 institution of higher education. In the event that a
10 qualified beneficiary for whatever reason chooses to attend a
11 nonpublic institution of higher education, the qualified
12 beneficiary's prepaid tuition contract shall be converted for
13 use at that nonpublic institution of higher education by
14 referencing the current average mean-weighted credit hour
15 value of registration fees purchased under the contract
16 relative to the corresponding value of current registration
17 fees at the nonpublic institution of higher education where
18 the beneficiary is enrolled. The Commission shall transfer,
19 or cause to have transferred, this amount, less a transfer
20 fee, to the nonpublic institution on behalf of the
21 beneficiary. In the event that the cost of registration
22 charged to the beneficiary at the nonpublic institution of
23 higher education is less than the aggregate value of the
24 Illinois prepaid tuition contract, any remaining amount shall
25 be transferred in subsequent semesters until the transfer
26 value is fully depleted.
27 (m) A qualified beneficiary may apply the benefits of
28 any Illinois prepaid tuition contract toward an eligible
29 out-of-state college or university. In the event that a
30 qualified beneficiary for whatever reason chooses to attend
31 an eligible out-of-state college or university, the qualified
32 beneficiary's prepaid tuition contract shall be converted for
33 use at that college or university by referencing the current
34 average mean-weighted credit hour value of registration fees
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1 purchased under the contract relative to the corresponding
2 value of current registration fees at the college or
3 university where the beneficiary is enrolled. The Commission
4 shall transfer, or cause to have transferred, this amount,
5 less a transfer fee, to the college or university on behalf
6 of the beneficiary. In the event that the cost of
7 registration charged to the beneficiary at the eligible
8 out-of-state college or university is less than the aggregate
9 value of the Illinois prepaid tuition contract, any remaining
10 amount shall be transferred in subsequent semesters until the
11 transfer value is fully depleted.
12 (n) Illinois prepaid tuition contracts may be purchased
13 either by lump sum or by installments. All installment
14 contracts shall be for 5 years, except that contracts that
15 purchase at least 120 credit hours may be payable, by
16 installments, over a 10-year period. No penalty shall be
17 assessed for early payment of installment contracts.
18 (o) The Commission shall annually adjust the price of
19 new contracts, in accordance with the annual changes in
20 registration fees at Illinois public universities and
21 community colleges.
22 Section 50. Confidentiality and disclosure. Information
23 that (i) identifies the purchasers or qualified beneficiaries
24 of any Illinois prepaid tuition contract or any terms or
25 provisions of any such contract as those terms and provisions
26 relate to a particular purchaser or qualified beneficiary, or
27 (ii) discloses any other matter relating to the participation
28 of any such purchaser or qualified beneficiary in the
29 Illinois prepaid tuition program or in any independent plan
30 under which that program is administered, is exempt from
31 inspection, copying, or disclosure under the Freedom of
32 Information Act. The Commission may authorize the program's
33 records administrator to release such information to
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1 appropriate personnel at the MAP-eligible institution at
2 which the beneficiary may enroll or is enrolled. However,
3 any such institution to which that information is released
4 shall ensure the continued confidentiality of the
5 information.
6 Section 55. Tax exemption. The assets of the Illinois
7 Prepaid Tuition Trust Fund and its income and operation shall
8 be exempt from all taxation by the State of Illinois and any
9 of its subdivisions. The accrued earnings of Illinois
10 prepaid tuition contracts once disbursed on behalf of an
11 eligible beneficiary shall be similarly exempt from all
12 taxation by the State of Illinois and any of its
13 subdivisions, so long as they are used for educational
14 purposes in accordance with the provisions of an Illinois
15 prepaid tuition contract.
16 Section 60. Securities Registration Exemption. Illinois
17 prepaid tuition contracts shall be exempt from registration
18 under the Illinois Securities Law of 1953. However no
19 contract may be sold or otherwise transferred by the
20 purchaser or qualified beneficiary without the prior approval
21 of the Board, except in accordance with the terms explicitly
22 set forth in the contract.
23 Section 65. Construction. Nothing in this Act or in an
24 Illinois prepaid tuition contract shall be construed as a
25 promise or guarantee by the Program or the State that a
26 person will be admitted to any MAP-eligible institution or to
27 a particular MAP-eligible institution, will be allowed to
28 continue to attend a MAP-eligible institution after having
29 been admitted, or will be graduated from a MAP-eligible
30 institution.
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1 Section 70. Scholarships, grants, or monetary
2 assistance. No contributions toward the purchase of an
3 Illinois prepaid tuition contract authorized by this Section
4 shall be considered in evaluating the financial situation of
5 the student beneficiary of the contract or be deemed a
6 financial resource of or a form of financial aid or
7 assistance to the student beneficiary, for purposes of
8 determining the eligibility of the student beneficiary for
9 any scholarship, grant or monetary assistance awarded by the
10 Commission, the State, or any agency thereof; nor shall
11 contributions toward the purchase of an Illinois prepaid
12 tuition contract reduce the amount of any scholarship, grant,
13 or monetary assistance that the student beneficiary is
14 eligible to be awarded by the Illinois Student Assistance
15 Commission, the State, or any agency thereof in accordance
16 with the provisions of any other Section of this Act or any
17 other law of the State.
18 Section 90. The Freedom of Information Act is amended by
19 changing Section 7 as follows:
20 (5 ILCS 140/7) (from Ch. 116, par. 207)
21 Sec. 7. Exemptions.
22 (1) The following shall be exempt from inspection and
23 copying:
24 (a) Information specifically prohibited from
25 disclosure by federal or State law or rules and
26 regulations adopted under federal or State law.
27 (b) Information that, if disclosed, would
28 constitute a clearly unwarranted invasion of personal
29 privacy, unless the disclosure is consented to in writing
30 by the individual subjects of the information. The
31 disclosure of information that bears on the public duties
32 of public employees and officials shall not be considered
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1 an invasion of personal privacy. Information exempted
2 under this subsection (b) shall include but is not
3 limited to:
4 (i) files and personal information maintained
5 with respect to clients, patients, residents,
6 students or other individuals receiving social,
7 medical, educational, vocational, financial,
8 supervisory or custodial care or services directly
9 or indirectly from federal agencies or public
10 bodies;
11 (ii) personnel files and personal information
12 maintained with respect to employees, appointees or
13 elected officials of any public body or applicants
14 for those positions;
15 (iii) files and personal information
16 maintained with respect to any applicant, registrant
17 or licensee by any public body cooperating with or
18 engaged in professional or occupational
19 registration, licensure or discipline;
20 (iv) information required of any taxpayer in
21 connection with the assessment or collection of any
22 tax unless disclosure is otherwise required by State
23 statute; and
24 (v) information revealing the identity of
25 persons who file complaints with or provide
26 information to administrative, investigative, law
27 enforcement or penal agencies; provided, however,
28 that identification of witnesses to traffic
29 accidents, traffic accident reports, and rescue
30 reports may be provided by agencies of local
31 government, except in a case for which a criminal
32 investigation is ongoing, without constituting a
33 clearly unwarranted per se invasion of personal
34 privacy under this subsection.
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1 (c) Records compiled by any public body for
2 administrative enforcement proceedings and any law
3 enforcement or correctional agency for law enforcement
4 purposes or for internal matters of a public body, but
5 only to the extent that disclosure would:
6 (i) interfere with pending or actually and
7 reasonably contemplated law enforcement proceedings
8 conducted by any law enforcement or correctional
9 agency;
10 (ii) interfere with pending administrative
11 enforcement proceedings conducted by any public
12 body;
13 (iii) deprive a person of a fair trial or an
14 impartial hearing;
15 (iv) unavoidably disclose the identity of a
16 confidential source or confidential information
17 furnished only by the confidential source;
18 (v) disclose unique or specialized
19 investigative techniques other than those generally
20 used and known or disclose internal documents of
21 correctional agencies related to detection,
22 observation or investigation of incidents of crime
23 or misconduct;
24 (vi) constitute an invasion of personal
25 privacy under subsection (b) of this Section;
26 (vii) endanger the life or physical safety of
27 law enforcement personnel or any other person; or
28 (viii) obstruct an ongoing criminal
29 investigation.
30 (d) Criminal history record information maintained
31 by State or local criminal justice agencies, except the
32 following which shall be open for public inspection and
33 copying:
34 (i) chronologically maintained arrest
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1 information, such as traditional arrest logs or
2 blotters;
3 (ii) the name of a person in the custody of a
4 law enforcement agency and the charges for which
5 that person is being held;
6 (iii) court records that are public;
7 (iv) records that are otherwise available
8 under State or local law; or
9 (v) records in which the requesting party is
10 the individual identified, except as provided under
11 part (vii) of paragraph (c) of subsection (1) of
12 this Section.
13 "Criminal history record information" means data
14 identifiable to an individual and consisting of
15 descriptions or notations of arrests, detentions,
16 indictments, informations, pre-trial proceedings, trials,
17 or other formal events in the criminal justice system or
18 descriptions or notations of criminal charges (including
19 criminal violations of local municipal ordinances) and
20 the nature of any disposition arising therefrom,
21 including sentencing, court or correctional supervision,
22 rehabilitation and release. The term does not apply to
23 statistical records and reports in which individuals are
24 not identified and from which their identities are not
25 ascertainable, or to information that is for criminal
26 investigative or intelligence purposes.
27 (e) Records that relate to or affect the security
28 of correctional institutions and detention facilities.
29 (f) Preliminary drafts, notes, recommendations,
30 memoranda and other records in which opinions are
31 expressed, or policies or actions are formulated, except
32 that a specific record or relevant portion of a record
33 shall not be exempt when the record is publicly cited and
34 identified by the head of the public body. The exemption
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1 provided in this paragraph (f) extends to all those
2 records of officers and agencies of the General Assembly
3 that pertain to the preparation of legislative documents.
4 (g) Trade secrets and commercial or financial
5 information obtained from a person or business where the
6 trade secrets or information are proprietary, privileged
7 or confidential, or where disclosure of the trade secrets
8 or information may cause competitive harm, including all
9 information determined to be confidential under Section
10 4002 of the Technology Advancement and Development Act.
11 Nothing contained in this paragraph (g) shall be
12 construed to prevent a person or business from consenting
13 to disclosure.
14 (h) Proposals and bids for any contract, grant, or
15 agreement, including information which if it were
16 disclosed would frustrate procurement or give an
17 advantage to any person proposing to enter into a
18 contractor agreement with the body, until an award or
19 final selection is made. Information prepared by or for
20 the body in preparation of a bid solicitation shall be
21 exempt until an award or final selection is made.
22 (i) Valuable formulae, designs, drawings and
23 research data obtained or produced by any public body
24 when disclosure could reasonably be expected to produce
25 private gain or public loss.
26 (j) Test questions, scoring keys and other
27 examination data used to administer an academic
28 examination or determined the qualifications of an
29 applicant for a license or employment.
30 (k) Architects' plans and engineers' technical
31 submissions for projects not constructed or developed in
32 whole or in part with public funds and for projects
33 constructed or developed with public funds, to the extent
34 that disclosure would compromise security.
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1 (l) Library circulation and order records
2 identifying library users with specific materials.
3 (m) Minutes of meetings of public bodies closed to
4 the public as provided in the Open Meetings Act until the
5 public body makes the minutes available to the public
6 under Section 2.06 of the Open Meetings Act.
7 (n) Communications between a public body and an
8 attorney or auditor representing the public body that
9 would not be subject to discovery in litigation, and
10 materials prepared or compiled by or for a public body in
11 anticipation of a criminal, civil or administrative
12 proceeding upon the request of an attorney advising the
13 public body, and materials prepared or compiled with
14 respect to internal audits of public bodies.
15 (o) Information received by a primary or secondary
16 school, college or university under its procedures for
17 the evaluation of faculty members by their academic
18 peers.
19 (p) Administrative or technical information
20 associated with automated data processing operations,
21 including but not limited to software, operating
22 protocols, computer program abstracts, file layouts,
23 source listings, object modules, load modules, user
24 guides, documentation pertaining to all logical and
25 physical design of computerized systems, employee
26 manuals, and any other information that, if disclosed,
27 would jeopardize the security of the system or its data
28 or the security of materials exempt under this Section.
29 (q) Documents or materials relating to collective
30 negotiating matters between public bodies and their
31 employees or representatives, except that any final
32 contract or agreement shall be subject to inspection and
33 copying.
34 (r) Drafts, notes, recommendations and memoranda
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1 pertaining to the financing and marketing transactions of
2 the public body. The records of ownership, registration,
3 transfer, and exchange of municipal debt obligations, and
4 of persons to whom payment with respect to these
5 obligations is made.
6 (s) The records, documents and information relating
7 to real estate purchase negotiations until those
8 negotiations have been completed or otherwise terminated.
9 With regard to a parcel involved in a pending or actually
10 and reasonably contemplated eminent domain proceeding
11 under Article VII of the Code of Civil Procedure,
12 records, documents and information relating to that
13 parcel shall be exempt except as may be allowed under
14 discovery rules adopted by the Illinois Supreme Court.
15 The records, documents and information relating to a real
16 estate sale shall be exempt until a sale is consummated.
17 (t) Any and all proprietary information and records
18 related to the operation of an intergovernmental risk
19 management association or self-insurance pool or jointly
20 self-administered health and accident cooperative or
21 pool.
22 (u) Information concerning a university's
23 adjudication of student or employee grievance or
24 disciplinary cases, to the extent that disclosure would
25 reveal the identity of the student or employee and
26 information concerning any public body's adjudication of
27 student or employee grievances or disciplinary cases,
28 except for the final outcome of the cases.
29 (v) Course materials or research materials used by
30 faculty members.
31 (w) Information related solely to the internal
32 personnel rules and practices of a public body.
33 (x) Information contained in or related to
34 examination, operating, or condition reports prepared by,
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1 on behalf of, or for the use of a public body responsible
2 for the regulation or supervision of financial
3 institutions or insurance companies, unless disclosure is
4 otherwise required by State law.
5 (y) Information the disclosure of which is
6 restricted under Section 5-108 of the Public Utilities
7 Act.
8 (z) Manuals or instruction to staff that relate to
9 establishment or collection of liability for any State
10 tax or that relate to investigations by a public body to
11 determine violation of any criminal law.
12 (aa) Applications, related documents, and medical
13 records received by the Experimental Organ
14 Transplantation Procedures Board and any and all
15 documents or other records prepared by the Experimental
16 Organ Transplantation Procedures Board or its staff
17 relating to applications it has received.
18 (bb) Insurance or self insurance (including any
19 intergovernmental risk management association or self
20 insurance pool) claims, loss or risk management
21 information, records, data, advice or communications.
22 (cc) Information and records held by the Department
23 of Public Health and its authorized representatives
24 relating to known or suspected cases of sexually
25 transmissible disease or any information the disclosure
26 of which is restricted under the Illinois Sexually
27 Transmissible Disease Control Act.
28 (dd) Information the disclosure of which is
29 exempted under Section 7 of the Radon Mitigation Act.
30 (ee) Firm performance evaluations under Section 55
31 of the Architectural, Engineering, and Land Surveying
32 Qualifications Based Selection Act.
33 (ff) Information the disclosure of which is
34 restricted and exempted under Section 50 of the Illinois
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1 Prepaid Tuition Act.
2 (2) This Section does not authorize withholding of
3 information or limit the availability of records to the
4 public, except as stated in this Section or otherwise
5 provided in this Act.
6 (Source: P.A. 87-241; 87-673; 87-895; 88-444.)
7 Section 99. Effective date. This Act takes effect upon
8 becoming law.".