Illinois General Assembly - Full Text of Public Act 095-0358
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Public Act 095-0358




Public Act 095-0358
HB1662 Enrolled LRB095 09545 MJR 29744 b

    AN ACT concerning children.
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
    Section 1. Short title. This Act may be cited as the
Illinois Children's Savings Accounts Act.
    Section 5. Findings. The General Assembly finds that
investments in children's education, homeownership, and small
business development and entrepreneurship are made possible by
family savings, but the family savings rate is at the lowest
level since the Great Depression. Illinois has the lowest
homeownership rate in the Midwest. Fewer than a third of
Illinois households have a checking account, and fewer than 60%
have a savings account. The rising cost of post-secondary
education decreases access to higher education for low-income
and moderate-income Illinoisans, and post-secondary education
is beyond the reach of many Illinois families. Increasing the
number of Illinois families saving for post-secondary
education for their children will increase the number of
children who will attain higher education, and increased
educational attainment levels will generate a more competitive
workforce, more jobs and innovation, more savings and
investment, stronger communities, and a thriving State
economy. The General Assembly also finds that a savings program
tied to financial education can improve family financial
responsibility and encourage saving for education,
homeownership, small business, and entrepreneurship.
    Section 10. Public policy. It is the policy of the State to
encourage families' savings, to increase families' financial
knowledge, to promote higher educational aspiration and
attainment, to encourage home ownership, to assist small
business development, to promote job creation, to strengthen
communities, and to increase asset building opportunities for
all residents.
    Section 15. Children's Savings Account Task Force. There is
hereby created a Children's Savings Account Task Force. The
purpose of the task force shall be to review and make
recommendations about children's savings account program
options and to create a strategic implementation plan to create
a savings account at birth for every child born in Illinois to
Illinois residents. The task force shall consist of a maximum
of 30 members, to be appointed within 60 days after the
effective date of this Act. One member shall be appointed by
the President of the Senate, one member appointed by the Senate
Minority Leader, one member appointed by the Speaker of the
House, one member appointed by the House Minority Leader, and
one member representing the Office of the State Treasurer
appointed by the State Treasurer. All other members shall be
appointed by the Governor as follows:
        (1) A member of the Governor's leadership staff.
        (2) Public members with an interest in asset building
    in Illinois, including a representative from each of the
    following types of organizations or entities:
            (A) an operator of an individual development
        account or matched savings and financial education
        program, or both;
            (B) a grassroots organizing entity;
            (C) a poverty law center;
            (D) a service-based human rights provider
            (E) a business association;
            (F) a bankers' professional association;
            (G) a child advocacy organization;
            (H) a rural economic development entity;
            (I) organized labor;
            (J) a bank;
            (K) a credit union; and
            (L) an investment services provider.
    In addition, the following officials shall serve as
ex-officio members of the task force: (i) the State Treasurer
or his or her designee; (ii) the State Superintendent of
Education or his or her designee; (iii) the Secretary of
Financial and Professional Regulation or his or her designee;
(iv) the Director of Commerce and Economic Opportunity or his
or her designee; (v) the Secretary of Human Services or his or
her designee; (vi) the Director of Healthcare and Family
Services or his or her designee; (vii) the Executive Director
of the Board of Higher Education or his or her designee; (viii)
the Executive Director of the Illinois Community College Board
or his or her designee; and (ix) the Director of Children and
Family Services or his or her designee. Representatives of the
Office of the Governor and the Office of the State Treasurer
shall serve as co-chairpersons of the task force. The Governor
shall designate one of the public members to serve as a third
    The Office of the State Treasurer shall be responsible for
administrative and logistical support of the task force,
including coordination of task force member appointments,
distribution of meeting notices and minutes, coordination of
meeting logistics, providing a staff liaison to the task force,
facilitation of public meetings, and drafting and filing of the
final report. Task force members, or the staff liaison, or both
may confer and collaborate with relevant State and national
organizations with expertise in asset building, financial
education, college savings, investing, home ownership, and
small business development, including the Illinois Asset
Building Group.
    Goals of the program shall include increasing the levels of
financial literacy and savings in the State, increasing the
number of children in Illinois who own assets and who attend
post-secondary education or training, purchase a home, or open
a small business. The task force shall consider the following
factors in its recommendations for the design of the program:
        (1) return on investment, safety of the investment and
    insurance for the account, ease of managing the account,
    and ease of making various forms of deposits;
        (2) the impact on eligibility for student financial
    aid, public assistance, and other public benefits, and
    taxation of the account earnings and distributions;
        (3) the provision of financial education to children
    and families, and access to additional financial services;
        (4) restrictions on the withdrawal or distribution
    prior to the child reaching age 18, portability of the
    account, and limits on permissible uses of the account;
        (5) revenue sources for the initial deposit and any
    savings match for deposits for children in low-income
        (6) mechanisms for data collection and tracking; and
        (7) all other factors that the task force deems
    important to the program design.
    The task force shall hold at least 4 public meetings at a
variety of geographic locations throughout the State at times
and places established by the task force. The purpose of the
public meetings is to gather information from community
residents and institutions, families with children, financial
education providers, schools, and local financial services
providers. The initial meeting of the task force shall be
called by the co-chairs and held no later than 30 days after
the task force members are appointed. The activities of the
task force shall conclude no later than September 1, 2008.
    Section 20. Report and implementation plan. The task force
shall make a written report of its findings and
recommendations, including a strategic implementation plan for
an Illinois children's savings account program, as well as make
any additional reports deemed necessary and appropriate to the
Office of the State Treasurer no later than September 1, 2008.
On or before November 1, 2008, the Office of the State
Treasurer shall present all reports issued by the task force to
the Governor and members of the General Assembly. The reports
shall be made available to the public.
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/23/2007