Public Act 102-0129
 
HB0573 EnrolledLRB102 04338 RJF 14356 b


  
    AN ACT concerning State government.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  
 
 
    Section 5. The State Treasurer Act is amended  by changing 
Section 16.8 as follows:
 
    (15 ILCS 505/16.8)
    Sec. 16.8. Illinois Higher Education Savings Program.
    (a)     Definitions.  As used in this Section:
    "Beneficiary" means an eligible child named as a recipient 
of seed funds.
    "College savings account" means a 529 plan account 
established under Section 16.5.
    "Eligible child" means a child born or adopted after 
December 31, 2022 2020, to a parent who is a resident of 
Illinois at the time of the birth or adoption, as evidenced by 
documentation received by the Treasurer from the Department of 
Revenue, the Department of Public Health, or another State or 
local government agency.
    "Eligible educational institution" means institutions that 
are described in Section 1001 of the federal Higher Education 
Act of 1965 that are eligible to participate in Department of 
Education student aid programs.
    "Fund" means the Illinois Higher Education Savings Program 
Fund.
    "Omnibus account" means the pooled collection of seed 
funds owned and managed by the State Treasurer in the College 
Savings Pool under this Act.
    "Program" means the Illinois Higher Education Savings 
Program.
    "Qualified higher education expense" means the following: 
(i) tuition, fees, and the costs of books, supplies, and 
equipment required for enrollment or attendance at an eligible 
educational institution; (ii) expenses for special needs 
services, in the case of a special needs beneficiary, which 
are incurred in connection with such enrollment or attendance; 
(iii) certain expenses for the purchase of computer or 
peripheral equipment, computer software, or Internet access 
and related services as defined under Section 529 of the 
Internal Revenue Code; and (iv) room and board expenses 
incurred while attending an eligible educational institution 
at least half-time; (v) expenses for fees, books, supplies, 
and equipment required for the participation of a designated 
beneficiary in an apprenticeship program registered and 
certified with the Secretary of Labor under the National 
Apprenticeship Act (29 U.S.C. 50); and (vi) amounts paid as 
principal or interest on any qualified education loan of the 
designated beneficiary or a sibling of the designated 
beneficiary, as allowed under Section 529 of the Internal 
Revenue Code.
    "Seed funds" means the deposit made by the State Treasurer 
into the Omnibus Accounts for Program beneficiaries.
    (b)   Program established. The State Treasurer shall 
establish the Illinois Higher Education Savings Program as a 
part of the College Savings Pool under Section 16.5 of this 
Act, subject to appropriation by the General Assembly provided 
that sufficient funds are available. The State Treasurer shall 
administer the Program for the purposes of expanding access to 
higher education through savings.
    (c)   Program enrollment. The State Treasurer shall enroll 
all eligible children in the Program beginning in 2023 2021, 
after receiving records of recent births, adoptions, or 
dependents from the Department of Revenue, the Department of 
Public Health, or another State or local government agency 
designated by the Treasurer. Notwithstanding any court order 
which would otherwise prevent the release of information, the 
Department of Public Health is authorized to release the 
information specified under this subsection (c) to the State 
Treasurer for the purposes of the Program established under 
this Section.
        (1) Beginning in 2021,   On and after the effective date 
    of this amendatory Act of the 101st General Assembly, the 
    Department of Revenue and the Department of Public Health 
    shall provide the State Treasurer with information on 
    recent Illinois births and , adoptions and dependents 
    including, but not limited to: the full name, residential 
    address, and birth date, and birth record number of the 
    child and the full name and residential address of the 
    child's parent or legal guardian for the purpose of 
    enrolling eligible children in the Program. This data 
    shall be provided to the State Treasurer by the Department 
    of Revenue and the Department of Public Health on a 
    quarterly basis, no later than 30 days after the end of 
    each quarter, or some other date and frequency as mutually 
    agreed to by the State Treasurer and the Department of 
    Public Health.
        (1.5)    Beginning in 2021, the Department of Revenue 
    shall provide the State Treasurer with information on tax 
    filers claiming dependents or the adoption tax credit 
    including, but not limited to: the full name, residential 
    address, email address, phone number, birth date, and 
    social security number or taxpayer identification number 
    of the dependent child and of the child's parent or legal 
    guardian for the purpose of enrolling eligible children in 
    the Program. This data shall be provided to the State 
    Treasurer by the Department of Revenue on at least an 
    annual basis, by July 1 of each year or another date 
    jointly determined by the State Treasurer and the 
    Department of Revenue. Notwithstanding anything to the 
    contrary contained within this paragraph (2), the 
    Department of Revenue shall not be required to share any 
    information that would be contrary to federal law, 
    regulation, or Internal Revenue Service Publication 1075. 
        (2)   The State Treasurer shall ensure the security and 
    confidentiality of the information provided by the 
    Department of Revenue, the Department of Public Health, or 
    another State or local government agency, and it shall not 
    be subject to release under the Freedom of Information 
    Act.
        (3)   Information provided under this Section shall only 
    be used by the State Treasurer for the Program and shall 
    not be used for any other purpose.
        (4)   The State Treasurer and any vendors working on the 
    Program shall maintain strict confidentiality of any 
    information provided under this Section, and shall 
    promptly provide written or electronic notice to the 
    providing agency of any security breach. The providing 
    State or local government agency shall remain the sole and 
    exclusive owner of information provided under this 
    Section.
    (d)     Seed funds. After receiving information on recent 
births, adoptions, or dependents from the Department   of 
Revenue, the Department of Public Health, or another State or 
local government agency, the State Treasurer shall make 
deposits a deposit into an omnibus account of the Fund on 
behalf of each eligible children child. The State Treasurer 
shall be the owner of the omnibus accounts. The deposit of seed 
funds shall be subject to appropriation by the General 
Assembly.
        (1)     Deposit amount. The seed fund deposit for each 
    eligible child shall be in the amount of $50. This amount 
    may be increased by the State Treasurer by rule. The State 
    Treasurer may use or deposit funds appropriated by the 
    General Assembly together with moneys received as gifts, 
    grants, or contributions into the Fund. If insufficient 
    funds are available in the Fund, the State Treasurer may 
    reduce the deposit amount or forego deposits.
        (2)   Use of seed funds. Seed funds, including any 
    interest, dividends, and other earnings accrued, will be 
    eligible for use by a beneficiary for qualified higher 
    education expenses if:
            (A)   the parent or guardian of the eligible child 
        claimed the seed funds for the beneficiary by the 
        beneficiary's 10th birthday;
            (B)   the beneficiary has completed secondary 
        education or has reached the age of 18; and
            (C)   the beneficiary is currently a resident of the 
        State of Illinois. Non-residents are not eligible to 
        claim or use seed funds.
        (3)   Notice of seed fund availability. The State 
    Treasurer shall make a good faith effort to notify 
    beneficiaries and their parents or legal guardians of the 
    seed funds' availability and the deadline to claim such 
    funds.
        (4)   Unclaimed seed funds. Seed funds and any interest 
    earnings that are unclaimed by the beneficiary's 10th 
    birthday or unused by the beneficiary's 26th birthday will 
    be considered forfeited. Unclaimed and unused seed funds 
    and any interest earnings will remain in the omnibus 
    account for future beneficiaries.
    (e)     Financial education. The State Treasurer may develop 
educational materials that support the financial literacy of 
beneficiaries and their legal guardians, and may do so in 
collaboration with State and federal agencies, including, but 
not limited to, the Illinois State Board of Education and 
existing nonprofit agencies with expertise in financial 
literacy and education.
    (f)     Incentives and partnerships. The State Treasurer may 
develop partnerships with private, nonprofit, or governmental 
organizations to provide additional savings incentives for 
eligible children, including conditional cash transfers or 
matching contributions that provide a savings incentive based 
on specific actions taken or other criteria.
    (g)     Illinois Higher Education Savings Program Fund. The 
Illinois Higher Education Savings Program Fund is hereby 
established as a special fund in the State treasury. The Fund 
shall be the official repository of all contributions, 
appropriated funds appropriations, interest, and dividend 
payments, gifts, or other financial assets received by the 
State Treasurer in connection with the operation of the 
Program or related partnerships. All such moneys shall be 
deposited in the Fund and held by the State Treasurer as 
custodian thereof, outside of the State treasury, separate and 
apart from all public moneys or funds of this State. The State 
Treasurer may accept gifts, grants, awards, matching 
contributions, interest income, and appropriated funds 
appropriations from individuals, businesses, governments, and 
other third-party sources to implement the Program on terms 
that the Treasurer deems advisable. All interest or other 
earnings accruing or received on amounts in the Illinois 
Higher Education Savings Program Fund shall be credited to and 
retained by the Fund and used for the benefit of the Program. 
Assets of the Fund must at all times be preserved, invested, 
and expended only for the purposes of the Program and must be 
held for the benefit of the beneficiaries. Assets may not be 
transferred or used by the State or the State Treasurer for any 
purposes other than the purposes of the Program.  In addition, 
no moneys, interest, or other earnings paid into the Fund 
shall be used, temporarily or otherwise, for inter-fund 
borrowing or be otherwise used or appropriated except as 
expressly authorized by this Act.  Notwithstanding the 
requirements of this subsection (g) (f), amounts in the Fund 
may be used by the State Treasurer to pay the administrative 
costs of the Program.
    (h)   Audits and reports. The State Treasurer shall include 
the Illinois Higher Education Savings Program as part of the 
audit of the College Savings Pool described in Section 16.5. 
The State Treasurer shall annually prepare a report that 
includes a summary of the Program operations for the preceding 
fiscal year, including the number of children enrolled in the 
Program, the total amount of seed fund deposits, and such 
other information that is relevant to make a full disclosure 
of the operations of the Program and Fund. The report shall be 
made available on the Treasurer's website by January 31 each 
year, starting in January of 2024 2022. The State Treasurer 
may include the Program in other reports as warranted.
    (i)   Rules. The State Treasurer may adopt rules necessary 
to implement this Section.

(Source: P.A. 101-466, eff. 1-1-20; revised 11-21-19.)
 
    Section 10. The State Finance Act is amended  by adding 
Section 5.935 as follows:
 
    (30 ILCS 105/5.935 new)
    Sec. 5.935. The Illinois Higher Education Savings Program 
Fund.
 
    Section 15. The Illinois Income Tax Act is amended  by 
changing Section 917 as follows:
 



    (35 ILCS 5/917)  (from Ch. 120, par. 9-917)



    Sec. 917. Confidentiality and information sharing.

    (a) Confidentiality.
Except as provided in this Section, 
all information received by the Department
from returns filed 
under this Act, or from any investigation conducted under
the 
provisions of this Act, shall be confidential, except for 
official purposes
within the Department or pursuant to 
official procedures for collection
of any State tax or 
pursuant to an investigation or audit by the Illinois
State 
Scholarship Commission of a delinquent student loan or 
monetary award
or enforcement of any civil or criminal penalty 
or sanction
imposed by this Act or by another statute imposing 
a State tax, and any
person who divulges any such information 
in any manner, except for such
purposes and pursuant to order 
of the Director or in accordance with a proper
judicial order, 
shall be guilty of a Class A misdemeanor.   However, the

provisions of this paragraph are not applicable to   information 
furnished
to (i) the Department of Healthcare and Family 
Services (formerly
Department of Public Aid), State's 
Attorneys, and the Attorney General for child support 
enforcement purposes and (ii) a licensed attorney representing 
the taxpayer where an appeal or a protest
has been filed on 
behalf of the taxpayer. If it is necessary to file information 
obtained pursuant to this Act in a child support enforcement 
proceeding, the information shall be filed under seal.

    (b) Public information. Nothing contained in this Act 
shall prevent
the Director from publishing or making available 
to the public the names
and addresses of persons filing 
returns under this Act, or from publishing
or making available 
reasonable statistics concerning the operation of the
tax 
wherein the contents of returns are grouped into aggregates in 
such a
way that the information contained in any individual 
return shall not be
disclosed.

    (c) Governmental agencies. The Director may make available 
to the
Secretary of the Treasury of the United States or his 
delegate, or the
proper officer or his delegate of any other 
state imposing a tax upon or
measured by income, for 
exclusively official purposes, information received
by the 
Department in the administration of this Act, but such 
permission
shall be granted only if the United States or such 
other state, as the case
may be, grants the Department 
substantially similar privileges.  The Director
may exchange 
information with the Department of Healthcare and Family 
Services and the
Department of Human Services (acting as 
successor to the Department of Public
Aid under the Department 
of Human Services Act) for
the purpose of verifying sources 
and amounts of income and for other purposes
directly 
connected with the administration of this Act, the Illinois 
Public Aid Code, and any other health benefit program 
administered by the State. The Director may exchange 
information with the Director of
the Department of Employment 
Security for the purpose of verifying sources
and amounts of 
income and for other purposes directly connected with the

administration of this Act and Acts administered by the 
Department of
Employment
Security.
The Director may make 
available to the Illinois Workers' Compensation Commission

information regarding employers for the purpose of verifying 
the insurance
coverage required under the Workers' 
Compensation Act and Workers'
Occupational Diseases Act. The 
Director may exchange information with the Illinois Department 
on Aging for the purpose of verifying sources and amounts of 
income for purposes directly related to confirming eligibility 
for participation in the programs of benefits authorized by 
the Senior Citizens and Persons with Disabilities Property Tax 
Relief and Pharmaceutical Assistance Act. The Director may 
exchange information with the State Treasurer's Office and the 
Department of Employment Security for the purpose of 
implementing, administering, and enforcing the Illinois Secure 
Choice Savings Program Act. The Director may exchange 
information with the State Treasurer's Office for the purpose 
of administering the Revised Uniform Unclaimed Property Act or 
successor Acts. The Director may exchange information with the 
State Treasurer's Office for the purpose of administering the 
Illinois Higher Education Savings Program established under 
Section 16.8 of the State Treasurer Act. 

    The Director may make available to any State agency, 
including the
Illinois Supreme Court, which licenses persons 
to engage in any occupation,
information that a person 
licensed by such agency has failed to file
returns under this 
Act or pay the tax, penalty and interest shown therein,
or has 
failed to pay any final assessment of tax, penalty or interest 
due
under this Act.
The Director may make available to any 
State agency, including the Illinois
Supreme
Court, 
information regarding whether a bidder, contractor, or an 
affiliate of a
bidder or
contractor has failed to file returns 
under this Act or pay the tax, penalty,
and interest
shown 
therein, or has failed to pay any final assessment of tax, 
penalty, or
interest due
under this Act, for the limited 
purpose of enforcing bidder and contractor
certifications.
For 
purposes of this Section, the term "affiliate" means any 
entity that (1)
directly,
indirectly, or constructively 
controls another entity, (2) is directly,
indirectly, or

constructively controlled by another entity, or (3) is subject 
to the control
of
a common
entity. For purposes of this 
subsection (a), an entity controls another entity
if
it owns,

directly or individually, more than 10% of the voting 
securities of that
entity.
As used in
this subsection (a), the 
term "voting security" means a security that (1)
confers upon 
the
holder the right to vote for the election of members of the 
board of directors
or similar
governing body of the business 
or (2) is convertible into, or entitles the
holder to receive

upon its exercise, a security that confers such a right to 
vote. A general
partnership
interest is a voting security.

    The Director may make available to any State agency, 
including the
Illinois
Supreme Court, units of local 
government, and school districts, information
regarding

whether a bidder or contractor is an affiliate of a person who 
is not
collecting
and
remitting Illinois Use taxes, for the 
limited purpose of enforcing bidder and
contractor

certifications.

    The Director may also make available to the Secretary of 
State
information that a corporation which has been issued a 
certificate of
incorporation by the Secretary of State has 
failed to file returns under
this Act or pay the tax, penalty 
and interest shown therein, or has failed
to pay any final 
assessment of tax, penalty or interest due under this Act.
An 
assessment is final when all proceedings in court for
review 
of such assessment have terminated or the time for the taking

thereof has expired without such proceedings being instituted.  
For
taxable years ending on or after December 31, 1987, the 
Director may make
available to the Director or principal 
officer of any Department of the
State of Illinois, 
information that a person employed by such Department
has 
failed to file returns under this Act or pay the tax, penalty 
and
interest shown therein.  For purposes of this paragraph, 
the word
"Department" shall have the same meaning as provided 
in Section 3 of the
State Employees Group Insurance Act of 
1971.

    (d) The Director shall make available for public

inspection in the Department's principal office and for 
publication, at cost,
administrative decisions issued on or 
after January
1, 1995. These decisions are to be made 
available in a manner so that the
following
taxpayer 
information is not disclosed:

        (1) The names, addresses, and identification numbers 
    of the taxpayer,
related entities, and employees.

        (2) At the sole discretion of the Director, trade 
    secrets
or other confidential information identified as 
    such by the taxpayer, no later
than 30 days after receipt 
    of an administrative decision, by such means as the

    Department shall provide by rule.

    The Director shall determine the
appropriate extent of the

deletions allowed in paragraph (2). In the event the taxpayer 
does not submit
deletions,
the Director shall make only the 
deletions specified in paragraph (1).

    The Director shall make available for public inspection 
and publication an
administrative decision within 180 days 
after the issuance of the
administrative
decision. The term 
"administrative decision" has the same meaning as defined in

Section 3-101 of Article III of the Code of Civil Procedure. 
Costs collected
under this Section shall be paid into the Tax 
Compliance and Administration
Fund.

    (e) Nothing contained in this Act shall prevent the 
Director from
divulging
information to any person pursuant to 
a request or authorization made by the
taxpayer, by an 
authorized representative of the taxpayer, or, in the case of

information related to a joint return, by the spouse filing 
the joint return
with the taxpayer.

(Source: P.A. 99-143, eff. 7-27-15; 99-571, eff. 7-15-16; 
100-47, eff. 8-11-17; 100-863, eff. 8-14-18.)

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


Effective Date:  7/23/2021