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Public Act 102-0129
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| HB0573 Enrolled | LRB102 04338 RJF 14356 b |
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AN ACT concerning State government.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The State Treasurer Act is amended by changing |
Section 16.8 as follows:
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(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 |
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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. |
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"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 |
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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, |
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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 |
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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. |
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(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 |
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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 |
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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.
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(Source: P.A. 101-466, eff. 1-1-20; revised 11-21-19.)
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Section 10. The State Finance Act is amended by adding |
Section 5.935 as follows:
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(30 ILCS 105/5.935 new) |
Sec. 5.935. The Illinois Higher Education Savings Program |
Fund.
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Section 15. The Illinois Income Tax Act is amended by |
changing Section 917 as follows:
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(35 ILCS 5/917) (from Ch. 120, par. 9-917)
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Sec. 917. Confidentiality and information sharing.
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(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
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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.
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(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 |
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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.
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(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
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administration of this Act and Acts administered by the |
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Department of
Employment
Security.
The Director may make |
available to the Illinois Workers' Compensation Commission
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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.
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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 |
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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
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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,
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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
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upon its exercise, a security that confers such a right to |
vote. A general
partnership
interest is a voting security.
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The Director may make available to any State agency, |
including the
Illinois
Supreme Court, units of local |
government, and school districts, information
regarding
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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
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certifications.
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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
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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.
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(d) The Director shall make available for public
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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 |
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available in a manner so that the
following
taxpayer |
information is not disclosed:
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(1) The names, addresses, and identification numbers |
of the taxpayer,
related entities, and employees.
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(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
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Department shall provide by rule.
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The Director shall determine the
appropriate extent of the
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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).
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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
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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.
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(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
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information related to a joint return, by the spouse filing |
the joint return
with the taxpayer.
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