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92nd General Assembly

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Public Act 92-0045

SB406 Enrolled                                 LRB9202508NTsb

    AN ACT in relation to higher education.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  5.  The  Illinois  Financial  Assistance Act for
Nonpublic Institutions  of  Higher  Learning  is  amended  by
changing Sections 3, 4, 5, and 7 as follows:

    (110 ILCS 210/3) (from Ch. 144, par. 1333)
    Sec.   3.   For  the  academic  year  beginning  in  2002
September 1, 1977, institutional grants may shall be made for
that and for each succeeding academic year to each  nonpublic
institution  of  higher  learning  in an amount determined by
allocating amounts for funding this Act  among  the  eligible
institutions  in  accordance with a formula or formulae based
upon one or more of the following factors: on the  number  of
undergraduate  degrees  granted to students who are residents
of the State of Illinois enrolled as students  at  each  such
institution; the number of full-time equivalent undergraduate
students  who are residents of the State of Illinois enrolled
as students at each such institution; and the number of, with
double credit being given to the full-time equivalent of such
students  who  are  junior  or  senior   students   at   such
institutions.    The    number    of   full-time   equivalent
undergraduate  students  enrolled   at   eligible   nonpublic
institutions of higher learning shall be determined as of the
first  day  of  the  fourth week of classes of the fall term.
The  Board  of  Higher  Education  shall  establish   formula
allocations  guidelines  and  adopt  rules  necessary for the
administration of this Act.
    Conditions of institutional eligibility for these  grants
shall include but need not be limited to the following:
    (1)  That  the governing board of the institution possess
its own sovereignty.
    (2)  That  the  governing   board,   or   its   delegated
institutional  officials,  possess  final  authority  in  all
matters  of  local  control,  including  educational  policy,
choice  of personnel, determination of program, and financial
management.
    (3)  That the institution possess and  maintain  an  open
policy  with respect to race, creed and color as to admission
of students, appointment of faculty and employment of staff.
    (4)  That the institution be able  to  show  its  current
financial  stability  and reasonable prospects for its future
stability.
    (5)  That the institution not be operated for profit.
    (6)  That the institution provide a full financial report
including a certified audit, and participate in the unit cost
study and other studies conducted annually by  the  Board  of
Higher Education.
    (7)  If   required   by  rule  of  the  Board,  that  the
institution submit to an additional annual external audit  of
its enrollment records and nonsectarian use of funds.
(Source: P.A. 84-834.)

    (110 ILCS 210/4) (from Ch. 144, par. 1334)
    Sec.   4.   For  the  academic  year  beginning  in  2002
1971-1972 and each academic year  thereafter,  each  eligible
institution  of  higher learning shall prepare and certify to
the Board in writing any information required by the Board to
justify the grants of  Higher  Education,  on  the  basis  of
enrollment  at  that institution on October 1 of that year, a
list of the  names,  addresses  and  classification  of  each
resident  of  Illinois  enrolled  as  a full-time freshman or
sophomore and of each resident  of  Illinois  enrolled  as  a
full-time  junior or senior at that institution and a similar
list  of  the  names,  addresses,  and   classifications   of
residents  of  Illinois  enrolled  as  part-time freshmen and
sophomores, and as part-time  juniors  and  seniors  at  such
institution,  together  with a certification of the number of
credit hours for  which  such  students  are  enrolled.  This
information  certified  list shall be signed and furnished to
the  Board  by  the  chief  administrative  officer  of   the
institution.
(Source: P.A. 80-289.)

    (110 ILCS 210/5) (from Ch. 144, par. 1335)
    Sec.  5.  The  Board  shall  prescribe  and  advise  such
institutions as to the form of certificate or certificates to
be  submitted  under Section 4 of this Act, and promptly upon
receipt of such  certificates  from  the  institutions  shall
certify  to  the  State  Comptroller  Treasurer the aggregate
amount of the grant allocable to and to be paid to each  such
institution.   The   Board  shall  examine  the  certificates
furnished by the institutions and may  require  such  further
data  and  information as the Board may request. Upon written
notice by the Board to any institution, the Board may examine
the institution's student enrollment records for the  purpose
of   verification,   amendment  or  correction  of  any  such
certificate.
(Source: P.A. 77-273.)

    (110 ILCS 210/7) (from Ch. 144, par. 1337)
    Sec. 7. The Board shall keep an accurate  record  of  all
its  activities  under  this Act and by February 15, 1972 and
each year thereafter, shall make a report to its members,  to
the  Governor  and  to the General Assembly Auditor of Public
Accounts, such report to be a part of its annual report in  a
form  prescribed by its members, with the written approval of
the Auditor of Public Accounts.
(Source: P.A. 77-273.)
    Section 10.  The Health Services Education Grants Act  is
amended by changing Section 4 as follows:

    (110 ILCS 215/4) (from Ch. 111 1/2, par. 824)
    Sec. 4.  Grants may be made to medical, dental, pharmacy,
optometry,   and  nursing  schools,  to  physician  assistant
programs, to other health-related schools and  programs,  and
to  hospitals  and clinical facilities used in health service
training programs.
    Qualification for grants shall be on the basis of  either
the  number  of  Illinois resident enrollees or the number of
degrees granted to students who are residents of this  State,
an  increase in the number of Illinois resident enrollees, or
both. The grant amount or proportion of increase required  to
qualify  shall be determined by the Board of Higher Education
for each class of institution. However, in no case  shall  an
institution  qualify  for  grants  unless the increase in its
number of Illinois resident enrollees is at  least  equal  to
the  increase  in total enrollment made possible through such
grants.
    At the discretion of the Board of Higher Education grants
may be made for each class of institution in any  or  all  of
the following forms:
    (1)  Single  nonrecurring grants for planning and capital
expense based on the  increase  in  the  number  of  Illinois
resident enrollees;
    (2)  Annual grants based on the increase in the number of
degrees  granted  to  (a) Illinois resident enrollees, or (b)
Illinois resident enrollees from minority racial  and  ethnic
groups, or both (a) and (b); and
    (3)  Annual  stabilization  grants based on the number of
(a) Illinois residents  already  enrolled,  or  (b)  Illinois
residents  already  enrolled  from minority racial and ethnic
groups, or both (a) and (b).
    In awarding grants to nursing  schools  and  to  hospital
schools  of  nursing,  the Board of Higher Education may also
consider  whether  the  nursing  program  is  located  in   a
certified  nurse shortage area.  For purposes of this Section
"certified nurse shortage area" means an  area  certified  by
the  Director  of  the Department of Public Health as a nurse
shortage area based on the most reliable  data  available  to
the Director.
(Source: P.A. 86-1032; 87-1087.)

    Section  15.  The  Illinois  Consortium  for  Educational
Opportunity Act is amended by changing Section 9 as follows:

    (110 ILCS 930/9) (from Ch. 144, par. 2309)
    Sec.  9.   Terms  of  award.   After  a  person  has been
accepted into the ICEOP, the individual shall be eligible for
an annual up to a  $10,000  award  annually  which  shall  be
renewable for up to an additional 3 years provided that he or
she  makes satisfactory progress toward completing his or her
degree. The Consortium Board shall determine the award amount
annually.
(Source: P.A. 84-785.)

    Section 20.  The Higher Education Student Assistance  Act
is amended by changing Sections 35, 113, and 145 as follows:

    (110 ILCS 947/35)
    Sec. 35. Monetary award program.
    (a)  The   Commission   shall,  each  year,  receive  and
consider  applications  for  grant  assistance   under   this
Section.   Subject  to  a  separate  appropriation  for  such
purposes,  an  applicant  is  eligible for a grant under this
Section when the Commission finds that the applicant:
         (1)  is a resident of this State and  a  citizen  or
    permanent resident of the United States; and
         (2)  in  the  absence  of  grant assistance, will be
    deterred by financial considerations from  completing  an
    educational  program  at the qualified institution of his
    or her choice.
    (b)  The Commission shall award renewals  only  upon  the
student's  application and upon the Commission's finding that
the applicant:
         (1)  has remained a student in good standing;
         (2)  remains a resident of this State; and
         (3)  is in a financial situation that  continues  to
    warrant assistance.
    (c)  All  grants  shall be applicable only to tuition and
necessary fee costs for 2  semesters  or  3  quarters  in  an
academic  year.   Requests for summer term assistance will be
made separately and shall  be  considered  on  an  individual
basis  according  to Commission policy.   Each student who is
awarded a grant under this Section and is enrolled in  summer
school  classes  shall be eligible for a summer school grant.
The summer school grant amount shall not exceed the lesser of
50 percent of the maximum annual grant amount  authorized  by
this  Section  or  the actual cost of tuition and fees at the
institution  at  which  the  student  is  enrolled  at  least
part-time.  For the regular  academic  year,  the  Commission
shall  determine  the  grant  amount  for  each full-time and
part-time  student,  which  shall  be  the  smallest  of  the
following amounts:
         (1)  $4,968 $4,740 for 2 semesters or 3 quarters  of
    full-time undergraduate enrollment or $2,484 $2,370 for 2
    semesters   or  3  quarters  of  part-time  undergraduate
    enrollment, or such lesser amount as the Commission finds
    to be available; or
         (2)  the amount which equals the 2  semesters  or  3
    quarters   tuition  and  other  necessary  fees  required
    generally   by   the   institution   of   all   full-time
    undergraduate students,  or  in  the  case  of  part-time
    students an amount of tuition and fees for 2 semesters or
    3  quarters which shall not exceed one-half the amount of
    tuition and necessary fees generally charged to full-time
    undergraduate students by the institution; or
         (3)  such amount  as  the  Commission  finds  to  be
    appropriate   in   view   of  the  applicant's  financial
    resources.
"Tuition and other necessary fees" as used  in  this  Section
include  the  customary  charge  for  instruction  and use of
facilities in general, and the additional fixed fees  charged
for  specified  purposes,  which  are  required  generally of
nongrant recipients for each academic period  for  which  the
grant  applicant  actually  enrolls,  but do not include fees
payable only once  or  breakage  fees  and  other  contingent
deposits  which  are  refundable  in  whole  or in part.  The
Commission may prescribe, by rule not inconsistent with  this
Section,  detailed  provisions  concerning the computation of
tuition and other necessary fees.
    (d)  No applicant, including  those  presently  receiving
scholarship  assistance  under  this  Act,  is  eligible  for
monetary  award  program  consideration  under this Act after
receiving a baccalaureate degree  or  the  equivalent  of  10
semesters  or  15 quarters of award payments.  The Commission
shall determine when award payments for part-time  enrollment
or  interim  or  summer  terms  shall be counted as a partial
semester or quarter of payment.
    (e)  The Commission, in determining the number of  grants
to  be offered, shall take into consideration past experience
with the rate of grant funds unclaimed  by  recipients.   The
Commission  shall  notify applicants that grant assistance is
contingent upon the availability of appropriated funds.
    (f)  The  Commission  may  request   appropriations   for
deposit into the Monetary Award Program Reserve Fund.  Monies
deposited into the Monetary Award Program Reserve Fund may be
expended  exclusively for one purpose: to make Monetary Award
Program grants to eligible students.  Amounts on  deposit  in
the  Monetary Award Program Reserve Fund may not exceed 2% of
the current annual State appropriation for the Monetary Award
Program.
    The purpose of the Monetary Award Program Reserve Fund is
to enable the Commission each year to assure as many students
as possible of their eligibility for a Monetary Award Program
grant and to do so before commencement of the academic  year.
Moneys deposited in this Reserve Fund are intended to enhance
the  Commission's  management  of the Monetary Award Program,
minimizing  the  necessity,  magnitude,  and   frequency   of
adjusting award amounts and ensuring that the annual Monetary
Award Program appropriation can be fully utilized.
    (g)  The  Commission  shall  determine the eligibility of
and  make  grants  to  applicants   enrolled   at   qualified
for-profit  institutions  in accordance with the criteria set
forth  in  this  Section.   The  eligibility  of   applicants
enrolled  at such for-profit institutions shall be limited as
follows:
         (1)  Beginning with the academic year 1997, only  to
    eligible  first-time  freshmen  and  first-time  transfer
    students who have attained an associate degree.
         (2)  Beginning  with the academic year 1998, only to
    eligible freshmen students, transfer  students  who  have
    attained  an associate degree, and students who receive a
    grant under paragraph (1) for the academic year 1997  and
    whose  grants  are  being  renewed  for the academic year
    1998.
         (3)  Beginning with the academic year 1999,  to  all
    eligible students.
(Source:  P.A.  90-122,  eff.  7-17-97; 90-647, eff. 7-24-98;
90-769, eff. 8-14-98;  91-249,  eff.  7-22-99;  91-250,  eff.
7-22-99; 91-357, eff. 7-29-99; 91-747, eff. 7-1-00.)

    (110 ILCS 947/113)
    Sec.  113.   Federal  Student  Loan  Fund;  Student  Loan
Operating  Fund; Federal Reserve Recall Fund.  The Commission
shall create the Federal Student Loan Fund, the Student  Loan
Operating  Fund, and the Federal Reserve Recall Fund.  At the
request  of  the   Commission's   Executive   Director,   the
Comptroller  shall  transfer  funds,  as  necessary, from the
Student Assistance Commission  Student  Loan  Fund  into  the
Federal  Student  Loan Fund, the Student Loan Operating Fund,
and the Federal Reserve Recall Fund.  On or before August 31,
2000, the Commission's Executive Director shall  request  the
Comptroller to transfer all funds from the Student Assistance
Commission Student Loan Fund into any of the following funds:
the  Federal  Student  Loan  Fund, the Student Loan Operating
Fund, or the Federal Reserve Recall Fund.   On  September  1,
2000,  the Student Assistance Commission Student Loan Fund is
abolished.  Any future liabilities  of  this  abolished  fund
shall be assignable to the appropriate fund created as one of
its  successors. At the request of the Commission's Executive
Director, the  Comptroller  shall  transfer  funds  from  the
Federal  Student  Loan  Fund  into the Student Loan Operating
Fund.
(Source: P.A. 91-670, eff. 12-22-99.)

    (110 ILCS 947/145)
    Sec. 145. Issuance of Bonds.
    (a)  The Commission has power,  and  is  authorized  from
time  to time, to issue bonds (1) to make or acquire eligible
loans, (2) to refund the bonds of the Commission, or (3)  for
a combination of such purposes. The Commission shall not have
outstanding  at  any one time bonds in an aggregate principal
amount  exceeding  $3,500,000,000  $2,100,000,000,  excluding
bonds issued to refund the bonds of the Commission.
    The Commission is authorized to use the proceeds from the
sale of bonds  issued  pursuant  to  this  Act  to  fund  the
reserves  created  therefor, including a reserve for interest
coming due on the bonds for one year following  the  issuance
of  the  bonds,  as provided in the resolution or resolutions
authorizing the bonds and to pay the  necessary  expenses  of
issuing  the  bonds,  including  but  not  limited to, legal,
printing, and consulting fees.
    (b)  The Commission has power,  and  is  authorized  from
time  to  time, to issue refunding bonds (1) to refund unpaid
matured  bonds;  (2)  to  refund   unpaid   matured   coupons
evidencing interest upon its unpaid matured bonds; and (3) to
refund  interest  at  the coupon rate upon its unpaid matured
bonds that has accrued since the maturity of those bonds. The
refunding bonds may be exchanged for the bonds to be refunded
on a par for par basis of the bonds,  interest  coupons,  and
interest  not  represented by coupons, if any, or may be sold
at not less than par or may be exchanged in part and sold  in
part;  and  the  proceeds  received at any such sale shall be
used to pay the bonds, interest  coupons,  and  interest  not
represented  by  coupons,  if any. Bonds and interest coupons
which have  been  received  in  exchange  or  paid  shall  be
cancelled and the obligation for interest, not represented by
coupons  which  have been discharged, shall be evidenced by a
written acknowledgement of the exchange or payment thereof.
    (c)  The Commission has power,  and  is  authorized  from
time  to  time,  to  also  issue  refunding  bonds under this
Section, to refund bonds at or prior  to  their  maturity  or
which  by  their  terms  are  subject  to  redemption  before
maturity,  or  both, in an amount necessary to refund (1) the
principal amount  of  the  bonds  to  be  refunded,  (2)  the
interest  to  accrue up to and including the maturity date or
dates thereof, and (3) the applicable redemption premiums, if
any. Those refunding bonds may be exchanged for not less than
an equal principal amount of bonds to be refunded or  may  be
sold and the proceeds received at the sale thereof (excepting
the   accrued  interest  received)   used  to  complete  such
refunding, including the payment of  the  costs  of  issuance
thereof.
    (d)  The  bonds  shall be authorized by resolution of the
Commission and may be issued in one or more series, may  bear
such   date   or  dates,  may  be  in  such  denomination  or
denominations, may mature at such time or times not exceeding
40 years from the respective dates  thereof,  may  mature  in
such  amount  or  amounts,  may bear interest at such rate or
rates, may be in such form either coupon or registered as  to
principal  only  or  as  to  both principal and interest, may
carry such registration privileges (including the  conversion
of  a fully registered bond to a coupon bond or bonds and the
conversion of a coupon bond to a fully registered bond),  may
be  executed  in  such  manner,  may  be made payable in such
medium of payment, at such place or places within or  without
the  State,  and  may  be subject to such terms of redemption
prior to their expressed maturity, with or  without  premium,
as the resolution or other resolutions may provide.  Proceeds
from  the sale of the bonds may be invested as the resolution
or resolutions and as the Commission from time  to  time  may
provide.   All  bonds  issued under this Act shall be sold in
the manner and at such price as the Commission may deem to be
in the best interest  of  the  public.   The  resolution  may
provide  that the bonds be executed with one manual signature
and that other signatures may  be  printed,  lithographed  or
engraved thereon.
    The  Commission shall not be authorized to create and the
bonds shall not in any event constitute  State  debt  of  the
State  of  Illinois within the meaning of the Constitution or
statutes of the State of Illinois, and the same shall  be  so
stated upon the face of each bond.  The source of payment for
the bonds shall be stated on the face of each bond.
    The  issuance  of bonds under this Act is in all respects
for the benefit of the People of the State of  Illinois,  and
in  consideration  thereof  the bonds issued pursuant to this
Act and the income therefrom shall be free from all  taxation
by  the  State  or  its  political  subdivisions,  except for
estate, transfer, and  inheritance  taxes.  For  purposes  of
Section  250 of the Illinois Income Tax Act, the exemption of
the income from bonds issued under this Act  shall  terminate
after  all  of  the  bonds have been paid. The amount of such
income that  shall  be  added  and  then  subtracted  on  the
Illinois income tax return of a taxpayer, pursuant to Section
203  of  the  Illinois  Income Tax Act, from federal adjusted
gross income or federal taxable income in computing  Illinois
base  income  shall  be  the interest net of any bond premium
amortization.
(Source: P.A. 89-460, eff. 5-24-96; 90-281, eff. 7-31-97.)

    Section 99.  Effective date.  This Act takes effect  upon
becoming  law,  except that (i) in Section 20, the provisions
changing  Section  35  of  the   Higher   Education   Student
Assistance  Act take effect on July 1, 2001 and (ii) Sections
5, 10, and 15 take effect on July 1, 2002.
    Passed in the General Assembly May 24, 2001.
    Approved June 29, 2001.

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