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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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