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91_HB0851eng
HB0851 Engrossed LRB9102936PTpk
1 AN ACT to amend the State Treasurer Act by adding Section
2 16.5.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The State Treasurer Act is amended by adding
6 Section 16.5 as follows:
7 (15 ILCS 505/16.5 new)
8 Sec. 16.5. College Savings Fund. The State Treasurer
9 may establish and administer a College Savings Fund to
10 supplement and enhance the investment opportunities otherwise
11 available to Illinois residents seeking to save money to pay
12 the costs of higher education for themselves and their
13 families. The Treasurer, in administering the College
14 Savings Fund, may receive moneys from Illinois residents into
15 the fund, hold the moneys in individual college savings
16 accounts, and invest moneys within the individual college
17 savings accounts on behalf of Illinois residents.
18 The Treasurer may invest individual college savings
19 accounts in the same manner, in the same types of
20 investments, and subject to the same limitations provided for
21 the investment of funds by the Illinois State Board of
22 Investment. The Treasurer shall develop, publish, and
23 implement an investment policy covering the management of the
24 individual college savings accounts within the College
25 Savings Fund. The policy shall be published (i) at least
26 once each year in at least one newspaper of general
27 circulation in both Springfield and Chicago and (ii) each
28 year as part of the audit of the College Savings Fund by the
29 Auditor General that shall be distributed to all
30 participants. The Treasurer shall notify all participants in
31 writing and shall publish in a newspaper of general
HB0851 Engrossed -2- LRB9102936PTpk
1 circulation in both Chicago and Springfield any changes to
2 the previously published investment policy at least 30
3 calendar days before implementing the policy. Any investment
4 policy adopted by the Treasurer shall be reviewed and updated
5 if necessary within 90 days following the date that the State
6 Treasurer takes office.
7 The Treasurer may adopt rules as he or she deems
8 necessary for the efficient administration of the College
9 Savings Fund, including specification of minimum and maximum
10 amounts that may be deposited, minimum and maximum periods of
11 time for which deposits may be retained in the fund, and
12 conditions under which penalties will be assessed for refunds
13 of earnings that are not used for qualified higher education
14 expenses. The rules shall provide for the administration
15 expenses of the Fund to be paid from its earnings and for the
16 interest earnings in excess of the expenses to be credited or
17 paid monthly to the several participants in the Fund in a
18 manner that equitably reflects the differing amounts of their
19 respective investments in the Fund and the differing periods
20 of time for which the amounts were in the custody of the
21 Fund.
22 Upon creating a College Savings Fund, the State Treasurer
23 shall give bond with 2 or more sufficient sureties that are
24 payable to and for the benefit of the participants in the
25 College Savings Fund, in the penal sum of $1,000,000,
26 conditioned upon the faithful discharge of his or her duties
27 in relation to the College Savings Fund.
28 Section 99. Effective date. This Act takes effect upon
29 becoming law.
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