SB3680 101ST GENERAL ASSEMBLY

LRB101 16899 NHT 66298 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3680

Introduced 2/14/2020, by Sen. William E. Brady

SYNOPSIS AS INTRODUCED:

110 ILCS 305/0.05 new
110 ILCS 520/1.5 new
110 ILCS 660/5-3 new
110 ILCS 665/10-3 new
110 ILCS 670/15-3 new
110 ILCS 675/20-3 new
110 ILCS 680/25-3 new
110 ILCS 685/30-3 new
110 ILCS 690/35-3 new
110 ILCS 947/65.110 new

Amends various Acts relating to the governance of public universities in Illinois. Requires each university to transition into a nonpublic institution of higher education beginning on July 1, 2020. Requires the governing board of each university to develop and implement a 6-year plan for this transition. Sets forth provisions concerning the plan and transition. Amends the Higher Education Student Assistance Act. Requires the Illinois Student Assistance Commission to award grants to students in financial need who are enrolled for at least 15 credit hours in an institution of higher learning. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning education.

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

Section 5. The University of Illinois Act is amended by adding Section 0.05 as follows:

(110 ILCS 305/0.05 new)

Sec. 0.05. Transition to nonpublic university.

(a) Beginning on July 1, 2020, the University of Illinois shall transition into a nonpublic institution of higher education. The Board of Trustees of the University of Illinois shall develop and implement a 6-year plan for this transition. This plan shall include all of the following:

(1) A date upon which the University shall be deemed to be a nonpublic institution of higher education.

(2) The appointment, by the Board of Trustees, of a governing board to oversee the nonpublic university.

(3) A determination of all books, records, funds, and other property of any kind or nature belonging or in any way appertaining to the University that this State shall be required to transfer to the University.

(4) How employees, along with their health care, retirement, and all other benefits, as well as any collective bargaining agreements, are to be addressed.

(5) Recommendations concerning the changes to statutory law needed to effectuate and reflect this transition.

A copy of this plan shall be filed with the General Assembly as provided in Section 3.1 of the General Assembly Organization Act.

(b) On the date selected by the Board of Trustees under subdivision (1) of subsection (a) of this Section, all of the following shall apply:

(1) The Board of Trustees is abolished and the terms of all members end, and all of the powers, duties, assets, liabilities, employees, contracts, property, records, pending business, and unexpended appropriations of the Board of Trustees shall be transferred to the governing board appointed under subdivision (2) of subsection (a) of this Section.

(2) All rules, standards, policies, and procedures of the University shall continue in effect until they are modified or abolished by the governing board appointed under subdivision (2) of subsection (a) of this Section.

(3) The authority of the Board of Higher Education over public institutions of higher education does not include authority over the University.

(4) All references in statutes and rules to the University as a State university, a public university, or an institution of higher education funded or supported by this State shall be deemed to not refer to the University, and all references to private or nonpublic institutions of higher education in statutes and rules shall be deemed to refer to the University.

(5) All books, records, funds, and other property of any kind or nature belonging or in any way appertaining to the University are the property of the University, and this State shall be deemed to have no ownership interest.

Section 10. The Southern Illinois University Management Act is amended by adding Section 1.5 as follows:

(110 ILCS 520/1.5 new)

Sec. 1.5. Transition to nonpublic university.

(a) Beginning on July 1, 2020, Southern Illinois University shall transition into a nonpublic institution of higher education. The Board of Trustees of Southern Illinois University shall develop and implement a 6-year plan for this transition. This plan shall include all of the following:

(1) A date upon which the University shall be deemed to be a nonpublic institution of higher education.

(2) The appointment, by the Board of Trustees, of a governing board to oversee the nonpublic university.

(3) A determination of all books, records, funds, and other property of any kind or nature belonging or in any way appertaining to the University that this State shall be required to transfer to the University.

(4) How employees, along with their health care, retirement, and all other benefits, as well as any collective bargaining agreements, are to be addressed.

(5) Recommendations concerning the changes to statutory law needed to effectuate and reflect this transition.

A copy of this plan shall be filed with the General Assembly as provided in Section 3.1 of the General Assembly Organization Act.

(b) On the date selected by the Board of Trustees under subdivision (1) of subsection (a) of this Section, all of the following shall apply:

(1) The Board of Trustees is abolished and the terms of all members end, and all of the powers, duties, assets, liabilities, employees, contracts, property, records, pending business, and unexpended appropriations of the Board of Trustees shall be transferred to the governing board appointed under subdivision (2) of subsection (a) of this Section.

(2) All rules, standards, policies, and procedures of the University shall continue in effect until they are modified or abolished by the governing board appointed under subdivision (2) of subsection (a) of this Section.

(3) The authority of the Board of Higher Education over public institutions of higher education does not include authority over the University.

(4) All references in statutes and rules to the University as a State university, a public university, or an institution of higher education funded or supported by this State shall be deemed to not refer to the University, and all references to private or nonpublic institutions of higher education in statutes and rules shall be deemed to refer to the University.

(5) All books, records, funds, and other property of any kind or nature belonging or in any way appertaining to the University are the property of the University, and this State shall be deemed to have no ownership interest.

Section 15. The Chicago State University Law is amended by adding Section 5-3 as follows:

(110 ILCS 660/5-3 new)

Sec. 5-3. Transition to nonpublic university.

(a) Beginning on July 1, 2020, Chicago State University shall transition into a nonpublic institution of higher education. The Board of Trustees of Chicago State University shall develop and implement a 6-year plan for this transition. This plan shall include all of the following:

(1) A date upon which the University shall be deemed to be a nonpublic institution of higher education.

(2) The appointment, by the Board of Trustees, of a governing board to oversee the nonpublic university.

(3) A determination of all books, records, funds, and other property of any kind or nature belonging or in any way appertaining to the University that this State shall be required to transfer to the University.

(4) How employees, along with their health care, retirement, and all other benefits, as well as any collective bargaining agreements, are to be addressed.

(5) Recommendations concerning the changes to statutory law needed to effectuate and reflect this transition.

A copy of this plan shall be filed with the General Assembly as provided in Section 3.1 of the General Assembly Organization Act.

(b) On the date selected by the Board of Trustees under subdivision (1) of subsection (a) of this Section, all of the following shall apply:

(1) The Board of Trustees is abolished and the terms of all members end, and all of the powers, duties, assets, liabilities, employees, contracts, property, records, pending business, and unexpended appropriations of the Board of Trustees shall be transferred to the governing board appointed under subdivision (2) of subsection (a) of this Section.

(2) All rules, standards, policies, and procedures of the University shall continue in effect until they are modified or abolished by the governing board appointed under subdivision (2) of subsection (a) of this Section.

(3) The authority of the Board of Higher Education over public institutions of higher education does not include authority over the University.

(4) All references in statutes and rules to the University as a State university, a public university, or an institution of higher education funded or supported by this State shall be deemed to not refer to the University, and all references to private or nonpublic institutions of higher education in statutes and rules shall be deemed to refer to the University.

(5) All books, records, funds, and other property of any kind or nature belonging or in any way appertaining to the University are the property of the University, and this State shall be deemed to have no ownership interest.

Section 20. The Eastern Illinois University Law is amended by adding Section 10-3 as follows:

(110 ILCS 665/10-3 new)

Sec. 10-3. Transition to nonpublic university.

(a) Beginning on July 1, 2020, Eastern Illinois University shall transition into a nonpublic institution of higher education. The Board of Trustees of Eastern Illinois University shall develop and implement a 6-year plan for this transition. This plan shall include all of the following:

(1) A date upon which the University shall be deemed to be a nonpublic institution of higher education.

(2) The appointment, by the Board of Trustees, of a governing board to oversee the nonpublic university.

(3) A determination of all books, records, funds, and other property of any kind or nature belonging or in any way appertaining to the University that this State shall be required to transfer to the University.

(4) How employees, along with their health care, retirement, and all other benefits, as well as any collective bargaining agreements, are to be addressed.

(5) Recommendations concerning the changes to statutory law needed to effectuate and reflect this transition.

A copy of this plan shall be filed with the General Assembly as provided in Section 3.1 of the General Assembly Organization Act.

(b) On the date selected by the Board of Trustees under subdivision (1) of subsection (a) of this Section, all of the following shall apply:

(1) The Board of Trustees is abolished and the terms of all members end, and all of the powers, duties, assets, liabilities, employees, contracts, property, records, pending business, and unexpended appropriations of the Board of Trustees shall be transferred to the governing board appointed under subdivision (2) of subsection (a) of this Section.

(2) All rules, standards, policies, and procedures of the University shall continue in effect until they are modified or abolished by the governing board appointed under subdivision (2) of subsection (a) of this Section.

(3) The authority of the Board of Higher Education over public institutions of higher education does not include authority over the University.

(4) All references in statutes and rules to the University as a State university, a public university, or an institution of higher education funded or supported by this State shall be deemed to not refer to the University, and all references to private or nonpublic institutions of higher education in statutes and rules shall be deemed to refer to the University.

(5) All books, records, funds, and other property of any kind or nature belonging or in any way appertaining to the University are the property of the University, and this State shall be deemed to have no ownership interest.

Section 25. The Governors State University Law is amended by adding Section 15-3 as follows:

(110 ILCS 670/15-3 new)

Sec. 15-3. Transition to nonpublic university.

(a) Beginning on July 1, 2020, Governors State University shall transition into a nonpublic institution of higher education. The Board of Trustees of Governors State University shall develop and implement a 6-year plan for this transition. This plan shall include all of the following:

(1) A date upon which the University shall be deemed to be a nonpublic institution of higher education.

(2) The appointment, by the Board of Trustees, of a governing board to oversee the nonpublic university.

(3) A determination of all books, records, funds, and other property of any kind or nature belonging or in any way appertaining to the University that this State shall be required to transfer to the University.

(4) How employees, along with their health care, retirement, and all other benefits, as well as any collective bargaining agreements, are to be addressed.

(5) Recommendations concerning the changes to statutory law needed to effectuate and reflect this transition.

A copy of this plan shall be filed with the General Assembly as provided in Section 3.1 of the General Assembly Organization Act.

(b) On the date selected by the Board of Trustees under subdivision (1) of subsection (a) of this Section, all of the following shall apply:

(1) The Board of Trustees is abolished and the terms of all members end, and all of the powers, duties, assets, liabilities, employees, contracts, property, records, pending business, and unexpended appropriations of the Board of Trustees shall be transferred to the governing board appointed under subdivision (2) of subsection (a) of this Section.

(2) All rules, standards, policies, and procedures of the University shall continue in effect until they are modified or abolished by the governing board appointed under subdivision (2) of subsection (a) of this Section.

(3) The authority of the Board of Higher Education over public institutions of higher education does not include authority over the University.

(4) All references in statutes and rules to the University as a State university, a public university, or an institution of higher education funded or supported by this State shall be deemed to not refer to the University, and all references to private or nonpublic institutions of higher education in statutes and rules shall be deemed to refer to the University.

(5) All books, records, funds, and other property of any kind or nature belonging or in any way appertaining to the University are the property of the University, and this State shall be deemed to have no ownership interest.

Section 30. The Illinois State University Law is amended by adding Section 20-3 as follows:

(110 ILCS 675/20-3 new)

Sec. 20-3. Transition to nonpublic university.

(a) Beginning on July 1, 2020, Illinois State University shall transition into a nonpublic institution of higher education. The Board of Trustees of Illinois State University shall develop and implement a 6-year plan for this transition. This plan shall include all of the following:

(1) A date upon which the University shall be deemed to be a nonpublic institution of higher education.

(2) The appointment, by the Board of Trustees, of a governing board to oversee the nonpublic university.

(3) A determination of all books, records, funds, and other property of any kind or nature belonging or in any way appertaining to the University that this State shall be required to transfer to the University.

(4) How employees, along with their health care, retirement, and all other benefits, as well as any collective bargaining agreements, are to be addressed.

(5) Recommendations concerning the changes to statutory law needed to effectuate and reflect this transition.

A copy of this plan shall be filed with the General Assembly as provided in Section 3.1 of the General Assembly Organization Act.

(b) On the date selected by the Board of Trustees under subdivision (1) of subsection (a) of this Section, all of the following shall apply:

(1) The Board of Trustees is abolished and the terms of all members end, and all of the powers, duties, assets, liabilities, employees, contracts, property, records, pending business, and unexpended appropriations of the Board of Trustees shall be transferred to the governing board appointed under subdivision (2) of subsection (a) of this Section.

(2) All rules, standards, policies, and procedures of the University shall continue in effect until they are modified or abolished by the governing board appointed under subdivision (2) of subsection (a) of this Section.

(3) The authority of the Board of Higher Education over public institutions of higher education does not include authority over the University.

(4) All references in statutes and rules to the University as a State university, a public university, or an institution of higher education funded or supported by this State shall be deemed to not refer to the University, and all references to private or nonpublic institutions of higher education in statutes and rules shall be deemed to refer to the University.

(5) All books, records, funds, and other property of any kind or nature belonging or in any way appertaining to the University are the property of the University, and this State shall be deemed to have no ownership interest.

Section 35. The Northeastern Illinois University Law is amended by adding Section 25-3 as follows:

(110 ILCS 680/25-3 new)

Sec. 25-3. Transition to nonpublic university.

(a) Beginning on July 1, 2020, Northeastern Illinois University shall transition into a nonpublic institution of higher education. The Board of Trustees of Northeastern Illinois University shall develop and implement a 6-year plan for this transition. This plan shall include all of the following:

(1) A date upon which the University shall be deemed to be a nonpublic institution of higher education.

(2) The appointment, by the Board of Trustees, of a governing board to oversee the nonpublic university.

(3) A determination of all books, records, funds, and other property of any kind or nature belonging or in any way appertaining to the University that this State shall be required to transfer to the University.

(4) How employees, along with their health care, retirement, and all other benefits, as well as any collective bargaining agreements, are to be addressed.

(5) Recommendations concerning the changes to statutory law needed to effectuate and reflect this transition.

A copy of this plan shall be filed with the General Assembly as provided in Section 3.1 of the General Assembly Organization Act.

(b) On the date selected by the Board of Trustees under subdivision (1) of subsection (a) of this Section, all of the following shall apply:

(1) The Board of Trustees is abolished and the terms of all members end, and all of the powers, duties, assets, liabilities, employees, contracts, property, records, pending business, and unexpended appropriations of the Board of Trustees shall be transferred to the governing board appointed under subdivision (2) of subsection (a) of this Section.

(2) All rules, standards, policies, and procedures of the University shall continue in effect until they are modified or abolished by the governing board appointed under subdivision (2) of subsection (a) of this Section.

(3) The authority of the Board of Higher Education over public institutions of higher education does not include authority over the University.

(4) All references in statutes and rules to the University as a State university, a public university, or an institution of higher education funded or supported by this State shall be deemed to not refer to the University, and all references to private or nonpublic institutions of higher education in statutes and rules shall be deemed to refer to the University.

(5) All books, records, funds, and other property of any kind or nature belonging or in any way appertaining to the University are the property of the University, and this State shall be deemed to have no ownership interest.

Section 40. The Northern Illinois University Law is amended by adding Section 30-3 as follows:

(110 ILCS 685/30-3 new)

Sec. 30-3. Transition to nonpublic university.

(a) Beginning on July 1, 2020, Northern Illinois University shall transition into a nonpublic institution of higher education. The Board of Trustees of Northern Illinois University shall develop and implement a 6-year plan for this transition. This plan shall include all of the following:

(1) A date upon which the University shall be deemed to be a nonpublic institution of higher education.

(2) The appointment, by the Board of Trustees, of a governing board to oversee the nonpublic university.

(3) A determination of all books, records, funds, and other property of any kind or nature belonging or in any way appertaining to the University that this State shall be required to transfer to the University.

(4) How employees, along with their health care, retirement, and all other benefits, as well as any collective bargaining agreements, are to be addressed.

(5) Recommendations concerning the changes to statutory law needed to effectuate and reflect this transition.

A copy of this plan shall be filed with the General Assembly as provided in Section 3.1 of the General Assembly Organization Act.

(b) On the date selected by the Board of Trustees under subdivision (1) of subsection (a) of this Section, all of the following shall apply:

(1) The Board of Trustees is abolished and the terms of all members end, and all of the powers, duties, assets, liabilities, employees, contracts, property, records, pending business, and unexpended appropriations of the Board of Trustees shall be transferred to the governing board appointed under subdivision (2) of subsection (a) of this Section.

(2) All rules, standards, policies, and procedures of the University shall continue in effect until they are modified or abolished by the governing board appointed under subdivision (2) of subsection (a) of this Section.

(3) The authority of the Board of Higher Education over public institutions of higher education does not include authority over the University.

(4) All references in statutes and rules to the University as a State university, a public university, or an institution of higher education funded or supported by this State shall be deemed to not refer to the University, and all references to private or nonpublic institutions of higher education in statutes and rules shall be deemed to refer to the University.

(5) All books, records, funds, and other property of any kind or nature belonging or in any way appertaining to the University are the property of the University, and this State shall be deemed to have no ownership interest.

Section 45. The Western Illinois University Law is amended by adding Section 35-3 as follows:

(110 ILCS 690/35-3 new)

Sec. 35-3. Transition to nonpublic university.

(a) Beginning on July 1, 2020, Western Illinois University shall transition into a nonpublic institution of higher education. The Board of Trustees of Western Illinois University shall develop and implement a 6-year plan for this transition. This plan shall include all of the following:

(1) A date upon which the University shall be deemed to be a nonpublic institution of higher education.

(2) The appointment, by the Board of Trustees, of a governing board to oversee the nonpublic university.

(3) A determination of all books, records, funds, and other property of any kind or nature belonging or in any way appertaining to the University that this State shall be required to transfer to the University.

(4) How employees, along with their health care, retirement, and all other benefits, as well as any collective bargaining agreements, are to be addressed.

(5) Recommendations concerning the changes to statutory law needed to effectuate and reflect this transition.

A copy of this plan shall be filed with the General Assembly as provided in Section 3.1 of the General Assembly Organization Act.

(b) On the date selected by the Board of Trustees under subdivision (1) of subsection (a) of this Section, all of the following shall apply:

(1) The Board of Trustees is abolished and the terms of all members end, and all of the powers, duties, assets, liabilities, employees, contracts, property, records, pending business, and unexpended appropriations of the Board of Trustees shall be transferred to the governing board appointed under subdivision (2) of subsection (a) of this Section.

(2) All rules, standards, policies, and procedures of the University shall continue in effect until they are modified or abolished by the governing board appointed under subdivision (2) of subsection (a) of this Section.

(3) The authority of the Board of Higher Education over public institutions of higher education does not include authority over the University.

(4) All references in statutes and rules to the University as a State university, a public university, or an institution of higher education funded or supported by this State shall be deemed to not refer to the University, and all references to private or nonpublic institutions of higher education in statutes and rules shall be deemed to refer to the University.

(5) All books, records, funds, and other property of any kind or nature belonging or in any way appertaining to the University are the property of the University, and this State shall be deemed to have no ownership interest.

Section 50. The Higher Education Student Assistance Act is amended by adding Section 65.110 as follows:

(110 ILCS 947/65.110 new)

Sec. 65.110. Illinois Grant Program.

(a) Beginning with the 2020-2021 academic year, the Commission shall, each year, consider applications for grant assistance under this Section. An applicant is eligible for a grant under this Section if the Commission finds that the applicant meets all of the following qualifications:

(1) He or she is a United States citizen or eligible noncitizen.

(2) He or she is a resident of this State or, if a dependent for income tax purposes, the parent whose information is used on the Free Application for Federal Student Aid is a resident of this State. State residency shall be determined by the filing of a State income tax return.

(3) If a male, he has complied with federal Selective Service registration requirements.

(4) He or she has not been incarcerated.

(5) He or she is enrolled, for at least 15 credit hours, in an institution of higher learning and has not earned a bachelor's degree yet. A grant recipient must submit proof to the Commission each semester that he or she is still enrolled in the institution of higher learning.

(6) He or she demonstrates financial need, as determined by the Commission.

(7) He or she maintains satisfactory academic progress, as determined by the institution.

(8) He or she is not in default on any educational loan or does not owe a refund on any State or federal educational grant.

(b) Each year the Commission shall award grants under this Section among applicants qualified pursuant to subsection (a) of this Section. The Commission shall receive funding for the grants through appropriations. The amount to be appropriated for the grant program for the 2026 fiscal year and each fiscal year thereafter shall equal the total amount appropriated to State universities from the General Revenue Fund for the 2020 fiscal year, with the amount appropriated for the grant program for the 2021 fiscal year through the 2025 fiscal year being equal to a percentage of the total amount appropriated to State universities from the General Revenue Fund for the 2020 fiscal year, with that percentage increasing each of those fiscal years until the amount appropriated for the grant program for the 2026 fiscal year equals 100% of the total amount appropriated to State universities from the General Revenue Fund for the 2020 fiscal year. No amounts may be appropriated to State universities from the General Revenue Fund beginning with the 2026 fiscal year, with the amount appropriated to State universities from the General Revenue Fund for the 2021 fiscal year through the 2025 fiscal year being reduced in an amount at least equal to the amount being appropriated for the grant program for that particular fiscal year. The amount of each grant shall equal the amount appropriated for the grant program for a given fiscal year divided by the number of applicants who qualify for a grant.

(c) The total amount of grant assistance awarded by the Commission under this Section to an individual in any given fiscal year, when added to other financial assistance awarded to that individual for that year, shall not exceed the cost of attendance at the institution at which the student is enrolled.

(d) Payment of any grant under this Section shall be determined by the Commission. All grant funds distributed in accordance with this Section shall be paid to the institution on behalf of the recipients. Grant funds are applicable toward tuition for 2 semesters or 3 quarters of enrollment within an academic year.

(e) Prior to receiving grant assistance for any academic year, each recipient of a grant under this Section shall be required by the Commission to sign an agreement under which the recipient agrees to the following terms:

(1) If a grant recipient graduates from an institution in 4 years or less, he or she must repay one-half of the total amount of grants received under this Section.

(2) If a grant recipient does not graduate from an institution in 4 years or less, he or she must repay the total amount of grants received under this Section immediately over a 10-year period, with interest equal to the prime commercial rate of interest as from time to time is publicly announced by the largest commercial banking institution located in this State measured in terms of total assets, but in no event may the amount he or she is required to repay each year exceed 6% of his or her annual income. However, if the grant recipient graduates from an institution within that 10-year period, the Commission shall forgive one-half of the total amount of grants received under this Section and adjust the amount he or she must repay.

(3) If the grant recipient resides in this State immediately following graduation from an institution, the Commission shall forgive, for each year of residency, one-eighth of the remaining grant amount owed.

Each recipient shall, upon request of the Commission, provide the Commission with evidence that he or she is fulfilling or has fulfilled the terms of the agreement provided for in this subsection (e).

The Commission is authorized to establish rules relating to its collection activities for repayment of grants under this Section, including the imposition of reasonable collection fees.

(f) A recipient of a grant under this Section is not in violation of the agreement entered into pursuant to subsection (e) of this Section if the recipient (i) is serving as a member of the armed services of the United States; (ii) is enrolled in a graduate program following graduation from an institution; (iii) is temporarily totally disabled, as established by sworn affidavit of a qualified physician; or (iii) cannot fulfill the obligation due to his or her death, disability, or incompetency, as established by sworn affidavit of a qualified physician. No claim for repayment may be filed against the estate of such a decedent or incompetent. Any extension of the period during which the obligation must be fulfilled is subject to limitations of duration as established by the Commission.

(h) The Commission shall administer the grant program established by this Section and shall make all necessary and proper rules not inconsistent with this Section for its effective implementation.

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