Illinois General Assembly - Bill Status for SB 362

Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2003, moneys contributed during the taxable year by the taxpayer for the purchase of an Illinois prepaid tuition contract, excluding moneys rolled over from another qualified tuition program account, may be deducted from the taxpayer's federal adjusted gross income in arriving at base income for Illinois income tax purposes. Exempts the deduction from the sunset provisions of the Act. Amends the Illinois Prepaid Tuition Act to include a reference to the deduction. Effective immediately.

Removes the exemption from the sunset requirements of the Act for the deduction and instead provides that the deduction applies to taxable years beginning on or after January 1, 2003 and on or before December 31, 2007. Makes a corresponding change in the Illinois Prepaid Tuition Act.

Deletes everything after the enacting clause. Amends the Illinois Income Tax Act. Provides that distributions from qualified tuition programs that are administered by a state that does not permit a sales load exceeding 4% and that exempts from its income tax moneys distributed from a qualified tuition program administered by the State of Illinois are not required to be added to federal adjusted gross income for Illinois income tax purposes (now limited to distributions from the College Savings Pool and the Illinois Prepaid Tuition Trust Fund). Authorizes a deduction of up to $10,000 per taxable year for amounts contributed in the taxable year to a College Savings Pool Account or the Illinois Prepaid Tuition Trust Fund, excluding amounts rolled over into the account (now, unlimited deductions authorized only for contributions to the College Savings Pool, excluding rollovers). Amends the State Treasurer Act, the Baccalaureate Savings Act, and the Illinois Prepaid Tuition Act to remove language providing that (i) contributions to the Bright Start Program; (ii) contributions toward the purchase of the first $25,000 of College Savings Bonds; and (iii) contributions toward the purchase of an Illinois Prepaid Tuition Contract, respectively, shall not be counted against the financial aid awarded by the Illinois Student Assistance Commission, the State, or any agency thereof. Effective immediately, except that the changes related to student financial aid effective January 1, 2004.

In the College Savings Pool provisions of the State Treasurer Act, provides that the State Treasurer may (now, shall) make a percentage of each account available for investment in participating financial institutions doing business in the State. Provides that the State Treasurer may (now, shall) deposit a certain percentage of an account processed at a participating financial institution with that institution. Removes a provisions that the State Treasurer shall adjust each account at least annually to ensure compliance with these in-State investment and prescribed deposit requirements. Provides that the College Savings Pool may not offer a share class with a sales load exceeding 4%. In provisions of the Illinois Income Tax Act that require an addition to federal adjusted gross income, for Illinois Income Tax purposes, of distributions from qualified tuition programs from other states unless the distribution meets certain exceptions, provides that one of those exceptions is that the program does not offer a share class with a sales load exceeding 4% (underlying bill, the state does not permit a sales load exceeding 4%).

Date	Chamber	Action
1/11/2005	Senate	Session Sine Die

Date	Chamber	Action
2/6/2003	Senate	Filed with Secretary by Sen. James F. Clayborne, Jr.
2/6/2003	Senate	First Reading
2/6/2003	Senate	Referred to Rules
2/19/2003	Senate	Assigned to Revenue
2/26/2003	Senate	Added as Chief Co-Sponsor Sen. Jeffrey M. Schoenberg
2/27/2003	Senate	Fiscal Note Requested by Sen. Chris Lauzen
2/27/2003	Senate	Do Pass Revenue; 008-000-000
2/27/2003	Senate	Placed on Calendar Order of 2nd Reading February 28, 2003
2/28/2003	Senate	Added as Co-Sponsor Sen. Mattie Hunter
3/5/2003	Senate	Added as Co-Sponsor Sen. Antonio Munoz
3/6/2003	Senate	Added as Co-Sponsor Sen. Iris Y. Martinez
3/10/2003	Senate	Senate Floor Amendment No. 1 Filed with Secretary by Sen. James F. Clayborne, Jr.
3/10/2003	Senate	Senate Floor Amendment No. 1 Referred to Rules
3/13/2003	Senate	Fiscal Note Filed
3/18/2003	Senate	Senate Floor Amendment No. 1 Rules Refers to Revenue
3/19/2003	Senate	Senate Floor Amendment No. 1 Be Adopted Revenue; 008-000-000
3/21/2003	Senate	Second Reading
3/21/2003	Senate	Senate Floor Amendment No. 1 Adopted; Clayborne
3/21/2003	Senate	Placed on Calendar Order of 3rd Reading March 24, 2003
3/24/2003	Senate	Added as Chief Co-Sponsor Sen. Barack Obama
3/24/2003	Senate	Third Reading - Passed; 055-001-000
3/24/2003	House	Arrived in House
3/24/2003	House	Placed on Calendar Order of First Reading
3/25/2003	House	Chief House Sponsor Rep. Jack D. Franks
3/25/2003	House	First Reading
3/25/2003	House	Referred to Rules Committee
3/31/2003	House	Assigned to Revenue Committee
4/3/2003	House	Added Alternate Chief Co-Sponsor Rep. Robert F. Flider
4/4/2003	House	Added Alternate Chief Co-Sponsor Rep. Kevin A. McCarthy
4/14/2003	House	Added Alternate Chief Co-Sponsor Rep. William Delgado
4/14/2003	House	Added Alternate Chief Co-Sponsor Rep. Patrick Verschoore
4/14/2003	House	Added Alternate Co-Sponsor Rep. Naomi D. Jakobsson
4/14/2003	House	Added Alternate Co-Sponsor Rep. Kevin Joyce
4/14/2003	House	Added Alternate Co-Sponsor Rep. Brandon W. Phelps
4/14/2003	House	Added Alternate Co-Sponsor Rep. Michael K. Smith
4/16/2003	House	Added Alternate Co-Sponsor Rep. Gary Forby
4/16/2003	House	Added Alternate Co-Sponsor Rep. Mary K. O'Brien
5/1/2003	House	House Amendment No. 1 Filed with Clerk by Revenue Committee
5/1/2003	House	House Amendment No. 1 Adopted by Voice Vote; Revenue Sub-committee
5/1/2003	House	Do Pass as Amended / Short Debate Revenue Committee; 009-000-000
5/1/2003	House	Placed on Calendar 2nd Reading - Short Debate
5/1/2003	House	Alternate Chief Sponsor Changed to Rep. Robert S. Molaro
5/16/2003	House	Committee/3rd Reading Deadline Extended-Rule 9(b); May 23, 2003
5/20/2003	House	House Amendment No. 2 Filed with Clerk by Rep. Robert S. Molaro
5/20/2003	House	House Amendment No. 2 Referred to Rules Committee
5/23/2003	House	Third Reading/Final Action Deadline Extended-9(b) May 31, 2003
5/29/2003	House	Second Reading - Short Debate
5/29/2003	House	Held on Calendar Order of Second Reading - Short Debate
5/31/2003	House	House Amendment No. 2 Recommends Be Adopted Rules Committee; 005-000-000
5/31/2003	House	House Amendment No. 2 Adopted by Voice Vote
5/31/2003	House	Placed on Calendar Order of 3rd Reading - Short Debate
5/31/2003	House	Third Reading - Short Debate - Passed 115-000-001
5/31/2003	Senate	Secretary's Desk - Concurrence House Amendment(s) 01,02
5/31/2003	Senate	Placed on Calendar Order of Concurrence House Amendment(s) 01,02 - May 31, 2003
5/31/2003	Senate	House Amendment No. 1 Motion to Concur Filed with Secretary Sen. James F. Clayborne, Jr.
5/31/2003	Senate	House Amendment No. 1 Motion to Concur Referred to Rules
5/31/2003	Senate	House Amendment No. 2 Motion to Concur Filed with Secretary Sen. James F. Clayborne, Jr.
5/31/2003	Senate	House Amendment No. 2 Motion to Concur Referred to Rules
7/1/2003	Senate	Pursuant to Senate Rule 3-9(b) / Referred to Rules
1/11/2005	Senate	Session Sine Die

	Fiscal Note (Department of Revenue)
	For calendar year 2002, prepaid contract amounts totaled $84 million. At the 3.0% tax rate, the deduction would have reduced individual income tax liabilities an estimated $2.5 million. The Department cannot estimate how many new contributions will be made or what the amount would total.

	Deletes reference to:
	110 ILCS 979/55

	Adds reference to:
	110 ILCS 979/55.1 new

	Deletes reference to:
	110 ILCS 979/55.1

	Adds reference to:
	15 ILCS 505/16.5