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1 | AN ACT concerning education.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
| ||||||
4 | Section 5. The Illinois Prepaid Tuition Act is amended by | ||||||
5 | changing Sections 10, 30, 35, 45, 50, and 65 as follows:
| ||||||
6 | (110 ILCS 979/10)
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7 | Sec. 10. Definitions. In this Act:
| ||||||
8 | "Illinois public university" means the University of | ||||||
9 | Illinois, Illinois State
University, Chicago State University, | ||||||
10 | Governors State University, Southern
Illinois University, | ||||||
11 | Northern Illinois University, Eastern Illinois University,
| ||||||
12 | Western Illinois University, or Northeastern Illinois | ||||||
13 | University.
| ||||||
14 | "Illinois community college" means a public community | ||||||
15 | college as defined in
Section 1-2 of the Public Community | ||||||
16 | College Act.
| ||||||
17 | " Eligible MAP-eligible institution" means an institution | ||||||
18 | of higher learning, as defined in Section 10 of the Higher | ||||||
19 | Education Student Assistance Act, a public institution of | ||||||
20 | higher
education or a nonpublic institution of higher education | ||||||
21 | whose students are
eligible to receive need-based student | ||||||
22 | financial assistance through State
Monetary Award Program | ||||||
23 | (MAP) grants administered by the Illinois Student
Assistance |
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| |||||||
1 | Commission under the Higher Education Student Assistance Act
| ||||||
2 | and whose students also are eligible to receive benefits under | ||||||
3 | Section 529(a)
of the Internal Revenue Code of 1986, as | ||||||
4 | specified by the federal Small
Business Act of
1996 and | ||||||
5 | subsequent amendments to this federal law.
| ||||||
6 | "Illinois prepaid tuition contract" or "contract" means a | ||||||
7 | contract entered
into between the State and a Purchaser under | ||||||
8 | Section 45 to provide for the
higher education of a qualified | ||||||
9 | beneficiary.
| ||||||
10 | "Illinois prepaid tuition program" or "program" means the | ||||||
11 | program created in
Section 15.
| ||||||
12 | "Purchaser" means a person who makes or has contracted to | ||||||
13 | make payments under
an Illinois prepaid tuition contract.
| ||||||
14 | "Public institution of higher education" means an Illinois | ||||||
15 | public university
or Illinois community college.
| ||||||
16 | "Nonpublic institution of higher education" means any | ||||||
17 | eligible institution MAP-eligible
educational organization , | ||||||
18 | other than a public institution of higher education ,
that | ||||||
19 | provides a minimum of an organized 2-year
program at the | ||||||
20 | postsecondary level and that operates in conformity with
| ||||||
21 | standards substantially equivalent to those of public | ||||||
22 | institutions of higher
education .
| ||||||
23 | "Qualified beneficiary" means (i) anyone who has been a | ||||||
24 | resident of this
State for at least 12 months prior to the date | ||||||
25 | of the contract, or (ii) a
nonresident, so long as the | ||||||
26 | purchaser has been a resident of the State for at
least 12 |
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| |||||||
1 | months prior to the date of the contract, or (iii) any person | ||||||
2 | less
than one year of age whose parent or legal guardian has | ||||||
3 | been a resident of this
State for at least 12 months prior
to | ||||||
4 | the date of the contract.
| ||||||
5 | "Tuition" means the quarter or semester charges imposed on | ||||||
6 | a qualified
beneficiary to attend an eligible a MAP-eligible | ||||||
7 | institution.
| ||||||
8 | "Mandatory Fees" means those quarter or semester fees | ||||||
9 | imposed upon all
students enrolled at an eligible a | ||||||
10 | MAP-eligible institution.
| ||||||
11 | "Registration Fees" means the charges derived by combining | ||||||
12 | tuition and
mandatory fees.
| ||||||
13 | "Contract Unit" means 15 credit hours of instruction at an | ||||||
14 | eligible a MAP-eligible
institution.
| ||||||
15 | "Panel" means the investment advisory panel created under | ||||||
16 | Section 20.
| ||||||
17 | "Commission" means the Illinois Student Assistance | ||||||
18 | Commission.
| ||||||
19 | (Source: P.A. 93-56, eff. 7-1-03.)
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20 | (110 ILCS 979/30)
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21 | Sec. 30. Investment Advisory Panel duties and | ||||||
22 | responsibilities.
| ||||||
23 | (a) Advice and review. The panel shall offer advice and | ||||||
24 | counseling
regarding
the
investments of the Illinois prepaid | ||||||
25 | tuition program with the objective of
obtaining the best |
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| |||||||
1 | possible return on investments consistent with actuarial
| ||||||
2 | soundness of the
program. The panel is required to annually | ||||||
3 | review and advise the Commission
on provisions of the strategic | ||||||
4 | investment plan for the prepaid tuition program.
The panel is | ||||||
5 | also charged with reviewing and advising the Commission with
| ||||||
6 | regard to the annual report that describes the current | ||||||
7 | financial condition of
the program. The panel at its own | ||||||
8 | discretion also may advise the Commission on
other aspects of | ||||||
9 | the program.
| ||||||
10 | (b) Investment plan. The Commission annually shall adopt
a | ||||||
11 | comprehensive investment plan for purposes of this Section. The
| ||||||
12 | comprehensive investment plan shall specify the investment | ||||||
13 | policies to be
utilized by the Commission in its administration | ||||||
14 | of the Illinois Prepaid
Tuition Trust
Fund created by Section | ||||||
15 | 35. The Commission may direct that assets of those
Funds be | ||||||
16 | placed in
savings accounts or may use the same to purchase | ||||||
17 | fixed or variable life
insurance or annuity contracts, | ||||||
18 | securities, evidence of indebtedness, or other
investment | ||||||
19 | products pursuant to the comprehensive investment plan and in | ||||||
20 | such
proportions as may be designated or approved under that | ||||||
21 | plan.
The Commission shall invest such assets with the care, | ||||||
22 | skill, prudence, and
diligence under the circumstances then | ||||||
23 | prevailing that a prudent man acting in
a like capacity and | ||||||
24 | familiar with such matters would use in the conduct of an
| ||||||
25 | enterprise of a like character with like aims, and the | ||||||
26 | Commission shall
diversify the investments of such assets so as |
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| |||||||
1 | to minimize the risk of large
losses, unless under the | ||||||
2 | circumstances it is clearly prudent not to do so.
Those | ||||||
3 | insurance,
annuity, savings, and investment products shall be | ||||||
4 | underwritten and offered in
compliance with applicable federal | ||||||
5 | and State laws, rules, and regulations
by persons who are | ||||||
6 | authorized thereunder to provide those services. The
| ||||||
7 | Commission shall delegate responsibility for preparing the | ||||||
8 | comprehensive
investment plan to the Executive Director of the | ||||||
9 | Commission. Nothing in this
Section shall
preclude the | ||||||
10 | Commission from contracting with a private corporation or
| ||||||
11 | institution to provide such services as may be a part of the | ||||||
12 | comprehensive
investment plan or as may be deemed necessary for | ||||||
13 | implementation of the
comprehensive investment plan, | ||||||
14 | including, but not limited to, providing
consolidated billing, | ||||||
15 | individual and collective record keeping and accounting,
and | ||||||
16 | asset purchase, control, and safekeeping.
| ||||||
17 | (c) Program management. The Commission may not delegate its
| ||||||
18 | management functions, but may arrange to compensate for | ||||||
19 | personalized investment
advisory services rendered with | ||||||
20 | respect to any or all of the investments under
its control an | ||||||
21 | investment advisor registered under Section 8 of the Illinois
| ||||||
22 | Securities Law of 1953 or any bank or other entity authorized | ||||||
23 | by law to provide
those services. Nothing contained herein | ||||||
24 | shall preclude the Commission from
subscribing to general | ||||||
25 | investment research services available for
purchase or use by | ||||||
26 | others. The Commission also shall have authority to
compensate
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| |||||||
1 | for accounting, computing, and other necessary services.
| ||||||
2 | (d) Annual report. The Commission shall annually prepare or | ||||||
3 | cause to be
prepared a report setting forth in appropriate
| ||||||
4 | detail an accounting of all Illinois prepaid tuition program | ||||||
5 | funds and a
description of the financial condition of the | ||||||
6 | program at the close of each
fiscal year. Included in this | ||||||
7 | report shall be an evaluation by at least one
nationally | ||||||
8 | recognized
actuary of the financial viability of the program. | ||||||
9 | This report
shall be submitted to the Governor, the President | ||||||
10 | of
the Senate, the Speaker of the House of Representatives, the | ||||||
11 | Auditor General,
and the Board of Higher Education on or before | ||||||
12 | March 1 of the subsequent fiscal
year. This report also shall | ||||||
13 | be made available to purchasers of Illinois
prepaid tuition | ||||||
14 | contracts and shall contain complete Illinois prepaid tuition
| ||||||
15 | contract sales information,
including, but not limited to, | ||||||
16 | projected postsecondary enrollment data for
qualified | ||||||
17 | beneficiaries.
| ||||||
18 | (e) Marketing plan. Selection of a marketing agent for the | ||||||
19 | Illinois
prepaid tuition program must be approved by the | ||||||
20 | Commission. At least once
every 3
years, the Commission shall | ||||||
21 | solicit proposals
for marketing of the Illinois prepaid tuition | ||||||
22 | program in accordance with the
Illinois Securities Law of 1953 | ||||||
23 | and any applicable provisions of federal law.
The entity | ||||||
24 | designated pursuant to this paragraph shall serve as a | ||||||
25 | centralized
marketing agent for the program and shall have | ||||||
26 | exclusive responsibility for
marketing the program. No |
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| |||||||
1 | contract for marketing the Illinois prepaid tuition
program | ||||||
2 | shall extend for longer than 3 years. Any materials produced | ||||||
3 | for the
purpose of marketing the program shall be submitted to | ||||||
4 | the Executive Director
of the Commission for approval before | ||||||
5 | they are made public. Any eligible Illinois
MAP-eligible
| ||||||
6 | institution may distribute marketing materials produced for | ||||||
7 | the program, so
long as the Executive Director of the | ||||||
8 | Commission approves the distribution in
advance. Neither
the | ||||||
9 | State nor the Commission shall be liable for
misrepresentation | ||||||
10 | of the program by a marketing agent.
| ||||||
11 | (f) Accounting and audit. The Commission shall annually | ||||||
12 | cause to be
prepared an accounting of the trust and shall | ||||||
13 | transmit a copy of the accounting
to the Governor, the | ||||||
14 | President of the Senate, the Speaker of the
House, and the | ||||||
15 | minority leaders of the Senate and House of
Representatives. | ||||||
16 | The Commission shall also make available this accounting of
the | ||||||
17 | trust to any purchaser of an Illinois prepaid tuition contract, | ||||||
18 | upon
request. The accounts of the Illinois prepaid tuition | ||||||
19 | program shall be subject
to annual audits by the Auditor | ||||||
20 | General or a certified public accountant
appointed by the | ||||||
21 | Auditor General.
| ||||||
22 | (Source: P.A. 90-546, eff. 12-1-97; 91-669, eff. 1-1-00.)
| ||||||
23 | (110 ILCS 979/35)
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24 | Sec. 35. Illinois Prepaid Tuition Trust Fund.
| ||||||
25 | (a) The Illinois Prepaid Tuition Trust Fund is created as |
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| |||||||
1 | the repository
of all moneys received by the Commission in | ||||||
2 | conjunction with the Illinois
prepaid
tuition program. The | ||||||
3 | Illinois Prepaid Tuition Trust Fund also shall be the
official | ||||||
4 | repository of all contributions, appropriations, interest and | ||||||
5 | dividend
payments, gifts, or other financial assets received by | ||||||
6 | the Commission in
connection with operation of the Illinois | ||||||
7 | prepaid tuition program. All such
moneys shall be deposited in | ||||||
8 | the Illinois Prepaid Tuition Trust Fund
and held by the State | ||||||
9 | Treasurer as ex-officio custodian thereof, outside of the
State | ||||||
10 | Treasury, separate and apart from all public moneys or funds of | ||||||
11 | this
State.
| ||||||
12 | All interest or other earnings accruing or received on | ||||||
13 | amounts in the
Illinois Prepaid
Tuition Trust Fund shall be | ||||||
14 | credited to and retained by the Fund. Moneys,
interest, or | ||||||
15 | other earnings paid into the Fund shall not be transferred or
| ||||||
16 | allocated by the Commission, the State Treasurer, or the State
| ||||||
17 | Comptroller
to any other fund, nor shall the Governor authorize | ||||||
18 | any such transfer or
allocation,
while any contracts are | ||||||
19 | outstanding. The State Comptroller shall not offset
moneys paid | ||||||
20 | to institutions from the Illinois Prepaid Tuition Trust Fund
| ||||||
21 | (unless the Trust Fund
moneys are used for child support).
In
| ||||||
22 | addition, no
moneys,
interest, or
other earnings paid into the | ||||||
23 | Fund shall be used, temporarily or otherwise, for
interfund | ||||||
24 | borrowing or be
otherwise used or appropriated except as | ||||||
25 | expressly authorized in this Act.
| ||||||
26 | The Illinois Prepaid Tuition Trust Fund and each individual |
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| |||||||
1 | participant
account that
may be created in that Fund in | ||||||
2 | conjunction with the Illinois prepaid tuition
program shall be | ||||||
3 | subject to audit in the same manner as funds and accounts
| ||||||
4 | belonging to
the State of Illinois and shall be protected by | ||||||
5 | the official bond given by the
State Treasurer.
| ||||||
6 | (b) The Commission from time to time shall direct the State | ||||||
7 | Treasurer to
invest moneys in the Illinois Prepaid Tuition | ||||||
8 | Trust Fund that are not needed
for immediate disbursement, in | ||||||
9 | accordance with provisions of the investment
plan approved by | ||||||
10 | the Commission.
| ||||||
11 | (c) The Executive Director of the Commission shall, at such | ||||||
12 | times and in
such amounts as shall
be necessary, prepare and | ||||||
13 | send to the State Comptroller vouchers requesting
payment from | ||||||
14 | the Illinois Prepaid Tuition Trust Fund for: (i) registration | ||||||
15 | tuition and fee
payments to eligible MAP-eligible institutions | ||||||
16 | on behalf of qualified beneficiaries of
Illinois
prepaid | ||||||
17 | tuition contracts, and (ii) payments associated with | ||||||
18 | administration of
the Illinois prepaid tuition program.
| ||||||
19 | (d) The Governor shall indicate in a separate document | ||||||
20 | submitted concurrent
with each annual State budget the | ||||||
21 | estimated
amount of moneys in the Illinois Prepaid Tuition | ||||||
22 | Trust Fund which shall be
necessary and sufficient, during that | ||||||
23 | State fiscal year, to discharge all
obligations anticipated | ||||||
24 | under Illinois prepaid tuition contracts. The Governor
also | ||||||
25 | shall indicate in a separate document submitted concurrent with | ||||||
26 | each
annual State budget the amount of moneys from the
Illinois |
| |||||||
| |||||||
1 | Prepaid Tuition Trust Fund necessary to cover anticipated | ||||||
2 | expenses
associated with administration of the program.
The | ||||||
3 | Commission shall obtain concurrence from a nationally | ||||||
4 | recognized actuary
as to all amounts necessary for the program | ||||||
5 | to meet its obligations. These
amounts shall be certified | ||||||
6 | annually to the Governor by the Commission no later
than | ||||||
7 | January 30.
| ||||||
8 | During the first 18 months of operation of the Illinois | ||||||
9 | prepaid tuition
program,
the Governor shall request an | ||||||
10 | appropriation to the Commission from general
funds sufficient | ||||||
11 | to pay for start-up costs associated with establishment of the
| ||||||
12 | program.
This appropriation constitutes a loan that shall be | ||||||
13 | repaid to the General
Revenue Fund within 5 years by the | ||||||
14 | Commission from prepaid tuition program
contributions.
| ||||||
15 | Subsequent program administrative costs shall be provided from
| ||||||
16 | reasonable fees and charges equitably assessed to purchasers of | ||||||
17 | prepaid tuition
contracts.
| ||||||
18 | (e) If the Commission determines that there are | ||||||
19 | insufficient moneys in
the Illinois Prepaid Tuition Trust Fund | ||||||
20 | to pay contractual obligations in the
next succeeding fiscal | ||||||
21 | year, the Commission shall certify the amount necessary
to meet | ||||||
22 | these obligations to the Board of Higher Education, the | ||||||
23 | Governor, the
President of the Senate, and the
Speaker of the | ||||||
24 | House of
Representatives. The Governor shall submit the amount | ||||||
25 | so certified to the
General Assembly as soon as practicable, | ||||||
26 | but no later than the end of the
current State fiscal year.
|
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| |||||||
1 | (f) In the event the Commission, with the concurrence of | ||||||
2 | the
Governor, determines the program to be financially | ||||||
3 | infeasible, the Commission
may discontinue, prospectively, the | ||||||
4 | operation of the program. Any qualified
beneficiary who has | ||||||
5 | been accepted by and is enrolled or will within 5 years
enroll | ||||||
6 | at an eligible a MAP-eligible institution shall be entitled to
| ||||||
7 | exercise the complete benefits specified in the Illinois | ||||||
8 | prepaid tuition
contract. All other contract holders shall | ||||||
9 | receive an appropriate refund of
all contributions and accrued | ||||||
10 | interest up to the time that the program is
discontinued.
| ||||||
11 | (Source: P.A. 93-56, eff. 7-1-03.)
| ||||||
12 | (110 ILCS 979/45)
| ||||||
13 | Sec. 45. Illinois prepaid tuition contracts.
| ||||||
14 | (a) The Commission may enter into an Illinois prepaid | ||||||
15 | tuition contract with
a purchaser under which the Commission | ||||||
16 | contracts on behalf of the State to pay
full tuition and | ||||||
17 | mandatory fees at an Illinois public university or Illinois
| ||||||
18 | community college for a qualified beneficiary to attend the | ||||||
19 | eligible
MAP-eligible institution to which the qualified | ||||||
20 | beneficiary is admitted. Each
contract shall contain terms, | ||||||
21 | conditions, and provisions that the Commission
determines to be | ||||||
22 | necessary for ensuring the educational objectives and
| ||||||
23 | sustainable financial viability of the Illinois prepaid | ||||||
24 | tuition program.
| ||||||
25 | (b) Each contract shall have one designated purchaser and |
| |||||||
| |||||||
1 | one designated
qualified beneficiary. Unless otherwise | ||||||
2 | specified in the contract, the
purchaser
owns the contract and | ||||||
3 | retains any tax liability for its assets only until the
first | ||||||
4 | distribution of benefits. Contracts shall be purchased in units | ||||||
5 | of 15 credit
hours at any MAP-eligible institution .
| ||||||
6 | (c) Without exception, benefits may be received by a | ||||||
7 | qualified beneficiary
of an Illinois prepaid tuition contract | ||||||
8 | no earlier than 3 years from the date
the contract is | ||||||
9 | purchased.
| ||||||
10 | (d) A prepaid tuition contract shall contain, but is not | ||||||
11 | limited to,
provisions for (i) refunds or withdrawals in | ||||||
12 | certain circumstances, with or
without interest or penalties;
| ||||||
13 | (ii) conversion of the contract at the time of distribution | ||||||
14 | from accrued
prepayment value at one type of eligible | ||||||
15 | MAP-eligible institution to the accrued
prepayment value at a | ||||||
16 | different type of eligible MAP-eligible institution; (iii)
| ||||||
17 | portability of the accrued value of the prepayment value for | ||||||
18 | use at an eligible institution located outside this State
| ||||||
19 | out-of-state higher education institution ; (iv) | ||||||
20 | transferability of the contract
benefits within the qualified | ||||||
21 | beneficiary's immediate family; and (v) a
specified benefit | ||||||
22 | period during which the contract may be redeemed.
| ||||||
23 | (e) Each Illinois prepaid tuition contract also shall | ||||||
24 | contain, at minimum,
all of
the following:
| ||||||
25 | (1) The amount of payment or payments and the number of | ||||||
26 | payments required
from a purchaser on behalf of a qualified |
| |||||||
| |||||||
1 | beneficiary.
| ||||||
2 | (2) The terms and conditions under which purchasers | ||||||
3 | shall remit payments,
including, but not limited to, the | ||||||
4 | date or dates upon which each payment shall
be due.
| ||||||
5 | (3) Provisions for late payment charges and for | ||||||
6 | default.
| ||||||
7 | (4) Provisions for penalty fees payable incident to an | ||||||
8 | authorized
withdrawal.
| ||||||
9 | (5) The name, date of birth, and social security number | ||||||
10 | of the qualified
beneficiary on whose behalf the contract | ||||||
11 | is drawn and the terms and conditions
under which the | ||||||
12 | contract may be transferred to another qualified | ||||||
13 | beneficiary.
| ||||||
14 | (6) The name and social security number of any person | ||||||
15 | who may
terminate the contract, together with terms that | ||||||
16 | specify whether the contract
may be terminated by the
| ||||||
17 | purchaser, the qualified beneficiary, a specific | ||||||
18 | designated person, or any
combination of these persons.
| ||||||
19 | (7) The terms and conditions under which a contract may | ||||||
20 | be terminated, the
name and social security number of the | ||||||
21 | person entitled to any refund due as a
result of the | ||||||
22 | termination of the contract pursuant to those terms and
| ||||||
23 | conditions,
and the method for determining the amount of a | ||||||
24 | refund.
| ||||||
25 | (8) The time limitations, if any, within which the | ||||||
26 | qualified beneficiary
must claim his or her benefits |
| |||||||
| |||||||
1 | through the program.
| ||||||
2 | (9) Other terms and conditions determined by the | ||||||
3 | Commission to be
appropriate.
| ||||||
4 | (f) In addition to the contract provisions set forth in | ||||||
5 | subsection (e), each
Illinois prepaid tuition contract shall | ||||||
6 | include:
| ||||||
7 | (1) The number of credit hours contracted by the | ||||||
8 | purchaser.
| ||||||
9 | (2) The type of eligible MAP-eligible institution and | ||||||
10 | the prepaid tuition plan
toward which the credit hours | ||||||
11 | shall be applied.
| ||||||
12 | (3) The explicit contractual obligation of the | ||||||
13 | Commission to the qualified
beneficiary to provide a | ||||||
14 | specific number of credit hours of undergraduate
| ||||||
15 | instruction at an eligible a MAP-eligible institution, not | ||||||
16 | to exceed the maximum number of
credit hours required for | ||||||
17 | the conference of a degree that corresponds to the
plan | ||||||
18 | purchased on behalf of the qualified beneficiary.
| ||||||
19 | (g) The Commission shall indicate by rule the conditions | ||||||
20 | under which refunds
are payable to a contract purchaser. | ||||||
21 | Generally, no refund shall exceed the
amount paid into the | ||||||
22 | Illinois Prepaid Tuition Trust Fund by the purchaser. In
the | ||||||
23 | event that a contract is converted from a Public University | ||||||
24 | Plan described
in subsection (j) of this Section to a Community | ||||||
25 | College Plan described in
subsection (k) of this Section, the | ||||||
26 | refund amount shall be reduced
by the amount transferred to the |
| |||||||
| |||||||
1 | Illinois community college on behalf of the
qualified | ||||||
2 | beneficiary. Except where the Commission may otherwise rule, | ||||||
3 | refunds
may exceed the amount paid into the Illinois Prepaid | ||||||
4 | Tuition Trust Fund only
under the following circumstances:
| ||||||
5 | (1) If the qualified beneficiary is awarded a grant or | ||||||
6 | scholarship at a
public institution of higher education, | ||||||
7 | the
terms of
which duplicate the benefits included in the | ||||||
8 | Illinois prepaid tuition contract,
then moneys paid for the | ||||||
9 | purchase of the contract shall be returned to the
| ||||||
10 | purchaser, upon request, in semester installments that | ||||||
11 | coincide with the
matriculation by the
qualified | ||||||
12 | beneficiary, in an amount equal to the current cost
of | ||||||
13 | tuition
and mandatory fees at the public institution of | ||||||
14 | higher education MAP-eligible institution where the | ||||||
15 | qualified
beneficiary is enrolled.
| ||||||
16 | (1.5) If the qualified beneficiary is awarded a grant | ||||||
17 | or scholarship
while enrolled at either an eligible a | ||||||
18 | MAP-eligible nonpublic institution of higher
education or | ||||||
19 | an eligible public or private out-of-state higher | ||||||
20 | education
institution, the terms of which duplicate the | ||||||
21 | benefits included in the
Illinois prepaid tuition | ||||||
22 | contract, then money paid for the purchase of the
contract | ||||||
23 | shall be returned to the purchaser, upon request, in | ||||||
24 | semester
installments that coincide with the matriculation | ||||||
25 | by the qualified
beneficiary. The amount paid shall not | ||||||
26 | exceed the current average
mean-weighted credit hour value |
| |||||||
| |||||||
1 | of the registration fees purchased
under the contract.
| ||||||
2 | (2) In the event of the death or total disability of | ||||||
3 | the qualified
beneficiary, moneys paid for the purchase of | ||||||
4 | the Illinois prepaid tuition
contract shall be returned to | ||||||
5 | the purchaser together with all accrued earnings.
| ||||||
6 | (3) If an Illinois prepaid tuition contract is | ||||||
7 | converted from a Public
University Plan to a Community | ||||||
8 | College Plan, then the amount refunded shall be
the value | ||||||
9 | of the original Illinois prepaid tuition contract minus the | ||||||
10 | value of
the contract after conversion.
| ||||||
11 | No refund shall be authorized under an Illinois prepaid | ||||||
12 | tuition contract for
any semester partially attended but not | ||||||
13 | completed.
| ||||||
14 | The Commission, by rule, shall set forth specific | ||||||
15 | procedures for
making contract payments in conjunction with | ||||||
16 | grants and scholarships awarded to
contract beneficiaries.
| ||||||
17 | Moneys paid into or out of the Illinois Prepaid Tuition | ||||||
18 | Trust Fund by or on
behalf of the purchaser or the qualified | ||||||
19 | beneficiary of an Illinois prepaid
tuition contract are exempt | ||||||
20 | from all claims of creditors of the purchaser or
beneficiary, | ||||||
21 | so long as the contract has not been terminated.
| ||||||
22 | The State or any State agency, county, municipality, or | ||||||
23 | other political
subdivision, by contract or collective | ||||||
24 | bargaining agreement, may agree with any
employee to remit | ||||||
25 | payments toward the purchase of Illinois
prepaid tuition | ||||||
26 | contracts through payroll deductions made by the appropriate
|
| |||||||
| |||||||
1 | officer or officers of the entity making the payments. Such | ||||||
2 | payments shall be
held and administered in accordance with this | ||||||
3 | Act.
| ||||||
4 | (h) Nothing in this Act shall be construed as a promise or | ||||||
5 | guarantee that a
qualified beneficiary will be admitted to an | ||||||
6 | eligible a MAP-eligible institution or to a
particular eligible | ||||||
7 | MAP-eligible institution, will be allowed to continue | ||||||
8 | enrollment at an eligible
a MAP-eligible institution after | ||||||
9 | admission, or will be graduated from an eligible a
MAP-eligible | ||||||
10 | institution.
| ||||||
11 | (i) The Commission shall develop and make prepaid tuition | ||||||
12 | contracts
available under a minimum of at least 2 independent | ||||||
13 | plans to be known as the
Public University Plan and the | ||||||
14 | Community College Plan.
| ||||||
15 | Contracts shall be purchased in units of 15 credit hours at | ||||||
16 | either an
Illinois public university or an Illinois community | ||||||
17 | college.
The minimum purchase amount per qualified beneficiary | ||||||
18 | shall be one unit or 15
credit hours. The maximum purchase | ||||||
19 | amount shall be 9 units (or 135 credit
hours) for the Public | ||||||
20 | University Plan and 4 units (or 60 credit hours) for the
| ||||||
21 | Community College Plan.
| ||||||
22 | (j) Public University Plan. Through the Public University | ||||||
23 | Plan, the
Illinois prepaid tuition contract shall provide | ||||||
24 | prepaid registration fees,
which include full tuition costs as | ||||||
25 | well as mandatory fees, for a specified
number of undergraduate | ||||||
26 | credit hours, not to exceed the maximum number of
credit hours |
| |||||||
| |||||||
1 | required for the conference of a baccalaureate degree. In
| ||||||
2 | determining the cost of participation in the Public University | ||||||
3 | Plan, the
Commission shall reference the combined | ||||||
4 | mean-weighted current registration fees
from all Illinois | ||||||
5 | public universities.
| ||||||
6 | In the event that a qualified beneficiary for whatever | ||||||
7 | reason chooses to
attend an Illinois community college, the | ||||||
8 | qualified beneficiary may convert the
average number of credit | ||||||
9 | hours required for the conference of an associate
degree from | ||||||
10 | the Public University Plan to the Community College
Plan and | ||||||
11 | may retain the remaining Public University Plan credit hours or | ||||||
12 | may
request a refund for prepaid credit hours in excess of | ||||||
13 | those required for
conference of an associate degree. In | ||||||
14 | determining the amount of any refund,
the Commission also shall | ||||||
15 | recognize the current relative credit hour cost of
the 2 plans | ||||||
16 | when making any conversion.
| ||||||
17 | Qualified beneficiaries shall bear the cost of any | ||||||
18 | laboratory or other
non-mandatory fees associated with | ||||||
19 | enrollment in specific courses. Qualified
beneficiaries who | ||||||
20 | are not Illinois residents shall bear the difference in
cost | ||||||
21 | between in-state registration fees guaranteed by the prepaid | ||||||
22 | tuition
contract and tuition and other charges assessed upon | ||||||
23 | out-of-state students by
the eligible MAP-eligible | ||||||
24 | institution.
| ||||||
25 | (k) Community College Plan. Through the Community College | ||||||
26 | Plan, the
Illinois prepaid tuition contract shall provide |
| |||||||
| |||||||
1 | prepaid registration fees,
which include full tuition costs as | ||||||
2 | well as mandatory fees, for a specified
number of undergraduate | ||||||
3 | credit hours, not to exceed the maximum number of
credit hours | ||||||
4 | required for the conference of an associate degree. In
| ||||||
5 | determining the cost of participation in the Community College | ||||||
6 | Plan, the
Commission shall reference the combined | ||||||
7 | mean-weighted current registration fees
from all Illinois | ||||||
8 | community colleges.
| ||||||
9 | In the event that a qualified beneficiary for whatever | ||||||
10 | reason chooses to
attend an Illinois public university, the | ||||||
11 | qualified beneficiary's prepaid
tuition contract shall be | ||||||
12 | converted for use at that Illinois public university
by | ||||||
13 | referencing the current average mean-weighted credit hour | ||||||
14 | value of
registration fees at Illinois community colleges | ||||||
15 | relative to the corresponding
value of registration fees at | ||||||
16 | Illinois public universities.
| ||||||
17 | Qualified beneficiaries shall bear the cost of any | ||||||
18 | laboratory or other
non-mandatory fees associated with | ||||||
19 | enrollment in specific courses. Qualified
beneficiaries who | ||||||
20 | are not Illinois residents shall bear the difference in
cost | ||||||
21 | between in-state registration fees guaranteed by the prepaid | ||||||
22 | tuition
contract and tuition and other charges assessed upon | ||||||
23 | out-of-state students by
the eligible MAP-eligible | ||||||
24 | institution.
| ||||||
25 | (l) A qualified beneficiary may apply the benefits of any | ||||||
26 | Illinois prepaid
tuition contract toward a nonpublic |
| |||||||
| |||||||
1 | institution of higher education. In the
event that a qualified | ||||||
2 | beneficiary for whatever reason chooses to attend a
nonpublic | ||||||
3 | institution of higher education, the qualified beneficiary's | ||||||
4 | prepaid
tuition contract shall be converted for use at that | ||||||
5 | nonpublic institution of
higher education by referencing the | ||||||
6 | current average mean-weighted credit hour
value of | ||||||
7 | registration fees purchased under the
contract. The Commission | ||||||
8 | shall
transfer, or cause to have transferred, this amount, less | ||||||
9 | a transfer fee, to
the nonpublic institution on behalf of the | ||||||
10 | beneficiary. In the event that the
cost of registration charged | ||||||
11 | to the beneficiary at the nonpublic institution of
higher | ||||||
12 | education is less than the aggregate value of the Illinois | ||||||
13 | prepaid
tuition contract, any remaining amount shall be | ||||||
14 | transferred in subsequent
semesters until the transfer value is | ||||||
15 | fully depleted.
| ||||||
16 | (m) A qualified beneficiary may apply the benefits of any | ||||||
17 | Illinois prepaid
tuition contract toward an eligible | ||||||
18 | out-of-state college or university.
Institutional eligibility | ||||||
19 | for out-of-state colleges and universities shall be
determined | ||||||
20 | by the Commission according to standards substantially | ||||||
21 | equivalent to those for an eligible institution located in this | ||||||
22 | State, as described in the definition of "institution of higher | ||||||
23 | learning" in Section 10 of the Higher Education Student | ||||||
24 | Assistance Act , but in making those determinations the | ||||||
25 | Commission
shall recognize that the benefits of an Illinois | ||||||
26 | prepaid tuition contract may
not be used at any postsecondary |
| |||||||
| |||||||
1 | educational institution that is both operated
for-profit and | ||||||
2 | located outside of Illinois .
In the
event that a qualified | ||||||
3 | beneficiary for whatever reason chooses to attend an
eligible | ||||||
4 | out-of-state college or university, the qualified | ||||||
5 | beneficiary's
prepaid tuition contract shall be converted for | ||||||
6 | use at that college or
university by referencing the current | ||||||
7 | average mean-weighted credit hour value
of registration fees | ||||||
8 | purchased under the contract. The Commission shall
transfer, or | ||||||
9 | cause to have
transferred, this amount, less a transfer fee, to | ||||||
10 | the college or university on
behalf of the beneficiary. In the | ||||||
11 | event that the cost of registration charged
to the beneficiary | ||||||
12 | at the eligible out-of-state college or university is less
than | ||||||
13 | the aggregate value of the Illinois prepaid tuition contract, | ||||||
14 | any
remaining amount shall be transferred in subsequent | ||||||
15 | semesters until the
transfer value is fully depleted.
| ||||||
16 | (n) Illinois prepaid tuition contracts may be purchased | ||||||
17 | either by lump sum
or by installments. No penalty shall be | ||||||
18 | assessed for early
payment of installment contracts.
| ||||||
19 | (o) The Commission shall annually adjust the price of new | ||||||
20 | contracts, in
accordance with the annual changes in | ||||||
21 | registration fees at Illinois public
universities and | ||||||
22 | community colleges.
| ||||||
23 | (Source: P.A. 95-217, eff. 8-16-07.)
| ||||||
24 | (110 ILCS 979/50)
| ||||||
25 | Sec. 50. Confidentiality and disclosure. Information that |
| |||||||
| |||||||
1 | (i) identifies
the purchasers or qualified beneficiaries of any | ||||||
2 | Illinois prepaid tuition
contract or any terms or provisions of | ||||||
3 | any such contract as those terms and
provisions relate to a | ||||||
4 | particular purchaser or qualified beneficiary, or (ii)
| ||||||
5 | discloses any other matter relating to the participation of any | ||||||
6 | such purchaser
or qualified beneficiary in the Illinois prepaid | ||||||
7 | tuition program or in any
independent plan under which that | ||||||
8 | program is administered, is exempt from
inspection, copying, or | ||||||
9 | disclosure under the Freedom of Information Act.
The Commission | ||||||
10 | may authorize the program's records administrator to release
| ||||||
11 | such information to appropriate personnel at the eligible | ||||||
12 | MAP-eligible institution at
which the beneficiary may enroll or | ||||||
13 | is enrolled
or to another state
or federal agency, for purposes | ||||||
14 | that the Commission deems appropriate, in
accordance with | ||||||
15 | applicable state and federal law.
However, any such institution
| ||||||
16 | or agency to which that information is released shall ensure | ||||||
17 | the continued
confidentiality of the information.
| ||||||
18 | (Source: P.A. 90-546, eff. 12-1-97.)
| ||||||
19 | (110 ILCS 979/65)
| ||||||
20 | Sec. 65. Construction. Nothing in this Act or in an | ||||||
21 | Illinois prepaid
tuition contract shall be construed as a | ||||||
22 | promise or guarantee by the Program or
the State that a person | ||||||
23 | will be admitted to any eligible MAP-eligible institution or to
| ||||||
24 | a particular eligible MAP-eligible institution, will be | ||||||
25 | allowed to continue to attend an eligible a
MAP-eligible |
| |||||||
| |||||||
1 | institution after having been admitted, or will be graduated | ||||||
2 | from an eligible
a MAP-eligible institution.
| ||||||
3 | (Source: P.A. 90-546, eff. 12-1-97.)
| ||||||
4 | Section 99. Effective date. This Act takes effect July 1, | ||||||
5 | 2010.
|