093_SB1047enr

 
SB1047 Enrolled                      LRB093 06234 AMC 07864 b

 1        AN ACT concerning higher education.

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

 4        Section  5.   The  State  Comptroller  Act  is amended by
 5    changing Section 10.05 as follows:

 6        (15 ILCS 405/10.05) (from Ch. 15, par. 210.05)
 7        Sec.  10.05.   Deductions  from  warrants;  statement  of
 8    reason for deduction. Whenever any person shall  be  entitled
 9    to  a  warrant  or  other  payment from the treasury or other
10    funds held by the State Treasurer, on  any  account,  against
11    whom  there  shall  be  any  account or claim in favor of the
12    State,  then  due  and   payable,   the   Comptroller,   upon
13    notification  thereof,  shall  ascertain  the  amount due and
14    payable to the State, as aforesaid, and draw a warrant on the
15    treasury or on other  funds  held  by  the  State  Treasurer,
16    stating  the  amount  for  which  the party was entitled to a
17    warrant or other payment, the amount deducted therefrom,  and
18    on  what  account,  and directing the payment of the balance;
19    which warrant or payment as so drawn shall be entered on  the
20    books  of the Treasurer, and such balance only shall be paid.
21    The Comptroller may deduct the entire amount due and  payable
22    to  the  State  or may deduct a portion of the amount due and
23    payable to the State in accordance with the  request  of  the
24    notifying  agency.  No request from a notifying agency for an
25    amount to be deducted under  this  Section  from  a  wage  or
26    salary   payment,   or  from  a  contractual  payment  to  an
27    individual for personal services, shall exceed 25% of the net
28    amount of such payment.  "Net amount" means that part of  the
29    earnings  of  an  individual remaining after deduction of any
30    amounts required by law to be withheld.  For purposes of this
31    provision,  wage,  salary  or  other  payments  for  personal
 
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 1    services shall not include final  compensation  payments  for
 2    the  value  of  accrued  vacation,  overtime  or  sick leave.
 3    Whenever the Comptroller draws a warrant or makes  a  payment
 4    involving   a  deduction  ordered  under  this  Section,  the
 5    Comptroller shall notify the payee and the State agency  that
 6    submitted  the voucher of the reason for the deduction and he
 7    or she shall retain a record of such statement in his or  her
 8    records.  As  used  in  this Section, an "account or claim in
 9    favor of the State" includes  all  amounts  owing  to  "State
10    agencies"  as  defined in Section 7 of this Act. However, the
11    Comptroller shall not  be  required  to  accept  accounts  or
12    claims  owing to funds not held by the State Treasurer, where
13    such accounts or claims do not  exceed  $50,  nor  shall  the
14    Comptroller  deduct  from  funds  held by the State Treasurer
15    under the Senior Citizens and Disabled Persons  Property  Tax
16    Relief  and  Pharmaceutical Assistance Act or for payments to
17    institutions from the Illinois  Prepaid  Tuition  Trust  Fund
18    (unless  the  Trust  Fund moneys are used for child support).
19    The Comptroller and the Department of the Lottery shall enter
20    into an interagency agreement  to  establish  responsibility,
21    duties,  and  procedures  relating to deductions from lottery
22    prizes awarded under Section 20.1  of  the  Illinois  Lottery
23    Law.
24    (Source: P.A. 90-37, eff. 6-27-97.)

25        Section  10.  The Illinois Prepaid Tuition Act is amended
26    by changing Sections 10, 35, and 45 as follows:

27        (110 ILCS 979/10)
28        Sec. 10.  Definitions.  In this Act:
29        "Illinois public  university"  means  the  University  of
30    Illinois,    Illinois   State   University,   Chicago   State
31    University, Governors  State  University,  Southern  Illinois
32    University,  Northern  Illinois  University, Eastern Illinois
 
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 1    University,  Western  Illinois  University,  or  Northeastern
 2    Illinois University.
 3        "Illinois community college"  means  a  public  community
 4    college  as  defined  in  Section 1-2 of the Public Community
 5    College Act.
 6        "MAP-eligible institution" means a public institution  of
 7    higher   education  or  a  nonpublic  institution  of  higher
 8    education whose students are eligible to  receive  need-based
 9    student  financial  assistance  through  State Monetary Award
10    Program (MAP) grants administered  by  the  Illinois  Student
11    Assistance  Commission  under  the  Higher  Education Student
12    Assistance Act  and  whose  students  also  are  eligible  to
13    receive benefits under Section 529(a) of the Internal Revenue
14    Code  of 1986, as specified by the federal Small Business Act
15    of 1996 and subsequent amendments to this federal law.
16        "Illinois prepaid tuition contract" or "contract" means a
17    contract entered into between the State and a Purchaser under
18    Section 45 to provide for the higher education of a qualified
19    beneficiary.
20        "Illinois prepaid tuition program" or "program" means the
21    program created in Section 15.
22        "Purchaser" means a person who makes or has contracted to
23    make payments under an Illinois prepaid tuition contract.
24        "Public  institution  of  higher  education"   means   an
25    Illinois public university or Illinois community college.
26        "Nonpublic  institution  of  higher  education" means any
27    MAP-eligible educational organization, other  than  a  public
28    institution  of  higher education, that provides a minimum of
29    an organized 2-year program at the  postsecondary  level  and
30    that  operates  in  conformity  with  standards substantially
31    equivalent  to  those  of  public  institutions   of   higher
32    education.   "Nonpublic institution of higher education" does
33    not include any educational organization used principally for
34    sectarian instruction, as a place of  religious  teaching  or
 
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 1    worship,  or  for any religious denomination for the training
 2    of ministers, rabbis, or other professional  persons  in  the
 3    field of religion.
 4        "Qualified  beneficiary"  means (i) anyone who has been a
 5    resident of this State for at least 12 months  prior  to  the
 6    date  of  the contract, or (ii) a nonresident, so long as the
 7    purchaser has been a resident of the State for  at  least  12
 8    months prior to the date of the contract, or (iii) any person
 9    less  than one year of age whose parent or legal guardian has
10    been a resident of this State for at least 12 months prior to
11    the date of the contract.
12        "Tuition" means the quarter or semester  charges  imposed
13    on   a   qualified   beneficiary  to  attend  a  MAP-eligible
14    institution.
15        "Mandatory Fees" means those  quarter  or  semester  fees
16    imposed   upon   all  students  enrolled  at  a  MAP-eligible
17    institution.
18        "Registration  Fees"  means  the   charges   derived   by
19    combining tuition and mandatory fees.
20        "Contract Unit" means 15 credit hours of instruction at a
21    MAP-eligible institution.
22        "Panel" means the investment advisory panel created under
23    Section 20.
24        "Commission"   means   the  Illinois  Student  Assistance
25    Commission.
26    (Source: P.A. 90-546, eff. 12-1-97; 91-669, eff. 1-1-00.)

27        (110 ILCS 979/35)
28        Sec. 35.  Illinois Prepaid Tuition Trust Fund.
29        (a)  The Illinois Prepaid Tuition Trust Fund  is  created
30    as the repository of all moneys received by the Commission in
31    conjunction  with  the Illinois prepaid tuition program.  The
32    Illinois  Prepaid  Tuition  Trust  Fund  also  shall  be  the
33    official repository  of  all  contributions,  appropriations,
 
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 1    interest  and  dividend  payments,  gifts, or other financial
 2    assets  received  by  the  Commission  in   connection   with
 3    operation  of the Illinois prepaid tuition program.  All such
 4    moneys shall be deposited in  the  Illinois  Prepaid  Tuition
 5    Trust  Fund  and  held  by  the State Treasurer as ex-officio
 6    custodian thereof, outside of the  State  Treasury,  separate
 7    and apart from all public moneys or funds of this State.
 8        All  interest  or  other earnings accruing or received on
 9    amounts in the Illinois Prepaid Tuition Trust Fund  shall  be
10    credited  to  and retained by the Fund.  Moneys, interest, or
11    other earnings paid into the Fund shall not be transferred or
12    allocated by the Commission,  the  State  Treasurer,  or  the
13    State  Comptroller  to any other fund, nor shall the Governor
14    authorize  any  such  transfer  or  allocation,   while   any
15    contracts  are  outstanding.  The State Comptroller shall not
16    offset moneys paid to institutions from the Illinois  Prepaid
17    Tuition Trust Fund (unless the Trust Fund moneys are used for
18    child  support).  In  addition, no moneys, interest, or other
19    earnings paid into the Fund shall  be  used,  temporarily  or
20    otherwise,  for  interfund  borrowing or be otherwise used or
21    appropriated except as expressly authorized in this Act.
22        The  Illinois  Prepaid  Tuition  Trust  Fund   and   each
23    individual  participant  account  that may be created in that
24    Fund in conjunction with the Illinois prepaid tuition program
25    shall be subject to audit in the same  manner  as  funds  and
26    accounts  belonging  to  the  State  of Illinois and shall be
27    protected by the official bond given by the State Treasurer.
28        (b)  The Commission from time to time  shall  direct  the
29    State  Treasurer  to  invest  moneys  in the Illinois Prepaid
30    Tuition  Trust  Fund  that  are  not  needed  for   immediate
31    disbursement, in accordance with provisions of the investment
32    plan approved by the Commission.
33        (c)  The  Executive Director  of the Commission shall, at
34    such times and in such amounts as shall be necessary, prepare
 
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 1    and send to the State Comptroller vouchers requesting payment
 2    from the Illinois Prepaid Tuition Trust Fund for: (i) tuition
 3    and fee payments to MAP-eligible institutions  on  behalf  of
 4    qualified   beneficiaries   of   Illinois   prepaid   tuition
 5    contracts,  and  (ii) payments associated with administration
 6    of the Illinois prepaid tuition program.
 7        (d)  The Governor shall indicate in a  separate  document
 8    submitted  concurrent  with  each  annual  State  budget  the
 9    estimated  amount  of  moneys in the Illinois Prepaid Tuition
10    Trust Fund which shall be necessary  and  sufficient,  during
11    that   State   fiscal  year,  to  discharge  all  obligations
12    anticipated under Illinois prepaid  tuition  contracts.   The
13    Governor also shall indicate in a separate document submitted
14    concurrent with each annual State budget the amount of moneys
15    from  the  Illinois  Prepaid  Tuition Trust Fund necessary to
16    cover anticipated expenses associated with administration  of
17    the  program.  The Commission shall obtain concurrence from a
18    nationally recognized actuary as to all amounts necessary for
19    the program to meet its obligations.  These amounts shall  be
20    certified annually to the Governor by the Commission no later
21    than January 30.
22        During  the  first 18 months of operation of the Illinois
23    prepaid  tuition  program,  the  Governor  shall  request  an
24    appropriation to the Commission from general funds sufficient
25    to pay for start-up costs associated  with  establishment  of
26    the program. This appropriation constitutes a loan that shall
27    be  repaid  to the General Revenue Fund within 5 years by the
28    Commission  from  prepaid  tuition   program   contributions.
29    Subsequent  program  administrative  costs  shall be provided
30    from  reasonable  fees  and  charges  equitably  assessed  to
31    purchasers of prepaid tuition contracts.
32        (e)  If  the  Commission  determines   that   there   are
33    insufficient  moneys  in  the  Illinois Prepaid Tuition Trust
34    Fund to pay contractual obligations in  the  next  succeeding
 
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 1    fiscal   year,   the  Commission  shall  certify  the  amount
 2    necessary to meet these obligations to the  Board  of  Higher
 3    Education, the Governor, the President of the Senate, and the
 4    Speaker  of the House of Representatives.  The Governor shall
 5    submit the amount so certified to  the  General  Assembly  as
 6    soon as practicable, but no later than the end of the current
 7    State fiscal year.
 8        (f)  In the event the Commission, with the concurrence of
 9    the  Governor,  determines  the  program  to  be  financially
10    infeasible,  the  Commission  may discontinue, prospectively,
11    the operation of the program.  Any qualified beneficiary  who
12    has  been  accepted by and is enrolled or will within 5 years
13    enroll at a MAP-eligible institution  shall  be  entitled  to
14    exercise  the  complete  benefits  specified  in the Illinois
15    prepaid tuition contract.  All other contract  holders  shall
16    receive  an  appropriate  refund  of  all  contributions  and
17    accrued   interest  up  to  the  time  that  the  program  is
18    discontinued.
19    (Source: P.A. 90-546, eff. 12-1-97.)

20        (110 ILCS 979/45)
21        Sec. 45. Illinois prepaid tuition contracts.
22        (a)  The Commission may enter into  an  Illinois  prepaid
23    tuition  contract with a purchaser under which the Commission
24    contracts on behalf of the State  to  pay  full  tuition  and
25    mandatory  fees  at an Illinois public university or Illinois
26    community college for a qualified beneficiary to  attend  the
27    MAP-eligible  institution  to which the qualified beneficiary
28    is admitted. Each contract shall contain  terms,  conditions,
29    and provisions that the Commission determines to be necessary
30    for  ensuring  the  educational  objectives  and  sustainable
31    financial viability of the Illinois prepaid tuition program.
32        (b)  Each  contract  shall  have one designated purchaser
33    and one designated qualified  beneficiary.  Unless  otherwise
 
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 1    specified  in  the  contract, the purchaser owns the contract
 2    and retains any tax liability for its assets only  until  the
 3    first distribution of benefits. Once a partial benefit of the
 4    contract  has  been disbursed, any tax liability attributable
 5    to the contract and its assets becomes a tax liability of the
 6    qualified beneficiary,  unless  otherwise  specified  in  the
 7    contract.  Contracts shall be purchased in units of 15 credit
 8    hours at any MAP-eligible institution.
 9        (c)  Without exception, benefits may  be  received  by  a
10    qualified beneficiary of an Illinois prepaid tuition contract
11    no  earlier  than  3  years  from  the  date  the contract is
12    purchased.
13        (d)  A prepaid tuition contract shall contain, but is not
14    limited to, provisions for  (i)  refunds  or  withdrawals  in
15    certain circumstances, with or without interest or penalties;
16    (ii)  conversion  of the contract at the time of distribution
17    from accrued prepayment value at  one  type  of  MAP-eligible
18    institution  to  the  accrued prepayment value at a different
19    type of MAP-eligible institution; (iii)  portability  of  the
20    accrued   value  of  the  prepayment  value  for  use  at  an
21    out-of-state    higher    education     institution;     (iv)
22    transferability of the contract benefits within the qualified
23    beneficiary's  immediate  family; and (v) a specified benefit
24    period during which the contract may be redeemed.
25        (e)  Each Illinois prepaid tuition  contract  also  shall
26    contain, at minimum, all of the following:
27             (1)  The  amount  of  payment  or  payments  and the
28        number of payments required from a purchaser on behalf of
29        a qualified beneficiary.
30             (2)  The terms and conditions under which purchasers
31        shall remit payments, including, but not limited to,  the
32        date or dates upon which each payment shall be due.
33             (3)  Provisions  for  late  payment  charges and for
34        default.
 
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 1             (4)  Provisions for penalty fees payable incident to
 2        an authorized withdrawal.
 3             (5)  The name, date of birth,  and  social  security
 4        number  of  the qualified beneficiary on whose behalf the
 5        contract is drawn and  the  terms  and  conditions  under
 6        which   the   contract  may  be  transferred  to  another
 7        qualified beneficiary.
 8             (6)  The name and  social  security  number  of  any
 9        person  who  may  terminate  the  contract, together with
10        terms that specify whether the contract may be terminated
11        by the purchaser, the qualified beneficiary,  a  specific
12        designated person, or any combination of these persons.
13             (7)  The terms and conditions under which a contract
14        may be terminated, the name and social security number of
15        the  person entitled to any refund due as a result of the
16        termination of the contract pursuant to those  terms  and
17        conditions,  and the method for determining the amount of
18        a refund.
19             (8)  The time limitations, if any, within which  the
20        qualified  beneficiary  must  claim  his  or her benefits
21        through the program.
22             (9)  Other terms and conditions  determined  by  the
23        Commission to be appropriate.
24        (f)  In  addition to the contract provisions set forth in
25    subsection (e), each Illinois prepaid tuition contract  shall
26    include:
27             (1)  The  number  of  credit hours contracted by the
28        purchaser.
29             (2)  The type of MAP-eligible  institution  and  the
30        prepaid  tuition plan toward which the credit hours shall
31        be applied.
32             (3)  The  explicit  contractual  obligation  of  the
33        Commission to the  qualified  beneficiary  to  provide  a
34        specific   number   of   credit  hours  of  undergraduate
 
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 1        instruction at a MAP-eligible institution, not to  exceed
 2        the  maximum  median  number of credit hours required for
 3        the conference of a degree that corresponds to  the  plan
 4        purchased on behalf of the qualified beneficiary.
 5        (g)  The Commission shall indicate by rule the conditions
 6    under  which  refunds  are  payable  to a contract purchaser.
 7    Generally, no refund shall exceed the amount  paid  into  the
 8    Illinois Prepaid Tuition Trust Fund by the purchaser.  In the
 9    event  that  a contract is converted from a Public University
10    Plan described  in  subsection  (j)  of  this  Section  to  a
11    Community  College  Plan  described in subsection (k) of this
12    Section, the refund amount shall be  reduced  by  the  amount
13    transferred  to  the  Illinois community college on behalf of
14    the qualified beneficiary.  Except where the  Commission  may
15    otherwise  rule,  refunds may exceed the amount paid into the
16    Illinois Prepaid Tuition Trust Fund only under the  following
17    circumstances:
18             (1)  If the qualified beneficiary is awarded a grant
19        or   scholarship   at  a  public  institution  of  higher
20        education, the terms  of  which  duplicate  the  benefits
21        included  in  the Illinois prepaid tuition contract, then
22        moneys paid for the purchase of  the  contract  shall  be
23        returned  to  the  purchaser,  upon  request, in semester
24        installments that coincide with the matriculation by  the
25        qualified  beneficiary, in an amount equal to the current
26        cost of tuition and mandatory fees  at  the  MAP-eligible
27        institution where the qualified beneficiary is enrolled.
28             (1.5)  If  the  qualified  beneficiary  is awarded a
29        grant  or  scholarship  while  enrolled   at   either   a
30        MAP-eligible nonpublic institution of higher education or
31        an   eligible   public  or  private  out-of-state  higher
32        education institution, the terms of which  duplicate  the
33        benefits   included   in  the  Illinois  prepaid  tuition
34        contract,  then  money  paid  for  the  purchase  of  the
 
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 1        contract  shall  be  returned  to  the  purchaser,   upon
 2        request,  in semester installments that coincide with the
 3        matriculation by the qualified beneficiary.   The  amount
 4        paid  shall  not exceed the current average mean-weighted
 5        credit hour value  of  the  registration  fees  purchased
 6        under the contract.
 7             (2)  In  the  event of the death or total disability
 8        of  the  qualified  beneficiary,  moneys  paid  for   the
 9        purchase  of  the Illinois prepaid tuition contract shall
10        be returned to the purchaser together  with  all  accrued
11        earnings.
12             (3)  If  an  Illinois  prepaid  tuition  contract is
13        converted from a Public University Plan  to  a  Community
14        College Plan, then the amount refunded shall be the value
15        of  the  original Illinois prepaid tuition contract minus
16        the value of the contract after conversion.
17        No refund shall be authorized under an  Illinois  prepaid
18    tuition  contract for any semester partially attended but not
19    completed.
20        The  Commission,  by  rule,  shall  set  forth   specific
21    procedures  for  making contract payments in conjunction with
22    grants and scholarships awarded to contract beneficiaries.
23        Moneys paid into or out of the Illinois  Prepaid  Tuition
24    Trust  Fund by or on behalf of the purchaser or the qualified
25    beneficiary of  an  Illinois  prepaid  tuition  contract  are
26    exempt  from  all  claims  of  creditors  of the purchaser or
27    beneficiary, so long as the contract has not been terminated.
28        The State or any State agency, county,  municipality,  or
29    other   political  subdivision,  by  contract  or  collective
30    bargaining agreement, may agree with any  employee  to  remit
31    payments  toward  the  purchase  of  Illinois prepaid tuition
32    contracts through payroll deductions made by the  appropriate
33    officer  or officers of the entity making the payments.  Such
34    payments shall be held and administered  in  accordance  with
 
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 1    this Act.
 2        (h)  Nothing  in this Act shall be construed as a promise
 3    or guarantee that a qualified beneficiary will be admitted to
 4    a MAP-eligible institution or to  a  particular  MAP-eligible
 5    institution,  will  be  allowed  to  continue enrollment at a
 6    MAP-eligible  institution  after  admission,   or   will   be
 7    graduated from a MAP-eligible institution.
 8        (i)  The   Commission  shall  develop  and  make  prepaid
 9    tuition contracts available under a minimum  of  at  least  2
10    independent  plans  to be known as the Public University Plan
11    and the Community College Plan.
12        Contracts shall be purchased in units of 15 credit  hours
13    at  either  an  Illinois  public  university  or  an Illinois
14    community college. The minimum purchase amount per  qualified
15    beneficiary  shall  be  one  unit  or  15  credit hours.  The
16    maximum purchase amount shall  be  9  units  (or  135  credit
17    hours)  for  the  Public  University  Plan and 4 units (or 60
18    credit hours) for the Community College Plan.
19        (j)  Public  University   Plan.    Through   the   Public
20    University  Plan, the Illinois prepaid tuition contract shall
21    provide prepaid registration fees, which include full tuition
22    costs as well as mandatory fees, for a  specified  number  of
23    undergraduate  credit hours, not to exceed the maximum number
24    of  credit  hours  required   for   the   conference   of   a
25    baccalaureate   degree.    In   determining   the   cost   of
26    participation  in  the Public University Plan, the Commission
27    shall   reference   the   combined   mean-weighted    current
28    registration fees from all Illinois public universities.
29        In  the  event  that a qualified beneficiary for whatever
30    reason chooses to attend an Illinois community  college,  the
31    qualified  beneficiary  may  convert  the  average  number of
32    credit hours required for  the  conference  of  an  associate
33    degree  from  the  Public  University  Plan  to the Community
34    College Plan and may retain the remaining  Public  University
 
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 1    Plan  credit hours or may request a refund for prepaid credit
 2    hours in excess  of  those  required  for  conference  of  an
 3    associate  degree.   In determining the amount of any refund,
 4    the Commission also  shall  recognize  the  current  relative
 5    credit hour cost of the 2 plans when making any conversion.
 6        Qualified  beneficiaries  shall  bear  the  cost  of  any
 7    laboratory   or  other  non-mandatory  fees  associated  with
 8    enrollment in specific courses.  Qualified beneficiaries  who
 9    are  not Illinois residents shall bear the difference in cost
10    between in-state registration fees guaranteed by the  prepaid
11    tuition  contract and tuition and other charges assessed upon
12    out-of-state students by the MAP-eligible institution.
13        (k)  Community  College  Plan.   Through  the   Community
14    College  Plan,  the  Illinois  prepaid tuition contract shall
15    provide prepaid registration fees, which include full tuition
16    costs as well as mandatory fees, for a  specified  number  of
17    undergraduate  credit hours, not to exceed the maximum number
18    of credit hours required for the conference of  an  associate
19    degree.   In  determining  the  cost  of participation in the
20    Community College Plan, the Commission  shall  reference  the
21    combined  mean-weighted  current  registration  fees from all
22    Illinois community colleges.
23        In the event that a qualified  beneficiary  for  whatever
24    reason  chooses  to attend an Illinois public university, the
25    qualified beneficiary's prepaid  tuition  contract  shall  be
26    converted  for  use  at  that  Illinois  public university by
27    referencing the current  average  mean-weighted  credit  hour
28    value  of  registration  fees  at Illinois community colleges
29    relative to the corresponding value of registration  fees  at
30    Illinois public universities.
31        Qualified  beneficiaries  shall  bear  the  cost  of  any
32    laboratory   or  other  non-mandatory  fees  associated  with
33    enrollment in specific courses.  Qualified beneficiaries  who
34    are  not Illinois residents shall bear the difference in cost
 
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 1    between in-state registration fees guaranteed by the  prepaid
 2    tuition  contract and tuition and other charges assessed upon
 3    out-of-state students by the MAP-eligible institution.
 4        (l)  A qualified beneficiary may apply  the  benefits  of
 5    any  Illinois  prepaid  tuition  contract  toward a nonpublic
 6    institution  of  higher  education.   In  the  event  that  a
 7    qualified beneficiary for whatever reason chooses to attend a
 8    nonpublic institution  of  higher  education,  the  qualified
 9    beneficiary's prepaid tuition contract shall be converted for
10    use  at  that  nonpublic  institution  of higher education by
11    referencing the current  average  mean-weighted  credit  hour
12    value of registration fees purchased under the contract.  The
13    Commission shall transfer, or cause to have transferred, this
14    amount,  less a transfer fee, to the nonpublic institution on
15    behalf of the beneficiary.  In the event  that  the  cost  of
16    registration  charged  to  the  beneficiary  at the nonpublic
17    institution of higher education is less  than  the  aggregate
18    value of the Illinois prepaid tuition contract, any remaining
19    amount shall be transferred in subsequent semesters until the
20    transfer value is fully depleted.
21        (m)  A  qualified  beneficiary  may apply the benefits of
22    any Illinois prepaid  tuition  contract  toward  an  eligible
23    out-of-state college or university. Institutional eligibility
24    for   out-of-state   colleges   and   universities  shall  be
25    determined  by  the   Commission,   but   in   making   those
26    determinations   the  Commission  shall  recognize  that  the
27    benefits of an Illinois prepaid tuition contract may  not  be
28    used  at  any  postsecondary  educational institution that is
29    both operated for-profit and located outside of Illinois.  In
30    the  event  that  a qualified beneficiary for whatever reason
31    chooses  to  attend  an  eligible  out-of-state  college   or
32    university,   the  qualified  beneficiary's  prepaid  tuition
33    contract shall be  converted  for  use  at  that  college  or
34    university  by  referencing the current average mean-weighted
 
SB1047 Enrolled            -15-      LRB093 06234 AMC 07864 b
 1    credit hour value of registration fees  purchased  under  the
 2    contract.   The  Commission  shall transfer, or cause to have
 3    transferred, this amount, less a transfer fee, to the college
 4    or university on behalf of the  beneficiary.   In  the  event
 5    that  the  cost of registration charged to the beneficiary at
 6    the eligible out-of-state college or university is less  than
 7    the aggregate value of the Illinois prepaid tuition contract,
 8    any  remaining  amount  shall  be  transferred  in subsequent
 9    semesters until the transfer value is fully depleted.
10        (n)  Illinois prepaid tuition contracts may be  purchased
11    either  by  lump  sum  or  by  installments.  All installment
12    contracts shall be for 5 years, except  that  contracts  that
13    purchase  at  least  120  credit  hours  may  be  payable, by
14    installments, over a 10-year period.   No  penalty  shall  be
15    assessed for early payment of installment contracts.
16        (o)  The  Commission  shall  annually adjust the price of
17    new contracts, in  accordance  with  the  annual  changes  in
18    registration   fees   at  Illinois  public  universities  and
19    community colleges.
20    (Source: P.A. 92-165, eff. 7-26-01.)

21        Section 99.  Effective date.  This Act  takes  effect  on
22    July 1, 2003.