Sen. William E. Brady

Filed: 3/18/2015

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1565

2    AMENDMENT NO. ______. Amend Senate Bill 1565 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The University of Illinois Act is amended by
5adding Section 0.05 as follows:
 
6    (110 ILCS 305/0.05 new)
7    Sec. 0.05. Transition to nonpublic university.
8    (a) Beginning on July 1, 2015, the University of Illinois
9shall transition into a nonpublic institution of higher
10education. The Board of Trustees of the University of Illinois
11shall develop and implement a 6-year plan for this transition.
12This plan shall include all of the following:
13        (1) A date upon which the University shall be deemed to
14    be a nonpublic institution of higher education.
15        (2) The appointment, by the Board of Trustees, of a
16    governing board to oversee the nonpublic university.

 

 

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1        (3) A determination of all books, records, funds, and
2    other property of any kind or nature belonging or in any
3    way appertaining to the University that this State shall be
4    required to transfer to the University.
5        (4) How employees, along with their health care,
6    retirement, and all other benefits, as well as any
7    collective bargaining agreements, are to be addressed.
8        (5) Recommendations concerning the changes to
9    statutory law needed to effectuate and reflect this
10    transition.
11    A copy of this plan shall be filed with the General
12Assembly as provided in Section 3.1 of the General Assembly
13Organization Act.
14    (b) On the date selected by the Board of Trustees under
15subdivision (1) of subsection (a) of this Section, all of the
16following shall apply:
17        (1) The Board of Trustees is abolished and the terms of
18    all members end, and all of the powers, duties, assets,
19    liabilities, employees, contracts, property, records,
20    pending business, and unexpended appropriations of the
21    Board of Trustees shall be transferred to the governing
22    board appointed under subdivision (2) of subsection (a) of
23    this Section.
24        (2) All rules, standards, policies, and procedures of
25    the University shall continue in effect until they are
26    modified or abolished by the governing board appointed

 

 

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1    under subdivision (2) of subsection (a) of this Section.
2        (3) The authority of the Board of Higher Education over
3    public institutions of higher education does not include
4    authority over the University.
5        (4) All references in statutes and rules to the
6    University as a State university, a public university, or
7    an institution of higher education funded or supported by
8    this State shall be deemed to not refer to the University,
9    and all references to private or nonpublic institutions of
10    higher education in statutes and rules shall be deemed to
11    refer to the University.
12        (5) All books, records, funds, and other property of
13    any kind or nature belonging or in any way appertaining to
14    the University are the property of the University, and this
15    State shall be deemed to have no ownership interest.
 
16    Section 10. The Southern Illinois University Management
17Act is amended by adding Section 1.5 as follows:
 
18    (110 ILCS 520/1.5 new)
19    Sec. 1.5. Transition to nonpublic university.
20    (a) Beginning on July 1, 2015, Southern Illinois University
21shall transition into a nonpublic institution of higher
22education. The Board of Trustees of Southern Illinois
23University shall develop and implement a 6-year plan for this
24transition. This plan shall include all of the following:

 

 

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1        (1) A date upon which the University shall be deemed to
2    be a nonpublic institution of higher education.
3        (2) The appointment, by the Board of Trustees, of a
4    governing board to oversee the nonpublic university.
5        (3) A determination of all books, records, funds, and
6    other property of any kind or nature belonging or in any
7    way appertaining to the University that this State shall be
8    required to transfer to the University.
9        (4) How employees, along with their health care,
10    retirement, and all other benefits, as well as any
11    collective bargaining agreements, are to be addressed.
12        (5) Recommendations concerning the changes to
13    statutory law needed to effectuate and reflect this
14    transition.
15    A copy of this plan shall be filed with the General
16Assembly as provided in Section 3.1 of the General Assembly
17Organization Act.
18    (b) On the date selected by the Board of Trustees under
19subdivision (1) of subsection (a) of this Section, all of the
20following shall apply:
21        (1) The Board of Trustees is abolished and the terms of
22    all members end, and all of the powers, duties, assets,
23    liabilities, employees, contracts, property, records,
24    pending business, and unexpended appropriations of the
25    Board of Trustees shall be transferred to the governing
26    board appointed under subdivision (2) of subsection (a) of

 

 

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1    this Section.
2        (2) All rules, standards, policies, and procedures of
3    the University shall continue in effect until they are
4    modified or abolished by the governing board appointed
5    under subdivision (2) of subsection (a) of this Section.
6        (3) The authority of the Board of Higher Education over
7    public institutions of higher education does not include
8    authority over the University.
9        (4) All references in statutes and rules to the
10    University as a State university, a public university, or
11    an institution of higher education funded or supported by
12    this State shall be deemed to not refer to the University,
13    and all references to private or nonpublic institutions of
14    higher education in statutes and rules shall be deemed to
15    refer to the University.
16        (5) All books, records, funds, and other property of
17    any kind or nature belonging or in any way appertaining to
18    the University are the property of the University, and this
19    State shall be deemed to have no ownership interest.
 
20    Section 15. The Chicago State University Law is amended by
21adding Section 5-3 as follows:
 
22    (110 ILCS 660/5-3 new)
23    Sec. 5-3. Transition to nonpublic university.
24    (a) Beginning on July 1, 2015, Chicago State University

 

 

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1shall transition into a nonpublic institution of higher
2education. The Board of Trustees of Chicago State University
3shall develop and implement a 6-year plan for this transition.
4This plan shall include all of the following:
5        (1) A date upon which the University shall be deemed to
6    be a nonpublic institution of higher education.
7        (2) The appointment, by the Board of Trustees, of a
8    governing board to oversee the nonpublic university.
9        (3) A determination of all books, records, funds, and
10    other property of any kind or nature belonging or in any
11    way appertaining to the University that this State shall be
12    required to transfer to the University.
13        (4) How employees, along with their health care,
14    retirement, and all other benefits, as well as any
15    collective bargaining agreements, are to be addressed.
16        (5) Recommendations concerning the changes to
17    statutory law needed to effectuate and reflect this
18    transition.
19    A copy of this plan shall be filed with the General
20Assembly as provided in Section 3.1 of the General Assembly
21Organization Act.
22    (b) On the date selected by the Board of Trustees under
23subdivision (1) of subsection (a) of this Section, all of the
24following shall apply:
25        (1) The Board of Trustees is abolished and the terms of
26    all members end, and all of the powers, duties, assets,

 

 

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1    liabilities, employees, contracts, property, records,
2    pending business, and unexpended appropriations of the
3    Board of Trustees shall be transferred to the governing
4    board appointed under subdivision (2) of subsection (a) of
5    this Section.
6        (2) All rules, standards, policies, and procedures of
7    the University shall continue in effect until they are
8    modified or abolished by the governing board appointed
9    under subdivision (2) of subsection (a) of this Section.
10        (3) The authority of the Board of Higher Education over
11    public institutions of higher education does not include
12    authority over the University.
13        (4) All references in statutes and rules to the
14    University as a State university, a public university, or
15    an institution of higher education funded or supported by
16    this State shall be deemed to not refer to the University,
17    and all references to private or nonpublic institutions of
18    higher education in statutes and rules shall be deemed to
19    refer to the University.
20        (5) All books, records, funds, and other property of
21    any kind or nature belonging or in any way appertaining to
22    the University are the property of the University, and this
23    State shall be deemed to have no ownership interest.
 
24    Section 20. The Eastern Illinois University Law is amended
25by adding Section 10-3 as follows:
 

 

 

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1    (110 ILCS 665/10-3 new)
2    Sec. 10-3. Transition to nonpublic university.
3    (a) Beginning on July 1, 2015, Eastern Illinois University
4shall transition into a nonpublic institution of higher
5education. The Board of Trustees of Eastern Illinois University
6shall develop and implement a 6-year plan for this transition.
7This plan shall include all of the following:
8        (1) A date upon which the University shall be deemed to
9    be a nonpublic institution of higher education.
10        (2) The appointment, by the Board of Trustees, of a
11    governing board to oversee the nonpublic university.
12        (3) A determination of all books, records, funds, and
13    other property of any kind or nature belonging or in any
14    way appertaining to the University that this State shall be
15    required to transfer to the University.
16        (4) How employees, along with their health care,
17    retirement, and all other benefits, as well as any
18    collective bargaining agreements, are to be addressed.
19        (5) Recommendations concerning the changes to
20    statutory law needed to effectuate and reflect this
21    transition.
22    A copy of this plan shall be filed with the General
23Assembly as provided in Section 3.1 of the General Assembly
24Organization Act.
25    (b) On the date selected by the Board of Trustees under

 

 

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1subdivision (1) of subsection (a) of this Section, all of the
2following shall apply:
3        (1) The Board of Trustees is abolished and the terms of
4    all members end, and all of the powers, duties, assets,
5    liabilities, employees, contracts, property, records,
6    pending business, and unexpended appropriations of the
7    Board of Trustees shall be transferred to the governing
8    board appointed under subdivision (2) of subsection (a) of
9    this Section.
10        (2) All rules, standards, policies, and procedures of
11    the University shall continue in effect until they are
12    modified or abolished by the governing board appointed
13    under subdivision (2) of subsection (a) of this Section.
14        (3) The authority of the Board of Higher Education over
15    public institutions of higher education does not include
16    authority over the University.
17        (4) All references in statutes and rules to the
18    University as a State university, a public university, or
19    an institution of higher education funded or supported by
20    this State shall be deemed to not refer to the University,
21    and all references to private or nonpublic institutions of
22    higher education in statutes and rules shall be deemed to
23    refer to the University.
24        (5) All books, records, funds, and other property of
25    any kind or nature belonging or in any way appertaining to
26    the University are the property of the University, and this

 

 

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1    State shall be deemed to have no ownership interest.
 
2    Section 25. The Governors State University Law is amended
3by adding Section 15-3 as follows:
 
4    (110 ILCS 670/15-3 new)
5    Sec. 15-3. Transition to nonpublic university.
6    (a) Beginning on July 1, 2015, Governors State University
7shall transition into a nonpublic institution of higher
8education. The Board of Trustees of Governors State University
9shall develop and implement a 6-year plan for this transition.
10This plan shall include all of the following:
11        (1) A date upon which the University shall be deemed to
12    be a nonpublic institution of higher education.
13        (2) The appointment, by the Board of Trustees, of a
14    governing board to oversee the nonpublic university.
15        (3) A determination of all books, records, funds, and
16    other property of any kind or nature belonging or in any
17    way appertaining to the University that this State shall be
18    required to transfer to the University.
19        (4) How employees, along with their health care,
20    retirement, and all other benefits, as well as any
21    collective bargaining agreements, are to be addressed.
22        (5) Recommendations concerning the changes to
23    statutory law needed to effectuate and reflect this
24    transition.

 

 

09900SB1565sam001- 11 -LRB099 09130 NHT 32008 a

1    A copy of this plan shall be filed with the General
2Assembly as provided in Section 3.1 of the General Assembly
3Organization Act.
4    (b) On the date selected by the Board of Trustees under
5subdivision (1) of subsection (a) of this Section, all of the
6following shall apply:
7        (1) The Board of Trustees is abolished and the terms of
8    all members end, and all of the powers, duties, assets,
9    liabilities, employees, contracts, property, records,
10    pending business, and unexpended appropriations of the
11    Board of Trustees shall be transferred to the governing
12    board appointed under subdivision (2) of subsection (a) of
13    this Section.
14        (2) All rules, standards, policies, and procedures of
15    the University shall continue in effect until they are
16    modified or abolished by the governing board appointed
17    under subdivision (2) of subsection (a) of this Section.
18        (3) The authority of the Board of Higher Education over
19    public institutions of higher education does not include
20    authority over the University.
21        (4) All references in statutes and rules to the
22    University as a State university, a public university, or
23    an institution of higher education funded or supported by
24    this State shall be deemed to not refer to the University,
25    and all references to private or nonpublic institutions of
26    higher education in statutes and rules shall be deemed to

 

 

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1    refer to the University.
2        (5) All books, records, funds, and other property of
3    any kind or nature belonging or in any way appertaining to
4    the University are the property of the University, and this
5    State shall be deemed to have no ownership interest.
 
6    Section 30. The Illinois State University Law is amended by
7adding Section 20-3 as follows:
 
8    (110 ILCS 675/20-3 new)
9    Sec. 20-3. Transition to nonpublic university.
10    (a) Beginning on July 1, 2015, Illinois State University
11shall transition into a nonpublic institution of higher
12education. The Board of Trustees of Illinois State University
13shall develop and implement a 6-year plan for this transition.
14This plan shall include all of the following:
15        (1) A date upon which the University shall be deemed to
16    be a nonpublic institution of higher education.
17        (2) The appointment, by the Board of Trustees, of a
18    governing board to oversee the nonpublic university.
19        (3) A determination of all books, records, funds, and
20    other property of any kind or nature belonging or in any
21    way appertaining to the University that this State shall be
22    required to transfer to the University.
23        (4) How employees, along with their health care,
24    retirement, and all other benefits, as well as any

 

 

09900SB1565sam001- 13 -LRB099 09130 NHT 32008 a

1    collective bargaining agreements, are to be addressed.
2        (5) Recommendations concerning the changes to
3    statutory law needed to effectuate and reflect this
4    transition.
5    A copy of this plan shall be filed with the General
6Assembly as provided in Section 3.1 of the General Assembly
7Organization Act.
8    (b) On the date selected by the Board of Trustees under
9subdivision (1) of subsection (a) of this Section, all of the
10following shall apply:
11        (1) The Board of Trustees is abolished and the terms of
12    all members end, and all of the powers, duties, assets,
13    liabilities, employees, contracts, property, records,
14    pending business, and unexpended appropriations of the
15    Board of Trustees shall be transferred to the governing
16    board appointed under subdivision (2) of subsection (a) of
17    this Section.
18        (2) All rules, standards, policies, and procedures of
19    the University shall continue in effect until they are
20    modified or abolished by the governing board appointed
21    under subdivision (2) of subsection (a) of this Section.
22        (3) The authority of the Board of Higher Education over
23    public institutions of higher education does not include
24    authority over the University.
25        (4) All references in statutes and rules to the
26    University as a State university, a public university, or

 

 

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1    an institution of higher education funded or supported by
2    this State shall be deemed to not refer to the University,
3    and all references to private or nonpublic institutions of
4    higher education in statutes and rules shall be deemed to
5    refer to the University.
6        (5) All books, records, funds, and other property of
7    any kind or nature belonging or in any way appertaining to
8    the University are the property of the University, and this
9    State shall be deemed to have no ownership interest.
 
10    Section 35. The Northeastern Illinois University Law is
11amended by adding Section 25-3 as follows:
 
12    (110 ILCS 680/25-3 new)
13    Sec. 25-3. Transition to nonpublic university.
14    (a) Beginning on July 1, 2015, Northeastern Illinois
15University shall transition into a nonpublic institution of
16higher education. The Board of Trustees of Northeastern
17Illinois University shall develop and implement a 6-year plan
18for this transition. This plan shall include all of the
19following:
20        (1) A date upon which the University shall be deemed to
21    be a nonpublic institution of higher education.
22        (2) The appointment, by the Board of Trustees, of a
23    governing board to oversee the nonpublic university.
24        (3) A determination of all books, records, funds, and

 

 

09900SB1565sam001- 15 -LRB099 09130 NHT 32008 a

1    other property of any kind or nature belonging or in any
2    way appertaining to the University that this State shall be
3    required to transfer to the University.
4        (4) How employees, along with their health care,
5    retirement, and all other benefits, as well as any
6    collective bargaining agreements, are to be addressed.
7        (5) Recommendations concerning the changes to
8    statutory law needed to effectuate and reflect this
9    transition.
10    A copy of this plan shall be filed with the General
11Assembly as provided in Section 3.1 of the General Assembly
12Organization Act.
13    (b) On the date selected by the Board of Trustees under
14subdivision (1) of subsection (a) of this Section, all of the
15following shall apply:
16        (1) The Board of Trustees is abolished and the terms of
17    all members end, and all of the powers, duties, assets,
18    liabilities, employees, contracts, property, records,
19    pending business, and unexpended appropriations of the
20    Board of Trustees shall be transferred to the governing
21    board appointed under subdivision (2) of subsection (a) of
22    this Section.
23        (2) All rules, standards, policies, and procedures of
24    the University shall continue in effect until they are
25    modified or abolished by the governing board appointed
26    under subdivision (2) of subsection (a) of this Section.

 

 

09900SB1565sam001- 16 -LRB099 09130 NHT 32008 a

1        (3) The authority of the Board of Higher Education over
2    public institutions of higher education does not include
3    authority over the University.
4        (4) All references in statutes and rules to the
5    University as a State university, a public university, or
6    an institution of higher education funded or supported by
7    this State shall be deemed to not refer to the University,
8    and all references to private or nonpublic institutions of
9    higher education in statutes and rules shall be deemed to
10    refer to the University.
11        (5) All books, records, funds, and other property of
12    any kind or nature belonging or in any way appertaining to
13    the University are the property of the University, and this
14    State shall be deemed to have no ownership interest.
 
15    Section 40. The Northern Illinois University Law is amended
16by adding Section 30-3 as follows:
 
17    (110 ILCS 685/30-3 new)
18    Sec. 30-3. Transition to nonpublic university.
19    (a) Beginning on July 1, 2015, Northern Illinois University
20shall transition into a nonpublic institution of higher
21education. The Board of Trustees of Northern Illinois
22University shall develop and implement a 6-year plan for this
23transition. This plan shall include all of the following:
24        (1) A date upon which the University shall be deemed to

 

 

09900SB1565sam001- 17 -LRB099 09130 NHT 32008 a

1    be a nonpublic institution of higher education.
2        (2) The appointment, by the Board of Trustees, of a
3    governing board to oversee the nonpublic university.
4        (3) A determination of all books, records, funds, and
5    other property of any kind or nature belonging or in any
6    way appertaining to the University that this State shall be
7    required to transfer to the University.
8        (4) How employees, along with their health care,
9    retirement, and all other benefits, as well as any
10    collective bargaining agreements, are to be addressed.
11        (5) Recommendations concerning the changes to
12    statutory law needed to effectuate and reflect this
13    transition.
14    A copy of this plan shall be filed with the General
15Assembly as provided in Section 3.1 of the General Assembly
16Organization Act.
17    (b) On the date selected by the Board of Trustees under
18subdivision (1) of subsection (a) of this Section, all of the
19following shall apply:
20        (1) The Board of Trustees is abolished and the terms of
21    all members end, and all of the powers, duties, assets,
22    liabilities, employees, contracts, property, records,
23    pending business, and unexpended appropriations of the
24    Board of Trustees shall be transferred to the governing
25    board appointed under subdivision (2) of subsection (a) of
26    this Section.

 

 

09900SB1565sam001- 18 -LRB099 09130 NHT 32008 a

1        (2) All rules, standards, policies, and procedures of
2    the University shall continue in effect until they are
3    modified or abolished by the governing board appointed
4    under subdivision (2) of subsection (a) of this Section.
5        (3) The authority of the Board of Higher Education over
6    public institutions of higher education does not include
7    authority over the University.
8        (4) All references in statutes and rules to the
9    University as a State university, a public university, or
10    an institution of higher education funded or supported by
11    this State shall be deemed to not refer to the University,
12    and all references to private or nonpublic institutions of
13    higher education in statutes and rules shall be deemed to
14    refer to the University.
15        (5) All books, records, funds, and other property of
16    any kind or nature belonging or in any way appertaining to
17    the University are the property of the University, and this
18    State shall be deemed to have no ownership interest.
 
19    Section 45. The Western Illinois University Law is amended
20by adding Section 35-3 as follows:
 
21    (110 ILCS 690/35-3 new)
22    Sec. 35-3. Transition to nonpublic university.
23    (a) Beginning on July 1, 2015, Western Illinois University
24shall transition into a nonpublic institution of higher

 

 

09900SB1565sam001- 19 -LRB099 09130 NHT 32008 a

1education. The Board of Trustees of Western Illinois University
2shall develop and implement a 6-year plan for this transition.
3This plan shall include all of the following:
4        (1) A date upon which the University shall be deemed to
5    be a nonpublic institution of higher education.
6        (2) The appointment, by the Board of Trustees, of a
7    governing board to oversee the nonpublic university.
8        (3) A determination of all books, records, funds, and
9    other property of any kind or nature belonging or in any
10    way appertaining to the University that this State shall be
11    required to transfer to the University.
12        (4) How employees, along with their health care,
13    retirement, and all other benefits, as well as any
14    collective bargaining agreements, are to be addressed.
15        (5) Recommendations concerning the changes to
16    statutory law needed to effectuate and reflect this
17    transition.
18    A copy of this plan shall be filed with the General
19Assembly as provided in Section 3.1 of the General Assembly
20Organization Act.
21    (b) On the date selected by the Board of Trustees under
22subdivision (1) of subsection (a) of this Section, all of the
23following shall apply:
24        (1) The Board of Trustees is abolished and the terms of
25    all members end, and all of the powers, duties, assets,
26    liabilities, employees, contracts, property, records,

 

 

09900SB1565sam001- 20 -LRB099 09130 NHT 32008 a

1    pending business, and unexpended appropriations of the
2    Board of Trustees shall be transferred to the governing
3    board appointed under subdivision (2) of subsection (a) of
4    this Section.
5        (2) All rules, standards, policies, and procedures of
6    the University shall continue in effect until they are
7    modified or abolished by the governing board appointed
8    under subdivision (2) of subsection (a) of this Section.
9        (3) The authority of the Board of Higher Education over
10    public institutions of higher education does not include
11    authority over the University.
12        (4) All references in statutes and rules to the
13    University as a State university, a public university, or
14    an institution of higher education funded or supported by
15    this State shall be deemed to not refer to the University,
16    and all references to private or nonpublic institutions of
17    higher education in statutes and rules shall be deemed to
18    refer to the University.
19        (5) All books, records, funds, and other property of
20    any kind or nature belonging or in any way appertaining to
21    the University are the property of the University, and this
22    State shall be deemed to have no ownership interest.
 
23    Section 50. The Higher Education Student Assistance Act is
24amended by adding Section 65.90 as follows:
 

 

 

09900SB1565sam001- 21 -LRB099 09130 NHT 32008 a

1    (110 ILCS 947/65.90 new)
2    Sec. 65.90. Illinois Grant Program.
3    (a) Beginning with the 2015-2016 academic year, the
4Commission shall, each year, consider applications for grant
5assistance under this Section. An applicant is eligible for a
6grant under this Section if the Commission finds that the
7applicant meets all of the following qualifications:
8        (1) He or she is a United States citizen or eligible
9    noncitizen.
10        (2) He or she is a resident of this State or, if a
11    dependent for income tax purposes, the parent whose
12    information is used on the Free Application for Federal
13    Student Aid is a resident of this State. State residency
14    shall be determined by the filing of a State income tax
15    return.
16        (3) If a male, he has complied with federal Selective
17    Service registration requirements.
18        (4) He or she has not been incarcerated.
19        (5) He or she is enrolled, for at least 15 credit
20    hours, in an institution of higher learning and has not
21    earned a bachelor's degree yet. A grant recipient must
22    submit proof to the Commission each semester that he or she
23    is still enrolled in the institution of higher learning.
24        (6) He or she demonstrates financial need, as
25    determined by the Commission.
26        (7) He or she maintains satisfactory academic

 

 

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1    progress, as determined by the institution.
2        (8) He or she is not in default on any educational loan
3    or does not owe a refund on any State or federal
4    educational grant.
5    (b) Each year the Commission shall award grants under this
6Section among applicants qualified pursuant to subsection (a)
7of this Section. The Commission shall receive funding for the
8grants through appropriations. The amount to be appropriated
9for the grant program for the 2021 fiscal year and each fiscal
10year thereafter shall equal the total amount appropriated to
11State universities from the General Revenue Fund for the 2015
12fiscal year, with the amount appropriated for the grant program
13for the 2016 fiscal year through the 2020 fiscal year being
14equal to a percentage of the total amount appropriated to State
15universities from the General Revenue Fund for the 2015 fiscal
16year, with that percentage increasing each of those fiscal
17years until the amount appropriated for the grant program for
18the 2021 fiscal year equals 100% of the total amount
19appropriated to State universities from the General Revenue
20Fund for the 2015 fiscal year. No amounts may be appropriated
21to State universities from the General Revenue Fund beginning
22with the 2021 fiscal year, with the amount appropriated to
23State universities from the General Revenue Fund for the 2016
24fiscal year through the 2020 fiscal year being reduced in an
25amount at least equal to the amount being appropriated for the
26grant program for that particular fiscal year. The amount of

 

 

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1each grant shall equal the amount appropriated for the grant
2program for a given fiscal year divided by the number of
3applicants who qualify for a grant.
4    (c) The total amount of grant assistance awarded by the
5Commission under this Section to an individual in any given
6fiscal year, when added to other financial assistance awarded
7to that individual for that year, shall not exceed the cost of
8attendance at the institution at which the student is enrolled.
9    (d) Payment of any grant under this Section shall be
10determined by the Commission. All grant funds distributed in
11accordance with this Section shall be paid to the institution
12on behalf of the recipients. Grant funds are applicable toward
13tuition for 2 semesters or 3 quarters of enrollment within an
14academic year.
15    (e) Prior to receiving grant assistance for any academic
16year, each recipient of a grant under this Section shall be
17required by the Commission to sign an agreement under which the
18recipient agrees to the following terms:
19        (1) If a grant recipient graduates from an institution
20    in 4 years or less, he or she must repay one-half of the
21    total amount of grants received under this Section.
22        (2) If a grant recipient does not graduate from an
23    institution in 4 years or less, he or she must repay the
24    total amount of grants received under this Section
25    immediately over a 10-year period, with interest equal to
26    the prime commercial rate of interest as from time to time

 

 

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1    is publicly announced by the largest commercial banking
2    institution located in this State measured in terms of
3    total assets, but in no event may the amount he or she is
4    required to repay each year exceed 6% of his or her annual
5    income. However, if the grant recipient graduates from an
6    institution within that 10-year period, the Commission
7    shall forgive one-half of the total amount of grants
8    received under this Section and adjust the amount he or she
9    must repay.
10        (3) If the grant recipient resides in this State
11    immediately following graduation from an institution, the
12    Commission shall forgive, for each year of residency,
13    one-eighth of the remaining grant amount owed.
14    Each recipient shall, upon request of the Commission,
15provide the Commission with evidence that he or she is
16fulfilling or has fulfilled the terms of the agreement provided
17for in this subsection (e).
18    The Commission is authorized to establish rules relating to
19its collection activities for repayment of grants under this
20Section, including the imposition of reasonable collection
21fees.
22    (f) A recipient of a grant under this Section is not in
23violation of the agreement entered into pursuant to subsection
24(e) of this Section if the recipient (i) is serving as a member
25of the armed services of the United States; (ii) is enrolled in
26a graduate program following graduation from an institution;

 

 

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1(iii) is temporarily totally disabled, as established by sworn
2affidavit of a qualified physician; or (iii) cannot fulfill the
3obligation due to his or her death, disability, or
4incompetency, as established by sworn affidavit of a qualified
5physician. No claim for repayment may be filed against the
6estate of such a decedent or incompetent. Any extension of the
7period during which the obligation must be fulfilled is subject
8to limitations of duration as established by the Commission.
9    (h) The Commission shall administer the grant program
10established by this Section and shall make all necessary and
11proper rules not inconsistent with this Section for its
12effective implementation.
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.".