Full Text of SB2291 94th General Assembly
SB2291sam001 94TH GENERAL ASSEMBLY
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Sen. John J. Cullerton
Filed: 2/9/2006
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| AMENDMENT TO SENATE BILL 2291
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| AMENDMENT NO. ______. Amend Senate Bill 2291 by replacing | 3 |
| everything after the enacting clause with the following: | 4 |
| "Section 5. The State Treasurer Act is amended by changing | 5 |
| Section 16.5 as follows:
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| (15 ILCS 505/16.5)
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| Sec. 16.5. College Savings Pool. The State Treasurer may | 8 |
| establish and
administer a College Savings Pool to supplement | 9 |
| and enhance the investment
opportunities otherwise available | 10 |
| to persons seeking to finance the costs of
higher education. | 11 |
| The State Treasurer, in administering the College Savings
Pool, | 12 |
| may receive moneys paid into the pool by a participant and may | 13 |
| serve as
the fiscal agent of that participant for the purpose | 14 |
| of holding and investing
those moneys.
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| "Participant", as used in this Section, means any person | 16 |
| who has authority to withdraw funds, change the designated | 17 |
| beneficiary, or otherwise exercise control over an account. | 18 |
| "Donor", as used in this Section, means any person who makes
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| investments in the pool. "Designated beneficiary", as used in | 20 |
| this Section,
means any person on whose behalf an account is | 21 |
| established in the College
Savings Pool by a participant. Both | 22 |
| in-state and out-of-state persons may be
participants , donors, | 23 |
| and designated beneficiaries in the College Savings Pool.
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| New accounts in the College Savings Pool shall be processed |
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| through
participating financial institutions. "Participating | 2 |
| financial institution",
as used in this Section, means any | 3 |
| financial institution insured by the Federal
Deposit Insurance | 4 |
| Corporation and lawfully doing business in the State of
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| Illinois and any credit union approved by the State Treasurer | 6 |
| and lawfully
doing business in the State of Illinois that | 7 |
| agrees to process new accounts in
the College Savings Pool. | 8 |
| Participating financial institutions may charge a
processing | 9 |
| fee to participants to open an account in the pool that shall | 10 |
| not
exceed $30 until the year 2001. Beginning in 2001 and every | 11 |
| year thereafter,
the maximum fee limit shall be adjusted by the | 12 |
| Treasurer based on the Consumer
Price Index for the North | 13 |
| Central Region as published by the United States
Department of | 14 |
| Labor, Bureau of Labor Statistics for the immediately preceding
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| calendar year. Every contribution received by a financial | 16 |
| institution for
investment in the College Savings Pool shall be | 17 |
| transferred from the financial
institution to a location | 18 |
| selected by the State Treasurer within one business
day | 19 |
| following the day that the funds must be made available in | 20 |
| accordance with
federal law. All communications from the State | 21 |
| Treasurer to participants and donors shall
reference the | 22 |
| participating financial institution at which the account was
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| processed.
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| The Treasurer may invest the moneys in the College Savings | 25 |
| Pool in the same
manner, in the same types of investments, and | 26 |
| subject to the same limitations
provided for the investment of | 27 |
| moneys by the Illinois State Board of
Investment. To enhance | 28 |
| the safety and liquidity of the College Savings Pool,
to ensure | 29 |
| the diversification of the investment portfolio of the pool, | 30 |
| and in
an effort to keep investment dollars in the State of | 31 |
| Illinois, the State
Treasurer shall make a percentage of each | 32 |
| account available for investment in
participating financial | 33 |
| institutions doing business in the State. The State
Treasurer | 34 |
| shall deposit with the participating financial institution at |
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| which
the account was processed the following percentage of | 2 |
| each account at a
prevailing rate offered by the institution, | 3 |
| provided that the deposit is
federally insured or fully | 4 |
| collateralized and the institution accepts the
deposit: 10% of | 5 |
| the total amount of each account for which the current age of
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| the beneficiary is less than 7 years of age, 20% of the total | 7 |
| amount of each
account for which the beneficiary is at least 7 | 8 |
| years of age and less than 12
years of age, and 50% of the total | 9 |
| amount of each account for which the current
age of the | 10 |
| beneficiary is at least 12 years of age. The State Treasurer | 11 |
| shall
adjust each account at least annually to ensure | 12 |
| compliance with this Section.
The Treasurer shall develop, | 13 |
| publish, and implement an investment policy
covering the | 14 |
| investment of the moneys in the College Savings Pool. The | 15 |
| policy
shall be published (i) at least once each year in at | 16 |
| least one newspaper of
general circulation in both Springfield | 17 |
| and Chicago and (ii) each year as part
of the audit of the | 18 |
| College Savings Pool by the Auditor General, which shall be
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| distributed to all participants. The Treasurer shall notify all | 20 |
| participants
in writing, and the Treasurer shall publish in a | 21 |
| newspaper of general
circulation in both Chicago and | 22 |
| Springfield, any changes to the previously
published | 23 |
| investment policy at least 30 calendar days before implementing | 24 |
| the
policy. Any investment policy adopted by the Treasurer | 25 |
| shall be reviewed and
updated if necessary within 90 days | 26 |
| following the date that the State Treasurer
takes office.
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| Participants shall be required to use moneys distributed | 28 |
| from the College
Savings Pool for qualified expenses at | 29 |
| eligible educational institutions.
"Qualified expenses", as | 30 |
| used in this Section, means the following: (i)
tuition, fees, | 31 |
| and the costs of books, supplies, and equipment required for
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| enrollment or attendance at an eligible educational | 33 |
| institution and (ii)
certain room and board expenses incurred | 34 |
| while attending an eligible
educational institution at least |
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| half-time. "Eligible educational
institutions", as used in | 2 |
| this Section, means public and private colleges,
junior | 3 |
| colleges, graduate schools, and certain vocational | 4 |
| institutions that are
described in Section 481 of the Higher | 5 |
| Education Act of 1965 (20 U.S.C. 1088)
and that are eligible to | 6 |
| participate in Department of Education student aid
programs. A | 7 |
| student shall be considered to be enrolled at
least half-time | 8 |
| if the student is enrolled for at least half the full-time
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| academic work load for the course of study the student is | 10 |
| pursuing as
determined under the standards of the institution | 11 |
| at which the student is
enrolled. Distributions made from the | 12 |
| pool for qualified expenses shall be
made directly to the | 13 |
| eligible educational institution, directly to a vendor, or
in | 14 |
| the form of a check payable to both the beneficiary and the | 15 |
| institution or
vendor. Any moneys that are distributed in any | 16 |
| other manner or that are used
for expenses other than qualified | 17 |
| expenses at an eligible educational
institution shall be | 18 |
| subject to a penalty of 10% of the earnings unless the
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| beneficiary dies, becomes disabled, or receives a scholarship | 20 |
| that equals or
exceeds the distribution. Penalties shall be | 21 |
| withheld at the time the
distribution is made.
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| The Treasurer shall limit the contributions that may be | 23 |
| made on behalf of a
designated beneficiary based on an | 24 |
| actuarial estimate of what is required to
pay tuition, fees, | 25 |
| and room and board for 5 undergraduate years at the highest
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| cost eligible educational institution. The contributions made | 27 |
| on behalf of a
beneficiary who is also a beneficiary under the | 28 |
| Illinois Prepaid Tuition
Program shall be further restricted to | 29 |
| ensure that the contributions in both
programs combined do not | 30 |
| exceed the limit established for the College Savings
Pool. The | 31 |
| Treasurer shall provide the Illinois Student Assistance | 32 |
| Commission
each year at a time designated by the Commission, an | 33 |
| electronic report of all
participant accounts in the | 34 |
| Treasurer's College Savings Pool, listing total
contributions |
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| and disbursements from each individual account during the
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| previous calendar year. As soon thereafter as is possible | 3 |
| following receipt of
the Treasurer's report, the Illinois | 4 |
| Student Assistance Commission shall, in
turn, provide the | 5 |
| Treasurer with an electronic report listing those College
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| Savings Pool participants who also participate in the State's | 7 |
| prepaid tuition
program, administered by the Commission. The | 8 |
| Commission shall be responsible
for filing any combined tax | 9 |
| reports regarding State qualified savings programs
required by | 10 |
| the United States Internal Revenue Service. The Treasurer shall
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| work with the Illinois Student Assistance Commission to | 12 |
| coordinate the
marketing of the College Savings Pool and the | 13 |
| Illinois Prepaid Tuition
Program when considered beneficial by | 14 |
| the Treasurer and the Director of the
Illinois Student | 15 |
| Assistance
Commission. The Treasurer's office shall not | 16 |
| publicize or otherwise market the
College Savings Pool or | 17 |
| accept any moneys into the College Savings Pool prior
to March | 18 |
| 1, 2000. The Treasurer shall provide a separate accounting for | 19 |
| each
designated beneficiary to each participant, the Illinois | 20 |
| Student Assistance
Commission, and the participating financial | 21 |
| institution at which the account
was processed. No interest in | 22 |
| the program may be pledged as security for a
loan. Moneys held | 23 |
| in an account invested in the Illinois College Savings Pool | 24 |
| shall be exempt from all claims of the creditors of the | 25 |
| participant, donor, or designated beneficiary of that account, | 26 |
| except for the non-exempt College Savings Pool transfers to or | 27 |
| from the account as defined under subsection (j) of Section | 28 |
| 12-1001 of the Code of Civil Procedure (735 ILCS 5/12-1001(j)).
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| The assets of the College Savings Pool and its income and | 30 |
| operation shall
be exempt from all taxation by the State of | 31 |
| Illinois and any of its
subdivisions. The accrued earnings on | 32 |
| investments in the Pool once disbursed
on behalf of a | 33 |
| designated beneficiary shall be similarly exempt from all
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| taxation by the State of Illinois and its subdivisions, so long |
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| as they are
used for qualified expenses. Contributions to a | 2 |
| College Savings Pool account
during the taxable year may be | 3 |
| deducted from adjusted gross income as provided
in Section 203 | 4 |
| of the Illinois Income Tax Act. The provisions of this
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| paragraph are exempt from Section 250 of the Illinois Income | 6 |
| Tax Act.
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| The Treasurer shall adopt rules he or she considers | 8 |
| necessary for the
efficient administration of the College | 9 |
| Savings Pool. The rules shall provide
whatever additional | 10 |
| parameters and restrictions are necessary to ensure that
the | 11 |
| College Savings Pool meets all of the requirements for a | 12 |
| qualified state
tuition program under Section 529 of the | 13 |
| Internal Revenue Code (26 U.S.C. 529).
The rules shall provide | 14 |
| for the administration expenses of the pool to be paid
from its | 15 |
| earnings and for the investment earnings in excess of the | 16 |
| expenses and
all moneys collected as penalties to be credited | 17 |
| or paid monthly to the several
participants in the pool in a | 18 |
| manner which equitably reflects the differing
amounts of their | 19 |
| respective investments in the pool and the differing periods
of | 20 |
| time for which those amounts were in the custody of the pool. | 21 |
| Also, the
rules shall require the maintenance of records that | 22 |
| enable the Treasurer's
office to produce a report for each | 23 |
| account in the pool at least annually that
documents the | 24 |
| account balance and investment earnings. Notice of any proposed
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| amendments to the rules and regulations shall be provided to | 26 |
| all participants
prior to adoption. Amendments to rules and | 27 |
| regulations shall apply only to
contributions made after the | 28 |
| adoption of the amendment.
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| Upon creating the College Savings Pool, the State Treasurer | 30 |
| shall give bond
with 2 or more sufficient sureties, payable to | 31 |
| and for the benefit of the
participants in the College Savings | 32 |
| Pool, in the penal sum of $1,000,000,
conditioned upon the | 33 |
| faithful discharge of his or her duties in relation to
the | 34 |
| College Savings Pool.
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| (Source: P.A. 92-16, eff. 6-28-01; 92-439, eff. 8-17-01; | 2 |
| 92-626, eff. 7-11-02; 93-812, eff. 1-1-05.)
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| Section 10. The Code of Civil Procedure is amended by | 4 |
| changing Section 12-1001 as follows:
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| (735 ILCS 5/12-1001)
(from Ch. 110, par. 12-1001)
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| Sec. 12-1001. Personal property exempt. The following | 7 |
| personal property,
owned by the debtor, is exempt from | 8 |
| judgment, attachment, or distress for rent:
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| (a) The necessary wearing apparel, bible, school | 10 |
| books, and family
pictures of the debtor and the debtor's | 11 |
| dependents;
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| (b) The debtor's equity interest, not to exceed $4,000 | 13 |
| in
value, in any
other property;
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| (c) The debtor's interest, not to exceed $2,400
in | 15 |
| value,
in any one motor
vehicle;
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| (d) The debtor's equity interest, not to exceed $1,500 | 17 |
| in
value,
in any
implements, professional books, or tools | 18 |
| of the trade of the debtor;
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| (e) Professionally prescribed health aids for the | 20 |
| debtor or a dependent of
the debtor;
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| (f) All proceeds payable because of the death of the | 22 |
| insured and the
aggregate net cash value of any or all life | 23 |
| insurance and endowment
policies and annuity contracts | 24 |
| payable to a wife or husband of the insured,
or to a child, | 25 |
| parent, or other person dependent upon the insured, whether
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| the power to change the beneficiary is reserved to the | 27 |
| insured or not and
whether the insured or the insured's | 28 |
| estate is a contingent beneficiary or not;
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| (g) The debtor's right to receive:
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| (1) a social security benefit, unemployment | 31 |
| compensation, or public
assistance benefit;
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| (2) a veteran's benefit;
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| (3) a disability, illness, or unemployment | 2 |
| benefit; and
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| (4) alimony, support, or separate maintenance, to | 4 |
| the extent reasonably
necessary for the support of the | 5 |
| debtor and any dependent of the debtor.
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| (h) The debtor's right to receive, or property that is | 7 |
| traceable to:
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| (1) an award under a crime victim's reparation law;
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| (2) a payment on account of the wrongful death of | 10 |
| an individual of whom
the debtor was a dependent, to | 11 |
| the extent reasonably necessary for the support
of the | 12 |
| debtor;
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| (3) a payment under a life insurance contract that | 14 |
| insured the life of
an individual of whom the debtor | 15 |
| was a dependent, to the extent reasonably
necessary for | 16 |
| the support of the debtor or a dependent of the debtor;
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| (4) a payment, not to exceed $15,000 in value, on | 18 |
| account
of personal
bodily injury of the debtor or an | 19 |
| individual of whom the debtor was a
dependent; and
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| (5) any restitution payments made to persons | 21 |
| pursuant to the federal
Civil Liberties Act of 1988 and | 22 |
| the Aleutian and Pribilof Island
Restitution Act, P.L. | 23 |
| 100-383.
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| For purposes of this subsection (h), a debtor's right | 25 |
| to receive an award
or payment shall be exempt for a | 26 |
| maximum of 2 years after the debtor's right
to receive the | 27 |
| award or payment accrues; property traceable to an
award or | 28 |
| payment shall be exempt for a maximum of 5 years after the | 29 |
| award
or payment accrues; and an award or payment and | 30 |
| property traceable
to an award or payment shall be exempt | 31 |
| only to the extent of the amount
of the award or payment, | 32 |
| without interest or appreciation from the date
of the award | 33 |
| or payment.
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| (i) The debtor's right to receive an award under Part |
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| 20 of Article II of
this Code relating to crime victims' | 2 |
| awards.
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| (j) Moneys held in an account invested in the Illinois | 4 |
| College Savings Pool of which the debtor is a participant | 5 |
| or donor, except the following non-exempt contributions: | 6 |
| (1) any contribution to such account by the debtor | 7 |
| as participant or donor that is made with the actual | 8 |
| intent to hinder, delay, or defraud any creditor of the | 9 |
| debtor; | 10 |
| (2) any contributions to such account by the debtor | 11 |
| as participant during the 365 day period prior to the | 12 |
| date of filing of the debtor's petition for bankruptcy | 13 |
| that, in the aggregate during such period, exceed the | 14 |
| amount of the annual gift tax exclusion under Section | 15 |
| 2503(b) of the Internal Revenue Code of 1986, as | 16 |
| amended, in effect at the time of contribution; or | 17 |
| (3) any contributions to such account by the debtor | 18 |
| as participant during the period commencing 730 days | 19 |
| prior to and ending 366 days prior to the date of | 20 |
| filing of the debtor's petition for bankruptcy that, in | 21 |
| the aggregate during such period, exceed the amount of | 22 |
| the annual gift tax exclusion under Section 2503(b) of | 23 |
| the Internal Revenue Code of 1986, as amended, in | 24 |
| effect at the time of contribution. | 25 |
| For purposes of this subsection (j), "account" | 26 |
| includes all accounts for a particular designated | 27 |
| beneficiary, of which the debtor is a participant or donor.
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| Money due the debtor from the sale of any personal property | 29 |
| that was
exempt from judgment, attachment, or distress for rent | 30 |
| at the
time of the sale is exempt from attachment and | 31 |
| garnishment to the same
extent that the property would be | 32 |
| exempt had the same not been sold by
the debtor.
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| If a debtor owns property exempt under this Section and he | 34 |
| or she purchased
that property with the intent of converting |
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| nonexempt property into exempt
property or in fraud of his or | 2 |
| her creditors, that property shall not be
exempt from judgment, | 3 |
| attachment, or distress for rent. Property acquired
within 6 | 4 |
| months of the filing of the petition for bankruptcy shall be | 5 |
| presumed
to have been acquired in contemplation of bankruptcy.
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| The personal property exemptions set forth in this Section | 7 |
| shall apply
only to individuals and only to personal property | 8 |
| that is used for personal
rather than business purposes. The | 9 |
| personal property exemptions set forth
in this Section shall | 10 |
| not apply to or be allowed
against any money, salary, or wages | 11 |
| due or to become due to the debtor that
are required to be | 12 |
| withheld in a wage
deduction proceeding under Part 8 of this
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| Article XII.
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| (Source: P.A. 94-293, eff. 1-1-06.)".
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