Full Text of SB1981 95th General Assembly
SB1981eng 95TH GENERAL ASSEMBLY
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| AN ACT concerning State government.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Income Tax Act is amended by adding | 5 |
| Section 218 as follows: | 6 |
| (35 ILCS 5/218 new) | 7 |
| Sec. 218. Credit for student-assistance contributions. | 8 |
| (a) For taxable years ending on or after December 31, 2008 | 9 |
| and on or before December 30, 2019, each taxpayer who, during | 10 |
| the taxable year, makes a matching donation on behalf of an | 11 |
| employee of the taxpayer for moneys that the employee | 12 |
| contributes in the same taxable year (i) to a specified | 13 |
| individual College Savings Pool Account under Section 16.5 of | 14 |
| the State Treasurer Act or (ii) to the Illinois Prepaid Tuition | 15 |
| Trust Fund is entitled to a credit against the tax imposed | 16 |
| under subsections (a) and (b) of Section 201 in an amount equal | 17 |
| to 25% of that matching donation, but not to exceed $500 per | 18 |
| contributing employee per taxable year. | 19 |
| (b) For partners, shareholders of Subchapter S | 20 |
| corporations, and owners of limited liability companies, if the | 21 |
| liability company is treated as a partnership for purposes of | 22 |
| federal and State income taxation, there is allowed a credit | 23 |
| under this Section to be determined in accordance with the |
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| determination of income and distributive share of income under | 2 |
| Sections 702 and 704 and Subchapter S of the Internal Revenue | 3 |
| Code. | 4 |
| (c) The credit may not be carried back. If the amount of | 5 |
| the credit exceeds the tax liability for the year, the excess | 6 |
| may be carried forward and applied to the tax liability of the | 7 |
| 3 taxable years following the excess credit year. The tax | 8 |
| credit shall be applied to the earliest year for which there is | 9 |
| a tax liability. If there are credits for more than one year | 10 |
| that are available to offset a liability, the earlier credit | 11 |
| shall be applied first.
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| (d) A taxpayer claiming the credit under this Section must | 13 |
| maintain and record any information that the Illinois Student | 14 |
| Assistance Commission, the Office of the State Treasurer, or | 15 |
| the Department may require regarding the matching donation for | 16 |
| which the credit is claimed.
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| Section 10. The Higher Education Student Assistance Act is | 18 |
| amended by changing Sections 5 and 20 as follows:
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| (110 ILCS 947/5)
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| Sec. 5. Purpose. The General Assembly finds and declares | 21 |
| that (1) the
provision of a higher education for all residents | 22 |
| of this State who desire a
higher education and are properly | 23 |
| qualified therefor is important to the
welfare and security of | 24 |
| this State and Nation and, consequently, is an
important public |
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| purpose, and (2) many qualified students are deterred by
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| financial considerations from completing their education, with | 3 |
| a consequent
irreparable loss to the State and Nation of | 4 |
| talents vital to welfare and
security. The number of qualified | 5 |
| persons who desire a higher education is
increasing rapidly, | 6 |
| and the physical facilities, faculties, and staffs of
the | 7 |
| institutions of higher learning operated by, within and for the
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| residents of the State will have to be
expanded greatly to | 9 |
| accommodate those persons, with an attendant sharp
increase in | 10 |
| the cost of educating them. A system of financial
assistance of | 11 |
| scholarships, grants, and loans for qualified
residents of | 12 |
| college age will enable them to attend qualified institutions
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| of their choice in the State, public or private. The adoption | 14 |
| of new federal
student loan legislation necessitates that the | 15 |
| State update and broaden its
system of financial student | 16 |
| assistance.
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| As market conditions permit, the Commission is | 18 |
| specifically encouraged to
offer reasonable and affordable | 19 |
| supplemental or alternative educational loans
to students who | 20 |
| seek to obtain these loans. As part of these alternative or
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| supplemental direct lending initiatives, the Commission may | 22 |
| give priority
consideration to students assisted by the | 23 |
| Commission's need-based programs. | 24 |
| The system of financial assistance provided under this Act | 25 |
| includes prepaid programs for college savings, and the | 26 |
| Commission is specifically encouraged to enlist employers in |
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| providing voluntary matching donations to the amount that their | 2 |
| employees save through these prepaid programs.
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| (Source: P.A. 89-442, eff. 12-21-95.)
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| (110 ILCS 947/20)
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| Sec. 20. Functions of Commission.
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| (a) The Commission, in accordance with this Act, shall | 7 |
| prepare and supervise
the issuance of public information | 8 |
| concerning its provisions; prescribe the
form and regulate the | 9 |
| submission of applications for assistance; provide for
and | 10 |
| conduct, or cause to be conducted, all eligibility | 11 |
| determinations of
applicants; award the appropriate financial | 12 |
| assistance; and, upon request by a
member of the General | 13 |
| Assembly, nominate or evaluate and recommend for
nomination | 14 |
| applicants for General Assembly scholarships in accordance | 15 |
| with
criteria specified by the member under Section 30-9 of the | 16 |
| School Code.
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| (b) The Commission is authorized to participate in any | 18 |
| programs
for monetary assistance to students and to receive, | 19 |
| hold, and disburse all such
funds made available by any agency | 20 |
| or organization for the purpose or purposes
for which they are | 21 |
| made available. The Commission is authorized to administer
a | 22 |
| program of grant assistance as authorized by the Baccalaureate | 23 |
| Savings Act.
The Commission is authorized to participate in any | 24 |
| programs established to
improve student financial aid services | 25 |
| or the proficiency of persons engaged in
student financial aid |
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| services and to receive, hold, and disburse all funds
made | 2 |
| available by any agency or organization for the purpose or | 3 |
| purposes for
which they are made available subject to the | 4 |
| appropriations of the General
Assembly.
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| (c) The Commission is authorized to deny a scholarship or a | 6 |
| grant to
any person who has defaulted on a guaranteed student | 7 |
| loan and who is not
maintaining a satisfactory repayment | 8 |
| record. If a person has a defaulted
guaranteed student loan but | 9 |
| is otherwise eligible for assistance pursuant
to Section 40, | 10 |
| the Commission shall award one term of assistance
during which | 11 |
| a satisfactory repayment record must be established. If such a
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| repayment record is not established, additional assistance | 13 |
| shall be denied
until a satisfactory repayment record is | 14 |
| established.
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| (d) The Commission is authorized to participate with | 16 |
| federal, state,
county, local, and university law enforcement | 17 |
| agencies in cooperative
efforts to detect and prosecute | 18 |
| incidents of fraud in student assistance
programs.
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| (e) The Administrative Review Law shall apply to and govern | 20 |
| all proceedings
for the judicial review of final administrative | 21 |
| decisions of the
Commission.
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| (f) The Commission is authorized to make all necessary and | 23 |
| proper rules, not
inconsistent with this Act, for the efficient | 24 |
| exercise of the foregoing
functions.
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| (g) Unless otherwise provided by statute, the functions of | 26 |
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Commission shall be exercised without regard to any |
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| applicant's race,
creed, sex, color, national origin, or | 2 |
| ancestry. | 3 |
| (h) The Commission is authorized to establish systems and | 4 |
| programs to encourage employers to match employee | 5 |
| contributions to prepaid programs of college savings by making | 6 |
| donations to the Commission for prepaid programs of college | 7 |
| savings and its programs of grants and loans to make higher | 8 |
| education affordable for all residents of the State and to | 9 |
| receive, hold, and disburse all such funds made available | 10 |
| through those programs for the purposes for which they are | 11 |
| authorized by rule or by law.
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| (Source: P.A. 87-997.)
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| Section 99. Effective date. This Act takes effect upon | 14 |
| becoming law.
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