Illinois General Assembly - Illinois Compiled Statutes

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110 ILCS 979/35

(110 ILCS 979/35)

Sec. 35. Illinois Prepaid Tuition Trust Fund.

(a) The Illinois Prepaid Tuition Trust Fund is created as the repository
of all moneys received by the Commission in conjunction with the Illinois
prepaid
tuition program.  The Illinois Prepaid Tuition Trust Fund also shall be the
official repository of all contributions, appropriations, interest and dividend
payments, gifts, or other financial assets received by the Commission in
connection with operation of the Illinois prepaid tuition program.  All such
moneys shall be deposited in the Illinois Prepaid Tuition Trust Fund
and held by the State Treasurer as ex-officio custodian thereof, outside of the
State Treasury, separate and apart from all public moneys or funds of this
State.

All interest or other earnings accruing or received on amounts in the
Illinois Prepaid
Tuition Trust Fund shall be credited to and retained by the Fund.  Moneys,
interest, or other earnings paid into the Fund shall not be transferred or
allocated by the Commission, the State Treasurer, or the State
Comptroller
to any other fund, nor shall the Governor authorize any such transfer or
allocation,
while any contracts are outstanding.  The State Comptroller shall not offset
moneys paid to institutions from the Illinois Prepaid Tuition Trust Fund
(unless the Trust Fund
moneys are used for child support).
In
addition, no
moneys,
interest, or
other earnings paid into the Fund shall be used, temporarily or otherwise, for
interfund borrowing or be
otherwise used or appropriated except as expressly authorized in this Act.

The Illinois Prepaid Tuition Trust Fund and each individual participant
account that
may be created in that Fund in conjunction with the Illinois prepaid tuition
program shall be subject to audit in the same manner as funds and accounts
belonging to
the State of Illinois and shall be protected by the official bond given by the
State Treasurer.

(b) The Commission from time to time shall direct the State Treasurer to
invest moneys in the Illinois Prepaid Tuition Trust Fund that are not needed
for immediate disbursement, in accordance with provisions of the investment
plan approved by the Commission.

(c) The Executive Director  of the Commission shall, at such times and in
such amounts as shall
be necessary, prepare and send to the State Comptroller vouchers requesting
payment from the Illinois Prepaid Tuition Trust Fund for: (i) registration fee
payments to eligible institutions on behalf of qualified beneficiaries of
Illinois
prepaid tuition contracts, and (ii) payments associated with administration of
the Illinois prepaid tuition program.

(d) The Governor shall indicate in a separate document submitted concurrent
with each annual State budget the estimated
amount of moneys in the Illinois Prepaid Tuition Trust Fund which shall be
necessary and sufficient, during that State fiscal year, to discharge all
obligations anticipated under Illinois prepaid tuition contracts.  The Governor
also shall indicate in a separate document submitted concurrent with each
annual State budget the amount of moneys from the
Illinois Prepaid Tuition Trust Fund necessary to cover anticipated expenses
associated with administration of the program.
The Commission shall obtain concurrence from a nationally recognized actuary
as to all amounts necessary for the program to meet its obligations.  These
amounts shall be certified annually to the Governor by the Commission no later
than January 30.

During the first 18 months of operation of the Illinois prepaid tuition
program,
the Governor shall request an appropriation to the Commission from general
funds sufficient to pay for start-up costs associated with establishment of the
program.
This appropriation constitutes a loan that shall be repaid to the General
Revenue Fund within 5 years by the Commission from prepaid tuition program
contributions.
Subsequent program administrative costs shall be provided from
reasonable fees and charges equitably assessed to purchasers of prepaid tuition
contracts.

(e) If the Commission determines that there are insufficient moneys in
the Illinois Prepaid Tuition Trust Fund to pay contractual obligations in the
next succeeding fiscal year, the Commission shall certify the amount necessary
to meet these obligations to the Board of Higher Education, the Governor, the
President of the Senate, and the
Speaker of the House of
Representatives.  The Governor shall submit the amount so certified to the
General Assembly as soon as practicable, but no later than the end of the
current State fiscal year.

(f) In the event the Commission, with the concurrence of the
Governor, determines the program to be financially infeasible, the Commission
may discontinue, prospectively, the operation of the program.  Any qualified
beneficiary who has been accepted by and is enrolled or will within 5 years
enroll at an eligible institution shall be entitled to
exercise the complete benefits specified in the Illinois prepaid tuition
contract.  All other contract holders shall receive an appropriate refund of
all contributions and accrued interest up to the time that the program is
discontinued.

(Source: P.A. 96-1282, eff. 7-26-10.)