Senate Sponsors: WATSON-MAITLAND-LUECHTEFELD-BOMKE-MYERS,J, MAHAR, RADOGNO, BURZYNSKI, SIEBEN, DUDYCZ, O'MALLEY, BERMAN, KARPIEL, DILLARD, PARKER, CRONIN, WALSH,T, BOWLES, SEVERNS, WELCH, OBAMA AND HALVORSON. House Sponsors: BURKE-SANTIAGO-ERWIN-DURKIN-WOOD Short description: ILL PREPAID TUITION ACT Synopsis of Bill as introduced: Amends the Higher Education Student Assistance Act. Provides that the Illinois Student Assistance Commission may administer a program of grant assistance as authorized by other statutes that may be referenced in the Act. Provides that the Commission may receive, hold, and disburse funds made available by individuals for the purposes for which those funds were made available. SENATE AMENDMENT NO. 1. Deletes reference to: 110 ILCS 947/20 Adds reference to: New Act 5 ILCS 140/7 from Ch. 116, par. 207 Deletes everything. Creates the Illinois Prepaid Tuition Act and amends the Freedom of Information Act. Establishes the Illinois prepaid tuition program under which a purchaser enters into and makes the payments required under a prepaid tuition contract in order to provide a higher education for the beneficiary of the contract. The contractual payments must be made in advance of enrollment and assure payment upon the beneficiary's enrollment in a public university or community college of tuition and fee costs for the number of credit hours purchased under the contract. Provides for administration of the program by the Illinois Student Assistance Commission in conjunction with a 3-member board. Specifies provisions required to be included in the prepaid tuition contracts. Provides for deposit of contract payments into the Prepaid Tuition Trust Fund. Requires the tuition and fee payments due under the contracts to be made from the Trust Fund. Makes the contracts general obligations of the State and provides for continuing appropriations to discharge those obligations if moneys in the Trust Fund are insufficient. Contains other related provisions, including provisions under which information relating to the purchasers and qualified beneficiaries of prepaid tuition contracts is exempted from inspection, copying or disclosure under the Freedom of Information Act. Effective immediately. HOUSE AMENDMENT NO. 1. Deletes provisions in the engrossed bill that create a Prepaid Tuition Review Board and provides for the performance of what were to be the responsibilities of that Board by the Illinois Student Assistance Commission or an advisory panel. Provides that the advisory panel shall give advice and counsel to the Commission, which is to administer the prepaid tuition program. Provides that the advisory panel shall consist of 7 members appointed by the Commission, including one recommended by the State Treasurer, one recommended by the State Comptroller, one recommended by the Director of the Bureau of the Budget, and one recommended by the Executive Director of the Board of Higher Education. Revises the definition of a MAP-eligible institution. Provides that the start-up period for the program (during which administrative costs are to be paid by appropriations from the General Revenue Fund) shall be up to 18 months (instead of 12 months). Provides that each appropriation constitutes a loan that is to be repaid to the General Revenue Fund within 5 years by the Commission from prepaid tuition program contributions. Revises provisions relative to the conversion of prepaid tuition contract benefits for use at an out-of-state college or university and provides that the benefits of such a contract may not be used at for-profit educational institutions that are located outside of Illinois. HOUSE AMENDMENT NO. 2. Deletes provisions making the prepaid tuition contracts direct obligations of the State for the payment of which the full faith and credit of the State are pledged. Also deletes a continuing appropriation provision mandating transfer to the Prepaid Tuition Trust Fund of amounts necessary to discharge obligations under the contracts if the amounts appropriated by the General Assembly for that purpose are insufficient. Provides instead for certification by the Illinois Student Assistance Commission to the Governor, Board of Higher Education, President of the Senate, and Speaker of the House of Representatives of any shortfall in the ability to meet contractual obligations in a succeeding fiscal year, and requires the Governor to request the General Assembly to make an appropriation of the amount necessary to discharge all contractual obligations that could not otherwise be met. FISCAL NOTE, H-AMS 1 & 2 (Ill. Student Assistance Comm.) Minimal, if any, fiscal impact on State revenues; one-time start-up costs would total $1.75 M during FY98 and FY99. STATE DEBT NOTE, H-AMS 1 & 2 No direct impact on the level of State bonded indebtedness. STATE MANDATES FISCAL NOTE, H-AMS 1 & 2 Fails to create a State mandate. GOVERNOR'S AMENDATORY VETO MESSAGE Recommends, with respect to those situations in which there are insufficient moneys in the Prepaid Tuition Trust Fund to pay contrac- tual obligations in the next succeeding fiscal year and the Illinois Student Assistance Commission certifies to the Governor and others the amount necessary to meet those obligations, replacing a provision that requires the Governor to request the General Assembly to transfer into the Illinois Prepaid Tuition Trust Fund the amount necessary to fully pay and discharge contractual obligations arising under the Act that otherwise could not be discharged with a provision that requires the Governor, in those situations, to submit the amount so certified to the General Assembly as soon as practicable and before the end of the current State fiscal year. Last action on Bill: PUBLIC ACT.............................. 90-0546 Last action date: 97-12-01 Location: Senate Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 2 SENATE - 1 END OF INQUIRY Full Text Bill Status