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| [ Senate Amendment 001 ] |
91_HB0851ham001
LRB9102936PTpkam
1 AMENDMENT TO HOUSE BILL 851
2 AMENDMENT NO. . Amend House Bill 851 by replacing
3 the title with the following:
4 "AN ACT to amend the State Treasurer Act by adding
5 Section 16.5."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The State Treasurer Act is amended by adding
9 Section 16.5 as follows:
10 (15 ILCS 505/16.5 new)
11 Sec. 16.5. College Savings Fund. The State Treasurer
12 may establish and administer a College Savings Fund to
13 supplement and enhance the investment opportunities otherwise
14 available to Illinois residents seeking to save money to pay
15 the costs of higher education for themselves and their
16 families. The Treasurer, in administering the College
17 Savings Fund, may receive moneys from Illinois residents into
18 the fund, hold the moneys in individual college savings
19 accounts, and invest moneys within the individual college
20 savings accounts on behalf of Illinois residents.
21 The Treasurer may invest individual college savings
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1 accounts in the same manner, in the same types of
2 investments, and subject to the same limitations provided for
3 the investment of funds by the Illinois State Board of
4 Investment. The Treasurer shall develop, publish, and
5 implement an investment policy covering the management of the
6 individual college savings accounts within the College
7 Savings Fund. The policy shall be published (i) at least
8 once each year in at least one newspaper of general
9 circulation in both Springfield and Chicago and (ii) each
10 year as part of the audit of the College Savings Fund by the
11 Auditor General that shall be distributed to all
12 participants. The Treasurer shall notify all participants in
13 writing and shall publish in a newspaper of general
14 circulation in both Chicago and Springfield any changes to
15 the previously published investment policy at least 30
16 calendar days before implementing the policy. Any investment
17 policy adopted by the Treasurer shall be reviewed and updated
18 if necessary within 90 days following the date that the State
19 Treasurer takes office.
20 The Treasurer may adopt rules as he or she deems
21 necessary for the efficient administration of the College
22 Savings Fund, including specification of minimum and maximum
23 amounts that may be deposited, minimum and maximum periods of
24 time for which deposits may be retained in the fund, and
25 conditions under which penalties will be assessed for refunds
26 of earnings that are not used for qualified higher education
27 expenses. The rules shall provide for the administration
28 expenses of the Fund to be paid from its earnings and for the
29 interest earnings in excess of the expenses to be credited or
30 paid monthly to the several participants in the Fund in a
31 manner that equitably reflects the differing amounts of their
32 respective investments in the Fund and the differing periods
33 of time for which the amounts were in the custody of the
34 Fund.
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1 Upon creating a College Savings Fund, the State Treasurer
2 shall give bond with 2 or more sufficient sureties that are
3 payable to and for the benefit of the participants in the
4 College Savings Fund, in the penal sum of $1,000,000,
5 conditioned upon the faithful discharge of his or her duties
6 in relation to the College Savings Fund.
7 Section 99. Effective date. This Act takes effect upon
8 becoming law.".