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91_SB1570 LRB9111820NTks 1 AN ACT concerning a community scholarship foundation 2 program. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 1. Short title. This Act may be cited as the 6 Community Scholarship Foundation Program Act. 7 Section 5. Findings and purpose. The General Assembly 8 finds that making higher education opportunities available 9 to Illinois residents is of great importance to the social 10 and economic well-being of this State. The General Assembly 11 further finds that some potential students, because of 12 family and social circumstances, economic distress of their 13 community, and other reasons, do not pursue a higher 14 education. It is in the interest of the State to support 15 the development of scholarship programs that help these 16 citizens attend a college, university, or 17 vocational-technical institute in the State. The purpose of 18 this Act is to create a community scholarship foundation 19 program as a pilot project, with the intent of encouraging 20 local communities to develop scholarship programs that assist 21 their residents in obtaining a higher education. 22 Section 10. Definitions. In this Act, unless the 23 context clearly requires otherwise: 24 "Commission" means the Illinois Student Assistance 25 Commission. 26 "Foundation" means a community scholarship foundation 27 found to be eligible for State funds under Section 25 of 28 this Act. 29 "Institution of higher education" means a degree-granting 30 college or university or public vocation-technical institute, -2- LRB9111820NTks 1 in this State, that is a member institution of an 2 accrediting association recognized by rule of the Commission 3 for the purposes of this Act. 4 "Program" means the Community Scholarship Foundation 5 Program. 6 Section 15. Creation of Program. 7 (a) The Community Scholarship Foundation Program is 8 hereby established. Subject to the availability of funds, 9 the Commission shall award a foundation $2,000 upon 10 demonstration to the Commission that the foundation has 11 raised $2,000 for scholarships or the creation of an 12 endowment for scholarships. 13 (b) Awards made under this Section shall be used for 14 scholarships to community residents who qualify as resident 15 students, as determined by the Commission, to attend 16 institutions of higher education. 17 Section 20. Goals. 18 (a) The goal of the Program is the development 19 throughout the State of community organizations that raise 20 scholarship funds for local residents. 21 (b) In making awards under Section 15 this Act, the 22 Commission shall take into consideration, but not be limited 23 to, the following additional goals: 24 (1) increasing higher education participation for 25 residents of economically distressed areas and other 26 areas of the State with low participation rates and 27 enhancing community support for residents of these areas 28 who desire a higher education; 29 (2) creating scholarship opportunities for students 30 who do not meet the criteria for traditional 31 scholarships; and 32 (3) creating scholarship opportunities for students -3- LRB9111820NTks 1 who plan to focus their studies in the humanities and 2 arts. 3 Section 25. Eligibility. To qualify as a community 4 scholarship foundation eligible for State money under this 5 Act, an organization must meet the following criteria: 6 (1) have a tax-exempt status under Section 501(c) 7 of the Internal Revenue Code, be a publicly supported 8 organization under Section 170(b)(1)(A)(vi) of the 9 Internal Revenue Code, and not be a private foundation 10 under Section 509(a) of the Internal Revenue Code; 11 (2) be organized after the effective date of this 12 Act for the primary purpose of raising and awarding 13 scholarships to community residents who qualify as 14 resident students, as determined by the Commission, to 15 attend institutions of higher education; 16 (3) solicit broad-based community support in its 17 fundraising activities and be representative of the 18 community in its organization; 19 (4) not be duplicative of other foundations; 20 (5) be organized and operated by volunteers; 21 (6) grant scholarships without regard to age, sex, 22 marital status, race, creed, color, religion, national 23 origin, or the presence of any mental, sensory, or 24 physical handicap; and 25 (7) meet other criteria established by the 26 Commission to meet the goals of the Program specified in 27 Section 20 of this Act. 28 Section 30. Administration; rules; assistance. The 29 Commission shall administer the Program. The Commission 30 shall adopt rules as appropriate to implement the Program and 31 shall solicit assistance from public and private sources to 32 publicize the Program. The Commission may create an advisory -4- LRB9111820NTks 1 committee to assist in making determinations under this Act. 2 Section 35. Community Scholarship Foundation Fund. The 3 Community Scholarship Foundation Fund is created as a special 4 fund in the State treasury. All money appropriated for the 5 Program and all money otherwise received for this purpose 6 shall be deposited in this Fund. All money in this Fund 7 shall be used, subject to appropriation, by the Commission 8 for awards and administration of the Program. 9 Section 40. Gifts; grants; endowments. The Commission 10 may solicit and receive such gifts, grants, and endowments 11 from public or private sources as may be made from time to 12 time, in trust or otherwise, for the use and benefit of the 13 purposes of the Program and may expend the same or any income 14 therefrom according to the terms of the gifts, grants, or 15 endowments. 16 Section 45. Report. By December 1, 2002, the Commission 17 shall submit a report to the Governor, the House of 18 Representatives Higher Education Committee, and the Senate 19 Education Committee. The report shall examine the results 20 and effectiveness of the Program and shall recommend whether 21 the Program should be continued and any modifications to the 22 Program. 23 Section 905. The State Finance Act is amended by adding 24 Section 5.541 as follows: 25 (30 ILCS 105/5.541 new) 26 Sec. 5.541. The Community Scholarship Foundation Fund. 27 Section 990. Repealer. This Act is repealed on June 30, 28 2003. -5- LRB9111820NTks 1 Section 999. Effective date. This Act takes effect on 2 July 1, 2000.