SB0406enr 92nd General Assembly


92_SB0406enr

 
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 1        AN ACT in relation to higher education.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Illinois  Financial  Assistance  Act  for
 5    Nonpublic  Institutions  of  Higher  Learning  is  amended by
 6    changing Sections 3, 4, 5, and 7 as follows:

 7        (110 ILCS 210/3) (from Ch. 144, par. 1333)
 8        Sec.  3.   For  the  academic  year  beginning  in   2002
 9    September 1, 1977, institutional grants may shall be made for
10    that  and for each succeeding academic year to each nonpublic
11    institution of higher learning in  an  amount  determined  by
12    allocating  amounts  for  funding this Act among the eligible
13    institutions in accordance with a formula or  formulae  based
14    upon  one  or more of the following factors: on the number of
15    undergraduate degrees granted to students who  are  residents
16    of  the  State  of Illinois enrolled as students at each such
17    institution; the number of full-time equivalent undergraduate
18    students who are residents of the State of Illinois  enrolled
19    as students at each such institution; and the number of, with
20    double credit being given to the full-time equivalent of such
21    students   who   are   junior  or  senior  students  at  such
22    institutions.   The   number    of    full-time    equivalent
23    undergraduate   students   enrolled   at  eligible  nonpublic
24    institutions of higher learning shall be determined as of the
25    first day of the fourth week of classes  of  the  fall  term.
26    The   Board  of  Higher  Education  shall  establish  formula
27    allocations guidelines and  adopt  rules  necessary  for  the
28    administration of this Act.
29        Conditions  of institutional eligibility for these grants
30    shall include but need not be limited to the following:
31        (1)  That the governing board of the institution  possess
 
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 1    its own sovereignty.
 2        (2)  That   the   governing   board,   or  its  delegated
 3    institutional  officials,  possess  final  authority  in  all
 4    matters  of  local  control,  including  educational  policy,
 5    choice of personnel, determination of program, and  financial
 6    management.
 7        (3)  That  the  institution  possess and maintain an open
 8    policy with respect to race, creed and color as to  admission
 9    of students, appointment of faculty and employment of staff.
10        (4)  That  the  institution  be  able to show its current
11    financial stability and reasonable prospects for  its  future
12    stability.
13        (5)  That the institution not be operated for profit.
14        (6)  That the institution provide a full financial report
15    including a certified audit, and participate in the unit cost
16    study  and  other  studies conducted annually by the Board of
17    Higher Education.
18        (7)  If  required  by  rule  of  the  Board,   that   the
19    institution  submit to an additional annual external audit of
20    its enrollment records and nonsectarian use of funds.
21    (Source: P.A. 84-834.)

22        (110 ILCS 210/4) (from Ch. 144, par. 1334)
23        Sec.  4.   For  the  academic  year  beginning  in   2002
24    1971-1972  and  each  academic year thereafter, each eligible
25    institution of higher learning shall prepare and  certify  to
26    the Board in writing any information required by the Board to
27    justify  the  grants  of  Higher  Education,  on the basis of
28    enrollment at that institution on October 1 of that  year,  a
29    list  of  the  names,  addresses  and  classification of each
30    resident of Illinois enrolled  as  a  full-time  freshman  or
31    sophomore  and  of  each  resident  of Illinois enrolled as a
32    full-time junior or senior at that institution and a  similar
33    list   of   the  names,  addresses,  and  classifications  of
 
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 1    residents of Illinois  enrolled  as  part-time  freshmen  and
 2    sophomores,  and  as  part-time  juniors  and seniors at such
 3    institution, together with a certification of the  number  of
 4    credit  hours  for  which  such  students  are enrolled. This
 5    information certified list shall be signed and  furnished  to
 6    the   Board  by  the  chief  administrative  officer  of  the
 7    institution.
 8    (Source: P.A. 80-289.)

 9        (110 ILCS 210/5) (from Ch. 144, par. 1335)
10        Sec.  5.  The  Board  shall  prescribe  and  advise  such
11    institutions as to the form of certificate or certificates to
12    be submitted under Section 4 of this Act, and  promptly  upon
13    receipt  of  such  certificates  from  the institutions shall
14    certify to the  State  Comptroller  Treasurer  the  aggregate
15    amount  of the grant allocable to and to be paid to each such
16    institution.  The  Board  shall  examine   the   certificates
17    furnished  by  the  institutions and may require such further
18    data and information as the Board may request.  Upon  written
19    notice by the Board to any institution, the Board may examine
20    the  institution's student enrollment records for the purpose
21    of  verification,  amendment  or  correction  of   any   such
22    certificate.
23    (Source: P.A. 77-273.)

24        (110 ILCS 210/7) (from Ch. 144, par. 1337)
25        Sec.  7.  The  Board shall keep an accurate record of all
26    its activities under this Act and by February  15,  1972  and
27    each  year thereafter, shall make a report to its members, to
28    the Governor and to the General Assembly  Auditor  of  Public
29    Accounts,  such report to be a part of its annual report in a
30    form prescribed by its members, with the written approval  of
31    the Auditor of Public Accounts.
32    (Source: P.A. 77-273.)
 
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 1        Section  10.  The Health Services Education Grants Act is
 2    amended by changing Section 4 as follows:

 3        (110 ILCS 215/4) (from Ch. 111 1/2, par. 824)
 4        Sec. 4.  Grants may be made to medical, dental, pharmacy,
 5    optometry,  and  nursing  schools,  to  physician   assistant
 6    programs,  to  other health-related schools and programs, and
 7    to hospitals and clinical facilities used in  health  service
 8    training programs.
 9        Qualification  for grants shall be on the basis of either
10    the number of Illinois resident enrollees or  the  number  of
11    degrees  granted to students who are residents of this State,
12    an increase in the number of Illinois resident enrollees,  or
13    both.  The grant amount or proportion of increase required to
14    qualify shall be determined by the Board of Higher  Education
15    for  each  class of institution. However, in no case shall an
16    institution qualify for grants unless  the  increase  in  its
17    number  of  Illinois  resident enrollees is at least equal to
18    the increase in total enrollment made possible  through  such
19    grants.
20        At the discretion of the Board of Higher Education grants
21    may  be  made  for each class of institution in any or all of
22    the following forms:
23        (1)  Single nonrecurring grants for planning and  capital
24    expense  based  on  the  increase  in  the number of Illinois
25    resident enrollees;
26        (2)  Annual grants based on the increase in the number of
27    degrees granted to (a) Illinois resident  enrollees,  or  (b)
28    Illinois  resident  enrollees from minority racial and ethnic
29    groups, or both (a) and (b); and
30        (3)  Annual stabilization grants based on the  number  of
31    (a)  Illinois  residents  already  enrolled,  or (b) Illinois
32    residents already enrolled from minority  racial  and  ethnic
33    groups, or both (a) and (b).
 
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 1        In  awarding  grants  to  nursing schools and to hospital
 2    schools of nursing, the Board of Higher  Education  may  also
 3    consider   whether  the  nursing  program  is  located  in  a
 4    certified nurse shortage area.  For purposes of this  Section
 5    "certified  nurse  shortage  area" means an area certified by
 6    the Director of the Department of Public Health  as  a  nurse
 7    shortage  area  based  on the most reliable data available to
 8    the Director.
 9    (Source: P.A. 86-1032; 87-1087.)

10        Section  15.  The  Illinois  Consortium  for  Educational
11    Opportunity Act is amended by changing Section 9 as follows:

12        (110 ILCS 930/9) (from Ch. 144, par. 2309)
13        Sec. 9.   Terms  of  award.   After  a  person  has  been
14    accepted into the ICEOP, the individual shall be eligible for
15    an  annual  up  to  a  $10,000  award annually which shall be
16    renewable for up to an additional 3 years provided that he or
17    she makes satisfactory progress toward completing his or  her
18    degree. The Consortium Board shall determine the award amount
19    annually.
20    (Source: P.A. 84-785.)

21        Section  20.  The Higher Education Student Assistance Act
22    is amended by changing Sections 35, 113, and 145 as follows:

23        (110 ILCS 947/35)
24        Sec. 35. Monetary award program.
25        (a)  The  Commission  shall,  each  year,   receive   and
26    consider   applications   for  grant  assistance  under  this
27    Section.   Subject  to  a  separate  appropriation  for  such
28    purposes, an applicant is eligible for  a  grant  under  this
29    Section when the Commission finds that the applicant:
30             (1)  is  a  resident  of this State and a citizen or
 
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 1        permanent resident of the United States; and
 2             (2)  in the absence of  grant  assistance,  will  be
 3        deterred  by  financial considerations from completing an
 4        educational program at the qualified institution  of  his
 5        or her choice.
 6        (b)  The  Commission  shall  award renewals only upon the
 7    student's application and upon the Commission's finding  that
 8    the applicant:
 9             (1)  has remained a student in good standing;
10             (2)  remains a resident of this State; and
11             (3)  is  in  a financial situation that continues to
12        warrant assistance.
13        (c)  All grants shall be applicable only to  tuition  and
14    necessary  fee  costs  for  2  semesters  or 3 quarters in an
15    academic year.  Requests for summer term assistance  will  be
16    made  separately  and  shall  be  considered on an individual
17    basis according to Commission policy.   Each student  who  is
18    awarded  a grant under this Section and is enrolled in summer
19    school classes shall be eligible for a summer  school  grant.
20    The summer school grant amount shall not exceed the lesser of
21    50  percent  of the maximum annual grant amount authorized by
22    this Section or the actual cost of tuition and  fees  at  the
23    institution  at  which  the  student  is  enrolled  at  least
24    part-time.   For  the  regular  academic year, the Commission
25    shall determine the  grant  amount  for  each  full-time  and
26    part-time  student,  which  shall  be  the  smallest  of  the
27    following amounts:
28             (1)  $4,968  $4,740 for 2 semesters or 3 quarters of
29        full-time undergraduate enrollment or $2,484 $2,370 for 2
30        semesters  or  3  quarters  of  part-time   undergraduate
31        enrollment, or such lesser amount as the Commission finds
32        to be available; or
33             (2)  the  amount  which  equals the 2 semesters or 3
34        quarters  tuition  and  other  necessary  fees   required
 
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 1        generally   by   the   institution   of   all   full-time
 2        undergraduate  students,  or  in  the  case  of part-time
 3        students an amount of tuition and fees for 2 semesters or
 4        3 quarters which shall not exceed one-half the amount  of
 5        tuition and necessary fees generally charged to full-time
 6        undergraduate students by the institution; or
 7             (3)  such  amount  as  the  Commission  finds  to be
 8        appropriate  in  view  of   the   applicant's   financial
 9        resources.
10    "Tuition  and  other  necessary fees" as used in this Section
11    include the customary  charge  for  instruction  and  use  of
12    facilities  in general, and the additional fixed fees charged
13    for specified  purposes,  which  are  required  generally  of
14    nongrant  recipients  for  each academic period for which the
15    grant applicant actually enrolls, but  do  not  include  fees
16    payable  only  once  or  breakage  fees  and other contingent
17    deposits which are refundable  in  whole  or  in  part.   The
18    Commission  may prescribe, by rule not inconsistent with this
19    Section, detailed provisions concerning  the  computation  of
20    tuition and other necessary fees.
21        (d)  No  applicant,  including  those presently receiving
22    scholarship  assistance  under  this  Act,  is  eligible  for
23    monetary award program consideration  under  this  Act  after
24    receiving  a  baccalaureate  degree  or  the equivalent of 10
25    semesters or 15 quarters of award payments.   The  Commission
26    shall  determine when award payments for part-time enrollment
27    or interim or summer terms shall  be  counted  as  a  partial
28    semester or quarter of payment.
29        (e)  The  Commission, in determining the number of grants
30    to be offered, shall take into consideration past  experience
31    with  the  rate  of grant funds unclaimed by recipients.  The
32    Commission shall notify applicants that grant  assistance  is
33    contingent upon the availability of appropriated funds.
34        (f)  The   Commission   may  request  appropriations  for
 
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 1    deposit into the Monetary Award Program Reserve Fund.  Monies
 2    deposited into the Monetary Award Program Reserve Fund may be
 3    expended exclusively for one purpose: to make Monetary  Award
 4    Program  grants  to eligible students.  Amounts on deposit in
 5    the Monetary Award Program Reserve Fund may not exceed 2%  of
 6    the current annual State appropriation for the Monetary Award
 7    Program.
 8        The purpose of the Monetary Award Program Reserve Fund is
 9    to enable the Commission each year to assure as many students
10    as possible of their eligibility for a Monetary Award Program
11    grant  and to do so before commencement of the academic year.
12    Moneys deposited in this Reserve Fund are intended to enhance
13    the Commission's management of the  Monetary  Award  Program,
14    minimizing   the   necessity,  magnitude,  and  frequency  of
15    adjusting award amounts and ensuring that the annual Monetary
16    Award Program appropriation can be fully utilized.
17        (g)  The Commission shall determine  the  eligibility  of
18    and   make   grants   to  applicants  enrolled  at  qualified
19    for-profit institutions in accordance with the  criteria  set
20    forth   in  this  Section.   The  eligibility  of  applicants
21    enrolled at such for-profit institutions shall be limited  as
22    follows:
23             (1)  Beginning  with the academic year 1997, only to
24        eligible  first-time  freshmen  and  first-time  transfer
25        students who have attained an associate degree.
26             (2)  Beginning with the academic year 1998, only  to
27        eligible  freshmen  students,  transfer students who have
28        attained an associate degree, and students who receive  a
29        grant  under paragraph (1) for the academic year 1997 and
30        whose grants are being  renewed  for  the  academic  year
31        1998.
32             (3)  Beginning  with  the academic year 1999, to all
33        eligible students.
34    (Source: P.A. 90-122, eff.  7-17-97;  90-647,  eff.  7-24-98;
 
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 1    90-769,  eff.  8-14-98;  91-249,  eff.  7-22-99; 91-250, eff.
 2    7-22-99; 91-357, eff. 7-29-99; 91-747, eff. 7-1-00.)

 3        (110 ILCS 947/113)
 4        Sec.  113.   Federal  Student  Loan  Fund;  Student  Loan
 5    Operating Fund; Federal Reserve Recall Fund.  The  Commission
 6    shall  create the Federal Student Loan Fund, the Student Loan
 7    Operating Fund, and the Federal Reserve Recall Fund.  At  the
 8    request   of   the   Commission's   Executive  Director,  the
 9    Comptroller shall transfer  funds,  as  necessary,  from  the
10    Student  Assistance  Commission  Student  Loan  Fund into the
11    Federal Student Loan Fund, the Student Loan  Operating  Fund,
12    and the Federal Reserve Recall Fund.  On or before August 31,
13    2000,  the  Commission's Executive Director shall request the
14    Comptroller to transfer all funds from the Student Assistance
15    Commission Student Loan Fund into any of the following funds:
16    the Federal Student Loan Fund,  the  Student  Loan  Operating
17    Fund,  or  the  Federal Reserve Recall Fund.  On September 1,
18    2000, the Student Assistance Commission Student Loan Fund  is
19    abolished.   Any  future  liabilities  of this abolished fund
20    shall be assignable to the appropriate fund created as one of
21    its successors. At the request of the Commission's  Executive
22    Director,  the  Comptroller  shall  transfer  funds  from the
23    Federal Student Loan Fund into  the  Student  Loan  Operating
24    Fund.
25    (Source: P.A. 91-670, eff. 12-22-99.)

26        (110 ILCS 947/145)
27        Sec. 145. Issuance of Bonds.
28        (a)  The  Commission  has  power,  and is authorized from
29    time to time, to issue bonds (1) to make or acquire  eligible
30    loans,  (2) to refund the bonds of the Commission, or (3) for
31    a combination of such purposes. The Commission shall not have
32    outstanding at any one time bonds in an  aggregate  principal
 
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 1    amount  exceeding  $3,500,000,000  $2,100,000,000,  excluding
 2    bonds issued to refund the bonds of the Commission.
 3        The Commission is authorized to use the proceeds from the
 4    sale  of  bonds  issued  pursuant  to  this  Act  to fund the
 5    reserves created therefor, including a reserve  for  interest
 6    coming  due  on the bonds for one year following the issuance
 7    of the bonds, as provided in the  resolution  or  resolutions
 8    authorizing  the  bonds  and to pay the necessary expenses of
 9    issuing the bonds,  including  but  not  limited  to,  legal,
10    printing, and consulting fees.
11        (b)  The  Commission  has  power,  and is authorized from
12    time to time, to issue refunding bonds (1) to  refund  unpaid
13    matured   bonds;   (2)   to  refund  unpaid  matured  coupons
14    evidencing interest upon its unpaid matured bonds; and (3) to
15    refund interest at the coupon rate upon  its  unpaid  matured
16    bonds that has accrued since the maturity of those bonds. The
17    refunding bonds may be exchanged for the bonds to be refunded
18    on  a  par  for par basis of the bonds, interest coupons, and
19    interest not represented by coupons, if any, or may  be  sold
20    at  not less than par or may be exchanged in part and sold in
21    part; and the proceeds received at any  such  sale  shall  be
22    used  to  pay  the  bonds, interest coupons, and interest not
23    represented by coupons, if any. Bonds  and  interest  coupons
24    which  have  been  received  in  exchange  or  paid  shall be
25    cancelled and the obligation for interest, not represented by
26    coupons which have been discharged, shall be evidenced  by  a
27    written acknowledgement of the exchange or payment thereof.
28        (c)  The  Commission  has  power,  and is authorized from
29    time to time,  to  also  issue  refunding  bonds  under  this
30    Section,  to  refund  bonds  at or prior to their maturity or
31    which  by  their  terms  are  subject  to  redemption  before
32    maturity, or both, in an amount necessary to refund  (1)  the
33    principal  amount  of  the  bonds  to  be  refunded,  (2) the
34    interest to accrue up to and including the maturity  date  or
 
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 1    dates thereof, and (3) the applicable redemption premiums, if
 2    any. Those refunding bonds may be exchanged for not less than
 3    an  equal  principal amount of bonds to be refunded or may be
 4    sold and the proceeds received at the sale thereof (excepting
 5    the  accrued  interest  received)   used  to  complete   such
 6    refunding,  including  the  payment  of the costs of issuance
 7    thereof.
 8        (d)  The bonds shall be authorized by resolution  of  the
 9    Commission  and may be issued in one or more series, may bear
10    such  date  or  dates,  may  be  in  such   denomination   or
11    denominations, may mature at such time or times not exceeding
12    40  years  from  the  respective dates thereof, may mature in
13    such amount or amounts, may bear interest  at  such  rate  or
14    rates,  may be in such form either coupon or registered as to
15    principal only or as to  both  principal  and  interest,  may
16    carry  such registration privileges (including the conversion
17    of a fully registered bond to a coupon bond or bonds and  the
18    conversion  of a coupon bond to a fully registered bond), may
19    be executed in such manner,  may  be  made  payable  in  such
20    medium  of payment, at such place or places within or without
21    the State, and may be subject to  such  terms  of  redemption
22    prior  to  their expressed maturity, with or without premium,
23    as the resolution or other resolutions may provide.  Proceeds
24    from the sale of the bonds may be invested as the  resolution
25    or  resolutions  and  as the Commission from time to time may
26    provide.  All bonds issued under this Act shall  be  sold  in
27    the manner and at such price as the Commission may deem to be
28    in  the  best  interest  of  the  public.  The resolution may
29    provide that the bonds be executed with one manual  signature
30    and  that  other  signatures  may be printed, lithographed or
31    engraved thereon.
32        The Commission shall not be authorized to create and  the
33    bonds  shall  not  in  any event constitute State debt of the
34    State of Illinois within the meaning of the  Constitution  or
 
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 1    statutes  of  the State of Illinois, and the same shall be so
 2    stated upon the face of each bond.  The source of payment for
 3    the bonds shall be stated on the face of each bond.
 4        The issuance of bonds under this Act is in  all  respects
 5    for  the  benefit of the People of the State of Illinois, and
 6    in consideration thereof the bonds issued  pursuant  to  this
 7    Act  and the income therefrom shall be free from all taxation
 8    by the  State  or  its  political  subdivisions,  except  for
 9    estate,  transfer,  and  inheritance  taxes.  For purposes of
10    Section 250 of the Illinois Income Tax Act, the exemption  of
11    the  income  from bonds issued under this Act shall terminate
12    after all of the bonds have been paid.  The  amount  of  such
13    income  that  shall  be  added  and  then  subtracted  on the
14    Illinois income tax return of a taxpayer, pursuant to Section
15    203 of the Illinois Income Tax  Act,  from  federal  adjusted
16    gross  income or federal taxable income in computing Illinois
17    base income shall be the interest net  of  any  bond  premium
18    amortization.
19    (Source: P.A. 89-460, eff. 5-24-96; 90-281, eff. 7-31-97.)

20        Section  99.  Effective date.  This Act takes effect upon
21    becoming law, except that (i) in Section 20,  the  provisions
22    changing   Section   35   of  the  Higher  Education  Student
23    Assistance Act take effect on July 1, 2001 and (ii)  Sections
24    5, 10, and 15 take effect on July 1, 2002.
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State of Illinois 92nd General Assembly Legislation

State of Illinois
92^nd General Assembly
Legislation
