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92_SB0406enr SB406 Enrolled LRB9202508NTsb 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 9September 1, 1977, institutional grants mayshallbe 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:onthe 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, with20double credit being given to thefull-time equivalent of such 21 students who are junior or senior students at such 22 institutions.The number of full-time equivalent23undergraduate students enrolled at eligible nonpublic24institutions of higher learning shall be determined as of the25first day of the fourth week of classes of the fall term.26 The Board of Higher Education shall establish formula 27 allocationsguidelinesand 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 SB406 Enrolled -2- LRB9202508NTsb 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 241971-1972and 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 grantsof Higher Education, on the basis of28enrollment at that institution on October 1 of that year, a29list of the names, addresses and classification of each30resident of Illinois enrolled as a full-time freshman or31sophomore and of each resident of Illinois enrolled as a32full-time junior or senior at that institution and a similar33list of the names, addresses, and classifications ofSB406 Enrolled -3- LRB9202508NTsb 1residents of Illinois enrolled as part-time freshmen and2sophomores, and as part-time juniors and seniors at such3institution, together with a certification of the number of4credit hours for which such students are enrolled. This 5 informationcertified listshall 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 ComptrollerTreasurerthe 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 andby February 15, 1972 and27each year thereafter,shall make a report to its members, to 28 the Governor and to the General AssemblyAuditor of Public29Accounts, such report to be a part of its annual reportin a30form prescribed by its members, with the written approval of31the Auditor of Public Accounts. 32 (Source: P.A. 77-273.) SB406 Enrolled -4- LRB9202508NTsb 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,12an increase in the number of Illinois resident enrollees,or 13 both. The grant amountor proportion of increase required to14qualifyshall be determined by the Board of Higher Education 15 for each class of institution.However, in no case shall an16institution qualify for grants unless the increase in its17number of Illinois resident enrollees is at least equal to18the increase in total enrollment made possible through such19grants.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 theincrease in thenumber 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 residentsalreadyenrolled, or (b) Illinois 32 residentsalreadyenrolled from minority racial and ethnic 33 groups, or both (a) and (b). SB406 Enrolled -5- LRB9202508NTsb 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 annualup to a $10,000awardannuallywhich 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 SB406 Enrolled -6- LRB9202508NTsb 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$4,740for 2 semesters or 3 quarters of 29 full-time undergraduate enrollment or $2,484$2,370for 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 SB406 Enrolled -7- LRB9202508NTsb 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 SB406 Enrolled -8- LRB9202508NTsb 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; SB406 Enrolled -9- LRB9202508NTsb 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 SB406 Enrolled -10- LRB9202508NTsb 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 SB406 Enrolled -11- LRB9202508NTsb 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 SB406 Enrolled -12- LRB9202508NTsb 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.