Rep. Jim Durkin

Filed: 3/6/2012

 

 


 

 


 
09700HB4116ham001LRB097 15595 AMC 67130 a

1
AMENDMENT TO HOUSE BILL 4116

2    AMENDMENT NO. ______. Amend House Bill 4116 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Governmental Ethics Act is amended
5by changing Sections 4A-101, 4A-102, 4A-106, and 4A-107 as
6follows:
 
7    (5 ILCS 420/4A-101)  (from Ch. 127, par. 604A-101)
8    Sec. 4A-101. Persons required to file. The following
9persons shall file verified written statements of economic
10interests, as provided in this Article:
11        (a) Members of the General Assembly and candidates for
12    nomination or election to the General Assembly.
13        (b) Persons holding an elected office in the Executive
14    Branch of this State, and candidates for nomination or
15    election to these offices.
16        (c) Members of a Commission or Board created by the

 

 

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1    Illinois Constitution, and candidates for nomination or
2    election to such Commission or Board.
3        (d) Persons whose appointment to office is subject to
4    confirmation by the Senate and persons appointed by the
5    Governor to any other position on a board or commission
6    described in subsection (a) of Section 15 of the
7    Gubernatorial Boards and Commissions Act.
8        (e) Holders of, and candidates for nomination or
9    election to, the office of judge or associate judge of the
10    Circuit Court and the office of judge of the Appellate or
11    Supreme Court.
12        (f) Persons who are employed by any branch, agency,
13    authority or board of the government of this State,
14    including but not limited to, the Illinois State Toll
15    Highway Authority, the Illinois Housing Development
16    Authority, the Illinois Community College Board, and
17    institutions under the jurisdiction of the Board of
18    Trustees of the University of Illinois, Board of Trustees
19    of Southern Illinois University, Board of Trustees of
20    Chicago State University, Board of Trustees of Eastern
21    Illinois University, Board of Trustees of Governor's State
22    University, Board of Trustees of Illinois State
23    University, Board of Trustees of Northeastern Illinois
24    University, Board of Trustees of Northern Illinois
25    University, Board of Trustees of Western Illinois
26    University, or Board of Trustees of the Illinois

 

 

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1    Mathematics and Science Academy, and are compensated for
2    services as employees and not as independent contractors
3    and who:
4            (1) are, or function as, the head of a department,
5        commission, board, division, bureau, authority or
6        other administrative unit within the government of
7        this State, or who exercise similar authority within
8        the government of this State;
9            (2) have direct supervisory authority over, or
10        direct responsibility for the formulation,
11        negotiation, issuance or execution of contracts
12        entered into by the State in the amount of $5,000 or
13        more;
14            (3) have authority for the issuance or
15        promulgation of rules and regulations within areas
16        under the authority of the State;
17            (4) have authority for the approval of
18        professional licenses;
19            (5) have responsibility with respect to the
20        financial inspection of regulated nongovernmental
21        entities;
22            (6) adjudicate, arbitrate, or decide any judicial
23        or administrative proceeding, or review the
24        adjudication, arbitration or decision of any judicial
25        or administrative proceeding within the authority of
26        the State;

 

 

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1            (7) have supervisory responsibility for 20 or more
2        employees of the State;
3            (8) negotiate, assign, authorize, or grant naming
4        rights or sponsorship rights regarding any property or
5        asset of the State, whether real, personal, tangible,
6        or intangible; or
7            (9) have responsibility with respect to the
8        procurement of goods or services.
9        (g) Persons who are elected to office in a unit of
10    local government, and candidates for nomination or
11    election to that office, including regional
12    superintendents of school districts.
13        (h) Persons appointed to the governing board of a unit
14    of local government, or of a special district, and persons
15    appointed to a zoning board, or zoning board of appeals, or
16    to a regional, county, or municipal plan commission, or to
17    a board of review of any county, and persons appointed to
18    the Board of the Metropolitan Pier and Exposition Authority
19    and any Trustee appointed under Section 22 of the
20    Metropolitan Pier and Exposition Authority Act, and
21    persons appointed to a board or commission of a unit of
22    local government who have authority to authorize the
23    expenditure of public funds. This subsection does not apply
24    to members of boards or commissions who function in an
25    advisory capacity.
26        (i) Persons who are employed by a unit of local

 

 

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1    government and are compensated for services as employees
2    and not as independent contractors and who:
3            (1) are, or function as, the head of a department,
4        division, bureau, authority or other administrative
5        unit within the unit of local government, or who
6        exercise similar authority within the unit of local
7        government;
8            (2) have direct supervisory authority over, or
9        direct responsibility for the formulation,
10        negotiation, issuance or execution of contracts
11        entered into by the unit of local government in the
12        amount of $1,000 or greater;
13            (3) have authority to approve licenses and permits
14        by the unit of local government; this item does not
15        include employees who function in a ministerial
16        capacity;
17            (4) adjudicate, arbitrate, or decide any judicial
18        or administrative proceeding, or review the
19        adjudication, arbitration or decision of any judicial
20        or administrative proceeding within the authority of
21        the unit of local government;
22            (5) have authority to issue or promulgate rules and
23        regulations within areas under the authority of the
24        unit of local government; or
25            (6) have supervisory responsibility for 20 or more
26        employees of the unit of local government.

 

 

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1        (j) Persons on the Board of Trustees of the Illinois
2    Mathematics and Science Academy.
3        (k) Persons employed by a school district in positions
4    that require that person to hold an administrative or a
5    chief school business official endorsement.
6        (l) Special government agents. A "special government
7    agent" is a person who is directed, retained, designated,
8    appointed, or employed, with or without compensation, by or
9    on behalf of a statewide executive branch constitutional
10    officer to make an ex parte communication under Section
11    5-50 of the State Officials and Employees Ethics Act or
12    Section 5-165 of the Illinois Administrative Procedure
13    Act.
14        (m) Members of the board of commissioners of any flood
15    prevention district created under the Flood Prevention
16    District Act or the Beardstown Regional Flood Prevention
17    District Act.
18        (n) Members of the board of any retirement system or
19    investment board established under the Illinois Pension
20    Code, if not required to file under any other provision of
21    this Section.
22        (o) Members of the board of any pension fund
23    established under the Illinois Pension Code, if not
24    required to file under any other provision of this Section.
25        (p) Members of the investment advisory panel created
26    under Section 20 of the Illinois Prepaid Tuition Act.

 

 

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1    This Section shall not be construed to prevent any unit of
2local government from enacting financial disclosure
3requirements that mandate more information than required by
4this Act.
5(Source: P.A. 96-6, eff. 4-3-09; 96-543, eff. 8-17-09; 96-555,
6eff. 8-18-09; 96-1000, eff. 7-2-10; 97-309, eff. 8-11-11.)
 
7    (5 ILCS 420/4A-102)  (from Ch. 127, par. 604A-102)
8    Sec. 4A-102. The statement of economic interests required
9by this Article shall include the economic interests of the
10person making the statement as provided in this Section. The
11interest (if constructively controlled by the person making the
12statement) of a spouse or any other party, shall be considered
13to be the same as the interest of the person making the
14statement. Campaign receipts shall not be included in this
15statement.
16        (a) The following interests shall be listed by all
17    persons required to file:
18            (1) The name, address and type of practice of any
19        professional organization or individual professional
20        practice in which the person making the statement was
21        an officer, director, associate, partner or
22        proprietor, or served in any advisory capacity, from
23        which income in excess of $1200 was derived during the
24        preceding calendar year;
25            (2) The nature of professional services (other

 

 

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1        than services rendered to the unit or units of
2        government in relation to which the person is required
3        to file) and the nature of the entity to which they
4        were rendered if fees exceeding $5,000 were received
5        during the preceding calendar year from the entity for
6        professional services rendered by the person making
7        the statement.
8            (3) The identity (including the address or legal
9        description of real estate) of any capital asset from
10        which a capital gain of $5,000 or more was realized in
11        the preceding calendar year.
12            (4) The name of any unit of government which has
13        employed the person making the statement during the
14        preceding calendar year other than the unit or units of
15        government in relation to which the person is required
16        to file.
17            (5) The name of any entity from which a gift or
18        gifts, or honorarium or honoraria, valued singly or in
19        the aggregate in excess of $500, was received during
20        the preceding calendar year.
21        (b) The following interests shall also be listed by
22    persons listed in items (a) through (f), item (l), and item
23    (n), and item (p) of Section 4A-101:
24            (1) The name and instrument of ownership in any
25        entity doing business in the State of Illinois, in
26        which an ownership interest held by the person at the

 

 

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1        date of filing is in excess of $5,000 fair market value
2        or from which dividends of in excess of $1,200 were
3        derived during the preceding calendar year. (In the
4        case of real estate, location thereof shall be listed
5        by street address, or if none, then by legal
6        description). No time or demand deposit in a financial
7        institution, nor any debt instrument need be listed;
8            (2) Except for professional service entities, the
9        name of any entity and any position held therein from
10        which income of in excess of $1,200 was derived during
11        the preceding calendar year, if the entity does
12        business in the State of Illinois. No time or demand
13        deposit in a financial institution, nor any debt
14        instrument need be listed.
15            (3) The identity of any compensated lobbyist with
16        whom the person making the statement maintains a close
17        economic association, including the name of the
18        lobbyist and specifying the legislative matter or
19        matters which are the object of the lobbying activity,
20        and describing the general type of economic activity of
21        the client or principal on whose behalf that person is
22        lobbying.
23        (c) The following interests shall also be listed by
24    persons listed in items (g), (h), (i), and (o) of Section
25    4A-101:
26            (1) The name and instrument of ownership in any

 

 

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1        entity doing business with a unit of local government
2        in relation to which the person is required to file if
3        the ownership interest of the person filing is greater
4        than $5,000 fair market value as of the date of filing
5        or if dividends in excess of $1,200 were received from
6        the entity during the preceding calendar year. (In the
7        case of real estate, location thereof shall be listed
8        by street address, or if none, then by legal
9        description). No time or demand deposit in a financial
10        institution, nor any debt instrument need be listed.
11            (2) Except for professional service entities, the
12        name of any entity and any position held therein from
13        which income in excess of $1,200 was derived during the
14        preceding calendar year if the entity does business
15        with a unit of local government in relation to which
16        the person is required to file. No time or demand
17        deposit in a financial institution, nor any debt
18        instrument need be listed.
19            (3) The name of any entity and the nature of the
20        governmental action requested by any entity which has
21        applied to a unit of local government in relation to
22        which the person must file for any license, franchise
23        or permit for annexation, zoning or rezoning of real
24        estate during the preceding calendar year if the
25        ownership interest of the person filing is in excess of
26        $5,000 fair market value at the time of filing or if

 

 

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1        income or dividends in excess of $1,200 were received
2        by the person filing from the entity during the
3        preceding calendar year.
4    For the purposes of this Section, the unit of local
5government in relation to which a person required to file under
6item (o) of Section 4A-101 shall be the unit of local
7government that contributes to the pension fund of which such
8person is a member of the board.
9(Source: P.A. 96-6, eff. 4-3-09.)
 
10    (5 ILCS 420/4A-106)  (from Ch. 127, par. 604A-106)
11    Sec. 4A-106. The statements of economic interests required
12of persons listed in items (a) through (f), item (j), item (l),
13and item (n), and item (p) of Section 4A-101 shall be filed
14with the Secretary of State. The statements of economic
15interests required of persons listed in items (g), (h), (i),
16(k), and (o) of Section 4A-101 shall be filed with the county
17clerk of the county in which the principal office of the unit
18of local government with which the person is associated is
19located. If it is not apparent which county the principal
20office of a unit of local government is located, the chief
21administrative officer, or his or her designee, has the
22authority, for purposes of this Act, to determine the county in
23which the principal office is located. On or before February 1
24annually, (1) the chief administrative officer of any State
25agency in the executive, legislative, or judicial branch

 

 

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1employing persons required to file under item (f) or item (l)
2of Section 4A-101 and the chief administrative officer of a
3board or panel described in item (n) or (p) of Section 4A-101
4shall certify to the Secretary of State the names and mailing
5addresses of those persons, and (2) the chief administrative
6officer, or his or her designee, of each unit of local
7government with persons described in items (h), (i) and (k) and
8a board described in item (o) of Section 4A-101 shall certify
9to the appropriate county clerk a list of names and addresses
10of persons described in items (h), (i), (k), and (o) of Section
114A-101 that are required to file. In preparing the lists, each
12chief administrative officer, or his or her designee, shall set
13out the names in alphabetical order.
14    On or before April 1 annually, the Secretary of State shall
15notify (1) all persons whose names have been certified to him
16under items (f), (l), and (n), and (p) of Section 4A-101, and
17(2) all persons described in items (a) through (e) and item (j)
18of Section 4A-101, other than candidates for office who have
19filed their statements with their nominating petitions, of the
20requirements for filing statements of economic interests. A
21person required to file with the Secretary of State by virtue
22of more than one item among items (a) through (f) and items
23(j), (l), and (n), and (p) shall be notified of and is required
24to file only one statement of economic interests relating to
25all items under which the person is required to file with the
26Secretary of State.

 

 

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1    On or before April 1 annually, the county clerk of each
2county shall notify all persons whose names have been certified
3to him under items (g), (h), (i), (k), and (o) of Section
44A-101, other than candidates for office who have filed their
5statements with their nominating petitions, of the
6requirements for filing statements of economic interests. A
7person required to file with a county clerk by virtue of more
8than one item among items (g), (h), (i), (k), and (o) shall be
9notified of and is required to file only one statement of
10economic interests relating to all items under which the person
11is required to file with that county clerk.
12    Except as provided in Section 4A-106.1, the notices
13provided for in this Section shall be in writing and deposited
14in the U.S. Mail, properly addressed, first class postage
15prepaid, on or before the day required by this Section for the
16sending of the notice. Alternatively, a county clerk may send
17the notices electronically to all persons whose names have been
18thus certified to him under item (h), (i), or (k) of Section
194A-101. A certificate executed by the Secretary of State or
20county clerk attesting that he or she has sent the notice by
21the means permitted by this Section constitutes prima facie
22evidence thereof.
23    From the lists certified to him under this Section of
24persons described in items (g), (h), (i), (k), and (o) of
25Section 4A-101, the clerk of each county shall compile an
26alphabetical listing of persons required to file statements of

 

 

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1economic interests in his office under any of those items. As
2the statements are filed in his office, the county clerk shall
3cause the fact of that filing to be indicated on the
4alphabetical listing of persons who are required to file
5statements. Within 30 days after the due dates, the county
6clerk shall mail to the State Board of Elections a true copy of
7that listing showing those who have filed statements.
8    The county clerk of each county shall note upon the
9alphabetical listing the names of all persons required to file
10a statement of economic interests who failed to file a
11statement on or before May 1. It shall be the duty of the
12several county clerks to give notice as provided in Section
134A-105 to any person who has failed to file his or her
14statement with the clerk on or before May 1.
15    Any person who files or has filed a statement of economic
16interest under this Act is entitled to receive from the
17Secretary of State or county clerk, as the case may be, a
18receipt indicating that the person has filed such a statement,
19the date of such filing, and the identity of the governmental
20unit or units in relation to which the filing is required.
21    The Secretary of State may employ such employees and
22consultants as he considers necessary to carry out his duties
23hereunder, and may prescribe their duties, fix their
24compensation, and provide for reimbursement of their expenses.
25    All statements of economic interests filed under this
26Section shall be available for examination and copying by the

 

 

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1public at all reasonable times. Not later than 12 months after
2the effective date of this amendatory Act of the 93rd General
3Assembly, beginning with statements filed in calendar year
42004, the Secretary of State shall make statements of economic
5interests filed with the Secretary available for inspection and
6copying via the Secretary's website.
7(Source: P.A. 96-6, eff. 4-3-09; 96-1336, eff. 1-1-11.)
 
8    (5 ILCS 420/4A-107)  (from Ch. 127, par. 604A-107)
9    Sec. 4A-107. Any person required to file a statement of
10economic interests under this Article who willfully files a
11false or incomplete statement shall be guilty of a Class A
12misdemeanor.
13    Except when the fees and penalties for late filing have
14been waived under Section 4A-105, failure to file a statement
15within the time prescribed shall result in ineligibility for,
16or forfeiture of, office or position of employment, as the case
17may be; provided, however, that if the notice of failure to
18file a statement of economic interests provided in Section
194A-105 of this Act is not given by the Secretary of State or
20the county clerk, as the case may be, no forfeiture shall
21result if a statement is filed within 30 days of actual notice
22of the failure to file. The Secretary of State shall provide
23the Attorney General with the names of persons who failed to
24file a statement. The county clerk shall provide the State's
25Attorney of the county of the entity for which the filing of

 

 

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1statement of economic interest is required with the name of
2persons who failed to file a statement.
3    The Attorney General, with respect to offices or positions
4described in items (a) through (f) and items (j), (l), and (n),
5and (p) of Section 4A-101 of this Act, or the State's Attorney
6of the county of the entity for which the filing of statements
7of economic interests is required, with respect to offices or
8positions described in items (g) through (i), item (k), and
9item (o) of Section 4A-101 of this Act, shall bring an action
10in quo warranto against any person who has failed to file by
11either May 31 or June 30 of any given year and for whom the fees
12and penalties for late filing have not been waived under
13Section 4A-105.
14(Source: P.A. 96-6, eff. 4-3-09; 96-550, eff. 8-17-09; 96-1000,
15eff. 7-2-10.)
 
16    Section 10. The Illinois Prepaid Tuition Act is amended by
17changing Sections 15, 30, and 35 as follows:
 
18    (110 ILCS 979/15)
19    Sec. 15. Creation of Illinois prepaid tuition program.
20There is created the Illinois prepaid tuition program to be
21administered by the Illinois Student Assistance Commission.
22This program is to be administered so that the full cost of
23tuition and mandatory fees at Illinois public universities and
24Illinois community colleges may be paid in advance of

 

 

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1enrollment through the prior purchase of an Illinois prepaid
2tuition contract. The Commission may enter into contracts as
3specifically authorized by the provisions of this Act for
4expenses associated with as may be necessary to provide for
5administration of the program and shall develop and implement
6rules and regulations necessary for the efficient
7administration of the program.
8    All reasonable charges incidental to the administration of
9the program by the Commission shall be paid in the initial
10start-up period for the program's operation from the General
11Revenue Fund, pursuant to appropriations made for that purpose
12by the General Assembly. Those charges and expenses in
13subsequent years shall be paid exclusively from the Illinois
14Prepaid Tuition Trust Fund established by Section 35 of this
15Act.
16(Source: P.A. 90-546, eff. 12-1-97.)
 
17    (110 ILCS 979/30)
18    Sec. 30. Investment Advisory Panel duties and
19responsibilities.
20    (a) Advice and review. The panel shall offer advice and
21counseling regarding the investments of the Illinois prepaid
22tuition program with the objective of obtaining the best
23possible return on investments consistent with actuarial
24soundness of the program. The panel is required to annually
25review and advise the Commission on provisions of the strategic

 

 

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1investment plan for the prepaid tuition program. The panel is
2also charged with reviewing and advising the Commission with
3regard to the annual report that describes the current
4financial condition of the program. The panel at its own
5discretion also may advise the Commission on other aspects of
6the program.
7    (b) Investment plan. The Commission annually shall adopt a
8comprehensive investment plan for purposes of this Section. The
9comprehensive investment plan shall specify the investment
10policies to be utilized by the Commission in its administration
11of the Illinois Prepaid Tuition Trust Fund created by Section
1235. The Commission may direct that assets of those Funds be
13placed in savings accounts or may use the same to purchase
14fixed or variable life insurance or annuity contracts,
15securities, evidence of indebtedness, or other investment
16products pursuant to the comprehensive investment plan and in
17such proportions as may be designated or approved under that
18plan. The Commission shall invest such assets with the care,
19skill, prudence, and diligence under the circumstances then
20prevailing that a prudent man acting in a like capacity and
21familiar with such matters would use in the conduct of an
22enterprise of a like character with like aims, and the
23Commission shall diversify the investments of such assets so as
24to minimize the risk of large losses, unless under the
25circumstances it is clearly prudent not to do so. Those
26insurance, annuity, savings, and investment products shall be

 

 

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1underwritten and offered in compliance with applicable federal
2and State laws, rules, and regulations by persons who are
3authorized thereunder to provide those services. The
4Commission shall delegate responsibility for preparing the
5comprehensive investment plan to the Executive Director of the
6Commission. Nothing in this Section shall preclude the
7Commission from contracting with a private corporation or
8institution to provide such services as may be a part of the
9comprehensive investment plan or as may be deemed necessary for
10implementation of the comprehensive investment plan,
11including, but not limited to, providing consolidated billing,
12individual and collective record keeping and accounting, and
13asset purchase, control, and safekeeping.
14    (c) Program management. The Commission may not delegate its
15management functions, but may arrange to compensate for
16personalized investment advisory services rendered with
17respect to any or all of the investments under its control an
18investment advisor registered under Section 8 of the Illinois
19Securities Law of 1953 or any bank or other entity authorized
20by law to provide those services. Nothing contained herein
21shall preclude the Commission from subscribing to general
22investment research services available for purchase or use by
23others. The Commission also shall have authority to compensate
24for accounting, computing, and other necessary services.
25    (d) Annual report. The Commission shall annually prepare or
26cause to be prepared a report setting forth in appropriate

 

 

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1detail an accounting of all Illinois prepaid tuition program
2funds and a description of the financial condition of the
3program at the close of each fiscal year. Included in this
4report shall be an evaluation by at least one nationally
5recognized actuary of the financial viability of the program.
6This report shall be submitted to the Governor, the President
7of the Senate, the Speaker of the House of Representatives, the
8Auditor General, and the Board of Higher Education on or before
9March 1 of the subsequent fiscal year. This report also shall
10be made available to purchasers of Illinois prepaid tuition
11contracts and shall contain complete Illinois prepaid tuition
12contract sales information, including, but not limited to,
13projected postsecondary enrollment data for qualified
14beneficiaries.
15    (e) Marketing plan. Selection of a marketing agent for the
16Illinois prepaid tuition program must be approved by the
17Commission. At least once every 3 years, the Commission shall
18solicit proposals for marketing of the Illinois prepaid tuition
19program in accordance with the Illinois Securities Law of 1953
20and any applicable provisions of federal law. The entity
21designated pursuant to this paragraph shall serve as a
22centralized marketing agent for the program and shall have
23exclusive responsibility for marketing the program. No
24contract for marketing the Illinois prepaid tuition program
25shall extend for longer than 3 years. Any materials produced
26for the purpose of marketing the program shall be submitted to

 

 

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1the Executive Director of the Commission for approval before
2they are made public. Any eligible institution may distribute
3marketing materials produced for the program, so long as the
4Executive Director of the Commission approves the distribution
5in advance. Neither the State nor the Commission shall be
6liable for misrepresentation of the program by a marketing
7agent. In no event shall any expenses associated with
8marketing, advertising, or promotion of the Illinois prepaid
9tuition program be paid from the Illinois Prepaid Tuition Trust
10Fund.
11    (f) Accounting and audit. The Commission shall annually
12cause to be prepared an accounting of the trust and shall
13transmit a copy of the accounting to the Governor, the
14President of the Senate, the Speaker of the House, and the
15minority leaders of the Senate and House of Representatives.
16The Commission shall also make available this accounting of the
17trust to any purchaser of an Illinois prepaid tuition contract,
18upon request. The accounts of the Illinois prepaid tuition
19program shall be subject to annual audits by the Auditor
20General or a certified public accountant appointed by the
21Auditor General.
22(Source: P.A. 96-1282, eff. 7-26-10.)
 
23    (110 ILCS 979/35)
24    Sec. 35. Illinois Prepaid Tuition Trust Fund.
25    (a) The Illinois Prepaid Tuition Trust Fund is created as

 

 

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1the repository of all moneys received by the Commission in
2conjunction with the Illinois prepaid tuition program. The
3Illinois Prepaid Tuition Trust Fund also shall be the official
4repository of all contributions, appropriations, interest and
5dividend payments, gifts, or other financial assets received by
6the Commission in connection with operation of the Illinois
7prepaid tuition program. All such moneys shall be deposited in
8the Illinois Prepaid Tuition Trust Fund and held by the State
9Treasurer as ex-officio custodian thereof, outside of the State
10Treasury, separate and apart from all public moneys or funds of
11this State.
12    All interest or other earnings accruing or received on
13amounts in the Illinois Prepaid Tuition Trust Fund shall be
14credited to and retained by the Fund. Moneys, interest, or
15other earnings paid into the Fund shall not be transferred or
16allocated by the Commission, the State Treasurer, or the State
17Comptroller to any other fund, nor shall the Governor authorize
18any such transfer or allocation, while any contracts are
19outstanding. The State Comptroller shall not offset moneys paid
20to institutions from the Illinois Prepaid Tuition Trust Fund
21(unless the Trust Fund moneys are used for child support). In
22addition, no moneys, interest, or other earnings paid into the
23Fund shall be used, temporarily or otherwise, for interfund
24borrowing or be otherwise used or appropriated except as
25expressly authorized in this Act.
26    The Illinois Prepaid Tuition Trust Fund and each individual

 

 

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1participant account that may be created in that Fund in
2conjunction with the Illinois prepaid tuition program shall be
3subject to audit in the same manner as funds and accounts
4belonging to the State of Illinois and shall be protected by
5the official bond given by the State Treasurer.
6    (b) The Commission from time to time shall direct the State
7Treasurer to invest moneys in the Illinois Prepaid Tuition
8Trust Fund that are not needed for immediate disbursement, in
9accordance with provisions of the investment plan approved by
10the Commission.
11    (c) The Executive Director of the Commission shall, at such
12times and in such amounts as shall be necessary, prepare and
13send to the State Comptroller vouchers requesting payment from
14the Illinois Prepaid Tuition Trust Fund for: (i) registration
15fee payments to eligible institutions on behalf of qualified
16beneficiaries of Illinois prepaid tuition contracts, and (ii)
17any other payments specifically authorized by the provisions of
18this Act associated with administration of the Illinois prepaid
19tuition program. Funds in the Illinois Prepaid Tuition Trust
20Fund must not be used to pay any portion of the salaries or
21benefits of employees of the Commission associated with the
22administration of the program, which instead must be paid from
23funds in the General Revenue Fund.
24    (d) The Governor shall indicate in a separate document
25submitted concurrent with each annual State budget the
26estimated amount of moneys in the Illinois Prepaid Tuition

 

 

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1Trust Fund which shall be necessary and sufficient, during that
2State fiscal year, to discharge all obligations anticipated
3under Illinois prepaid tuition contracts. The Governor also
4shall indicate in a separate document submitted concurrent with
5each annual State budget the amount of moneys from the Illinois
6Prepaid Tuition Trust Fund necessary to cover anticipated
7expenses associated with administration of the program. The
8Commission shall obtain concurrence from a nationally
9recognized actuary as to all amounts necessary for the program
10to meet its obligations. These amounts shall be certified
11annually to the Governor by the Commission no later than
12January 30.
13    During the first 18 months of operation of the Illinois
14prepaid tuition program, the Governor shall request an
15appropriation to the Commission from general funds sufficient
16to pay for start-up costs associated with establishment of the
17program. This appropriation constitutes a loan that shall be
18repaid to the General Revenue Fund within 5 years by the
19Commission from prepaid tuition program contributions.
20Subsequent program administrative costs shall be provided from
21reasonable fees and charges equitably assessed to purchasers of
22prepaid tuition contracts.
23    (e) If the Commission determines that there are
24insufficient moneys in the Illinois Prepaid Tuition Trust Fund
25to pay contractual obligations in the next succeeding fiscal
26year, the Commission shall certify the amount necessary to meet

 

 

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1these obligations to the Board of Higher Education, the
2Governor, the President of the Senate, and the Speaker of the
3House of Representatives. The Governor shall submit the amount
4so certified to the General Assembly as soon as practicable,
5but no later than the end of the current State fiscal year.
6    (f) In the event the Commission, with the concurrence of
7the Governor, determines the program to be financially
8infeasible, the Commission may discontinue, prospectively, the
9operation of the program. Any qualified beneficiary who has
10been accepted by and is enrolled or will within 5 years enroll
11at an eligible institution shall be entitled to exercise the
12complete benefits specified in the Illinois prepaid tuition
13contract. All other contract holders shall receive an
14appropriate refund of all contributions and accrued interest up
15to the time that the program is discontinued.
16(Source: P.A. 96-1282, eff. 7-26-10.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.".