97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5601

 

Introduced 2/15/2012, by Rep. Jim Durkin - Darlene J. Senger - Kent Gaffney

 

SYNOPSIS AS INTRODUCED:
 
110 ILCS 979/35

    Amends the Illinois Prepaid Tuition Act. Provides that funds in the Illinois Prepaid Tuition Trust Fund must not be used to pay any portion of the salaries or benefits of employees of the Illinois Student Assistance Commission associated with the administration of the Illinois prepaid tuition program, which instead must be paid from funds in the General Revenue Fund. Effective immediately.


LRB097 16301 NHT 61455 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5601LRB097 16301 NHT 61455 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Prepaid Tuition Act is amended by
5changing Section 35 as follows:
 
6    (110 ILCS 979/35)
7    Sec. 35. Illinois Prepaid Tuition Trust Fund.
8    (a) The Illinois Prepaid Tuition Trust Fund is created as
9the repository of all moneys received by the Commission in
10conjunction with the Illinois prepaid tuition program. The
11Illinois Prepaid Tuition Trust Fund also shall be the official
12repository of all contributions, appropriations, interest and
13dividend payments, gifts, or other financial assets received by
14the Commission in connection with operation of the Illinois
15prepaid tuition program. All such moneys shall be deposited in
16the Illinois Prepaid Tuition Trust Fund and held by the State
17Treasurer as ex-officio custodian thereof, outside of the State
18Treasury, separate and apart from all public moneys or funds of
19this State.
20    All interest or other earnings accruing or received on
21amounts in the Illinois Prepaid Tuition Trust Fund shall be
22credited to and retained by the Fund. Moneys, interest, or
23other earnings paid into the Fund shall not be transferred or

 

 

HB5601- 2 -LRB097 16301 NHT 61455 b

1allocated by the Commission, the State Treasurer, or the State
2Comptroller to any other fund, nor shall the Governor authorize
3any such transfer or allocation, while any contracts are
4outstanding. The State Comptroller shall not offset moneys paid
5to institutions from the Illinois Prepaid Tuition Trust Fund
6(unless the Trust Fund moneys are used for child support). In
7addition, no moneys, interest, or other earnings paid into the
8Fund shall be used, temporarily or otherwise, for interfund
9borrowing or be otherwise used or appropriated except as
10expressly authorized in this Act.
11    The Illinois Prepaid Tuition Trust Fund and each individual
12participant account that may be created in that Fund in
13conjunction with the Illinois prepaid tuition program shall be
14subject to audit in the same manner as funds and accounts
15belonging to the State of Illinois and shall be protected by
16the official bond given by the State Treasurer.
17    (b) The Commission from time to time shall direct the State
18Treasurer to invest moneys in the Illinois Prepaid Tuition
19Trust Fund that are not needed for immediate disbursement, in
20accordance with provisions of the investment plan approved by
21the Commission.
22    (c) The Executive Director of the Commission shall, at such
23times and in such amounts as shall be necessary, prepare and
24send to the State Comptroller vouchers requesting payment from
25the Illinois Prepaid Tuition Trust Fund for: (i) registration
26fee payments to eligible institutions on behalf of qualified

 

 

HB5601- 3 -LRB097 16301 NHT 61455 b

1beneficiaries of Illinois prepaid tuition contracts, and (ii)
2payments associated with administration of the Illinois
3prepaid tuition program. However, funds in the Illinois Prepaid
4Tuition Trust Fund must not be used to pay any portion of the
5salaries or benefits of employees of the Commission associated
6with the administration of the program, which instead must be
7paid from funds in the General Revenue Fund.
8    (d) The Governor shall indicate in a separate document
9submitted concurrent with each annual State budget the
10estimated amount of moneys in the Illinois Prepaid Tuition
11Trust Fund which shall be necessary and sufficient, during that
12State fiscal year, to discharge all obligations anticipated
13under Illinois prepaid tuition contracts. The Governor also
14shall indicate in a separate document submitted concurrent with
15each annual State budget the amount of moneys from the Illinois
16Prepaid Tuition Trust Fund necessary to cover anticipated
17expenses associated with administration of the program. The
18Commission shall obtain concurrence from a nationally
19recognized actuary as to all amounts necessary for the program
20to meet its obligations. These amounts shall be certified
21annually to the Governor by the Commission no later than
22January 30.
23    During the first 18 months of operation of the Illinois
24prepaid tuition program, the Governor shall request an
25appropriation to the Commission from general funds sufficient
26to pay for start-up costs associated with establishment of the

 

 

HB5601- 4 -LRB097 16301 NHT 61455 b

1program. This appropriation constitutes a loan that shall be
2repaid to the General Revenue Fund within 5 years by the
3Commission from prepaid tuition program contributions.
4Subsequent program administrative costs shall be provided from
5reasonable fees and charges equitably assessed to purchasers of
6prepaid tuition contracts.
7    (e) If the Commission determines that there are
8insufficient moneys in the Illinois Prepaid Tuition Trust Fund
9to pay contractual obligations in the next succeeding fiscal
10year, the Commission shall certify the amount necessary to meet
11these obligations to the Board of Higher Education, the
12Governor, the President of the Senate, and the Speaker of the
13House of Representatives. The Governor shall submit the amount
14so certified to the General Assembly as soon as practicable,
15but no later than the end of the current State fiscal year.
16    (f) In the event the Commission, with the concurrence of
17the Governor, determines the program to be financially
18infeasible, the Commission may discontinue, prospectively, the
19operation of the program. Any qualified beneficiary who has
20been accepted by and is enrolled or will within 5 years enroll
21at an eligible institution shall be entitled to exercise the
22complete benefits specified in the Illinois prepaid tuition
23contract. All other contract holders shall receive an
24appropriate refund of all contributions and accrued interest up
25to the time that the program is discontinued.
26(Source: P.A. 96-1282, eff. 7-26-10.)
 

 

 

HB5601- 5 -LRB097 16301 NHT 61455 b

1    Section 99. Effective date. This Act takes effect upon
2becoming law.