Sen. John J. Cullerton

Filed: 5/3/2011





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2    AMENDMENT NO. ______. Amend Senate Bill 2185 by replacing
3everything after the enacting clause with the following:
4    "Section 1. The State Treasurer Act is amended by changing
5Section 16.5 as follows:
6    (15 ILCS 505/16.5)
7    Sec. 16.5. College Savings Pool. The State Treasurer may
8establish and administer a College Savings Pool to supplement
9and enhance the investment opportunities otherwise available
10to persons seeking to finance the costs of higher education.
11The State Treasurer, in administering the College Savings Pool,
12may receive moneys paid into the pool by a participant and may
13serve as the fiscal agent of that participant for the purpose
14of holding and investing those moneys.
15    "Participant", as used in this Section, means any person
16who has authority to withdraw funds, change the designated



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1beneficiary, or otherwise exercise control over an account.
2"Donor", as used in this Section, means any person who makes
3investments in the pool. "Designated beneficiary", as used in
4this Section, means any person on whose behalf an account is
5established in the College Savings Pool by a participant. Both
6in-state and out-of-state persons may be participants, donors,
7and designated beneficiaries in the College Savings Pool. The
8College Savings Pool must be available to any individual with a
9valid social security number or taxpayer identification number
10for the benefit of any individual with a valid social security
11number or taxpayer identification number, unless a contract in
12effect on the effective date of this amendatory Act of the 97th
13General Assembly does not allow for taxpayer identification
14numbers, in which case taxpayer identification numbers must be
15allowed upon the expiration of the contract.
16    New accounts in the College Savings Pool may be processed
17through participating financial institutions. "Participating
18financial institution", as used in this Section, means any
19financial institution insured by the Federal Deposit Insurance
20Corporation and lawfully doing business in the State of
21Illinois and any credit union approved by the State Treasurer
22and lawfully doing business in the State of Illinois that
23agrees to process new accounts in the College Savings Pool.
24Participating financial institutions may charge a processing
25fee to participants to open an account in the pool that shall
26not exceed $30 until the year 2001. Beginning in 2001 and every



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1year thereafter, the maximum fee limit shall be adjusted by the
2Treasurer based on the Consumer Price Index for the North
3Central Region as published by the United States Department of
4Labor, Bureau of Labor Statistics for the immediately preceding
5calendar year. Every contribution received by a financial
6institution for investment in the College Savings Pool shall be
7transferred from the financial institution to a location
8selected by the State Treasurer within one business day
9following the day that the funds must be made available in
10accordance with federal law. All communications from the State
11Treasurer to participants and donors shall reference the
12participating financial institution at which the account was
14    The Treasurer may invest the moneys in the College Savings
15Pool in the same manner and in the same types of investments
16provided for the investment of moneys by the Illinois State
17Board of Investment. To enhance the safety and liquidity of the
18College Savings Pool, to ensure the diversification of the
19investment portfolio of the pool, and in an effort to keep
20investment dollars in the State of Illinois, the State
21Treasurer may make a percentage of each account available for
22investment in participating financial institutions doing
23business in the State. The State Treasurer may deposit with the
24participating financial institution at which the account was
25processed the following percentage of each account at a
26prevailing rate offered by the institution, provided that the



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1deposit is federally insured or fully collateralized and the
2institution accepts the deposit: 10% of the total amount of
3each account for which the current age of the beneficiary is
4less than 7 years of age, 20% of the total amount of each
5account for which the beneficiary is at least 7 years of age
6and less than 12 years of age, and 50% of the total amount of
7each account for which the current age of the beneficiary is at
8least 12 years of age. The Treasurer shall develop, publish,
9and implement an investment policy covering the investment of
10the moneys in the College Savings Pool. The policy shall be
11published (i) at least once each year in at least one newspaper
12of general circulation in both Springfield and Chicago and (ii)
13each year as part of the audit of the College Savings Pool by
14the Auditor General, which shall be distributed to all
15participants. The Treasurer shall notify all participants in
16writing, and the Treasurer shall publish in a newspaper of
17general circulation in both Chicago and Springfield, any
18changes to the previously published investment policy at least
1930 calendar days before implementing the policy. Any investment
20policy adopted by the Treasurer shall be reviewed and updated
21if necessary within 90 days following the date that the State
22Treasurer takes office.
23    Participants shall be required to use moneys distributed
24from the College Savings Pool for qualified expenses at
25eligible educational institutions. "Qualified expenses", as
26used in this Section, means the following: (i) tuition, fees,



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1and the costs of books, supplies, and equipment required for
2enrollment or attendance at an eligible educational
3institution and (ii) certain room and board expenses incurred
4while attending an eligible educational institution at least
5half-time. "Eligible educational institutions", as used in
6this Section, means public and private colleges, junior
7colleges, graduate schools, and certain vocational
8institutions that are described in Section 481 of the Higher
9Education Act of 1965 (20 U.S.C. 1088) and that are eligible to
10participate in Department of Education student aid programs. A
11student shall be considered to be enrolled at least half-time
12if the student is enrolled for at least half the full-time
13academic work load for the course of study the student is
14pursuing as determined under the standards of the institution
15at which the student is enrolled. Distributions made from the
16pool for qualified expenses shall be made directly to the
17eligible educational institution, directly to a vendor, or in
18the form of a check payable to both the beneficiary and the
19institution or vendor. Any moneys that are distributed in any
20other manner or that are used for expenses other than qualified
21expenses at an eligible educational institution shall be
22subject to a penalty of 10% of the earnings unless the
23beneficiary dies, becomes disabled, or receives a scholarship
24that equals or exceeds the distribution. Penalties shall be
25withheld at the time the distribution is made.
26    The Treasurer shall limit the contributions that may be



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1made on behalf of a designated beneficiary based on the
2limitations established by the Internal Revenue Service. The
3contributions made on behalf of a beneficiary who is also a
4beneficiary under the Illinois Prepaid Tuition Program shall be
5further restricted to ensure that the contributions in both
6programs combined do not exceed the limit established for the
7College Savings Pool. The Treasurer shall provide the Illinois
8Student Assistance Commission each year at a time designated by
9the Commission, an electronic report of all participant
10accounts in the Treasurer's College Savings Pool, listing total
11contributions and disbursements from each individual account
12during the previous calendar year. As soon thereafter as is
13possible following receipt of the Treasurer's report, the
14Illinois Student Assistance Commission shall, in turn, provide
15the Treasurer with an electronic report listing those College
16Savings Pool participants who also participate in the State's
17prepaid tuition program, administered by the Commission. The
18Commission shall be responsible for filing any combined tax
19reports regarding State qualified savings programs required by
20the United States Internal Revenue Service. The Treasurer shall
21work with the Illinois Student Assistance Commission to
22coordinate the marketing of the College Savings Pool and the
23Illinois Prepaid Tuition Program when considered beneficial by
24the Treasurer and the Director of the Illinois Student
25Assistance Commission. The Treasurer's office shall not
26publicize or otherwise market the College Savings Pool or



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1accept any moneys into the College Savings Pool prior to March
21, 2000. The Treasurer shall provide a separate accounting for
3each designated beneficiary to each participant, the Illinois
4Student Assistance Commission, and the participating financial
5institution at which the account was processed. No interest in
6the program may be pledged as security for a loan. Moneys held
7in an account invested in the Illinois College Savings Pool
8shall be exempt from all claims of the creditors of the
9participant, donor, or designated beneficiary of that account,
10except for the non-exempt College Savings Pool transfers to or
11from the account as defined under subsection (j) of Section
1212-1001 of the Code of Civil Procedure (735 ILCS 5/12-1001(j)).
13    The assets of the College Savings Pool and its income and
14operation shall be exempt from all taxation by the State of
15Illinois and any of its subdivisions. The accrued earnings on
16investments in the Pool once disbursed on behalf of a
17designated beneficiary shall be similarly exempt from all
18taxation by the State of Illinois and its subdivisions, so long
19as they are used for qualified expenses. Contributions to a
20College Savings Pool account during the taxable year may be
21deducted from adjusted gross income as provided in Section 203
22of the Illinois Income Tax Act. The provisions of this
23paragraph are exempt from Section 250 of the Illinois Income
24Tax Act.
25    The Treasurer shall adopt rules he or she considers
26necessary for the efficient administration of the College



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1Savings Pool. The rules shall provide whatever additional
2parameters and restrictions are necessary to ensure that the
3College Savings Pool meets all of the requirements for a
4qualified state tuition program under Section 529 of the
5Internal Revenue Code (26 U.S.C. 529). The rules shall provide
6for the administration expenses of the pool to be paid from its
7earnings and for the investment earnings in excess of the
8expenses and all moneys collected as penalties to be credited
9or paid monthly to the several participants in the pool in a
10manner which equitably reflects the differing amounts of their
11respective investments in the pool and the differing periods of
12time for which those amounts were in the custody of the pool.
13Also, the rules shall require the maintenance of records that
14enable the Treasurer's office to produce a report for each
15account in the pool at least annually that documents the
16account balance and investment earnings. Notice of any proposed
17amendments to the rules and regulations shall be provided to
18all participants prior to adoption. Amendments to rules and
19regulations shall apply only to contributions made after the
20adoption of the amendment.
21    Upon creating the College Savings Pool, the State Treasurer
22shall give bond with 2 or more sufficient sureties, payable to
23and for the benefit of the participants in the College Savings
24Pool, in the penal sum of $1,000,000, conditioned upon the
25faithful discharge of his or her duties in relation to the
26College Savings Pool.



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1(Source: P.A. 95-23, eff. 8-3-07; 95-306, eff. 1-1-08; 95-521,
2eff. 8-28-07; 95-876, eff. 8-21-08.)
3    Section 3. The School Code is amended by changing Section
421-25 as follows:
5    (105 ILCS 5/21-25)  (from Ch. 122, par. 21-25)
6    Sec. 21-25. School service personnel certificate.
7    (a) For purposes of this Section, "school service
8personnel" means persons employed and performing appropriate
9services in an Illinois public or State-operated elementary
10school, secondary school, or cooperative or joint agreement
11with a governing body or board of control or a charter school
12operating in compliance with the Charter Schools Law in a
13position requiring a school service personnel certificate.
14    Subject to the provisions of Section 21-1a, a school
15service personnel certificate shall be issued to those
16applicants of good character, good health, a citizen of the
17United States and at least 19 years of age who have a
18Bachelor's degree with not fewer than 120 semester hours from a
19regionally accredited institution of higher learning and who
20meets the requirements established by the State Superintendent
21of Education in consultation with the State Teacher
22Certification Board. A school service personnel certificate
23with a school nurse endorsement may be issued to a person who
24holds a bachelor of science degree from an institution of



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1higher learning accredited by the North Central Association or
2other comparable regional accrediting association. Persons
3seeking any other endorsement on the school service personnel
4certificate shall be recommended for the endorsement by a
5recognized teacher education institution as having completed a
6program of preparation approved by the State Superintendent of
7Education in consultation with the State Teacher Certification
9    (b) Until August 30, 2002, a school service personnel
10certificate endorsed for school social work may be issued to a
11student who has completed a school social work program that has
12not been approved by the State Superintendent of Education,
13provided that each of the following conditions is met:
14        (1) The program was offered by a recognized, public
15    teacher education institution that first enrolled students
16    in its master's degree program in social work in 1998;
17        (2) The student applying for the school service
18    personnel certificate was enrolled in the institution's
19    master's degree program in social work on or after May 11,
20    1998;
21        (3) The State Superintendent verifies that the student
22    has completed coursework that is substantially similar to
23    that required in approved school social work programs,
24    including (i) not fewer than 600 clock hours of a
25    supervised internship in a school setting or (ii) if the
26    student has completed part of a supervised internship in a



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1    school setting prior to the effective date of this
2    amendatory Act of the 92nd General Assembly and receives
3    the prior approval of the State Superintendent, not fewer
4    than 300 additional clock hours of supervised work in a
5    public school setting under the supervision of a certified
6    school social worker who certifies that the supervised work
7    was completed in a satisfactory manner; and
8        (4) The student has passed a test of basic skills and
9    the test of subject matter knowledge required by Section
10    21-1a.
11    This subsection (b) does not apply after August 29, 2002.
12    (c) A school service personnel certificate shall be
13endorsed with the area of Service as determined by the State
14Superintendent of Education in consultation with the State
15Teacher Certification Board.
16    The holder of such certificate shall be entitled to all of
17the rights and privileges granted holders of a valid teaching
18certificate, including teacher benefits, compensation and
19working conditions.
20    When the holder of such certificate has earned a master's
21degree, including 8 semester hours of graduate professional
22education from a recognized institution of higher learning, and
23has at least 2 years of successful school experience while
24holding such certificate, the certificate may be endorsed for
26    (d) Persons who have successfully achieved National Board



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1certification through the National Board for Professional
2Teaching Standards shall be issued a Master School Service
3Personnel Certificate, valid for 10 years and renewable
4thereafter every 10 years through compliance with requirements
5set forth by the State Board of Education, in consultation with
6the State Teacher Certification Board. However, each holder of
7a Master School Service Personnel Certificate shall be eligible
8for a corresponding position in this State in the areas for
9which he or she holds a Master Certificate without satisfying
10any other requirements of this Code, except for those
11requirements pertaining to criminal background checks.
12    (e) School service personnel certificates are renewable
13every 5 years and may be renewed as provided in this Section.
14Requests for renewals must be submitted, in a format prescribed
15by the State Board of Education, to the regional office of
16education responsible for the school where the holder is
18    Upon completion of at least 80 hours of continuing
19professional development as provided in this subsection (e), a
20person who holds a valid school service personnel certificate
21shall have his or her certificate renewed for a period of 5
22years. A person who (i) holds an active license issued by the
23State as a clinical professional counselor, a professional
24counselor, a clinical social worker, a social worker, or a
25speech-language pathologist; (ii) holds national certification
26as a Nationally Certified School Psychologist from the National



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1School Psychology Certification Board; (iii) is nationally
2certified as a National Certified School Nurse from the
3National Board for Certification of School Nurses; (iv) is
4nationally certified as a National Certified Counselor or
5National Certified School Counselor from the National Board for
6Certified Counselors; or (v) holds a Certificate of Clinical
7Competence from the American Speech-Language-Hearing
8Association shall be deemed to have satisfied the continuing
9professional development requirements established by the State
10Board of Education and the State Teacher Certification Board to
11renew a school service personnel certificate.
12    School service personnel certificates may be renewed by the
13State Teacher Certification Board based upon proof of
14continuing professional development. The State Board of
15Education shall (i) establish a procedure for renewing school
16service personnel certificates, which shall include without
17limitation annual timelines for the renewal process and the
18components set forth in this Section; (ii) approve or
19disapprove the providers of continuing professional
20development activities; and (iii) provide, on a timely basis to
21all school service personnel certificate holders, regional
22superintendents of schools, school districts, and others with
23an interest in continuing professional development,
24information about the standards and requirements established
25pursuant to this subsection (e).
26    Any school service personnel certificate held by an



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1individual employed and performing services in an Illinois
2public or State-operated elementary school, secondary school,
3or cooperative or joint agreement with a governing body or
4board of control in a certificated school service personnel
5position or in a charter school in compliance with the Charter
6Schools Law must be maintained Valid and Active through
7certificate renewal activities specified in the certificate
8renewal procedure established pursuant to this Section,
9provided that a holder of a Valid and Active certificate who is
10only employed on either a part-time basis or day-to-day basis
11as a substitute shall pay only the required registration fee to
12renew his or her certificate and maintain it as Valid and
13Active. All other school service personnel certificates held
14may be maintained as Valid and Exempt through the registration
15process provided for in the certificate renewal procedure
16established pursuant to Section 21-14 of this Code. A Valid and
17Exempt certificate must be immediately activated, through
18procedures developed by the State Board of Education upon the
19certificate holder becoming employed and performing services
20in an Illinois public or State-operated elementary school,
21secondary school, or cooperative or joint agreement with a
22governing body or board of control in a certificated school
23service personnel position or in a charter school operating in
24compliance with the Charter Schools Law. A holder of a Valid
25and Exempt certificate may activate his or her certificate
26through procedures provided for in the certificate renewal



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1procedure established pursuant to this Section.
2    A school service personnel certificate that has been
3maintained as Valid and Active for the 5 years of the
4certificate's validity shall be renewed as Valid and Active
5upon the certificate holder (i) completing the National Board
6for Professional Teaching Standards process in an area of
7concentration comparable to the holder's school service
8personnel certificate of endorsement or (ii) earning 80
9continuing professional development units as described in this
10Section. If, however, the certificate holder has maintained the
11certificate as Valid and Exempt for a portion of the 5-year
12period of validity, the number of continuing professional
13development units needed to renew the certificate as Valid and
14Active must be proportionately reduced by the amount of time
15the certificate was Valid and Exempt. If a certificate holder
16is employed and performs services requiring the holder's school
17service personnel certificate on a part-time basis for all or a
18portion of the certificate's 5-year period of validity, the
19number of continuing professional development units needed to
20renew the certificate as Valid and Active shall be reduced by
2150% for the amount of time the certificate holder has been
22employed and performing such services on a part-time basis.
23"Part-time" means less than 50% of the school day or school
25    Beginning July 1, 2008, in order to satisfy the
26requirements for continuing professional development provided



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1for in this Section, each Valid and Active school service
2personnel certificate holder shall complete professional
3development activities that address the certificate or those
4certificates that are required of his or her certificated
5position, if the certificate holder is employed and performing
6services in an Illinois public or State operated elementary
7school, secondary school, or cooperative or joint agreement
8with a governing body or board of control, or that certificate
9or those certificates most closely related to his or her
10teaching position, if the certificate holder is employed in a
11charter school. Except as otherwise provided in this subsection
12(e), the certificate holder's activities must address and must
13reflect the following continuing professional development
15        (1) Advance both the certificate holder's knowledge
16    and skills consistent with the Illinois Standards for the
17    service area in which the certificate is endorsed in order
18    to keep the certificate holder current in that area.
19        (2) Develop the certificate holder's knowledge and
20    skills in areas determined by the State Board of Education
21    to be critical for all school service personnel.
22        (3) Address the knowledge, skills, and goals of the
23    certificate holder's local school improvement plan, if the
24    certificate holder is employed in an Illinois public or
25    State-operated elementary school, secondary school, or
26    cooperative or joint agreement with a governing body or



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1    board of control.
2        (4) Address the needs of serving students with
3    disabilities, including adapting and modifying clinical or
4    professional practices to meet the needs of students with
5    disabilities and serving such students in the least
6    restrictive environment.
7        (5) Address the needs of serving students who are the
8    children of immigrants, including, if the certificate
9    holder is employed as a counselor in an Illinois public or
10    State-operated secondary school, opportunities for higher
11    education for students who are undocumented immigrants.
12    The coursework or continuing professional development
13units ("CPDU") required under this subsection (e) must total 80
14CPDUs or the equivalent and must address 4 3 of the 5 4
15purposes described in items (1) through (5) (4) of this
16subsection (e). Holders of school service personnel
17certificates may fulfill this obligation with any combination
18of semester hours or CPDUs as follows:
19        (A) Collaboration and partnership activities related
20    to improving the school service personnel certificate
21    holder's knowledge and skills, including (i) participating
22    on collaborative planning and professional improvement
23    teams and committees; (ii) peer review and coaching; (iii)
24    mentoring in a formal mentoring program, including service
25    as a consulting teacher participating in a remediation
26    process formulated under Section 24A-5 of this Code; (iv)



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1    participating in site-based management or decision-making
2    teams, relevant committees, boards, or task forces
3    directly related to school improvement plans; (v)
4    coordinating community resources in schools, if the
5    project is a specific goal of the school improvement plan;
6    (vi) facilitating parent education programs for a school,
7    school district, or regional office of education directly
8    related to student achievement or school improvement
9    plans; (vii) participating in business, school, or
10    community partnerships directly related to student
11    achievement or school improvement plans; or (viii)
12    supervising a student teacher (student services personnel)
13    or teacher education candidate in clinical supervision,
14    provided that the supervision may be counted only once
15    during the course of 5 years.
16        (B) Coursework from a regionally accredited
17    institution of higher learning related to one of the
18    purposes listed in items (1) through (4) of this subsection
19    (e), which shall apply at the rate of 15 continuing
20    professional development units per semester hour of credit
21    earned during the previous 5-year period when the status of
22    the holder's school service personnel certificate was
23    Valid and Active. Proportionate reductions shall apply
24    when the holder's status was Valid and Active for less than
25    the 5-year period preceding the renewal.
26        (C) Teaching college or university courses in areas



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1    relevant to the certificate area being renewed, provided
2    that the teaching may be counted only once during the
3    course of 5 years.
4        (D) Conferences, workshops, institutes, seminars, or
5    symposiums designed to improve the certificate holder's
6    knowledge and skills in the service area and applicable to
7    the purposes listed in items (1) through (5) (4) of this
8    subsection (e). One CPDU shall be awarded for each hour of
9    attendance. No one shall receive credit for conferences,
10    workshops, institutes, seminars, or symposiums that are
11    designed for entertainment, promotional, or commercial
12    purposes or that are solely inspirational or motivational.
13    The State Superintendent of Education and regional
14    superintendents of schools are authorized to review the
15    activities and events provided or to be provided under this
16    subdivision (D) and to investigate complaints regarding
17    those activities and events. Either the State
18    Superintendent of Education or a regional superintendent
19    of schools may recommend that the State Board of Education
20    disapprove those activities and events considered to be
21    inconsistent with this subdivision (D).
22        (E) Completing non-university credit directly related
23    to student achievement, school improvement plans, or State
24    priorities.
25        (F) Participating in or presenting at workshops,
26    seminars, conferences, institutes, or symposiums.



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1        (G) Training as external reviewers for quality
2    assurance.
3        (H) Training as reviewers of university teacher
4    preparation programs.
5        (I) Other educational experiences related to improving
6    the school service personnel's knowledge and skills as a
7    teacher, including (i) participating in action research
8    and inquiry projects; (ii) traveling related to one's
9    assignment and directly related to school service
10    personnel achievement or school improvement plans and
11    approved by the regional superintendent of schools or his
12    or her designee at least 30 days prior to the travel
13    experience, provided that the traveling shall not include
14    time spent commuting to destinations where the learning
15    experience will occur; (iii) participating in study groups
16    related to student achievement or school improvement
17    plans; (iv) serving on a statewide education-related
18    committee, including without limitation the State Teacher
19    Certification Board, State Board of Education strategic
20    agenda teams, or the State Advisory Council on Education of
21    Children with Disabilities; (v) participating in
22    work/learn programs or internships; or (vi) developing a
23    portfolio of student and teacher work.
24        (J) Professional leadership experiences related to
25    improving the teacher's knowledge and skills as a teacher,
26    including (i) participating in curriculum development or



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1    assessment activities at the school, school district,
2    regional office of education, State, or national level;
3    (ii) participating in team or department leadership in a
4    school or school district; (iii) participating on external
5    or internal school or school district review teams; (iv)
6    publishing educational articles, columns, or books
7    relevant to the certificate area being renewed; or (v)
8    participating in non-strike-related professional
9    association or labor organization service or activities
10    related to professional development.
11(Source: P.A. 94-105, eff. 7-1-05; 95-592, eff. 7-1-08.)
12    Section 5. The Higher Education Student Assistance Act is
13amended by adding Section 67 and by changing Section 75 as
15    (110 ILCS 947/67 new)
16    Sec. 67. Illinois DREAM Fund Commission.
17    (a) The Illinois Student Assistance Commission shall
18establish an Illinois DREAM Fund Commission. The Governor shall
19appoint, with the advice and consent of the Senate, members to
20the Illinois DREAM Fund Commission, which shall be comprised of
219 members representing the geographic and ethnic diversity of
22this State, including students, college and university
23administrators and faculty, and other individuals committed to
24advancing the educational opportunities of the children of



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2    (b) The Illinois DREAM Fund Commission is charged with all
3of the following responsibilities:
4        (1) Administering this Section and raising funds for
5    the Illinois DREAM Fund.
6        (2) Establishing a not-for-profit entity charged with
7    raising funds for the administration of this Section, any
8    educational or training programs the Commission is tasked
9    with administering, and funding scholarships to students
10    who are the children of immigrants to the United States.
11        (3) Publicizing the availability of scholarships from
12    the Illinois DREAM Fund.
13        (4) Selecting the recipients of scholarships funded
14    through the Illinois DREAM Fund.
15        (5) Researching issues pertaining to the availability
16    of assistance with the costs of higher education for the
17    children of immigrants and other issues regarding access
18    for and the performance of the children of immigrants
19    within higher education.
20        (6) Overseeing implementation of the other provisions
21    of this amendatory Act of the 97th General Assembly.
22        (7) Establishing and administering training programs
23    for high school counselors and counselors, admissions
24    officers, and financial aid officers of public
25    institutions of higher education. The training programs
26    shall instruct participants on the educational



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1    opportunities available to college-bound students who are
2    the children of immigrants, including, but not limited to,
3    in-state tuition and scholarship programs. The Illinois
4    DREAM Fund Commission may also establish a public awareness
5    campaign regarding educational opportunities available to
6    college bound students who are the children of immigrants.
7    The Illinois DREAM Fund Commission shall establish, by
8rule, procedures for accepting and evaluating applications for
9scholarships from the children of immigrants and issuing
10scholarships to selected student applicants.
11    (c) To receive a scholarship under this Section, a student
12must meet all of the following qualifications:
13        (1) Have resided with his or her parents or guardian
14    while attending a public or private high school in this
15    State.
16        (2) Have graduated from a public or private high school
17    or received the equivalent of a high school diploma in this
18    State.
19        (3) Have attended school in this State for at least 3
20    years as of the date he or she graduated from high school
21    or received the equivalent of a high school diploma.
22        (4) Have at least one parent who immigrated to the
23    United States.
24    (d) The Illinois Student Assistance Commission shall
25establish an Illinois DREAM Fund to provide scholarships under
26this Section. The Illinois DREAM Fund shall be funded entirely



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1from private contributions.
2    (110 ILCS 947/75)
3    Sec. 75. College savings programs.
4    (a) Purpose. The General Assembly finds and hereby declares
5that for the benefit of the people of the State of Illinois,
6the conduct and increase of their commerce, the protection and
7enhancement of their welfare, the development of continued
8prosperity and the improvement of their health and living
9conditions, it is essential that all citizens with the
10intellectual ability and motivation be able to obtain a higher
11education. The General Assembly further finds that rising
12tuition costs, increasingly restrictive eligibility criteria
13for existing federal and State student aid programs and other
14trends in higher education finance have impeded access to a
15higher education for many middle-income families; and that to
16remedy these concerns, it is of utmost importance that families
17be provided with investment alternatives to enhance their
18financial access to institutions of higher education. It is the
19intent of this Section to establish College Savings Programs
20appropriate for families from various income groups, to
21encourage Illinois families to save and invest in anticipation
22of their children's education, and to encourage enrollment in
23institutions of higher education, all in execution of the
24public policy set forth above and elsewhere in this Act.
25College Savings Programs established under this Section must be



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1available to any individual with a valid social security number
2or taxpayer identification number for the benefit of any
3individual with a valid social security number or taxpayer
4identification number.
5    (b) The Commission is authorized to develop and provide a
6program of college savings instruments to qualifying Illinois
7residents citizens. The program shall be structured to
8encourage parents to plan ahead for the college education of
9their children and to permit the long-term accumulation of
10savings which can be used to finance the family's share of the
11cost of a higher education. Income, up to $2,000 annually per
12account, which is derived by individuals from investments made
13in accordance with College Savings Programs established under
14this Section shall be free from all taxation by the State and
15its political subdivisions, except for estate, transfer, and
16inheritance taxes.
17    (c) The Commission is authorized to contract with private
18financial institutions and other businesses, individuals, and
19other appropriate parties to establish and operate the College
20Savings Programs. The Commission may negotiate contracts with
21private financial and investment companies, establish College
22Savings Programs, and monitor the vendors administering the
23programs in whichever manner the Commission determines is best
24suited to accomplish the purposes of this Section. The Auditor
25General shall periodically review the operation of the College
26Savings Programs and shall advise the Commission and the



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1General Assembly of his findings.
2    (d) In determining the type of instruments to be offered,
3the Commission shall consult with, and receive the assistance
4of, the Illinois Board of Higher Education, the Governor's
5Office of Management and Budget, the State Board of
6Investments, the Governor, and other appropriate State
7agencies and private parties.
8    (e) The Commission shall market and promote the College
9Savings Programs to the citizens of Illinois.
10    (f) The Commission shall assist the State Comptroller and
11State Treasurer in establishing a payroll deduction plan
12through which State employees may participate in the College
13Savings Programs. The Department of Labor, Department of
14Employment Security, Department of Revenue, and other
15appropriate agencies shall assist the Commission in educating
16Illinois employers about the College Savings Programs, and
17shall assist the Commission in securing employers'
18participation in a payroll deduction plan and other initiatives
19which maximize participation in the College Savings Programs.
20    (g) The Commission shall examine means by which the State,
21through a series of matching contributions or other incentives,
22may most effectively encourage Illinois families to
23participate in the College Savings Programs. The Commission
24shall report its conclusions and recommendations to the
25Governor and General Assembly no later than February 15, 1990.
26    (h) The College Savings Programs established pursuant to



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1this Section shall not be subject to the provisions of the
2Illinois Administrative Procedure Act. The Commission shall
3provide that appropriate disclosures are provided to all
4citizens who participate in the College Savings Programs.
5(Source: P.A. 94-793, eff. 5-19-06.)
6    Section 10. The Illinois Prepaid Tuition Act is amended by
7changing Section 45 as follows:
8    (110 ILCS 979/45)
9    Sec. 45. Illinois prepaid tuition contracts.
10    (a) The Commission may enter into an Illinois prepaid
11tuition contract with a purchaser under which the Commission
12contracts on behalf of the State to pay full tuition and
13mandatory fees at an Illinois public university or Illinois
14community college for a qualified beneficiary to attend the
15eligible institution to which the qualified beneficiary is
16admitted. Each contract shall contain terms, conditions, and
17provisions that the Commission determines to be necessary for
18ensuring the educational objectives and sustainable financial
19viability of the Illinois prepaid tuition program.
20    (b) Each contract shall have one designated purchaser and
21one designated qualified beneficiary. Unless otherwise
22specified in the contract, the purchaser owns the contract and
23retains any tax liability for its assets only until the first
24distribution of benefits. Contracts shall be purchased in units



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1of 15 credit hours.
2    (c) Without exception, benefits may be received by a
3qualified beneficiary of an Illinois prepaid tuition contract
4no earlier than 3 years from the date the contract is
6    (d) A prepaid tuition contract shall contain, but is not
7limited to, provisions for (i) refunds or withdrawals in
8certain circumstances, with or without interest or penalties;
9(ii) conversion of the contract at the time of distribution
10from accrued prepayment value at one type of eligible
11institution to the accrued prepayment value at a different type
12of eligible institution; (iii) portability of the accrued value
13of the prepayment value for use at an eligible institution
14located outside this State; (iv) transferability of the
15contract benefits within the qualified beneficiary's immediate
16family; and (v) a specified benefit period during which the
17contract may be redeemed.
18    (e) Each Illinois prepaid tuition contract also shall
19contain, at minimum, all of the following:
20        (1) The amount of payment or payments and the number of
21    payments required from a purchaser on behalf of a qualified
22    beneficiary.
23        (2) The terms and conditions under which purchasers
24    shall remit payments, including, but not limited to, the
25    date or dates upon which each payment shall be due.
26        (3) Provisions for late payment charges and for



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1    default.
2        (4) Provisions for penalty fees payable incident to an
3    authorized withdrawal.
4        (5) The name, date of birth, and social security number
5    or taxpayer identification number of the qualified
6    beneficiary on whose behalf the contract is drawn and the
7    terms and conditions under which the contract may be
8    transferred to another qualified beneficiary.
9        (6) The name and social security number or taxpayer
10    identification number of any person who may terminate the
11    contract, together with terms that specify whether the
12    contract may be terminated by the purchaser, the qualified
13    beneficiary, a specific designated person, or any
14    combination of these persons.
15        (7) The terms and conditions under which a contract may
16    be terminated, the name and social security number or
17    taxpayer identification number of the person entitled to
18    any refund due as a result of the termination of the
19    contract pursuant to those terms and conditions, and the
20    method for determining the amount of a refund.
21        (8) The time limitations, if any, within which the
22    qualified beneficiary must claim his or her benefits
23    through the program.
24        (9) Other terms and conditions determined by the
25    Commission to be appropriate.
26    (f) In addition to the contract provisions set forth in



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1subsection (e), each Illinois prepaid tuition contract shall
3        (1) The number of credit hours contracted by the
4    purchaser.
5        (2) The type of eligible institution and the prepaid
6    tuition plan toward which the credit hours shall be
7    applied.
8        (3) The explicit contractual obligation of the
9    Commission to the qualified beneficiary to provide a
10    specific number of credit hours of undergraduate
11    instruction at an eligible institution, not to exceed the
12    maximum number of credit hours required for the conference
13    of a degree that corresponds to the plan purchased on
14    behalf of the qualified beneficiary.
15    (g) The Commission shall indicate by rule the conditions
16under which refunds are payable to a contract purchaser.
17Generally, no refund shall exceed the amount paid into the
18Illinois Prepaid Tuition Trust Fund by the purchaser. In the
19event that a contract is converted from a Public University
20Plan described in subsection (j) of this Section to a Community
21College Plan described in subsection (k) of this Section, the
22refund amount shall be reduced by the amount transferred to the
23Illinois community college on behalf of the qualified
24beneficiary. Except where the Commission may otherwise rule,
25refunds may exceed the amount paid into the Illinois Prepaid
26Tuition Trust Fund only under the following circumstances:



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1        (1) If the qualified beneficiary is awarded a grant or
2    scholarship at a public institution of higher education,
3    the terms of which duplicate the benefits included in the
4    Illinois prepaid tuition contract, then moneys paid for the
5    purchase of the contract shall be returned to the
6    purchaser, upon request, in semester installments that
7    coincide with the matriculation by the qualified
8    beneficiary, in an amount equal to the current cost of
9    tuition and mandatory fees at the public institution of
10    higher education where the qualified beneficiary is
11    enrolled.
12        (1.5) If the qualified beneficiary is awarded a grant
13    or scholarship while enrolled at either an eligible
14    nonpublic institution of higher education or an eligible
15    public or private out-of-state higher education
16    institution, the terms of which duplicate the benefits
17    included in the Illinois prepaid tuition contract, then
18    money paid for the purchase of the contract shall be
19    returned to the purchaser, upon request, in semester
20    installments that coincide with the matriculation by the
21    qualified beneficiary. The amount paid shall not exceed the
22    current average mean-weighted credit hour value of the
23    registration fees purchased under the contract.
24        (2) In the event of the death or total disability of
25    the qualified beneficiary, moneys paid for the purchase of
26    the Illinois prepaid tuition contract shall be returned to



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1    the purchaser together with all accrued earnings.
2        (3) If an Illinois prepaid tuition contract is
3    converted from a Public University Plan to a Community
4    College Plan, then the amount refunded shall be the value
5    of the original Illinois prepaid tuition contract minus the
6    value of the contract after conversion.
7    No refund shall be authorized under an Illinois prepaid
8tuition contract for any semester partially attended but not
10    The Commission, by rule, shall set forth specific
11procedures for making contract payments in conjunction with
12grants and scholarships awarded to contract beneficiaries.
13    Moneys paid into or out of the Illinois Prepaid Tuition
14Trust Fund by or on behalf of the purchaser or the qualified
15beneficiary of an Illinois prepaid tuition contract are exempt
16from all claims of creditors of the purchaser or beneficiary,
17so long as the contract has not been terminated.
18    The State or any State agency, county, municipality, or
19other political subdivision, by contract or collective
20bargaining agreement, may agree with any employee to remit
21payments toward the purchase of Illinois prepaid tuition
22contracts through payroll deductions made by the appropriate
23officer or officers of the entity making the payments. Such
24payments shall be held and administered in accordance with this
26    (h) Nothing in this Act shall be construed as a promise or



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1guarantee that a qualified beneficiary will be admitted to an
2eligible institution or to a particular eligible institution,
3will be allowed to continue enrollment at an eligible
4institution after admission, or will be graduated from an
5eligible institution.
6    (i) The Commission shall develop and make prepaid tuition
7contracts available under a minimum of at least 2 independent
8plans to be known as the Public University Plan and the
9Community College Plan.
10    Contracts shall be purchased in units of 15 credit hours at
11either an Illinois public university or an Illinois community
12college. The minimum purchase amount per qualified beneficiary
13shall be one unit or 15 credit hours. The maximum purchase
14amount shall be 9 units (or 135 credit hours) for the Public
15University Plan and 4 units (or 60 credit hours) for the
16Community College Plan.
17    (j) Public University Plan. Through the Public University
18Plan, the Illinois prepaid tuition contract shall provide
19prepaid registration fees, which include full tuition costs as
20well as mandatory fees, for a specified number of undergraduate
21credit hours, not to exceed the maximum number of credit hours
22required for the conference of a baccalaureate degree. In
23determining the cost of participation in the Public University
24Plan, the Commission shall reference the combined
25mean-weighted current registration fees from Illinois public



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1    In the event that a qualified beneficiary for whatever
2reason chooses to attend an Illinois community college, the
3qualified beneficiary may convert the average number of credit
4hours required for the conference of an associate degree from
5the Public University Plan to the Community College Plan and
6may retain the remaining Public University Plan credit hours or
7may request a refund for prepaid credit hours in excess of
8those required for conference of an associate degree. In
9determining the amount of any refund, the Commission also shall
10recognize the current relative credit hour cost of the 2 plans
11when making any conversion.
12    Qualified beneficiaries shall bear the cost of any
13laboratory or other non-mandatory fees associated with
14enrollment in specific courses. Qualified beneficiaries who
15are not Illinois residents shall bear the difference in cost
16between in-state registration fees guaranteed by the prepaid
17tuition contract and tuition and other charges assessed upon
18out-of-state students by the eligible institution.
19    (k) Community College Plan. Through the Community College
20Plan, the Illinois prepaid tuition contract shall provide
21prepaid registration fees, which include full tuition costs as
22well as mandatory fees, for a specified number of undergraduate
23credit hours, not to exceed the maximum number of credit hours
24required for the conference of an associate degree. In
25determining the cost of participation in the Community College
26Plan, the Commission shall reference the combined



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1mean-weighted current registration fees from all Illinois
2community colleges.
3    In the event that a qualified beneficiary for whatever
4reason chooses to attend an Illinois public university, the
5qualified beneficiary's prepaid tuition contract shall be
6converted for use at that Illinois public university by
7referencing the current average mean-weighted credit hour
8value of registration fees at Illinois community colleges
9relative to the corresponding value of registration fees at
10Illinois public universities.
11    Qualified beneficiaries shall bear the cost of any
12laboratory or other non-mandatory fees associated with
13enrollment in specific courses. Qualified beneficiaries who
14are not Illinois residents shall bear the difference in cost
15between in-state registration fees guaranteed by the prepaid
16tuition contract and tuition and other charges assessed upon
17out-of-state students by the eligible institution.
18    (l) A qualified beneficiary may apply the benefits of any
19Illinois prepaid tuition contract toward a nonpublic
20institution of higher education. In the event that a qualified
21beneficiary for whatever reason chooses to attend a nonpublic
22institution of higher education, the qualified beneficiary's
23prepaid tuition contract shall be converted for use at that
24nonpublic institution of higher education by referencing the
25current average mean-weighted credit hour value of
26registration fees purchased under the contract. The Commission



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1shall transfer, or cause to have transferred, this amount, less
2a transfer fee, to the nonpublic institution on behalf of the
3beneficiary. In the event that the cost of registration charged
4to the beneficiary at the nonpublic institution of higher
5education is less than the aggregate value of the Illinois
6prepaid tuition contract, any remaining amount shall be
7transferred in subsequent semesters until the transfer value is
8fully depleted.
9    (m) A qualified beneficiary may apply the benefits of any
10Illinois prepaid tuition contract toward an eligible
11out-of-state college or university. Institutional eligibility
12for out-of-state colleges and universities shall be determined
13by the Commission according to standards substantially
14equivalent to those for an eligible institution located in this
15State, as described in the definition of "institution of higher
16learning" in Section 10 of the Higher Education Student
17Assistance Act. In the event that a qualified beneficiary for
18whatever reason chooses to attend an eligible out-of-state
19college or university, the qualified beneficiary's prepaid
20tuition contract shall be converted for use at that college or
21university by referencing the current average mean-weighted
22credit hour value of registration fees purchased under the
23contract. The Commission shall transfer, or cause to have
24transferred, this amount, less a transfer fee, to the college
25or university on behalf of the beneficiary. In the event that
26the cost of registration charged to the beneficiary at the



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1eligible out-of-state college or university is less than the
2aggregate value of the Illinois prepaid tuition contract, any
3remaining amount shall be transferred in subsequent semesters
4until the transfer value is fully depleted.
5    (n) Illinois prepaid tuition contracts may be purchased
6either by lump sum or by installments. No penalty shall be
7assessed for early payment of installment contracts.
8    (o) The Commission shall annually adjust the price of new
9contracts, in accordance with the annual changes in
10registration fees at Illinois public universities and
11community colleges.
12(Source: P.A. 95-217, eff. 8-16-07; 96-1282, eff. 7-26-10.)
13    Section 99. Effective date. This Act takes effect upon
14becoming law.".