SB3452 98TH GENERAL ASSEMBLY

LRB098 14787 NHT 49716 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB3452

Introduced 2/14/2014, by Sen. Michael W. Frerichs

SYNOPSIS AS INTRODUCED:

110 ILCS 205/9.34 new

Amends the Board of Higher Education Act. Requires the Board of Higher Education to create a pilot program called Pay Forward, Pay Back to replace the current system of charging students tuition and fees for enrollment at public institutions of higher education. Requires the Board to identify one or more public institutions of higher education to participate in the pilot program. Provides that the pilot program shall (1) allow students to enroll in an institution without paying tuition or fees; (2) provide that, in lieu of paying tuition or fees, students must sign binding contracts to pay to the State of Illinois or the institution a certain percentage of the student's annual adjusted gross income upon graduation from the institution for a specified number of years; (3) specify the number of years and the percentage of annual adjusted gross income for contracts at each participating institution and base the specifications on research to date; and (4) establish an immediate funding source for the first 15 to 20 years of the pilot program and include the establishment of a revolving fund to deposit payments made under the pilot program. Allows the pilot program to vary by institution depending on certain factors and requires the Board to submit reports to the General Assembly.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning education.

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

Section 5. The Board of Higher Education Act is amended by adding Section 9.34 as follows:

(110 ILCS 205/9.34 new)

Sec. 9.34. Pay Forward, Pay Back pilot program.

(a) The Board shall create a pilot program called Pay Forward, Pay Back. The pilot program would replace the current system of charging students tuition and fees for enrollment at public institutions of higher education. The Board shall identify one or more public institutions of higher education to participate in the pilot program.

(b) The pilot program shall do all of the following:

(1) Allow students who are residents of this State, as defined by the institution, and who qualify for admission to the institution to enroll in the institution without paying tuition or fees.

(2) Provide that, in lieu of paying tuition or fees, students must sign binding contracts to pay to the State of Illinois or the institution a certain percentage of the student's annual adjusted gross income upon graduation from the institution for a specified number of years.

(3) Specify the number of years and the percentage of annual adjusted gross income for contracts at each participating institution and base the specifications on research to date.

(4) Establish an immediate funding source for the first 15 to 20 years of the pilot program and include the establishment of a revolving fund to deposit payments made under the pilot program.

(c) The pilot program may vary by institution depending on the following:

(1) The total cost of education at the institution.

(2) The portion of the cost that is paid by the State of Illinois.

(3) The number of years specified in the contract.

(4) The percentage of annual adjusted gross income specified in the contract.

(d) The Board shall periodically submit a report to the General Assembly on students' compliance with the pilot program's binding contract. The Board shall also submit a report to the General Assembly on whether the pilot program should be expanded. These reports must be submitted as provided in Section 3.1 of the General Assembly Organization Act.