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Full Text of SB2185  97th General Assembly

SB2185enr 97TH GENERAL ASSEMBLY



 


 
SB2185 EnrolledLRB097 10195 RLJ 50388 b

1    AN ACT concerning government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
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
17beneficiary, or otherwise exercise control over an account.
18"Donor", as used in this Section, means any person who makes
19investments in the pool. "Designated beneficiary", as used in
20this Section, means any person on whose behalf an account is
21established in the College Savings Pool by a participant. Both
22in-state and out-of-state persons may be participants, donors,
23and designated beneficiaries in the College Savings Pool. The

 

 

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1College Savings Pool must be available to any individual with a
2valid social security number or taxpayer identification number
3for the benefit of any individual with a valid social security
4number or taxpayer identification number, unless a contract in
5effect on the effective date of this amendatory Act of the 97th
6General Assembly does not allow for taxpayer identification
7numbers, in which case taxpayer identification numbers must be
8allowed upon the expiration of the contract.
9    New accounts in the College Savings Pool may be processed
10through participating financial institutions. "Participating
11financial institution", as used in this Section, means any
12financial institution insured by the Federal Deposit Insurance
13Corporation and lawfully doing business in the State of
14Illinois and any credit union approved by the State Treasurer
15and lawfully doing business in the State of Illinois that
16agrees to process new accounts in the College Savings Pool.
17Participating financial institutions may charge a processing
18fee to participants to open an account in the pool that shall
19not exceed $30 until the year 2001. Beginning in 2001 and every
20year thereafter, the maximum fee limit shall be adjusted by the
21Treasurer based on the Consumer Price Index for the North
22Central Region as published by the United States Department of
23Labor, Bureau of Labor Statistics for the immediately preceding
24calendar year. Every contribution received by a financial
25institution for investment in the College Savings Pool shall be
26transferred from the financial institution to a location

 

 

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1selected by the State Treasurer within one business day
2following the day that the funds must be made available in
3accordance with federal law. All communications from the State
4Treasurer to participants and donors shall reference the
5participating financial institution at which the account was
6processed.
7    The Treasurer may invest the moneys in the College Savings
8Pool in the same manner and in the same types of investments
9provided for the investment of moneys by the Illinois State
10Board of Investment. To enhance the safety and liquidity of the
11College Savings Pool, to ensure the diversification of the
12investment portfolio of the pool, and in an effort to keep
13investment dollars in the State of Illinois, the State
14Treasurer may make a percentage of each account available for
15investment in participating financial institutions doing
16business in the State. The State Treasurer may deposit with the
17participating financial institution at which the account was
18processed the following percentage of each account at a
19prevailing rate offered by the institution, provided that the
20deposit is federally insured or fully collateralized and the
21institution accepts the deposit: 10% of the total amount of
22each account for which the current age of the beneficiary is
23less than 7 years of age, 20% of the total amount of each
24account for which the beneficiary is at least 7 years of age
25and less than 12 years of age, and 50% of the total amount of
26each account for which the current age of the beneficiary is at

 

 

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1least 12 years of age. The Treasurer shall develop, publish,
2and implement an investment policy covering the investment of
3the moneys in the College Savings Pool. The policy shall be
4published (i) at least once each year in at least one newspaper
5of general circulation in both Springfield and Chicago and (ii)
6each year as part of the audit of the College Savings Pool by
7the Auditor General, which shall be distributed to all
8participants. The Treasurer shall notify all participants in
9writing, and the Treasurer shall publish in a newspaper of
10general circulation in both Chicago and Springfield, any
11changes to the previously published investment policy at least
1230 calendar days before implementing the policy. Any investment
13policy adopted by the Treasurer shall be reviewed and updated
14if necessary within 90 days following the date that the State
15Treasurer takes office.
16    Participants shall be required to use moneys distributed
17from the College Savings Pool for qualified expenses at
18eligible educational institutions. "Qualified expenses", as
19used in this Section, means the following: (i) tuition, fees,
20and the costs of books, supplies, and equipment required for
21enrollment or attendance at an eligible educational
22institution and (ii) certain room and board expenses incurred
23while attending an eligible educational institution at least
24half-time. "Eligible educational institutions", as used in
25this Section, means public and private colleges, junior
26colleges, graduate schools, and certain vocational

 

 

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1institutions that are described in Section 481 of the Higher
2Education Act of 1965 (20 U.S.C. 1088) and that are eligible to
3participate in Department of Education student aid programs. A
4student shall be considered to be enrolled at least half-time
5if the student is enrolled for at least half the full-time
6academic work load for the course of study the student is
7pursuing as determined under the standards of the institution
8at which the student is enrolled. Distributions made from the
9pool for qualified expenses shall be made directly to the
10eligible educational institution, directly to a vendor, or in
11the form of a check payable to both the beneficiary and the
12institution or vendor. Any moneys that are distributed in any
13other manner or that are used for expenses other than qualified
14expenses at an eligible educational institution shall be
15subject to a penalty of 10% of the earnings unless the
16beneficiary dies, becomes disabled, or receives a scholarship
17that equals or exceeds the distribution. Penalties shall be
18withheld at the time the distribution is made.
19    The Treasurer shall limit the contributions that may be
20made on behalf of a designated beneficiary based on the
21limitations established by the Internal Revenue Service. The
22contributions made on behalf of a beneficiary who is also a
23beneficiary under the Illinois Prepaid Tuition Program shall be
24further restricted to ensure that the contributions in both
25programs combined do not exceed the limit established for the
26College Savings Pool. The Treasurer shall provide the Illinois

 

 

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1Student Assistance Commission each year at a time designated by
2the Commission, an electronic report of all participant
3accounts in the Treasurer's College Savings Pool, listing total
4contributions and disbursements from each individual account
5during the previous calendar year. As soon thereafter as is
6possible following receipt of the Treasurer's report, the
7Illinois Student Assistance Commission shall, in turn, provide
8the Treasurer with an electronic report listing those College
9Savings Pool participants who also participate in the State's
10prepaid tuition program, administered by the Commission. The
11Commission shall be responsible for filing any combined tax
12reports regarding State qualified savings programs required by
13the United States Internal Revenue Service. The Treasurer shall
14work with the Illinois Student Assistance Commission to
15coordinate the marketing of the College Savings Pool and the
16Illinois Prepaid Tuition Program when considered beneficial by
17the Treasurer and the Director of the Illinois Student
18Assistance Commission. The Treasurer's office shall not
19publicize or otherwise market the College Savings Pool or
20accept any moneys into the College Savings Pool prior to March
211, 2000. The Treasurer shall provide a separate accounting for
22each designated beneficiary to each participant, the Illinois
23Student Assistance Commission, and the participating financial
24institution at which the account was processed. No interest in
25the program may be pledged as security for a loan. Moneys held
26in an account invested in the Illinois College Savings Pool

 

 

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1shall be exempt from all claims of the creditors of the
2participant, donor, or designated beneficiary of that account,
3except for the non-exempt College Savings Pool transfers to or
4from the account as defined under subsection (j) of Section
512-1001 of the Code of Civil Procedure (735 ILCS 5/12-1001(j)).
6    The assets of the College Savings Pool and its income and
7operation shall be exempt from all taxation by the State of
8Illinois and any of its subdivisions. The accrued earnings on
9investments in the Pool once disbursed on behalf of a
10designated beneficiary shall be similarly exempt from all
11taxation by the State of Illinois and its subdivisions, so long
12as they are used for qualified expenses. Contributions to a
13College Savings Pool account during the taxable year may be
14deducted from adjusted gross income as provided in Section 203
15of the Illinois Income Tax Act. The provisions of this
16paragraph are exempt from Section 250 of the Illinois Income
17Tax Act.
18    The Treasurer shall adopt rules he or she considers
19necessary for the efficient administration of the College
20Savings Pool. The rules shall provide whatever additional
21parameters and restrictions are necessary to ensure that the
22College Savings Pool meets all of the requirements for a
23qualified state tuition program under Section 529 of the
24Internal Revenue Code (26 U.S.C. 529). The rules shall provide
25for the administration expenses of the pool to be paid from its
26earnings and for the investment earnings in excess of the

 

 

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1expenses and all moneys collected as penalties to be credited
2or paid monthly to the several participants in the pool in a
3manner which equitably reflects the differing amounts of their
4respective investments in the pool and the differing periods of
5time for which those amounts were in the custody of the pool.
6Also, the rules shall require the maintenance of records that
7enable the Treasurer's office to produce a report for each
8account in the pool at least annually that documents the
9account balance and investment earnings. Notice of any proposed
10amendments to the rules and regulations shall be provided to
11all participants prior to adoption. Amendments to rules and
12regulations shall apply only to contributions made after the
13adoption of the amendment.
14    Upon creating the College Savings Pool, the State Treasurer
15shall give bond with 2 or more sufficient sureties, payable to
16and for the benefit of the participants in the College Savings
17Pool, in the penal sum of $1,000,000, conditioned upon the
18faithful discharge of his or her duties in relation to the
19College Savings Pool.
20(Source: P.A. 95-23, eff. 8-3-07; 95-306, eff. 1-1-08; 95-521,
21eff. 8-28-07; 95-876, eff. 8-21-08.)
 
22    Section 3. The School Code is amended by changing Section
2321-25 as follows:
 
24    (105 ILCS 5/21-25)  (from Ch. 122, par. 21-25)

 

 

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1    Sec. 21-25. School service personnel certificate.
2    (a) For purposes of this Section, "school service
3personnel" means persons employed and performing appropriate
4services in an Illinois public or State-operated elementary
5school, secondary school, or cooperative or joint agreement
6with a governing body or board of control or a charter school
7operating in compliance with the Charter Schools Law in a
8position requiring a school service personnel certificate.
9    Subject to the provisions of Section 21-1a, a school
10service personnel certificate shall be issued to those
11applicants of good character, good health, a citizen of the
12United States and at least 19 years of age who have a
13Bachelor's degree with not fewer than 120 semester hours from a
14regionally accredited institution of higher learning and who
15meets the requirements established by the State Superintendent
16of Education in consultation with the State Teacher
17Certification Board. A school service personnel certificate
18with a school nurse endorsement may be issued to a person who
19holds a bachelor of science degree from an institution of
20higher learning accredited by the North Central Association or
21other comparable regional accrediting association. Persons
22seeking any other endorsement on the school service personnel
23certificate shall be recommended for the endorsement by a
24recognized teacher education institution as having completed a
25program of preparation approved by the State Superintendent of
26Education in consultation with the State Teacher Certification

 

 

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1Board.
2    (b) Until August 30, 2002, a school service personnel
3certificate endorsed for school social work may be issued to a
4student who has completed a school social work program that has
5not been approved by the State Superintendent of Education,
6provided that each of the following conditions is met:
7        (1) The program was offered by a recognized, public
8    teacher education institution that first enrolled students
9    in its master's degree program in social work in 1998;
10        (2) The student applying for the school service
11    personnel certificate was enrolled in the institution's
12    master's degree program in social work on or after May 11,
13    1998;
14        (3) The State Superintendent verifies that the student
15    has completed coursework that is substantially similar to
16    that required in approved school social work programs,
17    including (i) not fewer than 600 clock hours of a
18    supervised internship in a school setting or (ii) if the
19    student has completed part of a supervised internship in a
20    school setting prior to the effective date of this
21    amendatory Act of the 92nd General Assembly and receives
22    the prior approval of the State Superintendent, not fewer
23    than 300 additional clock hours of supervised work in a
24    public school setting under the supervision of a certified
25    school social worker who certifies that the supervised work
26    was completed in a satisfactory manner; and

 

 

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1        (4) The student has passed a test of basic skills and
2    the test of subject matter knowledge required by Section
3    21-1a.
4    This subsection (b) does not apply after August 29, 2002.
5    (c) A school service personnel certificate shall be
6endorsed with the area of Service as determined by the State
7Superintendent of Education in consultation with the State
8Teacher Certification Board.
9    The holder of such certificate shall be entitled to all of
10the rights and privileges granted holders of a valid teaching
11certificate, including teacher benefits, compensation and
12working conditions.
13    When the holder of such certificate has earned a master's
14degree, including 8 semester hours of graduate professional
15education from a recognized institution of higher learning, and
16has at least 2 years of successful school experience while
17holding such certificate, the certificate may be endorsed for
18supervision.
19    (d) Persons who have successfully achieved National Board
20certification through the National Board for Professional
21Teaching Standards shall be issued a Master School Service
22Personnel Certificate, valid for 10 years and renewable
23thereafter every 10 years through compliance with requirements
24set forth by the State Board of Education, in consultation with
25the State Teacher Certification Board. However, each holder of
26a Master School Service Personnel Certificate shall be eligible

 

 

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1for a corresponding position in this State in the areas for
2which he or she holds a Master Certificate without satisfying
3any other requirements of this Code, except for those
4requirements pertaining to criminal background checks.
5    (e) School service personnel certificates are renewable
6every 5 years and may be renewed as provided in this Section.
7Requests for renewals must be submitted, in a format prescribed
8by the State Board of Education, to the regional office of
9education responsible for the school where the holder is
10employed.
11    Upon completion of at least 80 hours of continuing
12professional development as provided in this subsection (e), a
13person who holds a valid school service personnel certificate
14shall have his or her certificate renewed for a period of 5
15years. A person who (i) holds an active license issued by the
16State as a clinical professional counselor, a professional
17counselor, a clinical social worker, a social worker, or a
18speech-language pathologist; (ii) holds national certification
19as a Nationally Certified School Psychologist from the National
20School Psychology Certification Board; (iii) is nationally
21certified as a National Certified School Nurse from the
22National Board for Certification of School Nurses; (iv) is
23nationally certified as a National Certified Counselor or
24National Certified School Counselor from the National Board for
25Certified Counselors; or (v) holds a Certificate of Clinical
26Competence from the American Speech-Language-Hearing

 

 

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1Association shall be deemed to have satisfied the continuing
2professional development requirements established by the State
3Board of Education and the State Teacher Certification Board to
4renew a school service personnel certificate.
5    School service personnel certificates may be renewed by the
6State Teacher Certification Board based upon proof of
7continuing professional development. The State Board of
8Education shall (i) establish a procedure for renewing school
9service personnel certificates, which shall include without
10limitation annual timelines for the renewal process and the
11components set forth in this Section; (ii) approve or
12disapprove the providers of continuing professional
13development activities; and (iii) provide, on a timely basis to
14all school service personnel certificate holders, regional
15superintendents of schools, school districts, and others with
16an interest in continuing professional development,
17information about the standards and requirements established
18pursuant to this subsection (e).
19    Any school service personnel certificate held by an
20individual employed and performing services in an Illinois
21public or State-operated elementary school, secondary school,
22or cooperative or joint agreement with a governing body or
23board of control in a certificated school service personnel
24position or in a charter school in compliance with the Charter
25Schools Law must be maintained Valid and Active through
26certificate renewal activities specified in the certificate

 

 

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

 

 

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1personnel certificate of endorsement or (ii) earning 80
2continuing professional development units as described in this
3Section. If, however, the certificate holder has maintained the
4certificate as Valid and Exempt for a portion of the 5-year
5period of validity, the number of continuing professional
6development units needed to renew the certificate as Valid and
7Active must be proportionately reduced by the amount of time
8the certificate was Valid and Exempt. If a certificate holder
9is employed and performs services requiring the holder's school
10service personnel certificate on a part-time basis for all or a
11portion of the certificate's 5-year period of validity, the
12number of continuing professional development units needed to
13renew the certificate as Valid and Active shall be reduced by
1450% for the amount of time the certificate holder has been
15employed and performing such services on a part-time basis.
16"Part-time" means less than 50% of the school day or school
17term.
18    Beginning July 1, 2008, in order to satisfy the
19requirements for continuing professional development provided
20for in this Section, each Valid and Active school service
21personnel certificate holder shall complete professional
22development activities that address the certificate or those
23certificates that are required of his or her certificated
24position, if the certificate holder is employed and performing
25services in an Illinois public or State operated elementary
26school, secondary school, or cooperative or joint agreement

 

 

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

 

 

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1    children of immigrants, including, if the certificate
2    holder is employed as a counselor in an Illinois public or
3    State-operated secondary school, opportunities for higher
4    education for students who are undocumented immigrants.
5    The coursework or continuing professional development
6units ("CPDU") required under this subsection (e) must total 80
7CPDUs or the equivalent and must address 4 3 of the 5 4
8purposes described in items (1) through (5) (4) of this
9subsection (e). Holders of school service personnel
10certificates may fulfill this obligation with any combination
11of semester hours or CPDUs as follows:
12        (A) Collaboration and partnership activities related
13    to improving the school service personnel certificate
14    holder's knowledge and skills, including (i) participating
15    on collaborative planning and professional improvement
16    teams and committees; (ii) peer review and coaching; (iii)
17    mentoring in a formal mentoring program, including service
18    as a consulting teacher participating in a remediation
19    process formulated under Section 24A-5 of this Code; (iv)
20    participating in site-based management or decision-making
21    teams, relevant committees, boards, or task forces
22    directly related to school improvement plans; (v)
23    coordinating community resources in schools, if the
24    project is a specific goal of the school improvement plan;
25    (vi) facilitating parent education programs for a school,
26    school district, or regional office of education directly

 

 

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1    related to student achievement or school improvement
2    plans; (vii) participating in business, school, or
3    community partnerships directly related to student
4    achievement or school improvement plans; or (viii)
5    supervising a student teacher (student services personnel)
6    or teacher education candidate in clinical supervision,
7    provided that the supervision may be counted only once
8    during the course of 5 years.
9        (B) Coursework from a regionally accredited
10    institution of higher learning related to one of the
11    purposes listed in items (1) through (4) of this subsection
12    (e), which shall apply at the rate of 15 continuing
13    professional development units per semester hour of credit
14    earned during the previous 5-year period when the status of
15    the holder's school service personnel certificate was
16    Valid and Active. Proportionate reductions shall apply
17    when the holder's status was Valid and Active for less than
18    the 5-year period preceding the renewal.
19        (C) Teaching college or university courses in areas
20    relevant to the certificate area being renewed, provided
21    that the teaching may be counted only once during the
22    course of 5 years.
23        (D) Conferences, workshops, institutes, seminars, or
24    symposiums designed to improve the certificate holder's
25    knowledge and skills in the service area and applicable to
26    the purposes listed in items (1) through (5) (4) of this

 

 

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1    subsection (e). One CPDU shall be awarded for each hour of
2    attendance. No one shall receive credit for conferences,
3    workshops, institutes, seminars, or symposiums that are
4    designed for entertainment, promotional, or commercial
5    purposes or that are solely inspirational or motivational.
6    The State Superintendent of Education and regional
7    superintendents of schools are authorized to review the
8    activities and events provided or to be provided under this
9    subdivision (D) and to investigate complaints regarding
10    those activities and events. Either the State
11    Superintendent of Education or a regional superintendent
12    of schools may recommend that the State Board of Education
13    disapprove those activities and events considered to be
14    inconsistent with this subdivision (D).
15        (E) Completing non-university credit directly related
16    to student achievement, school improvement plans, or State
17    priorities.
18        (F) Participating in or presenting at workshops,
19    seminars, conferences, institutes, or symposiums.
20        (G) Training as external reviewers for quality
21    assurance.
22        (H) Training as reviewers of university teacher
23    preparation programs.
24        (I) Other educational experiences related to improving
25    the school service personnel's knowledge and skills as a
26    teacher, including (i) participating in action research

 

 

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

 

 

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1    participating in non-strike-related professional
2    association or labor organization service or activities
3    related to professional development.
4(Source: P.A. 94-105, eff. 7-1-05; 95-592, eff. 7-1-08.)
 
5    Section 5. The Higher Education Student Assistance Act is
6amended by adding Section 67 and by changing Section 75 as
7follows:
 
8    (110 ILCS 947/67 new)
9    Sec. 67. Illinois DREAM Fund Commission.
10    (a) The Illinois Student Assistance Commission shall
11establish an Illinois DREAM Fund Commission. The Governor shall
12appoint, with the advice and consent of the Senate, members to
13the Illinois DREAM Fund Commission, which shall be comprised of
149 members representing the geographic and ethnic diversity of
15this State, including students, college and university
16administrators and faculty, and other individuals committed to
17advancing the educational opportunities of the children of
18immigrants.
19    (b) The Illinois DREAM Fund Commission is charged with all
20of the following responsibilities:
21        (1) Administering this Section and raising funds for
22    the Illinois DREAM Fund.
23        (2) Establishing a not-for-profit entity charged with
24    raising funds for the administration of this Section, any

 

 

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1    educational or training programs the Commission is tasked
2    with administering, and funding scholarships to students
3    who are the children of immigrants to the United States.
4        (3) Publicizing the availability of scholarships from
5    the Illinois DREAM Fund.
6        (4) Selecting the recipients of scholarships funded
7    through the Illinois DREAM Fund.
8        (5) Researching issues pertaining to the availability
9    of assistance with the costs of higher education for the
10    children of immigrants and other issues regarding access
11    for and the performance of the children of immigrants
12    within higher education.
13        (6) Overseeing implementation of the other provisions
14    of this amendatory Act of the 97th General Assembly.
15        (7) Establishing and administering training programs
16    for high school counselors and counselors, admissions
17    officers, and financial aid officers of public
18    institutions of higher education. The training programs
19    shall instruct participants on the educational
20    opportunities available to college-bound students who are
21    the children of immigrants, including, but not limited to,
22    in-state tuition and scholarship programs. The Illinois
23    DREAM Fund Commission may also establish a public awareness
24    campaign regarding educational opportunities available to
25    college bound students who are the children of immigrants.
26    The Illinois DREAM Fund Commission shall establish, by

 

 

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1rule, procedures for accepting and evaluating applications for
2scholarships from the children of immigrants and issuing
3scholarships to selected student applicants.
4    (c) To receive a scholarship under this Section, a student
5must meet all of the following qualifications:
6        (1) Have resided with his or her parents or guardian
7    while attending a public or private high school in this
8    State.
9        (2) Have graduated from a public or private high school
10    or received the equivalent of a high school diploma in this
11    State.
12        (3) Have attended school in this State for at least 3
13    years as of the date he or she graduated from high school
14    or received the equivalent of a high school diploma.
15        (4) Have at least one parent who immigrated to the
16    United States.
17    (d) The Illinois Student Assistance Commission shall
18establish an Illinois DREAM Fund to provide scholarships under
19this Section. The Illinois DREAM Fund shall be funded entirely
20from private contributions.
 
21    (110 ILCS 947/75)
22    Sec. 75. College savings programs.
23    (a) Purpose. The General Assembly finds and hereby declares
24that for the benefit of the people of the State of Illinois,
25the conduct and increase of their commerce, the protection and

 

 

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1enhancement of their welfare, the development of continued
2prosperity and the improvement of their health and living
3conditions, it is essential that all citizens with the
4intellectual ability and motivation be able to obtain a higher
5education. The General Assembly further finds that rising
6tuition costs, increasingly restrictive eligibility criteria
7for existing federal and State student aid programs and other
8trends in higher education finance have impeded access to a
9higher education for many middle-income families; and that to
10remedy these concerns, it is of utmost importance that families
11be provided with investment alternatives to enhance their
12financial access to institutions of higher education. It is the
13intent of this Section to establish College Savings Programs
14appropriate for families from various income groups, to
15encourage Illinois families to save and invest in anticipation
16of their children's education, and to encourage enrollment in
17institutions of higher education, all in execution of the
18public policy set forth above and elsewhere in this Act.
19College Savings Programs established under this Section must be
20available to any individual with a valid social security number
21or taxpayer identification number for the benefit of any
22individual with a valid social security number or taxpayer
23identification number.
24    (b) The Commission is authorized to develop and provide a
25program of college savings instruments to qualifying Illinois
26residents citizens. The program shall be structured to

 

 

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1encourage parents to plan ahead for the college education of
2their children and to permit the long-term accumulation of
3savings which can be used to finance the family's share of the
4cost of a higher education. Income, up to $2,000 annually per
5account, which is derived by individuals from investments made
6in accordance with College Savings Programs established under
7this Section shall be free from all taxation by the State and
8its political subdivisions, except for estate, transfer, and
9inheritance taxes.
10    (c) The Commission is authorized to contract with private
11financial institutions and other businesses, individuals, and
12other appropriate parties to establish and operate the College
13Savings Programs. The Commission may negotiate contracts with
14private financial and investment companies, establish College
15Savings Programs, and monitor the vendors administering the
16programs in whichever manner the Commission determines is best
17suited to accomplish the purposes of this Section. The Auditor
18General shall periodically review the operation of the College
19Savings Programs and shall advise the Commission and the
20General Assembly of his findings.
21    (d) In determining the type of instruments to be offered,
22the Commission shall consult with, and receive the assistance
23of, the Illinois Board of Higher Education, the Governor's
24Office of Management and Budget, the State Board of
25Investments, the Governor, and other appropriate State
26agencies and private parties.

 

 

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1    (e) The Commission shall market and promote the College
2Savings Programs to the citizens of Illinois.
3    (f) The Commission shall assist the State Comptroller and
4State Treasurer in establishing a payroll deduction plan
5through which State employees may participate in the College
6Savings Programs. The Department of Labor, Department of
7Employment Security, Department of Revenue, and other
8appropriate agencies shall assist the Commission in educating
9Illinois employers about the College Savings Programs, and
10shall assist the Commission in securing employers'
11participation in a payroll deduction plan and other initiatives
12which maximize participation in the College Savings Programs.
13    (g) The Commission shall examine means by which the State,
14through a series of matching contributions or other incentives,
15may most effectively encourage Illinois families to
16participate in the College Savings Programs. The Commission
17shall report its conclusions and recommendations to the
18Governor and General Assembly no later than February 15, 1990.
19    (h) The College Savings Programs established pursuant to
20this Section shall not be subject to the provisions of the
21Illinois Administrative Procedure Act. The Commission shall
22provide that appropriate disclosures are provided to all
23citizens who participate in the College Savings Programs.
24(Source: P.A. 94-793, eff. 5-19-06.)
 
25    Section 10. The Illinois Prepaid Tuition Act is amended by

 

 

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1changing Section 45 as follows:
 
2    (110 ILCS 979/45)
3    Sec. 45. Illinois prepaid tuition contracts.
4    (a) The Commission may enter into an Illinois prepaid
5tuition contract with a purchaser under which the Commission
6contracts on behalf of the State to pay full tuition and
7mandatory fees at an Illinois public university or Illinois
8community college for a qualified beneficiary to attend the
9eligible institution to which the qualified beneficiary is
10admitted. Each contract shall contain terms, conditions, and
11provisions that the Commission determines to be necessary for
12ensuring the educational objectives and sustainable financial
13viability of the Illinois prepaid tuition program.
14    (b) Each contract shall have one designated purchaser and
15one designated qualified beneficiary. Unless otherwise
16specified in the contract, the purchaser owns the contract and
17retains any tax liability for its assets only until the first
18distribution of benefits. Contracts shall be purchased in units
19of 15 credit hours.
20    (c) Without exception, benefits may be received by a
21qualified beneficiary of an Illinois prepaid tuition contract
22no earlier than 3 years from the date the contract is
23purchased.
24    (d) A prepaid tuition contract shall contain, but is not
25limited to, provisions for (i) refunds or withdrawals in

 

 

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1certain circumstances, with or without interest or penalties;
2(ii) conversion of the contract at the time of distribution
3from accrued prepayment value at one type of eligible
4institution to the accrued prepayment value at a different type
5of eligible institution; (iii) portability of the accrued value
6of the prepayment value for use at an eligible institution
7located outside this State; (iv) transferability of the
8contract benefits within the qualified beneficiary's immediate
9family; and (v) a specified benefit period during which the
10contract may be redeemed.
11    (e) Each Illinois prepaid tuition contract also shall
12contain, at minimum, all of the following:
13        (1) The amount of payment or payments and the number of
14    payments required from a purchaser on behalf of a qualified
15    beneficiary.
16        (2) The terms and conditions under which purchasers
17    shall remit payments, including, but not limited to, the
18    date or dates upon which each payment shall be due.
19        (3) Provisions for late payment charges and for
20    default.
21        (4) Provisions for penalty fees payable incident to an
22    authorized withdrawal.
23        (5) The name, date of birth, and social security number
24    or taxpayer identification number of the qualified
25    beneficiary on whose behalf the contract is drawn and the
26    terms and conditions under which the contract may be

 

 

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1    transferred to another qualified beneficiary.
2        (6) The name and social security number or taxpayer
3    identification number of any person who may terminate the
4    contract, together with terms that specify whether the
5    contract may be terminated by the purchaser, the qualified
6    beneficiary, a specific designated person, or any
7    combination of these persons.
8        (7) The terms and conditions under which a contract may
9    be terminated, the name and social security number or
10    taxpayer identification number of the person entitled to
11    any refund due as a result of the termination of the
12    contract pursuant to those terms and conditions, and the
13    method for determining the amount of a refund.
14        (8) The time limitations, if any, within which the
15    qualified beneficiary must claim his or her benefits
16    through the program.
17        (9) Other terms and conditions determined by the
18    Commission to be appropriate.
19    (f) In addition to the contract provisions set forth in
20subsection (e), each Illinois prepaid tuition contract shall
21include:
22        (1) The number of credit hours contracted by the
23    purchaser.
24        (2) The type of eligible institution and the prepaid
25    tuition plan toward which the credit hours shall be
26    applied.

 

 

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

 

 

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1    beneficiary, in an amount equal to the current cost of
2    tuition and mandatory fees at the public institution of
3    higher education where the qualified beneficiary is
4    enrolled.
5        (1.5) If the qualified beneficiary is awarded a grant
6    or scholarship while enrolled at either an eligible
7    nonpublic institution of higher education or an eligible
8    public or private out-of-state higher education
9    institution, the terms of which duplicate the benefits
10    included in the Illinois prepaid tuition contract, then
11    money paid for the purchase of the contract shall be
12    returned to the purchaser, upon request, in semester
13    installments that coincide with the matriculation by the
14    qualified beneficiary. The amount paid shall not exceed the
15    current average mean-weighted credit hour value of the
16    registration fees purchased under the contract.
17        (2) In the event of the death or total disability of
18    the qualified beneficiary, moneys paid for the purchase of
19    the Illinois prepaid tuition contract shall be returned to
20    the purchaser together with all accrued earnings.
21        (3) If an Illinois prepaid tuition contract is
22    converted from a Public University Plan to a Community
23    College Plan, then the amount refunded shall be the value
24    of the original Illinois prepaid tuition contract minus the
25    value of the contract after conversion.
26    No refund shall be authorized under an Illinois prepaid

 

 

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1tuition contract for any semester partially attended but not
2completed.
3    The Commission, by rule, shall set forth specific
4procedures for making contract payments in conjunction with
5grants and scholarships awarded to contract beneficiaries.
6    Moneys paid into or out of the Illinois Prepaid Tuition
7Trust Fund by or on behalf of the purchaser or the qualified
8beneficiary of an Illinois prepaid tuition contract are exempt
9from all claims of creditors of the purchaser or beneficiary,
10so long as the contract has not been terminated.
11    The State or any State agency, county, municipality, or
12other political subdivision, by contract or collective
13bargaining agreement, may agree with any employee to remit
14payments toward the purchase of Illinois prepaid tuition
15contracts through payroll deductions made by the appropriate
16officer or officers of the entity making the payments. Such
17payments shall be held and administered in accordance with this
18Act.
19    (h) Nothing in this Act shall be construed as a promise or
20guarantee that a qualified beneficiary will be admitted to an
21eligible institution or to a particular eligible institution,
22will be allowed to continue enrollment at an eligible
23institution after admission, or will be graduated from an
24eligible institution.
25    (i) The Commission shall develop and make prepaid tuition
26contracts available under a minimum of at least 2 independent

 

 

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1plans to be known as the Public University Plan and the
2Community College Plan.
3    Contracts shall be purchased in units of 15 credit hours at
4either an Illinois public university or an Illinois community
5college. The minimum purchase amount per qualified beneficiary
6shall be one unit or 15 credit hours. The maximum purchase
7amount shall be 9 units (or 135 credit hours) for the Public
8University Plan and 4 units (or 60 credit hours) for the
9Community College Plan.
10    (j) Public University Plan. Through the Public University
11Plan, the Illinois prepaid tuition contract shall provide
12prepaid registration fees, which include full tuition costs as
13well as mandatory fees, for a specified number of undergraduate
14credit hours, not to exceed the maximum number of credit hours
15required for the conference of a baccalaureate degree. In
16determining the cost of participation in the Public University
17Plan, the Commission shall reference the combined
18mean-weighted current registration fees from Illinois public
19universities.
20    In the event that a qualified beneficiary for whatever
21reason chooses to attend an Illinois community college, the
22qualified beneficiary may convert the average number of credit
23hours required for the conference of an associate degree from
24the Public University Plan to the Community College Plan and
25may retain the remaining Public University Plan credit hours or
26may request a refund for prepaid credit hours in excess of

 

 

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

 

 

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

 

 

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1fully depleted.
2    (m) A qualified beneficiary may apply the benefits of any
3Illinois prepaid tuition contract toward an eligible
4out-of-state college or university. Institutional eligibility
5for out-of-state colleges and universities shall be determined
6by the Commission according to standards substantially
7equivalent to those for an eligible institution located in this
8State, as described in the definition of "institution of higher
9learning" in Section 10 of the Higher Education Student
10Assistance Act. In the event that a qualified beneficiary for
11whatever reason chooses to attend an eligible out-of-state
12college or university, the qualified beneficiary's prepaid
13tuition contract shall be converted for use at that college or
14university by referencing the current average mean-weighted
15credit hour value of registration fees purchased under the
16contract. The Commission shall transfer, or cause to have
17transferred, this amount, less a transfer fee, to the college
18or university on behalf of the beneficiary. In the event that
19the cost of registration charged to the beneficiary at the
20eligible out-of-state college or university is less than the
21aggregate value of the Illinois prepaid tuition contract, any
22remaining amount shall be transferred in subsequent semesters
23until the transfer value is fully depleted.
24    (n) Illinois prepaid tuition contracts may be purchased
25either by lump sum or by installments. No penalty shall be
26assessed for early payment of installment contracts.

 

 

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1    (o) The Commission shall annually adjust the price of new
2contracts, in accordance with the annual changes in
3registration fees at Illinois public universities and
4community colleges.
5(Source: P.A. 95-217, eff. 8-16-07; 96-1282, eff. 7-26-10.)
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.