(110 ILCS 947/75)
College savings programs.
(a) Purpose. The General Assembly finds and hereby declares that for
the benefit of the people of the State of Illinois, the conduct and
increase of their commerce, the protection and enhancement of their welfare,
the development of continued prosperity and the improvement of their health
and living conditions, it is essential that all citizens with the
intellectual ability and motivation be able to obtain a higher education.
The General Assembly further finds that rising tuition costs, increasingly
restrictive eligibility criteria for existing federal and State student aid
programs and other trends in higher education finance have impeded access
to a higher education for many middle-income families; and that to remedy
these concerns, it is of utmost importance that families be provided with
investment alternatives to enhance their financial access to institutions of
higher education. It is the intent of this Section to establish College
Savings Programs appropriate for families from various income groups, to
encourage Illinois families to save and invest in anticipation of their
children's education, and to encourage enrollment in institutions of higher
education, all in execution of the public policy set forth above and
elsewhere in this Act. College Savings Programs established under this Section must be available to any individual with a valid social security number or taxpayer identification number for the benefit of any individual with a valid social security number or taxpayer identification number.
(b) The Commission is authorized to develop and provide a program of
college savings instruments to qualifying Illinois residents. The program shall be
structured to encourage parents to plan ahead for the college education of
their children and to permit the long-term accumulation of savings which
can be used to finance the family's share of the cost of a higher education.
Income, up to $2,000 annually per account, which is derived by
individuals from investments made in accordance with College Savings Programs
established under this Section shall be free from all taxation by the State and
its political subdivisions, except for estate, transfer, and inheritance taxes.
(c) The Commission is authorized to contract with private financial
institutions and other businesses, individuals, and other appropriate
parties to establish and operate the College Savings Programs. The
Commission may negotiate contracts with private financial and investment
companies, establish College Savings Programs, and monitor the vendors
administering the programs in whichever manner the Commission determines is
best suited to accomplish the purposes of this Section. The Auditor General
shall periodically review the operation of the College Savings Programs and
shall advise the Commission and the General Assembly of his findings.
(d) In determining the type of instruments to be offered, the Commission
shall consult with, and receive the assistance of, the Illinois Board of
Higher Education, the
Governor's Office of Management and Budget, the State Board of Investments,
the Governor, and other appropriate State agencies and private parties.
(e) The Commission shall market and promote the College Savings Programs
to the citizens of Illinois.
(f) The Commission shall assist the State Comptroller and State
Treasurer in establishing a payroll deduction plan through which State
employees may participate in the College Savings Programs. The Department of
Labor, Department of Employment Security, Department of Revenue, and other
appropriate agencies shall assist the Commission in educating Illinois
employers about the College Savings Programs, and shall assist the Commission
in securing employers' participation in a payroll deduction plan and other
initiatives which maximize participation in the College Savings Programs.
(g) The Commission shall examine means by which the State, through a
series of matching contributions or other incentives, may most
effectively encourage Illinois families to participate in the College
Savings Programs. The Commission shall report its conclusions and
recommendations to the Governor and General Assembly no later than
February 15, 1990.
(h) The College Savings Programs established pursuant to this Section
shall not be subject to the provisions of the Illinois Administrative
Procedure Act. The Commission shall provide that appropriate disclosures
are provided to all citizens who participate in the College Savings Programs.
(Source: P.A. 97-233, eff. 8-1-11.)