90th General Assembly
Summary of SB0878
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Senate Sponsors:
WATSON-MAITLAND-LUECHTEFELD-BOMKE-MYERS,J, 
   MAHAR, RADOGNO, BURZYNSKI, SIEBEN, DUDYCZ, O'MALLEY, 
   BERMAN, KARPIEL, DILLARD, PARKER, CRONIN, 
   WALSH,T, BOWLES, SEVERNS, WELCH, OBAMA AND HALVORSON.

House Sponsors:
BURKE-SANTIAGO-ERWIN-DURKIN-WOOD

Short description: 
ILL PREPAID TUITION ACT                                                    

Synopsis of Bill as introduced:
        Amends the Higher Education Student Assistance Act. Provides that      
   the Illinois Student Assistance Commission may administer a program of      
   grant  assistance  as  authorized  by  other  statutes  that  may   be      
   referenced in the Act. Provides that the Commission may receive, hold,      
   and disburse  funds  made  available  by individuals for the  purposes      
   for  which  those  funds  were  made available.                             
        SENATE AMENDMENT NO. 1.                                                
          Deletes reference to:                                                
          110 ILCS 947/20                                                      
          Adds reference to:                                                   
          New Act                                                              
          5 ILCS 140/7                    from Ch. 116, par. 207               
        Deletes everything.  Creates the Illinois Prepaid Tuition Act and      
   amends the Freedom  of  Information  Act.   Establishes  the  Illinois      
   prepaid  tuition program under which a purchaser enters into and makes      
   the payments required under a prepaid tuition  contract  in  order  to      
   provide  a  higher education for the beneficiary of the contract.  The      
   contractual payments must be made in advance of enrollment and  assure      
   payment  upon  the  beneficiary's enrollment in a public university or      
   community college of tuition and fee costs for the  number  of  credit      
   hours  purchased  under  the contract.  Provides for administration of      
   the  program  by  the  Illinois  Student  Assistance   Commission   in      
   conjunction  with  a 3-member board.  Specifies provisions required to      
   be included in the prepaid tuition contracts.  Provides for deposit of      
   contract payments into the Prepaid Tuition Trust Fund.   Requires  the      
   tuition  and  fee payments due under the contracts to be made from the      
   Trust Fund.  Makes the contracts general obligations of the State  and      
   provides  for continuing appropriations to discharge those obligations      
   if moneys in the Trust Fund are insufficient.  Contains other  related      
   provisions,  including  provisions under which information relating to      
   the  purchasers  and  qualified  beneficiaries  of   prepaid   tuition      
   contracts is exempted from inspection, copying or disclosure under the      
   Freedom of Information Act.  Effective immediately.                         
        HOUSE AMENDMENT NO. 1.                                                 
        Deletes provisions in the engrossed bill that  create  a  Prepaid      
   Tuition  Review Board and provides for the performance of what were to      
   be  the  responsibilities  of  that  Board  by  the  Illinois  Student      
   Assistance  Commission  or  an  advisory  panel.   Provides  that  the      
   advisory panel shall give advice and counsel to the Commission,  which      
   is  to  administer  the  prepaid  tuition  program.  Provides that the      
   advisory panel shall consist of 7 members appointed by the Commission,      
   including one recommended by the State Treasurer, one  recommended  by      
   the  State  Comptroller, one recommended by the Director of the Bureau      
   of the Budget, and one recommended by the Executive  Director  of  the      
   Board  of  Higher Education.  Revises the definition of a MAP-eligible      
   institution.  Provides  that  the  start-up  period  for  the  program      
   (during  which  administrative  costs are to be paid by appropriations      
   from the General Revenue Fund) shall be up to 18 months (instead of 12      
   months).  Provides that each appropriation constitutes  a loan that is      
   to be repaid to the  General  Revenue  Fund  within  5  years  by  the      
   Commission   from  prepaid  tuition  program  contributions.   Revises      
   provisions relative to the  conversion  of  prepaid  tuition  contract      
   benefits for use at an out-of-state college or university and provides      
   that  the  benefits  of  such a contract may not be used at for-profit      
   educational institutions that are located outside of Illinois.              
        HOUSE AMENDMENT NO. 2.                                                 
        Deletes provisions making the prepaid  tuition  contracts  direct      
   obligations  of  the State for the payment of which the full faith and      
   credit  of  the  State  are  pledged.   Also  deletes   a   continuing      
   appropriation  provision  mandating  transfer  to  the Prepaid Tuition      
   Trust Fund of amounts necessary to  discharge  obligations  under  the      
   contracts if the amounts appropriated by the General Assembly for that      
   purpose  are  insufficient.  Provides instead for certification by the      
   Illinois Student Assistance  Commission  to  the  Governor,  Board  of      
   Higher Education, President of the Senate, and Speaker of the House of      
   Representatives  of  any  shortfall in the ability to meet contractual      
   obligations in a succeeding fiscal year, and requires the Governor  to      
   request  the  General  Assembly to make an appropriation of the amount      
   necessary to discharge all  contractual  obligations  that  could  not      
   otherwise be met.                                                           
          FISCAL NOTE, H-AMS 1 & 2 (Ill. Student Assistance Comm.)             
          Minimal, if any, fiscal impact on State revenues; one-time           
          start-up costs would total $1.75 M during FY98 and FY99.             
          STATE DEBT NOTE, H-AMS 1 & 2                                         
          No direct impact on the level of State bonded indebtedness.          
          STATE MANDATES FISCAL NOTE, H-AMS 1 & 2                              
          Fails to create a State mandate.                                     
        GOVERNOR'S AMENDATORY VETO MESSAGE                                     
        Recommends, with respect to those situations in which there are        
   insufficient moneys in the Prepaid Tuition Trust Fund to pay contrac-       
   tual obligations in the next succeeding fiscal year and the Illinois        
   Student Assistance Commission certifies to the Governor and others the      
   amount necessary to meet those obligations, replacing a provision that      
   requires the Governor to request the General Assembly to transfer into      
   the Illinois Prepaid Tuition Trust Fund the amount necessary to fully       
   pay and discharge contractual obligations arising under the Act that        
   otherwise could not be discharged with a provision that requires the        
   Governor, in those situations, to submit the amount so certified to         
   the General Assembly as soon as practicable and before the end of the       
   current State fiscal year.                                                  
 
Last action on Bill: PUBLIC ACT.............................. 90-0546

   Last action date: 97-12-01

           Location: Senate

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   2     SENATE -   1


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