State of Illinois
91^st General Assembly
Legislation

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91_HB0851eng

 
HB0851 Engrossed                               LRB9102936PTpk

 1        AN ACT to amend the State Treasurer Act by adding Section
 2    16.5.

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

 5        Section 5.  The State Treasurer Act is amended by  adding
 6    Section 16.5 as follows:

 7        (15 ILCS 505/16.5 new)
 8        Sec.  16.5.   College  Savings Fund.  The State Treasurer
 9    may establish  and  administer  a  College  Savings  Fund  to
10    supplement and enhance the investment opportunities otherwise
11    available  to Illinois residents seeking to save money to pay
12    the costs  of  higher  education  for  themselves  and  their
13    families.    The  Treasurer,  in  administering  the  College
14    Savings Fund, may receive moneys from Illinois residents into
15    the fund, hold  the  moneys  in  individual  college  savings
16    accounts,  and  invest  moneys  within the individual college
17    savings accounts on behalf of Illinois residents.
18        The  Treasurer  may  invest  individual  college  savings
19    accounts  in  the  same  manner,  in  the   same   types   of
20    investments, and subject to the same limitations provided for
21    the  investment  of  funds  by  the  Illinois  State Board of
22    Investment.   The  Treasurer  shall  develop,  publish,   and
23    implement an investment policy covering the management of the
24    individual   college  savings  accounts  within  the  College
25    Savings Fund.  The policy shall be  published  (i)  at  least
26    once   each  year  in  at  least  one  newspaper  of  general
27    circulation in both Springfield and  Chicago  and  (ii)  each
28    year  as part of the audit of the College Savings Fund by the
29    Auditor  General   that   shall   be   distributed   to   all
30    participants.  The Treasurer shall notify all participants in
31    writing   and   shall  publish  in  a  newspaper  of  general
 
HB0851 Engrossed            -2-                LRB9102936PTpk
 1    circulation in both Chicago and Springfield  any  changes  to
 2    the  previously  published  investment  policy  at  least  30
 3    calendar  days before implementing the policy. Any investment
 4    policy adopted by the Treasurer shall be reviewed and updated
 5    if necessary within 90 days following the date that the State
 6    Treasurer takes office.
 7        The  Treasurer  may  adopt  rules  as  he  or  she  deems
 8    necessary for the efficient  administration  of  the  College
 9    Savings  Fund, including specification of minimum and maximum
10    amounts that may be deposited, minimum and maximum periods of
11    time for which deposits may be  retained  in  the  fund,  and
12    conditions under which penalties will be assessed for refunds
13    of  earnings that are not used for qualified higher education
14    expenses. The rules  shall  provide  for  the  administration
15    expenses of the Fund to be paid from its earnings and for the
16    interest earnings in excess of the expenses to be credited or
17    paid  monthly  to  the  several participants in the Fund in a
18    manner that equitably reflects the differing amounts of their
19    respective investments in the Fund and the differing  periods
20    of  time  for  which  the  amounts were in the custody of the
21    Fund.
22        Upon creating a College Savings Fund, the State Treasurer
23    shall give bond with 2 or more sufficient sureties  that  are
24    payable  to  and  for  the benefit of the participants in the
25    College  Savings  Fund,  in  the  penal  sum  of  $1,000,000,
26    conditioned upon the faithful discharge of his or her  duties
27    in relation to the College Savings Fund.

28        Section  99.  Effective date.  This Act takes effect upon
29    becoming law.

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