State of Illinois
91st General Assembly
Legislation

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91_SB1537

 
                                               LRB9112771NTsb

 1        AN ACT concerning the Illinois prepaid tuition program.

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

 4        Section 5.  The Illinois Prepaid Tuition Act  is  amended
 5    by changing Section 55 and adding Section 62 as follows:

 6        (110 ILCS 979/55)
 7        Sec.  55.   Tax  exemption.   The  assets of the Illinois
 8    Prepaid Tuition Trust Fund and its income and operation shall
 9    be exempt from all taxation by the State of Illinois and  any
10    of  its  subdivisions.   The  accrued  earnings  of  Illinois
11    prepaid  tuition  contracts  once  disbursed  on behalf of an
12    eligible beneficiary  shall  be  similarly  exempt  from  all
13    taxation   by   the   State   of  Illinois  and  any  of  its
14    subdivisions, so  long  as  they  are  used  for  educational
15    purposes  in  accordance  with  the provisions of an Illinois
16    prepaid tuition contract. The provisions of this Section  are
17    exempt  from  the  provisions  of Section 250 of the Illinois
18    Income Tax Act.
19    (Source: P.A. 90-546, eff. 12-1-97.)

20        (110 ILCS 979/62 new)
21        Sec. 62.  Investment of  ward's  money  in  contract.   A
22    contract shall be considered an investment for the purpose of
23    investing  a  ward's  money under Section 21-2 of the Probate
24    Act of 1975.

25        Section 10.  The Probate Act of 1975 is amended by adding
26    Section 21-2.14a as follows:

27        (755 ILCS 5/21-2.14a new)
28        Sec. 21-2.14a.  Illinois prepaid  tuition  contract.   An
 
                            -2-                LRB9112771NTsb
 1    Illinois  prepaid  tuition  contract,  as  defined  under the
 2    Illinois Prepaid Tuition Act.

 3        Section 99.  Effective date.  This Act takes effect  upon
 4    becoming law.

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