101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB2282

 

Introduced 10/28/2019, by Sen. Michael E. Hastings

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 769/25-15

    Amends the Private Colleges and Universities Capital Distribution Formula Act. Provides that if an institution received a grant under the Act and subsequently fails to meet the definition of "independent college" due to the institution being acquired and operated by a public university, no refund of expended grant funds shall be required and the remaining funds shall not be re-distributed. Provides that the entire balance of the grant remaining on the date the acquired former independent college ceased operations and came under the control of the public university, including any amount that had been withheld after the acquired former independent college ceased operations, shall be transferred to the public university, as successor to the independent college, for the purpose of operating those facilities for the duration of the grant. Specifies that the provisions apply to any acquisition of an independent college by a public university occurring on and after August 15, 2019. Defines "public university".


LRB101 14738 RJF 63689 b

 

 

A BILL FOR

 

SB2282LRB101 14738 RJF 63689 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Private Colleges and Universities Capital
5Distribution Formula Act is amended by changing Section 25-15
6as follows:
 
7    (30 ILCS 769/25-15)
8    Sec. 25-15. Transfer of funds to another independent
9college.
10    (a) If an institution received a grant under this Article
11and subsequently fails to meet the definition of "independent
12college", the remaining funds shall be re-distributed as
13provided in Section 25-10, unless the campus or facilities for
14which the grant was given are operated by another institution
15that qualifies as an independent college under this Article.
16    (a-5) Notwithstanding the provisions of subsection (a), if
17an institution received a grant under this Article and
18subsequently fails to meet the definition of "independent
19college" due to the institution being acquired and operated by
20a public university, no refund of expended grant funds shall be
21required and the remaining funds shall not be re-distributed as
22provided under Section 25-10. The entire balance of the grant
23provided under this Article remaining on the date the acquired

 

 

SB2282- 2 -LRB101 14738 RJF 63689 b

1former independent college ceased operations and came under the
2control of the public university, including any amount that had
3been withheld after the acquired former independent college
4ceased operations, shall be transferred to the public
5university, as successor to the independent college, for the
6purpose of operating those facilities for the duration of the
7grant. The provisions of this subsection (a-5) apply to any
8acquisition of an independent college by a public university
9occurring on and after August 15, 2019.
10    For the purposes of this subsection (a-5), "public
11university" means the University of Illinois, Southern
12Illinois University, Chicago State University, Eastern
13Illinois University, Governors State University, Illinois
14State University, Northeastern Illinois University, Northern
15Illinois University, Western Illinois University, or any other
16public university or college now or hereafter established or
17authorized by the General Assembly.
18    (b) If the facilities of a former independent college are
19operated by another entity that qualifies as an independent
20college as provided in subsection (a) of this Section, then the
21entire balance of the grant provided under this Article
22remaining on the date the former independent college ceased
23operations, including any amount that had been withheld after
24the former independent college ceased operations, shall be
25transferred to the successor independent college for the
26purpose of operating those facilities for the duration of the

 

 

SB2282- 3 -LRB101 14738 RJF 63689 b

1grant.
2    (c) In the event that, on or before the effective date of
3this amendatory Act of the 98th General Assembly, the remaining
4funds have been re-allocated or re-distributed to other
5independent colleges, or the Illinois Board of Higher Education
6has planned for the remaining funds to be re-allocated or
7re-distributed to other independent colleges, before the
85-year period provided under this Act for the utilization of
9funds has ended, any funds so re-allocated or re-distributed
10shall be deducted from future allocations to those other
11independent colleges and re-allocated or re-distributed to the
12initial institution or the successor entity operating the
13facilities of the original institution if: (i) the institution
14that failed to meet the definition of "independent college"
15once again meets the definition of "independent college" before
16the 5-year period has expired; or (ii) the facility or
17facilities of the former independent college are operated by
18another entity that qualifies as an independent college before
19the 5-year period has expired.
20(Source: P.A. 101-10, eff. 6-5-19.)