Full Text of HB4843 102nd General Assembly
HB4843eng 102ND GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning State government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The State Treasurer Act is amended by changing | 5 | | Section 16.8 as follows: | 6 | | (15 ILCS 505/16.8) | 7 | | Sec. 16.8. Illinois Higher Education Savings Program. | 8 | | (a) Definitions. As used in this Section: | 9 | | "Beneficiary" means an eligible child named as a recipient | 10 | | of seed funds. | 11 | | "Eligible child" means a child born or adopted after | 12 | | December 31, 2022, to a parent who is a resident of Illinois at | 13 | | the time of the birth or adoption, as evidenced by | 14 | | documentation received by the Treasurer from the Department of | 15 | | Revenue, the Department of Public Health, or another State or | 16 | | local government agency. | 17 | | "Eligible educational institution" means institutions that | 18 | | are described in Section 1001 of the federal Higher Education | 19 | | Act of 1965 that are eligible to participate in Department of | 20 | | Education student aid programs. | 21 | | "Fund" means the Illinois Higher Education Savings Program | 22 | | Fund. | 23 | | "Omnibus account" means the pooled collection of seed |
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| 1 | | funds owned and managed by the State Treasurer in the College | 2 | | Savings Pool under this Act. | 3 | | "Program" means the Illinois Higher Education Savings | 4 | | Program. | 5 | | "Qualified higher education expense" means the following: | 6 | | (i) tuition, fees, and the costs of books, supplies, and | 7 | | equipment required for enrollment or attendance at an eligible | 8 | | educational institution; (ii) expenses for special needs | 9 | | services, in the case of a special needs beneficiary, which | 10 | | are incurred in connection with such enrollment or attendance; | 11 | | (iii) certain expenses for the purchase of computer or | 12 | | peripheral equipment, computer software, or Internet access | 13 | | and related services as defined under Section 529 of the | 14 | | Internal Revenue Code; (iv) room and board expenses incurred | 15 | | while attending an eligible educational institution at least | 16 | | half-time; (v) expenses for fees, books, supplies, and | 17 | | equipment required for the participation of a designated | 18 | | beneficiary in an apprenticeship program registered and | 19 | | certified with the Secretary of Labor under the National | 20 | | Apprenticeship Act (29 U.S.C. 50); and (vi) amounts paid as | 21 | | principal or interest on any qualified education loan of the | 22 | | designated beneficiary or a sibling of the designated | 23 | | beneficiary, as allowed under Section 529 of the Internal | 24 | | Revenue Code. | 25 | | "Seed funds" means the deposit made by the State Treasurer | 26 | | into the Omnibus Accounts for Program beneficiaries. |
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| 1 | | (b) Program established. The State Treasurer shall | 2 | | establish the Illinois Higher Education Savings Program as a | 3 | | part of the College Savings Pool under Section 16.5 of this | 4 | | Act, subject to appropriation by the General Assembly. The | 5 | | State Treasurer shall administer the Program for the purposes | 6 | | of expanding access to higher education through savings. | 7 | | (c) Program enrollment. The State Treasurer shall enroll | 8 | | all eligible children in the Program beginning in 2023, after | 9 | | receiving records of recent births, adoptions, or dependents | 10 | | from the Department of Revenue, the Department of Public | 11 | | Health, or another State or local government agency designated | 12 | | by the Treasurer. Notwithstanding any court order which would | 13 | | otherwise prevent the release of information, the Department | 14 | | of Public Health is authorized to release the information | 15 | | specified under this subsection (c) to the State Treasurer for | 16 | | the purposes of the Program established under this Section. | 17 | | (1) Beginning in 2021, the Department of Public Health | 18 | | shall provide the State Treasurer with information on | 19 | | recent Illinois births and adoptions including, but not | 20 | | limited to: the full name, residential address, birth | 21 | | date, and birth record number of the child and the full | 22 | | name and residential address of the child's parent or | 23 | | legal guardian for the purpose of enrolling eligible | 24 | | children in the Program. This data shall be provided to | 25 | | the State Treasurer by the Department of Public Health on | 26 | | a quarterly basis, no later than 30 days after the end of |
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| 1 | | each quarter, or some other date and frequency as mutually | 2 | | agreed to by the State Treasurer and the Department of | 3 | | Public Health. | 4 | | (1.5) Beginning in 2021, the Department of Revenue | 5 | | shall provide the State Treasurer with information on tax | 6 | | filers claiming dependents or the adoption tax credit | 7 | | including, but not limited to: the full name, residential | 8 | | address, email address, phone number, birth date, and | 9 | | social security number or taxpayer identification number | 10 | | of the dependent child and of the child's parent or legal | 11 | | guardian for the purpose of enrolling eligible children in | 12 | | the Program. This data shall be provided to the State | 13 | | Treasurer by the Department of Revenue on at least an | 14 | | annual basis, by July 1 of each year or another date | 15 | | jointly determined by the State Treasurer and the | 16 | | Department of Revenue. Notwithstanding anything to the | 17 | | contrary contained within this paragraph (2), the | 18 | | Department of Revenue shall not be required to share any | 19 | | information that would be contrary to federal law, | 20 | | regulation, or Internal Revenue Service Publication 1075. | 21 | | (2) The State Treasurer shall ensure the security and | 22 | | confidentiality of the information provided by the | 23 | | Department of Revenue, the Department of Public Health, or | 24 | | another State or local government agency, and it shall not | 25 | | be subject to release under the Freedom of Information | 26 | | Act. |
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| 1 | | (3) Information provided under this Section shall only | 2 | | be used by the State Treasurer for the Program and shall | 3 | | not be used for any other purpose. | 4 | | (4) The State Treasurer and any vendors working on the | 5 | | Program shall maintain strict confidentiality of any | 6 | | information provided under this Section, and shall | 7 | | promptly provide written or electronic notice to the | 8 | | providing agency of any security breach. The providing | 9 | | State or local government agency shall remain the sole and | 10 | | exclusive owner of information provided under this | 11 | | Section. | 12 | | (d) Seed funds. After receiving information on recent | 13 | | births, adoptions, or dependents from the Department of | 14 | | Revenue, the Department of Public Health, or another State or | 15 | | local government agency, the State Treasurer shall make | 16 | | deposits into an omnibus account on behalf of eligible | 17 | | children. The State Treasurer shall be the owner of the | 18 | | omnibus accounts. | 19 | | (1) Deposit amount. The seed fund deposit for each | 20 | | eligible child shall be in the amount of $50. This amount | 21 | | may be increased by the State Treasurer by rule. The State | 22 | | Treasurer may use or deposit funds appropriated by the | 23 | | General Assembly together with moneys received as gifts, | 24 | | grants, or contributions into the Fund. If insufficient | 25 | | funds are available in the Fund, the State Treasurer may | 26 | | reduce the deposit amount or forego deposits. |
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| 1 | | (2) Use of seed funds. Seed funds, including any | 2 | | interest, dividends, and other earnings accrued, will be | 3 | | eligible for use by a beneficiary for qualified higher | 4 | | education expenses if: | 5 | | (A) the parent or guardian of the eligible child | 6 | | claimed the seed funds for the beneficiary by the | 7 | | beneficiary's 10th birthday; | 8 | | (B) the beneficiary has completed secondary | 9 | | education or has reached the age of 18; and | 10 | | (C) the beneficiary is currently a resident of the | 11 | | State of Illinois. Non-residents are not eligible to | 12 | | claim or use seed funds. | 13 | | (3) Notice of seed fund availability. The State | 14 | | Treasurer shall make a good faith effort to notify | 15 | | beneficiaries and their parents or legal guardians of the | 16 | | seed funds' availability and the deadline to claim such | 17 | | funds. | 18 | | (4) Unclaimed seed funds. Seed funds and any interest | 19 | | earnings that are unclaimed by the beneficiary's 10th | 20 | | birthday or unused by the beneficiary's 26th birthday will | 21 | | be considered forfeited. Unclaimed and unused seed funds | 22 | | and any interest earnings will remain in the omnibus | 23 | | account for future beneficiaries. | 24 | | (e) Financial education. The State Treasurer may develop | 25 | | educational materials that support the financial literacy of | 26 | | beneficiaries and their legal guardians, and may do so in |
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| 1 | | collaboration with State and federal agencies, including, but | 2 | | not limited to, the Illinois State Board of Education and | 3 | | existing nonprofit agencies with expertise in financial | 4 | | literacy and education. | 5 | | (f) Supplementary deposits and partnerships. The State | 6 | | Treasurer may make supplementary deposits to children in | 7 | | financially insecure households if sufficient funds are | 8 | | available. Furthermore, the Incentives and partnerships. The | 9 | | State Treasurer may develop partnerships with private, | 10 | | nonprofit, or governmental organizations to provide additional | 11 | | savings incentives, including conditional cash transfers or | 12 | | matching contributions that provide a savings incentive based | 13 | | on specific actions taken or other criteria. | 14 | | (g) Illinois Higher Education Savings Program Fund. The | 15 | | Illinois Higher Education Savings Program Fund is hereby | 16 | | established as a special fund in the State treasury. The Fund | 17 | | shall be the official repository of all contributions, | 18 | | appropriated funds, interest, and dividend payments, gifts, or | 19 | | other financial assets received by the State Treasurer in | 20 | | connection with the operation of the Program or related | 21 | | partnerships. All such moneys shall be deposited in the Fund | 22 | | and held by the State Treasurer as custodian thereof. The | 23 | | State Treasurer may accept gifts, grants, awards, matching | 24 | | contributions, interest income, and appropriated funds from | 25 | | individuals, businesses, governments, and other third-party | 26 | | sources to implement the Program on terms that the Treasurer |
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| 1 | | deems advisable. All interest or other earnings accruing or | 2 | | received on amounts in the Illinois Higher Education Savings | 3 | | Program Fund shall be credited to and retained by the Fund and | 4 | | used for the benefit of the Program. Assets of the Fund must at | 5 | | all times be preserved, invested, and expended only for the | 6 | | purposes of the Program and must be held for the benefit of the | 7 | | beneficiaries. Assets may not be transferred or used by the | 8 | | State or the State Treasurer for any purposes other than the | 9 | | purposes of the Program. In addition, no moneys, interest, or | 10 | | other earnings paid into the Fund shall be used, temporarily | 11 | | or otherwise, for inter-fund borrowing or be otherwise used or | 12 | | appropriated except as expressly authorized by this Act. | 13 | | Notwithstanding the requirements of this subsection (g), | 14 | | amounts in the Fund may be used by the State Treasurer to pay | 15 | | the administrative costs of the Program. | 16 | | (h) Audits and reports. The State Treasurer shall include | 17 | | the Illinois Higher Education Savings Program as part of the | 18 | | audit of the College Savings Pool described in Section 16.5. | 19 | | The State Treasurer shall annually prepare a report that | 20 | | includes a summary of the Program operations for the preceding | 21 | | fiscal year, including the number of children enrolled in the | 22 | | Program, the total amount of seed fund deposits, the rate of | 23 | | seed deposits claimed, and, to the extent data is reported and | 24 | | available, the racial, ethnic, socioeconomic, and geographic | 25 | | data of beneficiaries and of children in financially insecure | 26 | | households who may receive automatic bonus deposits. Such |
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| 1 | | other information that is relevant to make a full disclosure | 2 | | of the operations of the Program and Fund may also be reported | 3 | | and such other information that is relevant to make a full | 4 | | disclosure of the operations of the Program and Fund . The | 5 | | report shall be made available on the Treasurer's website by | 6 | | January 31 each year, starting in January of 2024. The State | 7 | | Treasurer may include the Program in other reports as | 8 | | warranted. | 9 | | (i) Rules. The State Treasurer may adopt rules necessary | 10 | | to implement this Section.
| 11 | | (Source: P.A. 101-466, eff. 1-1-20; 102-129, eff. 7-23-21; | 12 | | 102-558, eff. 8-20-21.)
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