State of Illinois
90th General Assembly
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90_SB0878eng

      110 ILCS 947/20
          Amends the Higher  Education  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 Higher Education
      Assistance  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.
                                                     LRB9003362THpk
SB878 Engrossed                                LRB9003362THpk
 1        AN  ACT relating to prepaid tuition contracts, amending a
 2    named Act.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  1.   Short  title.  This Act may be cited as the
 6    Illinois Prepaid Tuition Act.
 7        Section 5.  Purpose.   The  General  Assembly  finds  and
 8    declares  that  the general welfare and security of the State
 9    are enhanced by access to higher education for all  residents
10    of  the  State  who desire that education and who demonstrate
11    the  qualifications  necessary  to  pursue  that   education.
12    Furthermore,  it is desirable that residents of the State who
13    seek to pursue higher education be able to choose  attendance
14    at  the higher education institution that offers programs and
15    services  most  suitable  to  their  needs.      Accordingly,
16    endeavors that serve the higher education needs of the people
17    of  the  State  represent  an  essential  function  of  State
18    government.
19        During  the  past  decade, students have been paying more
20    and borrowing more to finance the increasing cost  of  higher
21    education at Illinois colleges and universities as well as at
22    similar   institutions   nationwide.      Federal  and  state
23    governments' capacity to fund college scholarships and grants
24    cannot fully meet the current and future  demand  for  higher
25    education  nor  is  it  reasonable  to expect that paying for
26    college is solely a governmental responsibility.   It  is  --
27    and  has  always  been  --  a shared responsibility among the
28    student,  the  family,  State  government,  and  the  federal
29    government.  Consequently, the intent of this Act is to  both
30    encourage  and  better  enable  Illinois  families  to   help
31    themselves finance the cost of higher education, specifically
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 1    through  a  program  that  provides  Illinois families with a
 2    method of State tax-free and federally  tax-deferred  savings
 3    for college tuition.
 4        Section 10.  Definitions.  In this Act:
 5        "Illinois  public  university"  means  the  University of
 6    Illinois,   Illinois   State   University,   Chicago    State
 7    University,  Governors  State  University,  Southern Illinois
 8    University, Northern Illinois  University,  Eastern  Illinois
 9    University,  Western  Illinois  University,  or  Northeastern
10    Illinois University.
11        "Illinois  community  college"  means  a public community
12    college as defined in Section 1-2  of  the  Public  Community
13    College Act.
14        "MAP-eligible  institution" means a public institution of
15    higher  education  or  a  nonpublic  institution  of   higher
16    education  whose  students are eligible to receive need-based
17    student financial assistance  through  State  Monetary  Award
18    Program  (MAP)  grants  administered  by the Illinois Student
19    Assistance Commission  under  the  Higher  Education  Student
20    Assistance Act.
21        "Illinois prepaid tuition contract" or "contract" means a
22    contract entered into between the State and a Purchaser under
23    Section 45 to provide for the higher education of a qualified
24    beneficiary.
25        "Illinois prepaid tuition program" or "program" means the
26    program created in Section 15.
27        "Purchaser" means a person who makes or has contracted to
28    make payments under an Illinois prepaid tuition contract.
29        "Public   institution   of  higher  education"  means  an
30    Illinois public university or Illinois community college.
31        "Nonpublic institution of  higher  education"  means  any
32    MAP-eligible  educational  organization,  other than a public
33    institution of higher education, that provides a  minimum  of
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 1    an  organized  2-year  program at the postsecondary level and
 2    that operates  in  conformity  with  standards  substantially
 3    equivalent   to   those  of  public  institutions  of  higher
 4    education.  "Nonpublic institution of higher education"  does
 5    not include any educational organization used principally for
 6    sectarian  instruction,  as  a place of religious teaching or
 7    worship, or for any religious denomination for  the  training
 8    of  ministers,  rabbis,  or other professional persons in the
 9    field of religion.
10        "Qualified beneficiary" means (i) anyone who has  been  a
11    resident  of  this  State for at least 12 months prior to the
12    date of the contract, or (ii) a nonresident, so long  as  the
13    purchaser  has  been  a resident of the State for at least 12
14    months prior to the date of the contract, or (iii) any person
15    less than one year of age who is a relative  of  an  Illinois
16    resident.
17        "Tuition"  means  the quarter or semester charges imposed
18    on  a  qualified  beneficiary  to   attend   a   MAP-eligible
19    institution.
20        "Mandatory  Fees"  means  those  quarter or semester fees
21    imposed  upon  all  students  enrolled  at   a   MAP-eligible
22    institution.
23        "Registration   Fees"   means   the  charges  derived  by
24    combining tuition and mandatory fees.
25        "Contract Unit" means 15 credit hours of instruction at a
26    MAP-eligible institution.
27        "Board" means the Prepaid Tuition  Review  Board  created
28    under Section 20.
29        "Commission"   means   the  Illinois  Student  Assistance
30    Commission.
31        Section  15.  Creation  of   Illinois   prepaid   tuition
32    program.   There  is  created  the  Illinois  prepaid tuition
33    program to be administered by the Illinois Student Assistance
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 1    Commission in conjunction with  the  Prepaid  Tuition  Review
 2    Board.    This program is to be administered so that the full
 3    cost  of  tuition  and  mandatory  fees  at  Illinois  public
 4    universities and Illinois community colleges may be  paid  in
 5    advance  of  enrollment  through  the  prior  purchase  of an
 6    Illinois prepaid tuition contract.  The Commission may  enter
 7    into   contracts   as   may   be  necessary  to  provide  for
 8    administration of the program and shall develop and implement
 9    rules   and   regulations   necessary   for   the   efficient
10    administration of the program.
11        All reasonable charges incidental to  the  administration
12    of the program by the Commission shall be paid in the initial
13    year  of  the  program's  operation  from the General Revenue
14    Fund, pursuant to appropriations made for that purpose by the
15    General Assembly.  Those charges and expenses  in  subsequent
16    years  shall  be  paid  exclusively from the Illinois Prepaid
17    Tuition Trust Fund established by Section 35 of this Act.
18        Section 20.  Prepaid Tuition Review Board.  The  Illinois
19    prepaid tuition program shall be administered by the Illinois
20    Student Assistance Commission in conjunction with the Prepaid
21    Tuition  Review  Board.  The Illinois prepaid tuition program
22    shall be administratively housed within the  Commission,  and
23    the  Board  shall  have  responsibility  for oversight of the
24    program as specified in this Section.
25        The Board shall consist of 3 members who are appointed by
26    the Governor and subject to confirmation by the Senate.  Each
27    member shall possess knowledge, skill, and experience  in  at
28    least  one  of the following areas of expertise:  accounting,
29    actuarial   practice,   risk   management,   or    investment
30    management.    Members  shall  serve  three-year terms except
31    that, in making the initial appointments, the Governor  shall
32    appoint one member to serve for 2 years, one for 3 years, and
33    one  for  4 years.  Any person appointed to fill a vacancy on
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 1    the Board shall be appointed in a like manner and shall serve
 2    for only the unexpired term.  Members shall be  eligible  for
 3    reappointment  and shall serve until a successor is appointed
 4    and confirmed.  Members of  the  Board  shall  serve  without
 5    compensation  but  shall  be reimbursed for expenses.  Before
 6    being installed as a full voting member of  the  Board,  each
 7    member of the Board shall file verified written statements of
 8    economic interests with the Secretary of State as required by
 9    the  Illinois  Governmental  Ethics Act and with the Board of
10    Ethics as required by Executive Order of the Governor.
11        The Governor shall appoint a member of the Board to serve
12    as its initial Chairman.  Thereafter, the Board shall  select
13    a  Chairman  annually.   The  Board  also  shall  designate a
14    Secretary-Treasurer who is not a member of  the  Board.   The
15    Secretary-Treasurer shall keep a record of the proceedings of
16    the  Board and shall be the custodian of all printed material
17    filed with  or  by  the  Board  and  of  its  official  seal.
18    Notwithstanding  the  existence  of vacancies on the Board, a
19    majority of the members shall constitute a quorum.  The Board
20    shall take no official action in the  absence  of  a  quorum.
21    The  Board  shall meet, at a minimum, on a quarterly basis at
22    the call of the Chairman.  At least once each year, the Board
23    shall hold  a  meeting  jointly  with  the  Illinois  Student
24    Assistance Commission to discuss issues and concerns relating
25    to  the Illinois prepaid tuition program.  This joint meeting
26    shall be chaired by the Chairman of the Commission.
27        Section 25.  Additional powers of  the  Commission.   The
28    Commission  has  the  following  specific  powers relating to
29    administration of the Illinois prepaid tuition program:
30             (1)  To direct funds to be invested, if not required
31        for immediate disbursement.
32             (2)  To  require  a  reasonable  length   of   State
33        residence for qualified beneficiaries of Illinois prepaid
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 1        tuition contracts.
 2             (3)  To annually restrict the number of participants
 3        in  any  prepaid  tuition  plan  authorized by the Board,
 4        provided that any person denied participation  solely  on
 5        the  basis  of  such  restriction shall be given priority
 6        consideration when opportunities to  participate  in  the
 7        plan are offered during the subsequent year.
 8             (4)  To  appropriately  segregate  contributions and
 9        payments to the Illinois  prepaid  tuition  program  into
10        various accounts and funds.
11             (5)  To solicit and accept gifts, grants, loans, and
12        other  financial  assistance from any appropriate source,
13        and to participate in any other way in  any  governmental
14        program  that will carry out the express purposes of this
15        Section.
16             (6)  To require and collect administrative fees  and
17        charges  in connection with any transaction and to impose
18        reasonable penalties, including default,  for  delinquent
19        payments or for entering into an Illinois prepaid tuition
20        contract on a fraudulent basis.
21             (7)  To  impose reasonable time limits on use of the
22        Illinois  prepaid  tuition  benefits  provided   by   the
23        program,  so  long  as  those  limitations  are specified
24        within the Illinois prepaid tuition contract.
25             (8)  To indicate  the  terms  and  conditions  under
26        which   Illinois   prepaid   tuition   contracts  may  be
27        terminated and to impose reasonable fees and charges  for
28        such  termination,  so long as those terms and conditions
29        are  specified  within  the  Illinois   prepaid   tuition
30        contract.
31             (9)  To  provide for the receipt of contributions to
32        the program in lump sum or installment payments.
33             (10)  To require that purchasers of Illinois prepaid
34        tuition contracts verify  in  writing  or  by  any  other
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 1        method  acceptable  to  the  Commission  any requests for
 2        contract    conversions,    substitutions,     transfers,
 3        cancellations,  refund  requests,  or contract changes of
 4        any nature.
 5        Section  30.  Board  duties  and  responsibilities.   The
 6    Board shall oversee and offer advice  and  counsel  regarding
 7    the  investments of the Illinois prepaid tuition program with
 8    the objective  of  obtaining  the  best  possible  return  on
 9    investments   consistent  with  actuarial  soundness  of  the
10    program.  The Board also has responsibility for approving  on
11    a  periodic  basis,  but  at  least  once  every  3  years, a
12    marketing agent for the prepaid  tuition  program;  and  each
13    year  the  Board  also  shall  approve  an annual report that
14    describes the current  financial  condition  of  the  prepaid
15    tuition program.
16        (1)  Executive  Director.   The Executive Director of the
17    Illinois Student Assistance Commission  shall  serve  as  the
18    chief administrative and operational officer of the Board and
19    the  Illinois prepaid tuition program and shall perform other
20    duties assigned by the Board, including, but not limited  to,
21    preparation  of  the annual comprehensive investment plan for
22    consideration by the Commission and the Board.  The Executive
23    Director shall be responsible for all investment, management,
24    documentation, public information,  and  marketing  functions
25    associated   with   the  Illinois  prepaid  tuition  program.
26    Nothing in this Section shall preclude  the  Commission  from
27    designating  additional  Commission  personnel  to assist the
28    Executive  Director  with   these   additional   duties   and
29    responsibilities.
30        (2)  Investment  plan.   The  Commission  annually  shall
31    submit  for  Board  approval a comprehensive investment plan,
32    for purposes of this Section.  The  comprehensive  investment
33    plan  shall specify the investment policies to be utilized by
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 1    the Commission in its administration of the Illinois  Prepaid
 2    Tuition Trust Fund created by Section 35.  The Commission may
 3    direct  that  assets  of  those  Funds  be  placed in savings
 4    accounts or may use the same to purchase  fixed  or  variable
 5    life  insurance or annuity contracts, securities, evidence of
 6    indebtedness, or other investment products  pursuant  to  the
 7    comprehensive  investment plan and in such proportions as may
 8    be designated or approved under that plan.  Those  insurance,
 9    annuity,   savings,   and   investment   products   shall  be
10    underwritten  and  offered  in  compliance  with   applicable
11    federal and State laws, rules, and regulations by persons who
12    are  authorized  thereunder  to  provide those services.  The
13    Commission shall delegate responsibility  for  preparing  the
14    comprehensive  investment  plan  to  the  Executive Director.
15    Nothing in this Section shall preclude  the  Commission  from
16    contracting  with  a  private  corporation  or institution to
17    provide such services as may be a part of  the  comprehensive
18    investment   plan   or   as   may  be  deemed  necessary  for
19    implementation  of   the   comprehensive   investment   plan,
20    including,   but   not  limited  to,  providing  consolidated
21    billing,  individual  and  collective  record   keeping   and
22    accounting, and asset purchase, control, and safekeeping.
23        (3)  Program  management.   The  Commission and the Board
24    may not delegate their management functions, but may  arrange
25    to  compensate  for personalized investment advisory services
26    rendered with respect to any or all of the investments  under
27    their  control an investment advisor registered under Section
28    8 of the Illinois Securities Law of 1953 or any bank or other
29    entity authorized by law to provide those services.   Nothing
30    contained  herein shall preclude either the Commission or the
31    Board  from  subscribing  to  general   investment   research
32    services  available for purchase or use by others.  The Board
33    also shall  have  authority  to  compensate  for  accounting,
34    computing, and other necessary services.
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 1        (4)  Annual   report.    The  Commission  shall  annually
 2    prepare or cause to be prepared, for approval by the Board, a
 3    report setting forth in appropriate detail an  accounting  of
 4    all  Illinois prepaid tuition program funds and a description
 5    of the financial condition of the program  at  the  close  of
 6    each  fiscal  year.   Included  in  this  report  shall be an
 7    evaluation by at least one nationally recognized  actuary  of
 8    the  financial  viability of the program.  This report, after
 9    receiving Board approval, shall be submitted to the Governor,
10    the President of the Senate, the  Speaker  of  the  House  of
11    Representatives, the Auditor General, and the Board of Higher
12    Education on or before March 1 of the subsequent fiscal year.
13    This  report  also  shall  be made available to purchasers of
14    Illinois prepaid tuition contracts and shall contain complete
15    Illinois  prepaid   tuition   contract   sales   information,
16    including,   but  not  limited  to,  projected  postsecondary
17    enrollment data for qualified beneficiaries.
18        (5)  Marketing plan.  Selection of a marketing agent  for
19    the  Illinois prepaid tuition program must be approved by the
20    Board.  At least once every 3  years,  the  Commission  shall
21    solicit, for submission to the Board, proposals for marketing
22    of  the  Illinois  prepaid tuition program in accordance with
23    the Illinois  Securities  Law  of  1953  and  any  applicable
24    provisions of federal law.  The entity designated pursuant to
25    this  paragraph  shall serve as a centralized marketing agent
26    for the program and shall have exclusive  responsibility  for
27    marketing   the  program.   No  contract  for  marketing  the
28    Illinois prepaid tuition program shall extend for longer than
29    3 years.  Any materials produced for the purpose of marketing
30    the program shall be submitted to the Executive Director  for
31    approval   before   they   are  made  public.   Any  Illinois
32    MAP-eligible institution may distribute  marketing  materials
33    produced  for  the program, so long as the Executive Director
34    approves the distribution in advance.  Neither the State  nor
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 1    the   Board   nor   the   Commission   shall  be  liable  for
 2    misrepresentation of the program by a marketing agent.
 3        (6)  Accounting and audit.  The Commission shall annually
 4    cause to be prepared an accounting of  the  trust  and  shall
 5    transmit a copy of the accounting to the Board, the Governor,
 6    the  President  of  the Senate, the Speaker of the House, and
 7    the  minority  leaders   of   the   Senate   and   House   of
 8    Representatives.   The  Commission  shall also make available
 9    this accounting of the trust to any purchaser of an  Illinois
10    prepaid  tuition contract, upon request.  The accounts of the
11    Illinois prepaid tuition program shall be subject  to  annual
12    audits   by   the  Auditor  General  or  a  certified  public
13    accountant appointed by the Auditor General.
14        Section 35.  Illinois Prepaid Tuition Trust Fund.
15        (a)  The Illinois Prepaid Tuition Trust Fund  is  created
16    as  the  repository  of  all  moneys received by the Board in
17    conjunction with the Illinois prepaid tuition  program.   The
18    Illinois  Prepaid  Tuition  Trust  Fund  also  shall  be  the
19    official  repository  of  all  contributions, appropriations,
20    interest and dividend payments,  gifts,  or  other  financial
21    assets   received   by  the  Commission  in  connection  with
22    operation of the Illinois prepaid tuition program.  All  such
23    moneys  shall  be  deposited  in the Illinois Prepaid Tuition
24    Trust Fund and held by  the  State  Treasurer  as  ex-officio
25    custodian  thereof,  outside  of the State Treasury, separate
26    and apart from all public moneys or funds of this State.
27        All interest or other earnings accruing  or  received  on
28    amounts  in  the Illinois Prepaid Tuition Trust Fund shall be
29    credited to and retained by the Fund.  Moneys,  interest,  or
30    other earnings paid into the Fund shall not be transferred or
31    allocated  by the Commission, the Board, the State Treasurer,
32    or the State Comptroller to any other  fund,  nor  shall  the
33    Governor authorize any such transfer or allocation, while any
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 1    contracts are outstanding.  In addition, no moneys, interest,
 2    or   other  earnings  paid  into  the  Fund  shall  be  used,
 3    temporarily or  otherwise,  for  interfund  borrowing  or  be
 4    otherwise used or appropriated except as expressly authorized
 5    in this Act.
 6        The   Illinois   Prepaid  Tuition  Trust  Fund  and  each
 7    individual participant account that may be  created  in  that
 8    Fund in conjunction with the Illinois prepaid tuition program
 9    shall  be  subject  to  audit in the same manner as funds and
10    accounts belonging to the State  of  Illinois  and  shall  be
11    protected by the official bond given by the State Treasurer.
12        (b)  The State Treasurer, from time to time, shall invest
13    moneys  in  the  Illinois Prepaid Tuition Trust Fund that are
14    not needed for immediate disbursement,  as  directed  by  the
15    Commission,  in  accordance with provisions of the investment
16    plan approved by the Board.
17        (c)  The Executive Director shall, at such times  and  in
18    such  amounts  as shall be necessary, prepare and send to the
19    State  Comptroller  vouchers  requesting  payment  from   the
20    Illinois  Prepaid Tuition Trust Fund for: (i) tuition and fee
21    payments to MAP-eligible institutions on behalf of  qualified
22    beneficiaries of Illinois prepaid tuition contracts, and (ii)
23    payments  associated  with  administration  of  the  Illinois
24    prepaid tuition program.
25        This  Act  shall  constitute an irrevocable appropriation
26    for  all  amounts  necessary  for  such  purposes,  and   the
27    irrevocable and continuing authority for and direction to the
28    Board,  the Commission, the Executive Director, and the State
29    Treasurer to make the necessary payments out of that Fund for
30    those purposes.
31        (d)  The Governor shall indicate  in  each  annual  State
32    budget the estimated amount of moneys in the Illinois Prepaid
33    Tuition  Trust  Fund which shall be necessary and sufficient,
34    during that State fiscal year, to discharge  all  obligations
SB878 Engrossed             -12-               LRB9003362THpk
 1    anticipated  under  Illinois  prepaid tuition contracts.  The
 2    Governor also shall indicate in each annual State budget  the
 3    amount of moneys from the Illinois Prepaid Tuition Trust Fund
 4    necessary  to  cover  anticipated  expenses  associated  with
 5    administration  of  the program.  The Commission shall obtain
 6    concurrence from a nationally recognized actuary  as  to  all
 7    amounts  necessary  for  the program to meet its obligations.
 8    These amounts shall be certified annually to the Governor  by
 9    the Commission no later than January 30.
10        During  the  first  year  of  operation  for the Illinois
11    prepaid  tuition  program,  the  Governor  shall  request  an
12    appropriation to the Commission from general funds sufficient
13    to pay for start-up costs associated  with  establishment  of
14    the  program.   Subsequent program administrative costs shall
15    be  provided  from  reasonable  fees  and  charges  equitably
16    assessed to purchasers of prepaid tuition contracts.
17        (e)  If there are insufficient  moneys  in  the  Illinois
18    Prepaid Tuition Trust Fund to discharge all obligations under
19    contracts  as they become due, the Governor shall request the
20    General Assembly to transfer from the General Revenue Fund to
21    the Illinois Prepaid Tuition Trust Fund the necessary  amount
22    required  to  fully pay and discharge all obligations arising
23    under the contracts and this Act that otherwise could not  be
24    discharged.   If for any reason the General Assembly fails to
25    make appropriations for or fails to transfer to the  Illinois
26    Prepaid   Tuition  Trust  Fund  amounts  sufficient  for  the
27    discharge of obligations arising under contracts or this  Act
28    as  they become due, this Act shall constitute an irrevocable
29    and continuing appropriation of  all  amounts  necessary  for
30    such  purposes  and  the irrevocable and continuing authority
31    for and direction to the State Comptroller and to  the  State
32    Treasurer  to  make the necessary transfers and disbursements
33    from the revenues and funds of the State for such purposes.
34        (f)  All contracts issued in  accordance  with  this  Act
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 1    shall be direct, general obligations of the State of Illinois
 2    and  shall  so  state  on  their face, and the full faith and
 3    credit of the State of Illinois are pledged for the  punctual
 4    payment  of  all payments and obligations under the contracts
 5    and this Act as they become due.
 6        (g)  In the event the Board and the Commission, with  the
 7    concurrence  of  the  Governor,  determine  the program to be
 8    financially  infeasible,  the  Commission  may   discontinue,
 9    prospectively,  the  operation of the program.  Any qualified
10    beneficiary who has been accepted by and is enrolled or  will
11    within  5 years enroll at a MAP-eligible institution shall be
12    entitled to exercise the complete benefits specified  in  the
13    Illinois   prepaid  tuition  contract.   All  other  contract
14    holders  shall  receive  an   appropriate   refund   of   all
15    contributions  and  accrued  interest up to the time that the
16    program is discontinued.
17        Section 45. Illinois prepaid tuition contracts.
18        (a)  The Commission may enter into  an  Illinois  prepaid
19    tuition  contract with a purchaser under which the Commission
20    contracts on behalf of the State  to  pay  full  tuition  and
21    mandatory  fees  at an Illinois public university or Illinois
22    community college for a qualified beneficiary to  attend  the
23    MAP-eligible  institution  to which the qualified beneficiary
24    is admitted. Each contract shall contain  terms,  conditions,
25    and provisions that the Commission determines to be necessary
26    for  ensuring  the  educational  objectives  and  sustainable
27    financial viability of the Illinois prepaid tuition program.
28        (b)  Each  contract  shall  have one designated purchaser
29    and one designated qualified  beneficiary.  Unless  otherwise
30    specified  in  the  contract, the purchaser owns the contract
31    and retains any tax liability for its assets only  until  the
32    first distribution of benefits. Once a partial benefit of the
33    contract  has  been disbursed, any tax liability attributable
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 1    to the contract and its assets becomes a tax liability of the
 2    qualified beneficiary,  unless  otherwise  specified  in  the
 3    contract.  Contracts shall be purchased in units of 15 credit
 4    hours at any MAP-eligible institution.
 5        (c)  Without exception, benefits may  be  received  by  a
 6    qualified beneficiary of an Illinois prepaid tuition contract
 7    no  earlier  than  3  years  from  the  date  the contract is
 8    purchased.
 9        (d)  A prepaid tuition contract shall contain, but is not
10    limited to, provisions for  (i)  refunds  or  withdrawals  in
11    certain circumstances, with or without interest or penalties;
12    (ii)  conversion  of the contract at the time of distribution
13    from accrued prepayment value at  one  type  of  MAP-eligible
14    institution  to  the  accrued prepayment value at a different
15    type of MAP-eligible institution; (iii)  portability  of  the
16    accrued   value  of  the  prepayment  value  for  use  at  an
17    out-of-state    higher    education     institution;     (iv)
18    transferability of the contract benefits within the qualified
19    beneficiary's  immediate  family; and (v) a specified benefit
20    period during which the contract may be redeemed.
21        (e)  Each Illinois prepaid tuition  contract  also  shall
22    contain, at minimum, all of the following:
23             (1)  The  amount  of  payment  or  payments  and the
24        number of payments required from a purchaser on behalf of
25        a qualified beneficiary.
26             (2)  The terms and conditions under which purchasers
27        shall remit payments, including, but not limited to,  the
28        date or dates upon which each payment shall be due.
29             (3)  Provisions  for  late  payment  charges and for
30        default.
31             (4)  Provisions for penalty fees payable incident to
32        an authorized withdrawal.
33             (5)  The name, date of birth,  and  social  security
34        number  of  the qualified beneficiary on whose behalf the
SB878 Engrossed             -15-               LRB9003362THpk
 1        contract is drawn and  the  terms  and  conditions  under
 2        which   the   contract  may  be  transferred  to  another
 3        qualified beneficiary.
 4             (6)  The name and  social  security  number  of  any
 5        person  who  may  terminate  the  contract, together with
 6        terms that specify whether the contract may be terminated
 7        by the purchaser, the qualified beneficiary,  a  specific
 8        designated person, or any combination of these persons.
 9             (7)  The terms and conditions under which a contract
10        may be terminated, the name and social security number of
11        the  person entitled to any refund due as a result of the
12        termination of the contract pursuant to those  terms  and
13        conditions,  and the method for determining the amount of
14        a refund.
15             (8)  The time limitations, if any, within which  the
16        qualified  beneficiary  must  claim  his  or her benefits
17        through the program.
18             (9)  Other terms and conditions  determined  by  the
19        Commission to be appropriate.
20        (f)  In  addition to the contract provisions set forth in
21    subsection (e), each Illinois prepaid tuition contract  shall
22    include:
23             (1)  The  number  of  credit hours contracted by the
24        purchaser.
25             (2)  The type of MAP-eligible  institution  and  the
26        prepaid  tuition plan toward which the credit hours shall
27        be applied.
28             (3)  The  explicit  contractual  obligation  of  the
29        Commission to the  qualified  beneficiary  to  provide  a
30        specific   number   of   credit  hours  of  undergraduate
31        instruction at a MAP-eligible institution, not to  exceed
32        the  median  number  of  credit  hours  required  for the
33        conference of a  degree  that  corresponds  to  the  plan
34        purchased on behalf of the qualified beneficiary.
SB878 Engrossed             -16-               LRB9003362THpk
 1        (g)  The Commission shall indicate by rule the conditions
 2    under  which  refunds  are  payable  to a contract purchaser.
 3    Generally, no refund shall exceed the amount  paid  into  the
 4    Illinois Prepaid Tuition Trust Fund by the purchaser.  In the
 5    event  that  a contract is converted from a Public University
 6    Plan described  in  subsection  (j)  of  this  Section  to  a
 7    Community  College  Plan  described in subsection (k) of this
 8    Section, the refund amount shall be  reduced  by  the  amount
 9    transferred  to  the  Illinois community college on behalf of
10    the qualified beneficiary.  Except where the  Commission  may
11    otherwise  rule,  refunds may exceed the amount paid into the
12    Illinois Prepaid Tuition Trust Fund only under the  following
13    circumstances:
14             (1)  If  the  qualified  beneficiary  is  awarded  a
15        scholarship,  the  terms  of which duplicate the benefits
16        included in the Illinois prepaid tuition  contract,  then
17        moneys  paid  for  the  purchase of the contract shall be
18        returned to the purchaser, in semester installments  that
19        coincide   with   the   matriculation  by  the  qualified
20        beneficiary, in an amount equal to the lesser of (i)  the
21        original  purchase  price  plus  2%  interest  compounded
22        annually,  or  (ii)  the  current  cost  of  tuition  and
23        mandatory  fees at the MAP-eligible institution where the
24        qualified beneficiary is enrolled.
25             (2)  In the event of the death or  total  disability
26        of   the  qualified  beneficiary,  moneys  paid  for  the
27        purchase of the Illinois prepaid tuition  contract  shall
28        be  returned  to  the purchaser together with all accrued
29        earnings.
30             (3)  If an  Illinois  prepaid  tuition  contract  is
31        converted  from  a  Public University Plan to a Community
32        College Plan, then the amount refunded shall be the value
33        of the original Illinois prepaid tuition  contract  minus
34        the value of the contract after conversion.
SB878 Engrossed             -17-               LRB9003362THpk
 1        No  refund  shall be authorized under an Illinois prepaid
 2    tuition contract for any semester partially attended but  not
 3    completed.
 4        Moneys  paid  into or out of the Illinois Prepaid Tuition
 5    Trust Fund by or on behalf of the purchaser or the  qualified
 6    beneficiary  of  an  Illinois  prepaid  tuition  contract are
 7    exempt from all claims  of  creditors  of  the  purchaser  or
 8    beneficiary, so long as the contract has not been terminated.
 9        The  State  or any State agency, county, municipality, or
10    other  political  subdivision,  by  contract  or   collective
11    bargaining  agreement,  may  agree with any employee to remit
12    payments toward the  purchase  of  Illinois  prepaid  tuition
13    contracts  through payroll deductions made by the appropriate
14    officer or officers of the entity making the payments.   Such
15    payments  shall  be  held and administered in accordance with
16    this Act.
17        (h)  Nothing in this Act shall be construed as a  promise
18    or guarantee that a qualified beneficiary will be admitted to
19    a  MAP-eligible  institution  or to a particular MAP-eligible
20    institution, will be allowed  to  continue  enrollment  at  a
21    MAP-eligible   institution   after   admission,  or  will  be
22    graduated from a MAP-eligible institution.
23        (i)  The  Commission  shall  develop  and  make   prepaid
24    tuition  contracts  available  under  a minimum of at least 2
25    independent plans to be known as the Public  University  Plan
26    and the Community College Plan.
27        Contracts  shall be purchased in units of 15 credit hours
28    at either  an  Illinois  public  university  or  an  Illinois
29    community college.  The minimum purchase amount per qualified
30    beneficiary  shall  be  one  unit  or  15  credit hours.  The
31    maximum purchase amount shall  be  9  units  (or  135  credit
32    hours)  for  the  Public  University  Plan and 4 units (or 60
33    credit hours) for the Community College Plan.
34        (j)  Public  University   Plan.    Through   the   Public
SB878 Engrossed             -18-               LRB9003362THpk
 1    University  Plan, the Illinois prepaid tuition contract shall
 2    provide prepaid registration fees, which include full tuition
 3    costs as well as mandatory fees, for a  specified  number  of
 4    undergraduate  credit hours, not to exceed the maximum number
 5    of  credit  hours  required   for   the   conference   of   a
 6    baccalaureate   degree.    In   determining   the   cost   of
 7    participation  in  the Public University Plan, the Commission
 8    shall   reference   the   combined   mean-weighted    current
 9    registration fees from all Illinois public universities.
10        In  the  event  that a qualified beneficiary for whatever
11    reason chooses to attend an Illinois community  college,  the
12    qualified  beneficiary  may  convert  the  average  number of
13    credit hours required for  the  conference  of  an  associate
14    degree  from  the  Public  University  Plan  to the Community
15    College Plan and may retain the remaining  Public  University
16    Plan  credit hours or may request a refund for prepaid credit
17    hours in excess  of  those  required  for  conference  of  an
18    associate  degree.   In determining the amount of any refund,
19    the Commission also  shall  recognize  the  current  relative
20    credit hour cost of the 2 plans when making any conversion.
21        In  the  event  that a qualified beneficiary for whatever
22    reason chooses to attend a nonpublic  institution  of  higher
23    education,   the   qualified  beneficiary's  prepaid  tuition
24    contract  shall  be  converted  for  use  at  that  nonpublic
25    institution of higher education by  referencing  the  current
26    average  mean-weighted credit hour value of registration fees
27    at Illinois public universities relative to the corresponding
28    value of  registration  fees  at  nonpublic  institutions  of
29    higher education.
30        Qualified  beneficiaries  shall  bear  the  cost  of  any
31    laboratory   or  other  non-mandatory  fees  associated  with
32    enrollment in specific courses.  Qualified beneficiaries  who
33    are  not Illinois residents shall bear the difference in cost
34    between in-state registration fees guaranteed by the  prepaid
SB878 Engrossed             -19-               LRB9003362THpk
 1    tuition  contract and tuition and other charges assessed upon
 2    out-of-state students by the MAP-eligible institution.
 3        (k)  Community  College  Plan.   Through  the   Community
 4    College  Plan,  the  Illinois  prepaid tuition contract shall
 5    provide prepaid registration fees, which include full tuition
 6    costs as well as mandatory fees, for a  specified  number  of
 7    undergraduate  credit hours, not to exceed the maximum number
 8    of credit hours required for the conference of  an  associate
 9    degree.   In  determining  the  cost  of participation in the
10    Community College Plan, the Commission  shall  reference  the
11    combined  mean-weighted  current  registration  fees from all
12    Illinois community colleges.
13        In the event that a qualified  beneficiary  for  whatever
14    reason  chooses  to attend an Illinois public university, the
15    qualified beneficiary's prepaid  tuition  contract  shall  be
16    converted  for  use  at  that  Illinois  public university by
17    referencing the current  average  mean-weighted  credit  hour
18    value  of  registration  fees  at Illinois community colleges
19    relative to the corresponding value of registration  fees  at
20    Illinois public universities.
21        Qualified  beneficiaries  shall  bear  the  cost  of  any
22    laboratory   or  other  non-mandatory  fees  associated  with
23    enrollment in specific courses.  Qualified beneficiaries  who
24    are  not Illinois residents shall bear the difference in cost
25    between in-state registration fees guaranteed by the  prepaid
26    tuition  contract and tuition and other charges assessed upon
27    out-of-state students by the MAP-eligible institution.
28        (l)  A qualified beneficiary may apply  the  benefits  of
29    any  Illinois  prepaid  tuition  contract  toward a nonpublic
30    institution  of  higher  education.   In  the  event  that  a
31    qualified beneficiary for whatever reason chooses to attend a
32    nonpublic institution  of  higher  education,  the  qualified
33    beneficiary's prepaid tuition contract shall be converted for
34    use  at  that  nonpublic  institution  of higher education by
SB878 Engrossed             -20-               LRB9003362THpk
 1    referencing the current  average  mean-weighted  credit  hour
 2    value  of  registration  fees  purchased  under  the contract
 3    relative to the corresponding value of  current  registration
 4    fees  at  the nonpublic institution of higher education where
 5    the beneficiary is enrolled.  The Commission shall  transfer,
 6    or  cause  to  have transferred, this amount, less a transfer
 7    fee,  to  the  nonpublic  institution  on   behalf   of   the
 8    beneficiary.   In  the  event  that  the cost of registration
 9    charged to the beneficiary at the  nonpublic  institution  of
10    higher  education  is  less  than  the aggregate value of the
11    Illinois prepaid tuition contract, any remaining amount shall
12    be transferred in subsequent  semesters  until  the  transfer
13    value is fully depleted.
14        (m)  A  qualified  beneficiary  may apply the benefits of
15    any Illinois prepaid  tuition  contract  toward  an  eligible
16    out-of-state  college  or  university.   In  the event that a
17    qualified beneficiary for whatever reason chooses  to  attend
18    an eligible out-of-state college or university, the qualified
19    beneficiary's prepaid tuition contract shall be converted for
20    use  at that college or university by referencing the current
21    average mean-weighted credit hour value of registration  fees
22    purchased  under  the  contract relative to the corresponding
23    value  of  current  registration  fees  at  the  college   or
24    university where the beneficiary is enrolled.  The Commission
25    shall  transfer,  or  cause to have transferred, this amount,
26    less a transfer fee, to the college or university  on  behalf
27    of   the   beneficiary.   In  the  event  that  the  cost  of
28    registration charged  to  the  beneficiary  at  the  eligible
29    out-of-state college or university is less than the aggregate
30    value of the Illinois prepaid tuition contract, any remaining
31    amount shall be transferred in subsequent semesters until the
32    transfer value is fully depleted.
33        (n)  Illinois  prepaid tuition contracts may be purchased
34    either by lump  sum  or  by  installments.   All  installment
SB878 Engrossed             -21-               LRB9003362THpk
 1    contracts  shall  be  for 5 years, except that contracts that
 2    purchase at  least  120  credit  hours  may  be  payable,  by
 3    installments,  over  a  10-year  period.  No penalty shall be
 4    assessed for early payment of installment contracts.
 5        (o)  The Commission shall annually adjust  the  price  of
 6    new  contracts,  in  accordance  with  the  annual changes in
 7    registration  fees  at  Illinois  public   universities   and
 8    community colleges.
 9        Section 50.  Confidentiality and disclosure.  Information
10    that (i) identifies the purchasers or qualified beneficiaries
11    of  any  Illinois  prepaid  tuition  contract or any terms or
12    provisions of any such contract as those terms and provisions
13    relate to a particular purchaser or qualified beneficiary, or
14    (ii) discloses any other matter relating to the participation
15    of  any  such  purchaser  or  qualified  beneficiary  in  the
16    Illinois prepaid tuition program or in any  independent  plan
17    under  which  that  program  is  administered, is exempt from
18    inspection, copying,  or  disclosure  under  the  Freedom  of
19    Information  Act.  The Commission may authorize the program's
20    records  administrator  to  release  such   information    to
21    appropriate  personnel  at  the  MAP-eligible  institution at
22    which the beneficiary may enroll or  is  enrolled.   However,
23    any  such  institution  to which that information is released
24    shall   ensure   the   continued   confidentiality   of   the
25    information.
26        Section 55.  Tax exemption.  The assets of  the  Illinois
27    Prepaid Tuition Trust Fund and its income and operation shall
28    be  exempt from all taxation by the State of Illinois and any
29    of  its  subdivisions.   The  accrued  earnings  of  Illinois
30    prepaid tuition contracts once  disbursed  on  behalf  of  an
31    eligible  beneficiary  shall  be  similarly  exempt  from all
32    taxation  by  the  State  of  Illinois   and   any   of   its
SB878 Engrossed             -22-               LRB9003362THpk
 1    subdivisions,  so  long  as  they  are  used  for educational
 2    purposes in accordance with the  provisions  of  an  Illinois
 3    prepaid tuition contract.
 4        Section 60.  Securities Registration Exemption.  Illinois
 5    prepaid  tuition  contracts shall be exempt from registration
 6    under the  Illinois  Securities  Law  of  1953.   However  no
 7    contract   may  be  sold  or  otherwise  transferred  by  the
 8    purchaser or qualified beneficiary without the prior approval
 9    of the Board, except in accordance with the terms  explicitly
10    set forth in the contract.
11        Section  65.   Construction. Nothing in this Act or in an
12    Illinois prepaid tuition contract shall  be  construed  as  a
13    promise  or  guarantee  by  the  Program  or the State that a
14    person will be admitted to any MAP-eligible institution or to
15    a particular MAP-eligible institution,  will  be  allowed  to
16    continue  to  attend  a MAP-eligible institution after having
17    been admitted, or  will  be  graduated  from  a  MAP-eligible
18    institution.
19        Section    70.    Scholarships,   grants,   or   monetary
20    assistance.  No  contributions  toward  the  purchase  of  an
21    Illinois  prepaid tuition contract authorized by this Section
22    shall be considered in evaluating the financial situation  of
23    the  student  beneficiary  of  the  contract  or  be deemed a
24    financial  resource  of  or  a  form  of  financial  aid   or
25    assistance  to  the  student  beneficiary,  for  purposes  of
26    determining  the  eligibility  of the student beneficiary for
27    any scholarship, grant or monetary assistance awarded by  the
28    Commission,  the  State,  or  any  agency  thereof; nor shall
29    contributions toward the  purchase  of  an  Illinois  prepaid
30    tuition contract reduce the amount of any scholarship, grant,
31    or  monetary  assistance  that  the  student  beneficiary  is
SB878 Engrossed             -23-               LRB9003362THpk
 1    eligible  to  be  awarded  by the Illinois Student Assistance
 2    Commission, the State, or any agency  thereof  in  accordance
 3    with  the  provisions of any other Section of this Act or any
 4    other law of the State.
 5        Section 90.  The Freedom of Information Act is amended by
 6    changing Section 7 as follows:
 7        (5 ILCS 140/7) (from Ch. 116, par. 207)
 8        Sec. 7.  Exemptions.
 9        (1)  The following shall be exempt  from  inspection  and
10    copying:
11             (a)  Information    specifically   prohibited   from
12        disclosure  by  federal  or  State  law  or   rules   and
13        regulations adopted under federal or State law.
14             (b)  Information    that,    if   disclosed,   would
15        constitute a clearly  unwarranted  invasion  of  personal
16        privacy, unless the disclosure is consented to in writing
17        by  the  individual  subjects  of  the  information.  The
18        disclosure of information that bears on the public duties
19        of public employees and officials shall not be considered
20        an invasion of personal  privacy.   Information  exempted
21        under  this  subsection  (b)  shall  include  but  is not
22        limited to:
23                  (i)  files and personal information  maintained
24             with   respect   to  clients,  patients,  residents,
25             students  or  other  individuals  receiving  social,
26             medical,   educational,    vocational,    financial,
27             supervisory  or  custodial care or services directly
28             or  indirectly  from  federal  agencies  or   public
29             bodies;
30                  (ii)  personnel  files and personal information
31             maintained with respect to employees, appointees  or
32             elected  officials  of any public body or applicants
SB878 Engrossed             -24-               LRB9003362THpk
 1             for those positions;
 2                  (iii)  files    and    personal     information
 3             maintained with respect to any applicant, registrant
 4             or  licensee  by any public body cooperating with or
 5             engaged    in    professional    or     occupational
 6             registration, licensure or discipline;
 7                  (iv)  information  required  of any taxpayer in
 8             connection with the assessment or collection of  any
 9             tax unless disclosure is otherwise required by State
10             statute; and
11                  (v)  information   revealing  the  identity  of
12             persons  who  file  complaints   with   or   provide
13             information  to  administrative,  investigative, law
14             enforcement or penal  agencies;  provided,  however,
15             that   identification   of   witnesses   to  traffic
16             accidents,  traffic  accident  reports,  and  rescue
17             reports  may  be  provided  by  agencies  of   local
18             government,  except  in  a case for which a criminal
19             investigation is  ongoing,  without  constituting  a
20             clearly  unwarranted   per  se  invasion of personal
21             privacy under this subsection.
22             (c)  Records  compiled  by  any  public   body   for
23        administrative   enforcement   proceedings  and  any  law
24        enforcement or correctional agency  for  law  enforcement
25        purposes  or  for  internal matters of a public body, but
26        only to the extent that disclosure would:
27                  (i)  interfere with  pending  or  actually  and
28             reasonably  contemplated law enforcement proceedings
29             conducted by any  law  enforcement  or  correctional
30             agency;
31                  (ii)  interfere   with  pending  administrative
32             enforcement  proceedings  conducted  by  any  public
33             body;
34                  (iii)  deprive a person of a fair trial  or  an
SB878 Engrossed             -25-               LRB9003362THpk
 1             impartial hearing;
 2                  (iv)  unavoidably  disclose  the  identity of a
 3             confidential  source  or  confidential   information
 4             furnished only by the confidential source;
 5                  (v)  disclose     unique     or     specialized
 6             investigative  techniques other than those generally
 7             used and known or  disclose  internal  documents  of
 8             correctional    agencies   related   to   detection,
 9             observation or investigation of incidents  of  crime
10             or misconduct;
11                  (vi)  constitute   an   invasion   of  personal
12             privacy under subsection (b) of this Section;
13                  (vii)  endanger the life or physical safety  of
14             law enforcement personnel or any other person; or
15                  (viii)  obstruct     an     ongoing    criminal
16             investigation.
17             (d)  Criminal history record information  maintained
18        by  State  or local criminal justice agencies, except the
19        following which shall be open for public  inspection  and
20        copying:
21                  (i)  chronologically      maintained     arrest
22             information, such  as  traditional  arrest  logs  or
23             blotters;
24                  (ii)  the  name of a person in the custody of a
25             law enforcement agency and  the  charges  for  which
26             that person is being held;
27                  (iii)  court records that are public;
28                  (iv)  records   that  are  otherwise  available
29             under State or local law; or
30                  (v)  records in which the requesting  party  is
31             the  individual identified, except as provided under
32             part (vii) of paragraph (c)  of  subsection  (1)  of
33             this Section.
34             "Criminal  history  record  information"  means data
SB878 Engrossed             -26-               LRB9003362THpk
 1        identifiable  to  an   individual   and   consisting   of
 2        descriptions   or   notations   of  arrests,  detentions,
 3        indictments, informations, pre-trial proceedings, trials,
 4        or other formal events in the criminal justice system  or
 5        descriptions  or notations of criminal charges (including
 6        criminal violations of local  municipal  ordinances)  and
 7        the   nature   of   any  disposition  arising  therefrom,
 8        including sentencing, court or correctional  supervision,
 9        rehabilitation  and  release.  The term does not apply to
10        statistical records and reports in which individuals  are
11        not  identified  and  from which their identities are not
12        ascertainable, or to information  that  is  for  criminal
13        investigative or intelligence purposes.
14             (e)  Records  that  relate to or affect the security
15        of correctional institutions and detention facilities.
16             (f)  Preliminary  drafts,  notes,   recommendations,
17        memoranda   and  other  records  in  which  opinions  are
18        expressed, or policies or actions are formulated,  except
19        that  a  specific  record or relevant portion of a record
20        shall not be exempt when the record is publicly cited and
21        identified by the head of the public body. The  exemption
22        provided  in  this  paragraph  (f)  extends  to all those
23        records of officers and agencies of the General  Assembly
24        that pertain to the preparation of legislative documents.
25             (g)  Trade   secrets  and  commercial  or  financial
26        information obtained from a person or business where  the
27        trade  secrets or information are proprietary, privileged
28        or confidential, or where disclosure of the trade secrets
29        or information may cause competitive harm, including  all
30        information  determined  to be confidential under Section
31        4002 of the Technology Advancement and  Development  Act.
32        Nothing   contained   in  this  paragraph  (g)  shall  be
33        construed to prevent a person or business from consenting
34        to disclosure.
SB878 Engrossed             -27-               LRB9003362THpk
 1             (h)  Proposals and bids for any contract, grant,  or
 2        agreement,   including   information  which  if  it  were
 3        disclosed  would  frustrate  procurement   or   give   an
 4        advantage  to  any  person  proposing  to  enter  into  a
 5        contractor  agreement  with  the  body, until an award or
 6        final selection is made.  Information prepared by or  for
 7        the  body  in  preparation of a bid solicitation shall be
 8        exempt until an award or final selection is made.
 9             (i)  Valuable  formulae,   designs,   drawings   and
10        research  data  obtained  or  produced by any public body
11        when disclosure could reasonably be expected  to  produce
12        private gain or public loss.
13             (j)  Test   questions,   scoring   keys   and  other
14        examination  data  used   to   administer   an   academic
15        examination   or  determined  the  qualifications  of  an
16        applicant for a license or employment.
17             (k)  Architects'  plans  and  engineers'   technical
18        submissions  for projects not constructed or developed in
19        whole or in part  with  public  funds  and  for  projects
20        constructed or developed with public funds, to the extent
21        that disclosure would compromise security.
22             (l)  Library    circulation    and   order   records
23        identifying library users with specific materials.
24             (m)  Minutes of meetings of public bodies closed  to
25        the public as provided in the Open Meetings Act until the
26        public  body  makes  the  minutes available to the public
27        under Section 2.06 of the Open Meetings Act.
28             (n)  Communications between a  public  body  and  an
29        attorney  or  auditor  representing  the public body that
30        would not be subject  to  discovery  in  litigation,  and
31        materials prepared or compiled by or for a public body in
32        anticipation  of  a  criminal,  civil  or  administrative
33        proceeding  upon  the request of an attorney advising the
34        public body, and  materials  prepared  or  compiled  with
SB878 Engrossed             -28-               LRB9003362THpk
 1        respect to internal audits of public bodies.
 2             (o)  Information  received by a primary or secondary
 3        school, college or university under  its  procedures  for
 4        the  evaluation  of  faculty  members  by  their academic
 5        peers.
 6             (p)  Administrative   or    technical    information
 7        associated  with  automated  data  processing operations,
 8        including  but  not  limited   to   software,   operating
 9        protocols,  computer  program  abstracts,  file  layouts,
10        source  listings,  object  modules,  load  modules,  user
11        guides,  documentation  pertaining  to  all  logical  and
12        physical   design   of   computerized  systems,  employee
13        manuals, and any other information  that,  if  disclosed,
14        would  jeopardize  the security of the system or its data
15        or the security of materials exempt under this Section.
16             (q)  Documents or materials relating  to  collective
17        negotiating  matters  between  public  bodies  and  their
18        employees  or  representatives,  except  that  any  final
19        contract  or agreement shall be subject to inspection and
20        copying.
21             (r)  Drafts, notes,  recommendations  and  memoranda
22        pertaining to the financing and marketing transactions of
23        the  public body. The records of ownership, registration,
24        transfer, and exchange of municipal debt obligations, and
25        of  persons  to  whom  payment  with  respect  to   these
26        obligations is made.
27             (s)  The records, documents and information relating
28        to   real   estate   purchase  negotiations  until  those
29        negotiations have been completed or otherwise terminated.
30        With regard to a parcel involved in a pending or actually
31        and reasonably  contemplated  eminent  domain  proceeding
32        under  Article  VII  of  the  Code  of  Civil  Procedure,
33        records,  documents  and  information  relating  to  that
34        parcel  shall  be  exempt  except as may be allowed under
SB878 Engrossed             -29-               LRB9003362THpk
 1        discovery rules adopted by the  Illinois  Supreme  Court.
 2        The records, documents and information relating to a real
 3        estate sale shall be exempt until a sale is consummated.
 4             (t)  Any and all proprietary information and records
 5        related  to  the  operation  of an intergovernmental risk
 6        management association or self-insurance pool or  jointly
 7        self-administered  health  and  accident  cooperative  or
 8        pool.
 9             (u)  Information     concerning    a    university's
10        adjudication  of  student  or   employee   grievance   or
11        disciplinary  cases,  to the extent that disclosure would
12        reveal the  identity  of  the  student  or  employee  and
13        information  concerning any public body's adjudication of
14        student or employee  grievances  or  disciplinary  cases,
15        except for the final outcome of the cases.
16             (v)  Course  materials or research materials used by
17        faculty members.
18             (w)  Information  related  solely  to  the  internal
19        personnel rules and practices of a public body.
20             (x)  Information  contained   in   or   related   to
21        examination, operating, or condition reports prepared by,
22        on behalf of, or for the use of a public body responsible
23        for   the   regulation   or   supervision   of  financial
24        institutions or insurance companies, unless disclosure is
25        otherwise required by State law.
26             (y)  Information  the   disclosure   of   which   is
27        restricted  under  Section  5-108 of the Public Utilities
28        Act.
29             (z)  Manuals or instruction to staff that relate  to
30        establishment  or  collection  of liability for any State
31        tax or that relate to investigations by a public body  to
32        determine violation of any criminal law.
33             (aa)  Applications,  related  documents, and medical
34        records    received    by    the    Experimental    Organ
SB878 Engrossed             -30-               LRB9003362THpk
 1        Transplantation  Procedures  Board  and   any   and   all
 2        documents  or  other records prepared by the Experimental
 3        Organ  Transplantation  Procedures  Board  or  its  staff
 4        relating to applications it has received.
 5             (bb)  Insurance or  self  insurance  (including  any
 6        intergovernmental  risk  management  association  or self
 7        insurance  pool)  claims,   loss   or   risk   management
 8        information, records, data, advice or communications.
 9             (cc)  Information and records held by the Department
10        of  Public  Health  and  its  authorized  representatives
11        relating   to   known  or  suspected  cases  of  sexually
12        transmissible disease or any information  the  disclosure
13        of  which  is  restricted  under  the  Illinois  Sexually
14        Transmissible Disease Control Act.
15             (dd)  Information   the   disclosure   of  which  is
16        exempted under Section 7 of the Radon Mitigation Act.
17             (ee)  Firm performance evaluations under Section  55
18        of  the  Architectural,  Engineering,  and Land Surveying
19        Qualifications Based Selection Act.
20             (ff)  Information  the  disclosure   of   which   is
21        restricted  and exempted under Section 50 of the Illinois
22        Prepaid Tuition Act.
23        (2)  This  Section  does  not  authorize  withholding  of
24    information or limit  the  availability  of  records  to  the
25    public,  except  as  stated  in  this  Section  or  otherwise
26    provided in this Act.
27    (Source: P.A. 87-241; 87-673; 87-895; 88-444.)
28        Section  99.  Effective date.  This Act takes effect upon
29    becoming law.

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