MAHAR, RADOGNO, BURZYNSKI, SIEBEN, DUDYCZ, O'MALLEY,
BERMAN, KARPIEL, DILLARD, PARKER, CRONIN,
WALSH,T, BOWLES, SEVERNS, WELCH, OBAMA AND HALVORSON.
ILL PREPAID TUITION ACT
Synopsis of Bill as introduced:
Amends the Higher Education Student 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 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.
SENATE AMENDMENT NO. 1.
Deletes reference to:
110 ILCS 947/20
Adds reference to:
5 ILCS 140/7 from Ch. 116, par. 207
Deletes everything. Creates the Illinois Prepaid Tuition Act and
amends the Freedom of Information Act. Establishes the Illinois
prepaid tuition program under which a purchaser enters into and makes
the payments required under a prepaid tuition contract in order to
provide a higher education for the beneficiary of the contract. The
contractual payments must be made in advance of enrollment and assure
payment upon the beneficiary's enrollment in a public university or
community college of tuition and fee costs for the number of credit
hours purchased under the contract. Provides for administration of
the program by the Illinois Student Assistance Commission in
conjunction with a 3-member board. Specifies provisions required to
be included in the prepaid tuition contracts. Provides for deposit of
contract payments into the Prepaid Tuition Trust Fund. Requires the
tuition and fee payments due under the contracts to be made from the
Trust Fund. Makes the contracts general obligations of the State and
provides for continuing appropriations to discharge those obligations
if moneys in the Trust Fund are insufficient. Contains other related
provisions, including provisions under which information relating to
the purchasers and qualified beneficiaries of prepaid tuition
contracts is exempted from inspection, copying or disclosure under the
Freedom of Information Act. Effective immediately.
HOUSE AMENDMENT NO. 1.
Deletes provisions in the engrossed bill that create a Prepaid
Tuition Review Board and provides for the performance of what were to
be the responsibilities of that Board by the Illinois Student
Assistance Commission or an advisory panel. Provides that the
advisory panel shall give advice and counsel to the Commission, which
is to administer the prepaid tuition program. Provides that the
advisory panel shall consist of 7 members appointed by the Commission,
including one recommended by the State Treasurer, one recommended by
the State Comptroller, one recommended by the Director of the Bureau
of the Budget, and one recommended by the Executive Director of the
Board of Higher Education. Revises the definition of a MAP-eligible
institution. Provides that the start-up period for the program
(during which administrative costs are to be paid by appropriations
from the General Revenue Fund) shall be up to 18 months (instead of 12
months). Provides that each appropriation constitutes a loan that is
to be repaid to the General Revenue Fund within 5 years by the
Commission from prepaid tuition program contributions. Revises
provisions relative to the conversion of prepaid tuition contract
benefits for use at an out-of-state college or university and provides
that the benefits of such a contract may not be used at for-profit
educational institutions that are located outside of Illinois.
HOUSE AMENDMENT NO. 2.
Deletes provisions making the prepaid tuition contracts direct
obligations of the State for the payment of which the full faith and
credit of the State are pledged. Also deletes a continuing
appropriation provision mandating transfer to the Prepaid Tuition
Trust Fund of amounts necessary to discharge obligations under the
contracts if the amounts appropriated by the General Assembly for that
purpose are insufficient. Provides instead for certification by the
Illinois Student Assistance Commission to the Governor, Board of
Higher Education, President of the Senate, and Speaker of the House of
Representatives of any shortfall in the ability to meet contractual
obligations in a succeeding fiscal year, and requires the Governor to
request the General Assembly to make an appropriation of the amount
necessary to discharge all contractual obligations that could not
otherwise be met.
FISCAL NOTE, H-AMS 1 & 2 (Ill. Student Assistance Comm.)
Minimal, if any, fiscal impact on State revenues; one-time
start-up costs would total $1.75 M during FY98 and FY99.
STATE DEBT NOTE, H-AMS 1 & 2
No direct impact on the level of State bonded indebtedness.
STATE MANDATES FISCAL NOTE, H-AMS 1 & 2
Fails to create a State mandate.
GOVERNOR'S AMENDATORY VETO MESSAGE
Recommends, with respect to those situations in which there are
insufficient moneys in the Prepaid Tuition Trust Fund to pay contrac-
tual obligations in the next succeeding fiscal year and the Illinois
Student Assistance Commission certifies to the Governor and others the
amount necessary to meet those obligations, replacing a provision that
requires the Governor to request the General Assembly to transfer into
the Illinois Prepaid Tuition Trust Fund the amount necessary to fully
pay and discharge contractual obligations arising under the Act that
otherwise could not be discharged with a provision that requires the
Governor, in those situations, to submit the amount so certified to
the General Assembly as soon as practicable and before the end of the
current State fiscal year.
Last action on Bill: PUBLIC ACT.............................. 90-0546
Last action date: 97-12-01
Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 2 SENATE - 1
END OF INQUIRY
Full Text Bill Status