92nd General Assembly
Summary of HB0338
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House Sponsors:

Short description: 
ELDER CARE SAVINGS FUND-NEW                                                

Synopsis of Bill as introduced:
        Creates the Elder Care Savings Fund Act.   Authorizes  the  State      
   Treasurer  to  establish  an Elder Care Savings Fund.  Allows Illinois      
   residents to invest in the fund, and provides that investors' earnings      
   are exempt from taxes other than  estate,  transfer,  and  inheritance      
   taxes.  Provides for a program of grants, using moneys in the fund, to      
   be applied to costs of long-term care or services.  Requires the State      
   Treasurer  to  implement  a  program to inform residents about options      
   available for financing long-term care.  Creates an Elder  Care  Trust      
   Authority  to  advise  the  Elder  Care Savings Fund staff and perform      
   other functions.  Effective immediately.                                    
          FISCAL NOTE (State Treasurer)                                        
          HB 338 will have an impact on the State's resources the first        
          fiscal year. The program is planned to eventually be self-           
          sufficient. However, there will be some start-up costs for           
          which an estimate cannot be made. If the program is popular          
          from day one with several depositors, it will generate enough        
          fees to offset most of the start-up costs. If the program gets       
          off to a slow start, the cap of $10,000 will not cover all of        
          the start-up costs. At a $2,000,000 fund balance, it is expec-       
          ted that a total of $20,000 would be needed besides the earn-        
          ings on the fund. At a $10,000,000 fund balance, the earnings        
          on the fund should pay all the administrative expenses and           
          start-up costs. However, the remaining earnings will not pro-        
          vide a competitive rate of return for participants. As the           
          fund grows, the rate of the administrative cost drops and the        
          participants can receive a greater rate of return. The Treas-        
          urer's Office cannot make an estimate for the grant portion          
          of the bill.                                                         
Last action on Bill: SESSION SINE DIE

   Last action date: JAN-07-2003

           Location: House

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   0     SENATE -   0


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