Public Act 095-0358
 		





HB1662 Enrolled
LRB095 09545 MJR 29744 b






    AN ACT concerning children.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:


 
    Section 1. Short title.  This Act may be cited as the 
Illinois Children's Savings Accounts Act.
 
    Section 5. Findings.  The General Assembly finds that 
investments in children's education, homeownership, and small 
business development and entrepreneurship are made possible by 
family savings, but the family savings rate is at the lowest 
level since the Great Depression.  Illinois has the lowest 
homeownership rate in the Midwest.  Fewer than a third of 
Illinois households have a checking account, and fewer than 60% 
have a savings account.  The rising cost of post-secondary 
education decreases access to higher education for low-income 
and moderate-income Illinoisans, and post-secondary education 
is beyond the reach of many Illinois families.  Increasing the 
number of Illinois families saving for post-secondary 
education for their children will increase the number of 
children who will attain higher education, and increased 
educational attainment levels will generate a more competitive 
workforce, more jobs and innovation, more savings and 
investment, stronger communities, and a thriving State 
economy.  The General Assembly also finds that a savings program 
tied to financial education can improve family financial 
responsibility and encourage saving for education, 
homeownership, small business, and entrepreneurship.
 
    Section 10. Public policy. It is the policy of the State to 
encourage families' savings, to increase families' financial 
knowledge, to promote higher educational aspiration and 
attainment, to encourage home ownership, to assist small 
business development, to promote job creation, to strengthen 
communities, and to increase asset building opportunities for 
all residents.
 
    Section 15. Children's Savings Account Task Force.  There is 
hereby created a Children's Savings Account Task Force.  The 
purpose of the task force shall be to review and make 
recommendations about children's savings account program 
options and to create a strategic implementation plan to create 
a savings account at birth for every child born in Illinois to 
Illinois residents.  The task force shall consist of a maximum 
of 30 members, to be appointed within 60 days after the 
effective date of this Act.  One member shall be appointed by 
the President of the Senate, one member appointed by the Senate 
Minority Leader, one member appointed by the Speaker of the 
House, one member appointed by the House Minority Leader, and 
one member representing the Office of the State Treasurer 
appointed by the State Treasurer.  All other members shall be 
appointed by the Governor as follows:
        (1) A member of the Governor's leadership staff.
        (2) Public members with an interest in asset building 
    in Illinois, including a representative from each of the 
    following types of organizations or entities:
            (A) an operator of an individual development 
        account or matched savings and financial education 
        program, or both;
            (B) a grassroots organizing entity;
            (C) a poverty law center;
            (D) a service-based human rights provider 
        organization;
            (E) a business association;
            (F) a bankers' professional association;
            (G) a child advocacy organization;
            (H) a rural economic development entity;

            (I) organized labor;
            (J) a bank;
            (K) a credit union; and
            (L) an investment services provider.
    In addition, the following officials shall serve as 
ex-officio members of the task force: (i) the State Treasurer 
or his or her designee; (ii) the State Superintendent of 
Education or his or her designee; (iii) the Secretary of 
Financial and Professional Regulation or his or her designee; 
(iv) the Director of Commerce and Economic Opportunity or his 
or her designee; (v) the Secretary of Human Services or his or 
her designee; (vi) the Director of Healthcare and Family 
Services or his or her designee; (vii) the Executive Director 
of the Board of Higher Education or his or her designee; (viii) 
the Executive Director of the Illinois Community College Board 
or his or her designee; and (ix) the Director of Children and 
Family Services or his or her designee.  Representatives of the 
Office of the Governor and the Office of the State Treasurer 
shall serve as co-chairpersons of the task force.  The Governor 
shall designate one of the public members to serve as a third 
co-chairperson.

    The Office of the State Treasurer shall be responsible for 
administrative and logistical support of the task force, 
including coordination of task force member appointments, 
distribution of meeting notices and minutes, coordination of 
meeting logistics, providing a staff liaison to the task force, 
facilitation of public meetings, and drafting and filing of the 
final report.  Task force members, or the staff liaison, or both 
may confer and collaborate with relevant State and national 
organizations with expertise in asset building, financial 
education, college savings, investing, home ownership, and 
small business development, including the Illinois Asset 
Building Group.
    Goals of the program shall include increasing the levels of 
financial literacy and savings in the State, increasing the 
number of children in Illinois who own assets and who attend 
post-secondary education or training, purchase a home, or open 
a small business.  The task force shall consider the following 
factors in its recommendations for the design of the program:
        (1) return on investment, safety of the investment and 
    insurance for the account, ease of managing the account, 
    and ease of making various forms of deposits;
        (2) the impact on eligibility for student financial 
    aid, public assistance, and other public benefits, and 
    taxation of the account earnings and distributions;
        (3) the provision of financial education to children 
    and families, and access to additional financial services;
        (4) restrictions on the withdrawal or distribution 
    prior to the child reaching age 18, portability of the 
    account, and limits on permissible uses of the account;
        (5) revenue sources for the initial deposit and any 
    savings match for deposits for children in low-income 
    families;
        (6) mechanisms for data collection and tracking; and
        (7) all other factors that the task force deems 
    important to the program design.
    The task force shall hold at least 4 public meetings at a 
variety of geographic locations throughout the State at times 
and places established by the task force. The purpose of the 
public meetings is to gather information from community 
residents and institutions, families with children, financial 
education providers, schools, and local financial services 
providers. The initial meeting of the task force shall be 
called by the co-chairs and held no later than 30 days after 
the task force members are appointed. The activities of the 
task force shall conclude no later than September 1, 2008.

 
    Section 20. Report and implementation plan. The task force 
shall make a written report of its findings and 
recommendations, including a strategic implementation plan for 
an Illinois children's savings account program, as well as make 
any additional reports deemed necessary and appropriate to the 
Office of the State Treasurer no later than September 1, 2008.  
On or before November 1, 2008, the Office of the State 
Treasurer shall present all reports issued by the task force to 
the Governor and members of the General Assembly. The reports 
shall be made available to the public.
 

    Section 99. Effective date. This Act takes effect upon 
becoming law.