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| Public Act 096-1282 | ||||
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AN ACT concerning education.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Prepaid Tuition Act is amended by | ||||
changing Sections 10, 30, 35, 45, 50, and 65 as follows:
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(110 ILCS 979/10)
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Sec. 10. Definitions. In this Act:
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"Illinois public university" means the University of | ||||
Illinois, Illinois State
University, Chicago State University, | ||||
Governors State University, Southern
Illinois University, | ||||
Northern Illinois University, Eastern Illinois University,
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Western Illinois University, or Northeastern Illinois | ||||
University.
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"Illinois community college" means a public community | ||||
college as defined in
Section 1-2 of the Public Community | ||||
College Act.
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"Eligible MAP-eligible institution" means an institution | ||||
of higher learning, as defined in Section 10 of the Higher | ||||
Education Student Assistance Act, a public institution of | ||||
higher
education or a nonpublic institution of higher education | ||||
whose students are
eligible to receive need-based student | ||||
financial assistance through State
Monetary Award Program | ||||
(MAP) grants administered by the Illinois Student
Assistance | ||||
Commission under the Higher Education Student Assistance Act
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and whose students also are eligible to receive benefits under | ||
Section 529(a)
of the Internal Revenue Code of 1986, as | ||
specified by the federal Small
Business Act of
1996 and | ||
subsequent amendments to this federal law.
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"Illinois prepaid tuition contract" or "contract" means a | ||
contract entered
into between the State and a Purchaser under | ||
Section 45 to provide for the
higher education of a qualified | ||
beneficiary.
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"Illinois prepaid tuition program" or "program" means the | ||
program created in
Section 15.
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"Purchaser" means a person who makes or has contracted to | ||
make payments under
an Illinois prepaid tuition contract.
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"Public institution of higher education" means an Illinois | ||
public university
or Illinois community college.
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"Nonpublic institution of higher education" means any | ||
eligible institution MAP-eligible
educational organization, | ||
other than a public institution of higher education,
that | ||
provides a minimum of an organized 2-year
program at the | ||
postsecondary level and that operates in conformity with
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standards substantially equivalent to those of public | ||
institutions of higher
education.
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"Qualified beneficiary" means (i) anyone who has been a | ||
resident of this
State for at least 12 months prior to the date | ||
of the contract, or (ii) a
nonresident, so long as the | ||
purchaser has been a resident of the State for at
least 12 | ||
months prior to the date of the contract, or (iii) any person | ||
less
than one year of age whose parent or legal guardian has | ||
been a resident of this
State for at least 12 months prior
to | ||
the date of the contract.
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"Tuition" means the quarter or semester charges imposed on | ||
a qualified
beneficiary to attend an eligible a MAP-eligible | ||
institution.
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"Mandatory Fees" means those quarter or semester fees | ||
imposed upon all
students enrolled at an eligible a | ||
MAP-eligible institution.
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"Registration Fees" means the charges derived by combining | ||
tuition and
mandatory fees.
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"Contract Unit" means 15 credit hours of instruction at an | ||
eligible a MAP-eligible
institution.
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"Panel" means the investment advisory panel created under | ||
Section 20.
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"Commission" means the Illinois Student Assistance | ||
Commission.
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(Source: P.A. 93-56, eff. 7-1-03.)
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(110 ILCS 979/30)
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Sec. 30. Investment Advisory Panel duties and | ||
responsibilities.
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(a) Advice and review. The panel shall offer advice and | ||
counseling
regarding
the
investments of the Illinois prepaid | ||
tuition program with the objective of
obtaining the best | ||
possible return on investments consistent with actuarial
| ||
soundness of the
program. The panel is required to annually | ||
review and advise the Commission
on provisions of the strategic | ||
investment plan for the prepaid tuition program.
The panel is | ||
also charged with reviewing and advising the Commission with
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regard to the annual report that describes the current | ||
financial condition of
the program. The panel at its own | ||
discretion also may advise the Commission on
other aspects of | ||
the program.
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(b) Investment plan. The Commission annually shall adopt
a | ||
comprehensive investment plan for purposes of this Section. The
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comprehensive investment plan shall specify the investment | ||
policies to be
utilized by the Commission in its administration | ||
of the Illinois Prepaid
Tuition Trust
Fund created by Section | ||
35. The Commission may direct that assets of those
Funds be | ||
placed in
savings accounts or may use the same to purchase | ||
fixed or variable life
insurance or annuity contracts, | ||
securities, evidence of indebtedness, or other
investment | ||
products pursuant to the comprehensive investment plan and in | ||
such
proportions as may be designated or approved under that | ||
plan.
The Commission shall invest such assets with the care, | ||
skill, prudence, and
diligence under the circumstances then | ||
prevailing that a prudent man acting in
a like capacity and | ||
familiar with such matters would use in the conduct of an
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enterprise of a like character with like aims, and the | ||
Commission shall
diversify the investments of such assets so as | ||
to minimize the risk of large
losses, unless under the | ||
circumstances it is clearly prudent not to do so.
Those | ||
insurance,
annuity, savings, and investment products shall be | ||
underwritten and offered in
compliance with applicable federal | ||
and State laws, rules, and regulations
by persons who are | ||
authorized thereunder to provide those services. The
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Commission shall delegate responsibility for preparing the | ||
comprehensive
investment plan to the Executive Director of the | ||
Commission. Nothing in this
Section shall
preclude the | ||
Commission from contracting with a private corporation or
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institution to provide such services as may be a part of the | ||
comprehensive
investment plan or as may be deemed necessary for | ||
implementation of the
comprehensive investment plan, | ||
including, but not limited to, providing
consolidated billing, | ||
individual and collective record keeping and accounting,
and | ||
asset purchase, control, and safekeeping.
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(c) Program management. The Commission may not delegate its
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management functions, but may arrange to compensate for | ||
personalized investment
advisory services rendered with | ||
respect to any or all of the investments under
its control an | ||
investment advisor registered under Section 8 of the Illinois
| ||
Securities Law of 1953 or any bank or other entity authorized | ||
by law to provide
those services. Nothing contained herein | ||
shall preclude the Commission from
subscribing to general | ||
investment research services available for
purchase or use by | ||
others. The Commission also shall have authority to
compensate
| ||
for accounting, computing, and other necessary services.
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(d) Annual report. The Commission shall annually prepare or | ||
cause to be
prepared a report setting forth in appropriate
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detail an accounting of all Illinois prepaid tuition program | ||
funds and a
description of the financial condition of the | ||
program at the close of each
fiscal year. Included in this | ||
report shall be an evaluation by at least one
nationally | ||
recognized
actuary of the financial viability of the program. | ||
This report
shall be submitted to the Governor, the President | ||
of
the Senate, the Speaker of the House of Representatives, the | ||
Auditor General,
and the Board of Higher Education on or before | ||
March 1 of the subsequent fiscal
year. This report also shall | ||
be made available to purchasers of Illinois
prepaid tuition | ||
contracts and shall contain complete Illinois prepaid tuition
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contract sales information,
including, but not limited to, | ||
projected postsecondary enrollment data for
qualified | ||
beneficiaries.
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(e) Marketing plan. Selection of a marketing agent for the | ||
Illinois
prepaid tuition program must be approved by the | ||
Commission. At least once
every 3
years, the Commission shall | ||
solicit proposals
for marketing of the Illinois prepaid tuition | ||
program in accordance with the
Illinois Securities Law of 1953 | ||
and any applicable provisions of federal law.
The entity | ||
designated pursuant to this paragraph shall serve as a | ||
centralized
marketing agent for the program and shall have | ||
exclusive responsibility for
marketing the program. No | ||
contract for marketing the Illinois prepaid tuition
program | ||
shall extend for longer than 3 years. Any materials produced | ||
for the
purpose of marketing the program shall be submitted to | ||
the Executive Director
of the Commission for approval before | ||
they are made public. Any eligible Illinois
MAP-eligible
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institution may distribute marketing materials produced for | ||
the program, so
long as the Executive Director of the | ||
Commission approves the distribution in
advance. Neither
the | ||
State nor the Commission shall be liable for
misrepresentation | ||
of the program by a marketing agent.
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(f) Accounting and audit. The Commission shall annually | ||
cause to be
prepared an accounting of the trust and shall | ||
transmit a copy of the accounting
to the Governor, the | ||
President of the Senate, the Speaker of the
House, and the | ||
minority leaders of the Senate and House of
Representatives. | ||
The Commission shall also make available this accounting of
the | ||
trust to any purchaser of an Illinois prepaid tuition contract, | ||
upon
request. The accounts of the Illinois prepaid tuition | ||
program shall be subject
to annual audits by the Auditor | ||
General or a certified public accountant
appointed by the | ||
Auditor General.
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(Source: P.A. 90-546, eff. 12-1-97; 91-669, eff. 1-1-00.)
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(110 ILCS 979/35)
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Sec. 35. Illinois Prepaid Tuition Trust Fund.
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(a) The Illinois Prepaid Tuition Trust Fund is created as | ||
the repository
of all moneys received by the Commission in | ||
conjunction with the Illinois
prepaid
tuition program. The | ||
Illinois Prepaid Tuition Trust Fund also shall be the
official | ||
repository of all contributions, appropriations, interest and | ||
dividend
payments, gifts, or other financial assets received by | ||
the Commission in
connection with operation of the Illinois | ||
prepaid tuition program. All such
moneys shall be deposited in | ||
the Illinois Prepaid Tuition Trust Fund
and held by the State | ||
Treasurer as ex-officio custodian thereof, outside of the
State | ||
Treasury, separate and apart from all public moneys or funds of | ||
this
State.
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All interest or other earnings accruing or received on | ||
amounts in the
Illinois Prepaid
Tuition Trust Fund shall be | ||
credited to and retained by the Fund. Moneys,
interest, or | ||
other earnings paid into the Fund shall not be transferred or
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allocated by the Commission, the State Treasurer, or the State
| ||
Comptroller
to any other fund, nor shall the Governor authorize | ||
any such transfer or
allocation,
while any contracts are | ||
outstanding. The State Comptroller shall not offset
moneys paid | ||
to institutions from the Illinois Prepaid Tuition Trust Fund
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(unless the Trust Fund
moneys are used for child support).
In
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addition, no
moneys,
interest, or
other earnings paid into the | ||
Fund shall be used, temporarily or otherwise, for
interfund | ||
borrowing or be
otherwise used or appropriated except as | ||
expressly authorized in this Act.
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The Illinois Prepaid Tuition Trust Fund and each individual | ||
participant
account that
may be created in that Fund in | ||
conjunction with the Illinois prepaid tuition
program shall be | ||
subject to audit in the same manner as funds and accounts
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belonging to
the State of Illinois and shall be protected by | ||
the official bond given by the
State Treasurer.
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(b) The Commission from time to time shall direct the State | ||
Treasurer to
invest moneys in the Illinois Prepaid Tuition | ||
Trust Fund that are not needed
for immediate disbursement, in | ||
accordance with provisions of the investment
plan approved by | ||
the Commission.
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(c) The Executive Director of the Commission shall, at such | ||
times and in
such amounts as shall
be necessary, prepare and | ||
send to the State Comptroller vouchers requesting
payment from | ||
the Illinois Prepaid Tuition Trust Fund for: (i) registration | ||
tuition and fee
payments to eligible MAP-eligible institutions | ||
on behalf of qualified beneficiaries of
Illinois
prepaid | ||
tuition contracts, and (ii) payments associated with | ||
administration of
the Illinois prepaid tuition program.
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(d) The Governor shall indicate in a separate document | ||
submitted concurrent
with each annual State budget the | ||
estimated
amount of moneys in the Illinois Prepaid Tuition | ||
Trust Fund which shall be
necessary and sufficient, during that | ||
State fiscal year, to discharge all
obligations anticipated | ||
under Illinois prepaid tuition contracts. The Governor
also | ||
shall indicate in a separate document submitted concurrent with | ||
each
annual State budget the amount of moneys from the
Illinois | ||
Prepaid Tuition Trust Fund necessary to cover anticipated | ||
expenses
associated with administration of the program.
The | ||
Commission shall obtain concurrence from a nationally | ||
recognized actuary
as to all amounts necessary for the program | ||
to meet its obligations. These
amounts shall be certified | ||
annually to the Governor by the Commission no later
than | ||
January 30.
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During the first 18 months of operation of the Illinois | ||
prepaid tuition
program,
the Governor shall request an | ||
appropriation to the Commission from general
funds sufficient | ||
to pay for start-up costs associated with establishment of the
| ||
program.
This appropriation constitutes a loan that shall be | ||
repaid to the General
Revenue Fund within 5 years by the | ||
Commission from prepaid tuition program
contributions.
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Subsequent program administrative costs shall be provided from
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reasonable fees and charges equitably assessed to purchasers of | ||
prepaid tuition
contracts.
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(e) If the Commission determines that there are | ||
insufficient moneys in
the Illinois Prepaid Tuition Trust Fund | ||
to pay contractual obligations in the
next succeeding fiscal | ||
year, the Commission shall certify the amount necessary
to meet | ||
these obligations to the Board of Higher Education, the | ||
Governor, the
President of the Senate, and the
Speaker of the | ||
House of
Representatives. The Governor shall submit the amount | ||
so certified to the
General Assembly as soon as practicable, | ||
but no later than the end of the
current State fiscal year.
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(f) In the event the Commission, with the concurrence of | ||
the
Governor, determines the program to be financially | ||
infeasible, the Commission
may discontinue, prospectively, the | ||
operation of the program. Any qualified
beneficiary who has | ||
been accepted by and is enrolled or will within 5 years
enroll | ||
at an eligible a MAP-eligible institution shall be entitled to
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exercise the complete benefits specified in the Illinois | ||
prepaid tuition
contract. All other contract holders shall | ||
receive an appropriate refund of
all contributions and accrued | ||
interest up to the time that the program is
discontinued.
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(Source: P.A. 93-56, eff. 7-1-03.)
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(110 ILCS 979/45)
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Sec. 45. Illinois prepaid tuition contracts.
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(a) The Commission may enter into an Illinois prepaid | ||
tuition contract with
a purchaser under which the Commission | ||
contracts on behalf of the State to pay
full tuition and | ||
mandatory fees at an Illinois public university or Illinois
| ||
community college for a qualified beneficiary to attend the | ||
eligible
MAP-eligible institution to which the qualified | ||
beneficiary is admitted. Each
contract shall contain terms, | ||
conditions, and provisions that the Commission
determines to be | ||
necessary for ensuring the educational objectives and
| ||
sustainable financial viability of the Illinois prepaid | ||
tuition program.
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(b) Each contract shall have one designated purchaser and | ||
one designated
qualified beneficiary. Unless otherwise | ||
specified in the contract, the
purchaser
owns the contract and | ||
retains any tax liability for its assets only until the
first | ||
distribution of benefits. Contracts shall be purchased in units | ||
of 15 credit
hours at any MAP-eligible institution.
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(c) Without exception, benefits may be received by a | ||
qualified beneficiary
of an Illinois prepaid tuition contract | ||
no earlier than 3 years from the date
the contract is | ||
purchased.
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(d) A prepaid tuition contract shall contain, but is not | ||
limited to,
provisions for (i) refunds or withdrawals in | ||
certain circumstances, with or
without interest or penalties;
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(ii) conversion of the contract at the time of distribution | ||
from accrued
prepayment value at one type of eligible | ||
MAP-eligible institution to the accrued
prepayment value at a | ||
different type of eligible MAP-eligible institution; (iii)
| ||
portability of the accrued value of the prepayment value for | ||
use at an eligible institution located outside this State
| ||
out-of-state higher education institution; (iv) | ||
transferability of the contract
benefits within the qualified | ||
beneficiary's immediate family; and (v) a
specified benefit | ||
period during which the contract may be redeemed.
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(e) Each Illinois prepaid tuition contract also shall | ||
contain, at minimum,
all of
the following:
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(1) The amount of payment or payments and the number of | ||
payments required
from a purchaser on behalf of a qualified | ||
beneficiary.
| ||
(2) The terms and conditions under which purchasers | ||
shall remit payments,
including, but not limited to, the | ||
date or dates upon which each payment shall
be due.
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(3) Provisions for late payment charges and for | ||
default.
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(4) Provisions for penalty fees payable incident to an | ||
authorized
withdrawal.
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(5) The name, date of birth, and social security number | ||
of the qualified
beneficiary on whose behalf the contract | ||
is drawn and the terms and conditions
under which the | ||
contract may be transferred to another qualified | ||
beneficiary.
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(6) The name and social security number of any person | ||
who may
terminate the contract, together with terms that | ||
specify whether the contract
may be terminated by the
| ||
purchaser, the qualified beneficiary, a specific | ||
designated person, or any
combination of these persons.
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(7) The terms and conditions under which a contract may | ||
be terminated, the
name and social security number of the | ||
person entitled to any refund due as a
result of the | ||
termination of the contract pursuant to those terms and
| ||
conditions,
and the method for determining the amount of a | ||
refund.
| ||
(8) The time limitations, if any, within which the | ||
qualified beneficiary
must claim his or her benefits | ||
through the program.
| ||
(9) Other terms and conditions determined by the | ||
Commission to be
appropriate.
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(f) In addition to the contract provisions set forth in | ||
subsection (e), each
Illinois prepaid tuition contract shall | ||
include:
| ||
(1) The number of credit hours contracted by the | ||
purchaser.
| ||
(2) The type of eligible MAP-eligible institution and | ||
the prepaid tuition plan
toward which the credit hours | ||
shall be applied.
| ||
(3) The explicit contractual obligation of the | ||
Commission to the qualified
beneficiary to provide a | ||
specific number of credit hours of undergraduate
| ||
instruction at an eligible a MAP-eligible institution, not | ||
to exceed the maximum number of
credit hours required for | ||
the conference of a degree that corresponds to the
plan | ||
purchased on behalf of the qualified beneficiary.
| ||
(g) The Commission shall indicate by rule the conditions | ||
under which refunds
are payable to a contract purchaser. | ||
Generally, no refund shall exceed the
amount paid into the | ||
Illinois Prepaid Tuition Trust Fund by the purchaser. In
the | ||
event that a contract is converted from a Public University | ||
Plan described
in subsection (j) of this Section to a Community | ||
College Plan described in
subsection (k) of this Section, the | ||
refund amount shall be reduced
by the amount transferred to the | ||
Illinois community college on behalf of the
qualified | ||
beneficiary. Except where the Commission may otherwise rule, | ||
refunds
may exceed the amount paid into the Illinois Prepaid | ||
Tuition Trust Fund only
under the following circumstances:
| ||
(1) If the qualified beneficiary is awarded a grant or | ||
scholarship at a
public institution of higher education, | ||
the
terms of
which duplicate the benefits included in the | ||
Illinois prepaid tuition contract,
then moneys paid for the | ||
purchase of the contract shall be returned to the
| ||
purchaser, upon request, in semester installments that | ||
coincide with the
matriculation by the
qualified | ||
beneficiary, in an amount equal to the current cost
of | ||
tuition
and mandatory fees at the public institution of | ||
higher education MAP-eligible institution where the | ||
qualified
beneficiary is enrolled.
| ||
(1.5) If the qualified beneficiary is awarded a grant | ||
or scholarship
while enrolled at either an eligible a | ||
MAP-eligible nonpublic institution of higher
education or | ||
an eligible public or private out-of-state higher | ||
education
institution, the terms of which duplicate the | ||
benefits included in the
Illinois prepaid tuition | ||
contract, then money paid for the purchase of the
contract | ||
shall be returned to the purchaser, upon request, in | ||
semester
installments that coincide with the matriculation | ||
by the qualified
beneficiary. The amount paid shall not | ||
exceed the current average
mean-weighted credit hour value | ||
of the registration fees purchased
under the contract.
| ||
(2) In the event of the death or total disability of | ||
the qualified
beneficiary, moneys paid for the purchase of | ||
the Illinois prepaid tuition
contract shall be returned to | ||
the purchaser together with all accrued earnings.
| ||
(3) If an Illinois prepaid tuition contract is | ||
converted from a Public
University Plan to a Community | ||
College Plan, then the amount refunded shall be
the value | ||
of the original Illinois prepaid tuition contract minus the | ||
value of
the contract after conversion.
| ||
No refund shall be authorized under an Illinois prepaid | ||
tuition contract for
any semester partially attended but not | ||
completed.
| ||
The Commission, by rule, shall set forth specific | ||
procedures for
making contract payments in conjunction with | ||
grants and scholarships awarded to
contract beneficiaries.
| ||
Moneys paid into or out of the Illinois Prepaid Tuition | ||
Trust Fund by or on
behalf of the purchaser or the qualified | ||
beneficiary of an Illinois prepaid
tuition contract are exempt | ||
from all claims of creditors of the purchaser or
beneficiary, | ||
so long as the contract has not been terminated.
| ||
The State or any State agency, county, municipality, or | ||
other political
subdivision, by contract or collective | ||
bargaining agreement, may agree with any
employee to remit | ||
payments toward the purchase of Illinois
prepaid tuition | ||
contracts through payroll deductions made by the appropriate
| ||
officer or officers of the entity making the payments. Such | ||
payments shall be
held and administered in accordance with this | ||
Act.
| ||
(h) Nothing in this Act shall be construed as a promise or | ||
guarantee that a
qualified beneficiary will be admitted to an | ||
eligible a MAP-eligible institution or to a
particular eligible | ||
MAP-eligible institution, will be allowed to continue | ||
enrollment at an eligible
a MAP-eligible institution after | ||
admission, or will be graduated from an eligible a
MAP-eligible | ||
institution.
| ||
(i) The Commission shall develop and make prepaid tuition | ||
contracts
available under a minimum of at least 2 independent | ||
plans to be known as the
Public University Plan and the | ||
Community College Plan.
| ||
Contracts shall be purchased in units of 15 credit hours at | ||
either an
Illinois public university or an Illinois community | ||
college.
The minimum purchase amount per qualified beneficiary | ||
shall be one unit or 15
credit hours. The maximum purchase | ||
amount shall be 9 units (or 135 credit
hours) for the Public | ||
University Plan and 4 units (or 60 credit hours) for the
| ||
Community College Plan.
| ||
(j) Public University Plan. Through the Public University | ||
Plan, the
Illinois prepaid tuition contract shall provide | ||
prepaid registration fees,
which include full tuition costs as | ||
well as mandatory fees, for a specified
number of undergraduate | ||
credit hours, not to exceed the maximum number of
credit hours | ||
required for the conference of a baccalaureate degree. In
| ||
determining the cost of participation in the Public University | ||
Plan, the
Commission shall reference the combined | ||
mean-weighted current registration fees
from all Illinois | ||
public universities.
| ||
In the event that a qualified beneficiary for whatever | ||
reason chooses to
attend an Illinois community college, the | ||
qualified beneficiary may convert the
average number of credit | ||
hours required for the conference of an associate
degree from | ||
the Public University Plan to the Community College
Plan and | ||
may retain the remaining Public University Plan credit hours or | ||
may
request a refund for prepaid credit hours in excess of | ||
those required for
conference of an associate degree. In | ||
determining the amount of any refund,
the Commission also shall | ||
recognize the current relative credit hour cost of
the 2 plans | ||
when making any conversion.
| ||
Qualified beneficiaries shall bear the cost of any | ||
laboratory or other
non-mandatory fees associated with | ||
enrollment in specific courses. Qualified
beneficiaries who | ||
are not Illinois residents shall bear the difference in
cost | ||
between in-state registration fees guaranteed by the prepaid | ||
tuition
contract and tuition and other charges assessed upon | ||
out-of-state students by
the eligible MAP-eligible | ||
institution.
| ||
(k) Community College Plan. Through the Community College | ||
Plan, the
Illinois prepaid tuition contract shall provide | ||
prepaid registration fees,
which include full tuition costs as | ||
well as mandatory fees, for a specified
number of undergraduate | ||
credit hours, not to exceed the maximum number of
credit hours | ||
required for the conference of an associate degree. In
| ||
determining the cost of participation in the Community College | ||
Plan, the
Commission shall reference the combined | ||
mean-weighted current registration fees
from all Illinois | ||
community colleges.
| ||
In the event that a qualified beneficiary for whatever | ||
reason chooses to
attend an Illinois public university, the | ||
qualified beneficiary's prepaid
tuition contract shall be | ||
converted for use at that Illinois public university
by | ||
referencing the current average mean-weighted credit hour | ||
value of
registration fees at Illinois community colleges | ||
relative to the corresponding
value of registration fees at | ||
Illinois public universities.
| ||
Qualified beneficiaries shall bear the cost of any | ||
laboratory or other
non-mandatory fees associated with | ||
enrollment in specific courses. Qualified
beneficiaries who | ||
are not Illinois residents shall bear the difference in
cost | ||
between in-state registration fees guaranteed by the prepaid | ||
tuition
contract and tuition and other charges assessed upon | ||
out-of-state students by
the eligible MAP-eligible | ||
institution.
| ||
(l) A qualified beneficiary may apply the benefits of any | ||
Illinois prepaid
tuition contract toward a nonpublic | ||
institution of higher education. In the
event that a qualified | ||
beneficiary for whatever reason chooses to attend a
nonpublic | ||
institution of higher education, the qualified beneficiary's | ||
prepaid
tuition contract shall be converted for use at that | ||
nonpublic institution of
higher education by referencing the | ||
current average mean-weighted credit hour
value of | ||
registration fees purchased under the
contract. The Commission | ||
shall
transfer, or cause to have transferred, this amount, less | ||
a transfer fee, to
the nonpublic institution on behalf of the | ||
beneficiary. In the event that the
cost of registration charged | ||
to the beneficiary at the nonpublic institution of
higher | ||
education is less than the aggregate value of the Illinois | ||
prepaid
tuition contract, any remaining amount shall be | ||
transferred in subsequent
semesters until the transfer value is | ||
fully depleted.
| ||
(m) A qualified beneficiary may apply the benefits of any | ||
Illinois prepaid
tuition contract toward an eligible | ||
out-of-state college or university.
Institutional eligibility | ||
for out-of-state colleges and universities shall be
determined | ||
by the Commission according to standards substantially | ||
equivalent to those for an eligible institution located in this | ||
State, as described in the definition of "institution of higher | ||
learning" in Section 10 of the Higher Education Student | ||
Assistance Act , but in making those determinations the | ||
Commission
shall recognize that the benefits of an Illinois | ||
prepaid tuition contract may
not be used at any postsecondary | ||
educational institution that is both operated
for-profit and | ||
located outside of Illinois.
In the
event that a qualified | ||
beneficiary for whatever reason chooses to attend an
eligible | ||
out-of-state college or university, the qualified | ||
beneficiary's
prepaid tuition contract shall be converted for | ||
use at that college or
university by referencing the current | ||
average mean-weighted credit hour value
of registration fees | ||
purchased under the contract. The Commission shall
transfer, or | ||
cause to have
transferred, this amount, less a transfer fee, to | ||
the college or university on
behalf of the beneficiary. In the | ||
event that the cost of registration charged
to the beneficiary | ||
at the eligible out-of-state college or university is less
than | ||
the aggregate value of the Illinois prepaid tuition contract, | ||
any
remaining amount shall be transferred in subsequent | ||
semesters until the
transfer value is fully depleted.
| ||
(n) Illinois prepaid tuition contracts may be purchased | ||
either by lump sum
or by installments. No penalty shall be | ||
assessed for early
payment of installment contracts.
| ||
(o) The Commission shall annually adjust the price of new | ||
contracts, in
accordance with the annual changes in | ||
registration fees at Illinois public
universities and | ||
community colleges.
| ||
(Source: P.A. 95-217, eff. 8-16-07.)
| ||
(110 ILCS 979/50)
| ||
Sec. 50. Confidentiality and disclosure. Information that | ||
(i) identifies
the purchasers or qualified beneficiaries of any | ||
Illinois prepaid tuition
contract or any terms or provisions of | ||
any such contract as those terms and
provisions relate to a | ||
particular purchaser or qualified beneficiary, or (ii)
| ||
discloses any other matter relating to the participation of any | ||
such purchaser
or qualified beneficiary in the Illinois prepaid | ||
tuition program or in any
independent plan under which that | ||
program is administered, is exempt from
inspection, copying, or | ||
disclosure under the Freedom of Information Act.
The Commission | ||
may authorize the program's records administrator to release
| ||
such information to appropriate personnel at the eligible | ||
MAP-eligible institution at
which the beneficiary may enroll or | ||
is enrolled
or to another state
or federal agency, for purposes | ||
that the Commission deems appropriate, in
accordance with | ||
applicable state and federal law.
However, any such institution
| ||
or agency to which that information is released shall ensure | ||
the continued
confidentiality of the information.
| ||
(Source: P.A. 90-546, eff. 12-1-97.)
| ||
(110 ILCS 979/65)
| ||
Sec. 65. Construction. Nothing in this Act or in an | ||
Illinois prepaid
tuition contract shall be construed as a | ||
promise or guarantee by the Program or
the State that a person | ||
will be admitted to any eligible MAP-eligible institution or to
| ||
a particular eligible MAP-eligible institution, will be | ||
allowed to continue to attend an eligible a
MAP-eligible | ||
institution after having been admitted, or will be graduated | ||
from an eligible
a MAP-eligible institution.
| ||
(Source: P.A. 90-546, eff. 12-1-97.)
| ||
Section 99. Effective date. This Act takes effect July 1, | ||
2010.
| ||