Bill Amendment: IL SB0535 | 2019-2020 | 101st General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: GOVERNMENT-TECH
Status: 2021-01-13 - Session Sine Die [SB0535 Detail]
Download: Illinois-2019-SB0535-Senate_Amendment_001.html
Bill Title: GOVERNMENT-TECH
Status: 2021-01-13 - Session Sine Die [SB0535 Detail]
Download: Illinois-2019-SB0535-Senate_Amendment_001.html
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1 | AMENDMENT TO SENATE BILL 535
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2 | AMENDMENT NO. ______. Amend Senate Bill 535 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Illinois Prepaid Tuition Act is amended by | ||||||
5 | changing Sections 30 and 35 as follows:
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6 | (110 ILCS 979/30)
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7 | Sec. 30. Investment Advisory Panel duties and | ||||||
8 | responsibilities.
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9 | (a) Advice and review. The panel shall offer advice and | ||||||
10 | counseling
regarding
the
investments of the Illinois prepaid | ||||||
11 | tuition program with the objective of
obtaining the best | ||||||
12 | possible return on investments consistent with actuarial
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13 | soundness of the
program. The panel is required to annually | ||||||
14 | review and advise the Commission
on provisions of the strategic | ||||||
15 | investment plan for the prepaid tuition program.
The panel is | ||||||
16 | also charged with reviewing and advising the Commission with
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1 | regard to the annual report that describes the current | ||||||
2 | financial condition of
the program. The panel at its own | ||||||
3 | discretion also may advise the Commission on
other aspects of | ||||||
4 | the program.
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5 | (b) Investment plan. The Commission annually shall adopt
a | ||||||
6 | comprehensive investment plan for purposes of this Section. The
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7 | comprehensive investment plan shall specify the investment | ||||||
8 | policies to be
utilized by the Commission in its administration | ||||||
9 | of the Illinois Prepaid
Tuition Trust
Fund created by Section | ||||||
10 | 35. The Commission may direct that assets of those
Funds be | ||||||
11 | placed in
savings accounts or may use the same to purchase | ||||||
12 | fixed or variable life
insurance or annuity contracts, | ||||||
13 | securities, evidence of indebtedness, or other
investment | ||||||
14 | products pursuant to the comprehensive investment plan and in | ||||||
15 | such
proportions as may be designated or approved under that | ||||||
16 | plan.
The Commission shall invest such assets with the care, | ||||||
17 | skill, prudence, and
diligence under the circumstances then | ||||||
18 | prevailing that a prudent man acting in
a like capacity and | ||||||
19 | familiar with such matters would use in the conduct of an
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20 | enterprise of a like character with like aims, and the | ||||||
21 | Commission shall
diversify the investments of such assets so as | ||||||
22 | to minimize the risk of large
losses, unless under the | ||||||
23 | circumstances it is clearly prudent not to do so.
Those | ||||||
24 | insurance,
annuity, savings, and investment products shall be | ||||||
25 | underwritten and offered in
compliance with applicable federal | ||||||
26 | and State laws, rules, and regulations
by persons who are |
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1 | authorized thereunder to provide those services. The
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2 | Commission shall delegate responsibility for preparing the | ||||||
3 | comprehensive
investment plan to the Executive Director of the | ||||||
4 | Commission. Nothing in this
Section shall
preclude the | ||||||
5 | Commission from contracting with a private corporation or
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6 | institution to provide such services as may be a part of the | ||||||
7 | comprehensive
investment plan or as may be deemed necessary for | ||||||
8 | implementation of the
comprehensive investment plan, | ||||||
9 | including, but not limited to, providing
consolidated billing, | ||||||
10 | individual and collective record keeping and accounting,
and | ||||||
11 | asset purchase, control, and safekeeping.
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12 | (b-5) Investment duties. Beginning January 1, 2015, with | ||||||
13 | respect to any investments for which it is responsible under | ||||||
14 | this Section or any other law, the Commission shall be subject | ||||||
15 | to the same requirements as are imposed upon the board of | ||||||
16 | trustees of a
retirement system under subsections (5) and (9) | ||||||
17 | of Section 1-109.1 of the Illinois Pension Code and Section | ||||||
18 | Sections 1-109.1(5.1), 1-109.1(9), and 1-113.21 of the | ||||||
19 | Illinois Pension Code, to the extent that those requirements | ||||||
20 | are not in direct conflict with any other requirement of law to | ||||||
21 | which the Commission is subject. | ||||||
22 | (c) Program management. The Commission may not delegate its
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23 | management functions, but may arrange to compensate for | ||||||
24 | personalized investment
advisory services rendered with | ||||||
25 | respect to any or all of the investments under
its control an | ||||||
26 | investment advisor registered under Section 8 of the Illinois
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1 | Securities Law of 1953 or any bank or other entity authorized | ||||||
2 | by law to provide
those services. Nothing contained herein | ||||||
3 | shall preclude the Commission from
subscribing to general | ||||||
4 | investment research services available for
purchase or use by | ||||||
5 | others. The Commission also shall have authority to
compensate
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6 | for accounting, computing, and other necessary services.
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7 | (d) Annual report. The Commission shall annually prepare or | ||||||
8 | cause to be
prepared a report setting forth in appropriate
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9 | detail an accounting of all Illinois prepaid tuition program | ||||||
10 | funds and a
description of the financial condition of the | ||||||
11 | program at the close of each
fiscal year. Included in this | ||||||
12 | report shall be an evaluation by at least one
nationally | ||||||
13 | recognized
actuary of the financial viability of the program. | ||||||
14 | This report
shall be submitted to the Governor, the President | ||||||
15 | of
the Senate, the Speaker of the House of Representatives, the | ||||||
16 | Auditor General,
and the Board of Higher Education on or before | ||||||
17 | March 1 of the subsequent fiscal
year. This report also shall | ||||||
18 | be made available to purchasers of Illinois
prepaid tuition | ||||||
19 | contracts and shall contain complete Illinois prepaid tuition
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20 | contract sales information,
including, but not limited to, | ||||||
21 | projected postsecondary enrollment data for
qualified | ||||||
22 | beneficiaries.
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23 | (e) Marketing plan. Selection of a marketing agent for the | ||||||
24 | Illinois
prepaid tuition program must be approved by the | ||||||
25 | Commission. At least once
every 3
years, the Commission shall | ||||||
26 | solicit proposals
for marketing of the Illinois prepaid tuition |
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1 | program in accordance with the
Illinois Securities Law of 1953 | ||||||
2 | and any applicable provisions of federal law.
The entity | ||||||
3 | designated pursuant to this paragraph shall serve as a | ||||||
4 | centralized
marketing agent for the program and shall have | ||||||
5 | exclusive responsibility for
marketing the program. No | ||||||
6 | contract for marketing the Illinois prepaid tuition
program | ||||||
7 | shall extend for longer than 3 years. Any materials produced | ||||||
8 | for the
purpose of marketing the program shall be submitted to | ||||||
9 | the Executive Director
of the Commission for approval before | ||||||
10 | they are made public. Any eligible
institution may distribute | ||||||
11 | marketing materials produced for the program, so
long as the | ||||||
12 | Executive Director of the Commission approves the distribution | ||||||
13 | in
advance. Neither
the State nor the Commission shall be | ||||||
14 | liable for
misrepresentation of the program by a marketing | ||||||
15 | agent.
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16 | (f) Accounting and audit. The Commission shall annually | ||||||
17 | cause to be
prepared an accounting of the trust and shall | ||||||
18 | transmit a copy of the accounting
to the Governor, the | ||||||
19 | President of the Senate, the Speaker of the
House, and the | ||||||
20 | minority leaders of the Senate and House of
Representatives. | ||||||
21 | The Commission shall also make available this accounting of
the | ||||||
22 | trust to any purchaser of an Illinois prepaid tuition contract, | ||||||
23 | upon
request. The accounts of the Illinois prepaid tuition | ||||||
24 | program shall be subject
to annual audits by the Auditor | ||||||
25 | General or a certified public accountant
appointed by the | ||||||
26 | Auditor General.
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1 | (Source: P.A. 98-1022, eff. 1-1-15 .)
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2 | (110 ILCS 979/35)
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3 | Sec. 35. Illinois Prepaid Tuition Trust Fund.
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4 | (a) The Illinois Prepaid Tuition Trust Fund is created as | ||||||
5 | the repository
of all moneys received by the Commission in | ||||||
6 | conjunction with the Illinois
prepaid
tuition program. The | ||||||
7 | Illinois Prepaid Tuition Trust Fund also shall be the
official | ||||||
8 | repository of all contributions, appropriations, interest and | ||||||
9 | dividend
payments, gifts, or other financial assets received by | ||||||
10 | the Commission in
connection with operation of the Illinois | ||||||
11 | prepaid tuition program. All such
moneys shall be deposited in | ||||||
12 | the Illinois Prepaid Tuition Trust Fund
and held by the State | ||||||
13 | Treasurer as ex-officio custodian thereof, outside of the
State | ||||||
14 | Treasury, separate and apart from all public moneys or funds of | ||||||
15 | this
State.
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16 | All interest or other earnings accruing or received on | ||||||
17 | amounts in the
Illinois Prepaid
Tuition Trust Fund shall be | ||||||
18 | credited to and retained by the Fund. Moneys,
interest, or | ||||||
19 | other earnings paid into the Fund shall not be transferred or
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20 | allocated by the Commission, the State Treasurer, or the State
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21 | Comptroller
to any other fund, nor shall the Governor authorize | ||||||
22 | any such transfer or
allocation,
while any contracts are | ||||||
23 | outstanding. The State Comptroller shall not offset
moneys paid | ||||||
24 | to institutions from the Illinois Prepaid Tuition Trust Fund
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25 | (unless the Trust Fund
moneys are used for child support).
In
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1 | addition, no
moneys,
interest, or
other earnings paid into the | ||||||
2 | Fund shall be used, temporarily or otherwise, for
interfund | ||||||
3 | borrowing or be
otherwise used or appropriated except as | ||||||
4 | expressly authorized in this Act.
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5 | The Illinois Prepaid Tuition Trust Fund and each individual | ||||||
6 | participant
account that
may be created in that Fund in | ||||||
7 | conjunction with the Illinois prepaid tuition
program shall be | ||||||
8 | subject to audit in the same manner as funds and accounts
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9 | belonging to
the State of Illinois and shall be protected by | ||||||
10 | the official bond given by the
State Treasurer.
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11 | (b) The Commission from time to time shall direct the State | ||||||
12 | Treasurer to
invest moneys in the Illinois Prepaid Tuition | ||||||
13 | Trust Fund that are not needed
for immediate disbursement, in | ||||||
14 | accordance with provisions of the investment
plan approved by | ||||||
15 | the Commission.
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16 | (c) The Executive Director of the Commission shall, at such | ||||||
17 | times and in
such amounts as shall
be necessary, prepare and | ||||||
18 | send to the State Comptroller vouchers requesting
payment from | ||||||
19 | the Illinois Prepaid Tuition Trust Fund for: (i) registration | ||||||
20 | fee
payments to eligible institutions on behalf of qualified | ||||||
21 | beneficiaries of
Illinois
prepaid tuition contracts, and (ii) | ||||||
22 | payments associated with administration of
the Illinois | ||||||
23 | prepaid tuition program.
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24 | (d) The Governor shall indicate in a separate document | ||||||
25 | submitted concurrent
with each annual State budget the | ||||||
26 | estimated
amount of moneys in the Illinois Prepaid Tuition |
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1 | Trust Fund which shall be
necessary and sufficient, during that | ||||||
2 | State fiscal year, to discharge all
obligations anticipated | ||||||
3 | under Illinois prepaid tuition contracts. The Governor
also | ||||||
4 | shall indicate in a separate document submitted concurrent with | ||||||
5 | each
annual State budget the amount of moneys from the
Illinois | ||||||
6 | Prepaid Tuition Trust Fund necessary to cover anticipated | ||||||
7 | expenses
associated with administration of the program.
The | ||||||
8 | Commission shall obtain concurrence from a nationally | ||||||
9 | recognized actuary
as to all amounts necessary for the program | ||||||
10 | to meet its obligations. These
amounts shall be certified | ||||||
11 | annually to the Governor by the Commission no later
than | ||||||
12 | January 30.
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13 | During the first 18 months of operation of the Illinois | ||||||
14 | prepaid tuition
program,
the Governor shall request an | ||||||
15 | appropriation to the Commission from general
funds sufficient | ||||||
16 | to pay for start-up costs associated with establishment of the
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17 | program.
This appropriation constitutes a loan that shall be | ||||||
18 | repaid to the General
Revenue Fund within 5 years by the | ||||||
19 | Commission from prepaid tuition program
contributions.
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20 | Subsequent program administrative costs shall be provided from
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21 | reasonable fees and charges equitably assessed to purchasers of | ||||||
22 | prepaid tuition
contracts.
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23 | (e) If the Commission determines that there are | ||||||
24 | insufficient moneys in
the Illinois Prepaid Tuition Trust Fund | ||||||
25 | to pay contractual obligations in the
next succeeding fiscal | ||||||
26 | year, the Commission shall certify the amount necessary
to meet |
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1 | these obligations to the Board of Higher Education, the | ||||||
2 | Governor, the
President of the Senate, and the
Speaker of the | ||||||
3 | House of
Representatives. The Governor shall submit the amount | ||||||
4 | so certified to the
General Assembly as soon as practicable, | ||||||
5 | but no later than the end of the
current State fiscal year.
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6 | (f) (Blank). In the event the Commission, with the | ||||||
7 | concurrence of the
Governor, determines the program to be | ||||||
8 | financially infeasible, the Commission
may discontinue, | ||||||
9 | prospectively, the operation of the program. Any qualified
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10 | beneficiary who has been accepted by and is enrolled or will | ||||||
11 | within 5 years
enroll at an eligible institution shall be | ||||||
12 | entitled to
exercise the complete benefits specified in the | ||||||
13 | Illinois prepaid tuition
contract. All other contract holders | ||||||
14 | shall receive an appropriate refund of
all contributions and | ||||||
15 | accrued interest up to the time that the program is
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16 | discontinued.
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17 | (g) If moneys in the Illinois Prepaid Tuition Trust Fund | ||||||
18 | are insufficient to cover obligations under this Section, this | ||||||
19 | subsection shall constitute an irrevocable and continuing | ||||||
20 | appropriation from the General Revenue Fund to the Commission | ||||||
21 | for the purposes of paying obligations in accordance with the | ||||||
22 | provisions of this Section. The full faith and credit of the | ||||||
23 | State of Illinois is pledged for the punctual payment of such | ||||||
24 | obligations. | ||||||
25 | (h) Notwithstanding any other provision of this Act to the | ||||||
26 | contrary, beginning on the effective date of this amendatory |
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1 | Act of the 101st General Assembly, no new Illinois prepaid | ||||||
2 | tuition contracts under this Act may be made available for | ||||||
3 | purchase. | ||||||
4 | (Source: P.A. 96-1282, eff. 7-26-10.)".
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