| ||||||||||||||||||||||
| ||||||||||||||||||||||
| ||||||||||||||||||||||
1 | AN ACT concerning State government.
| |||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||||
3 | represented in the General Assembly:
| |||||||||||||||||||||
4 | Section 5. The State Treasurer Act is amended by changing | |||||||||||||||||||||
5 | Sections 16.5 and 16.8 as follows:
| |||||||||||||||||||||
6 | (15 ILCS 505/16.5) | |||||||||||||||||||||
7 | Sec. 16.5. College Savings Pool. | |||||||||||||||||||||
8 | (a) Definitions. As used in this Section: | |||||||||||||||||||||
9 | "Account owner" means any person or entity who has opened | |||||||||||||||||||||
10 | an account or to whom ownership of an account has been | |||||||||||||||||||||
11 | transferred, as allowed by the Internal Revenue Code, and who | |||||||||||||||||||||
12 | has authority to withdraw funds, direct withdrawal of funds, | |||||||||||||||||||||
13 | change the designated beneficiary, or otherwise exercise | |||||||||||||||||||||
14 | control over an account in the College Savings Pool. | |||||||||||||||||||||
15 | "Donor" means any person or entity who makes contributions | |||||||||||||||||||||
16 | to an account in the College Savings Pool. | |||||||||||||||||||||
17 | "Designated beneficiary" means any individual designated | |||||||||||||||||||||
18 | as the beneficiary of an account in the College Savings Pool by | |||||||||||||||||||||
19 | an account owner. A designated beneficiary must have a valid | |||||||||||||||||||||
20 | social security number or taxpayer identification number. In | |||||||||||||||||||||
21 | the case of an account established as part of a scholarship | |||||||||||||||||||||
22 | program permitted under Section 529 of the Internal Revenue | |||||||||||||||||||||
23 | Code, the designated beneficiary is any individual receiving |
| |||||||
| |||||||
1 | benefits accumulated in the account as a scholarship. | ||||||
2 | "Eligible educational institution" means public and | ||||||
3 | private colleges, junior colleges, graduate schools, and | ||||||
4 | certain vocational institutions that are described in Section | ||||||
5 | 1001 of the Higher Education Resource and Student Assistance | ||||||
6 | Chapter of Title 20 of the United States Code (20 U.S.C. 1001) | ||||||
7 | and that are eligible to participate in Department of | ||||||
8 | Education student aid programs. | ||||||
9 | "Member of the family" has the same meaning ascribed to | ||||||
10 | that term under Section 529 of the Internal Revenue Code. | ||||||
11 | "Nonqualified withdrawal" means a distribution from an | ||||||
12 | account other than a distribution that (i) is used for the | ||||||
13 | qualified expenses of the designated beneficiary; (ii) results | ||||||
14 | from the beneficiary's death or disability; (iii) is a | ||||||
15 | rollover to another account in the College Savings Pool; or | ||||||
16 | (iv) is a rollover to an ABLE account, as defined in Section | ||||||
17 | 16.6 of this Act, or any distribution that, within 60 days | ||||||
18 | after such distribution, is transferred to an ABLE account of | ||||||
19 | the designated beneficiary or a member of the family of the | ||||||
20 | designated beneficiary to the extent that the distribution, | ||||||
21 | when added to all other contributions made to the ABLE account | ||||||
22 | for the taxable year, does not exceed the limitation under | ||||||
23 | Section 529A(b) of the Internal Revenue Code ; or (v) is a | ||||||
24 | rollover to a Roth IRA account to the extent permitted by | ||||||
25 | Section 529 of the Internal Revenue Code . | ||||||
26 | "Qualified expenses" means: (i) tuition, fees, and the |
| |||||||
| |||||||
1 | costs of books, supplies, and equipment required for | ||||||
2 | enrollment or attendance at an eligible educational | ||||||
3 | institution; (ii) expenses for special needs services, in the | ||||||
4 | case of a special needs beneficiary, which are incurred in | ||||||
5 | connection with such enrollment or attendance; (iii) certain | ||||||
6 | expenses, to the extent they qualify as qualified higher | ||||||
7 | education expenses under Section 529 of the Internal Revenue | ||||||
8 | Code, for the purchase of computer or peripheral equipment or | ||||||
9 | Internet access and related services, if such equipment, | ||||||
10 | software, or services are to be used primarily by the | ||||||
11 | beneficiary during any of the years the beneficiary is | ||||||
12 | enrolled at an eligible educational institution, except that, | ||||||
13 | such expenses shall not include expenses for computer software | ||||||
14 | designed for sports, games, or hobbies, unless the software is | ||||||
15 | predominantly educational in nature; (iv) room and board | ||||||
16 | expenses incurred while attending an eligible educational | ||||||
17 | institution at least half-time; (v) expenses for fees, books, | ||||||
18 | supplies, and equipment required for the participation of a | ||||||
19 | designated beneficiary in an apprenticeship program registered | ||||||
20 | and certified with the Secretary of Labor under the National | ||||||
21 | Apprenticeship Act (29 U.S.C. 50); and (vi) amounts paid as | ||||||
22 | principal or interest on any qualified education loan of the | ||||||
23 | designated beneficiary or a sibling of the designated | ||||||
24 | beneficiary, as allowed under Section 529 of the Internal | ||||||
25 | Revenue Code. A student shall be considered to be enrolled at | ||||||
26 | least half-time if the student is enrolled for at least half |
| |||||||
| |||||||
1 | the full-time academic workload for the course of study the | ||||||
2 | student is pursuing as determined under the standards of the | ||||||
3 | institution at which the student is enrolled. | ||||||
4 | (b) Establishment of the Pool. The State Treasurer may | ||||||
5 | establish and administer the College Savings Pool as a | ||||||
6 | qualified tuition program under Section 529 of the Internal | ||||||
7 | Revenue Code. The Pool may consist of one or more college | ||||||
8 | savings programs. The State Treasurer, in administering the | ||||||
9 | College Savings Pool, may: (1) receive, hold, and invest | ||||||
10 | moneys paid into the Pool; and (2) perform any other action he | ||||||
11 | or she deems necessary to administer the Pool, including any | ||||||
12 | other actions necessary to ensure that the Pool operates as a | ||||||
13 | qualified tuition program in accordance with Section 529 of | ||||||
14 | the Internal Revenue Code. | ||||||
15 | (c) Administration of the College Savings Pool. The State | ||||||
16 | Treasurer may delegate duties related to the College Savings | ||||||
17 | Pool to one or more contractors. The contributions deposited | ||||||
18 | in the Pool, and any earnings thereon, shall not constitute | ||||||
19 | property of the State or be commingled with State funds and the | ||||||
20 | State shall have no claim to or against, or interest in, such | ||||||
21 | funds; provided that the fees collected by the State Treasurer | ||||||
22 | in accordance with this Act, scholarship programs administered | ||||||
23 | by the State Treasurer, and seed funds deposited by the State | ||||||
24 | Treasurer under Section 16.8 of the Act are State funds. | ||||||
25 | (c-5) College Savings Pool Account Summaries. The State | ||||||
26 | Treasurer shall provide a separate accounting for each |
| |||||||
| |||||||
1 | designated beneficiary. The separate accounting shall be | ||||||
2 | provided to the account owner of the account for the | ||||||
3 | designated beneficiary at least annually and shall show the | ||||||
4 | account balance, the investment in the account, the investment | ||||||
5 | earnings, and the distributions from the account. | ||||||
6 | (d) Availability of the College Savings Pool. The State | ||||||
7 | Treasurer may permit persons, including trustees of trusts and | ||||||
8 | custodians under a Uniform Transfers to Minors Act or Uniform | ||||||
9 | Gifts to Minors Act account, and certain legal entities to be | ||||||
10 | account owners, including as part of a scholarship program, | ||||||
11 | provided that: (1) an individual, trustee or custodian must | ||||||
12 | have a valid social security number or taxpayer identification | ||||||
13 | number, be at least 18 years of age, and have a valid United | ||||||
14 | States street address; and (2) a legal entity must have a valid | ||||||
15 | taxpayer identification number and a valid United States | ||||||
16 | street address. In-state and out-of-state persons, trustees, | ||||||
17 | custodians, and legal entities may be account owners and | ||||||
18 | donors, and both in-state and out-of-state individuals may be | ||||||
19 | designated beneficiaries in the College Savings Pool. | ||||||
20 | (e) Fees. Any fees, costs, and expenses, including | ||||||
21 | investment fees and expenses and payments to third parties, | ||||||
22 | related to the College Savings Pool, shall be paid from the | ||||||
23 | assets of the College Savings Pool. The State Treasurer shall | ||||||
24 | establish fees to be imposed on accounts to cover such fees, | ||||||
25 | costs, and expenses, to the extent not paid directly out of the | ||||||
26 | investments of the College Savings Pool, and to maintain an |
| |||||||
| |||||||
1 | adequate reserve fund in line with industry standards for | ||||||
2 | government operated funds. The Treasurer must use his or her | ||||||
3 | best efforts to keep these fees as low as possible and | ||||||
4 | consistent with administration of high quality competitive | ||||||
5 | college savings programs. | ||||||
6 | (f) Investments in the State. To enhance the safety and | ||||||
7 | liquidity of the College Savings Pool, to ensure the | ||||||
8 | diversification of the investment portfolio of the College | ||||||
9 | Savings Pool, and in an effort to keep investment dollars in | ||||||
10 | the State of Illinois, the State Treasurer may make a | ||||||
11 | percentage of each account available for investment in | ||||||
12 | participating financial institutions doing business in the | ||||||
13 | State. | ||||||
14 | (g) Investment policy. The Treasurer shall develop, | ||||||
15 | publish, and implement an investment policy covering the | ||||||
16 | investment of the moneys in each of the programs in the College | ||||||
17 | Savings Pool. The policy shall be published each year as part | ||||||
18 | of the audit of the College Savings Pool by the Auditor | ||||||
19 | General, which shall be distributed to all account owners in | ||||||
20 | such program. The Treasurer shall notify all account owners in | ||||||
21 | such program in writing, and the Treasurer shall publish in a | ||||||
22 | newspaper of general circulation in both Chicago and | ||||||
23 | Springfield, any changes to the previously published | ||||||
24 | investment policy at least 30 calendar days before | ||||||
25 | implementing the policy. Any investment policy adopted by the | ||||||
26 | Treasurer shall be reviewed and updated if necessary within 90 |
| |||||||
| |||||||
1 | days following the date that the State Treasurer takes office. | ||||||
2 | (h) Investment restrictions. An account owner may, | ||||||
3 | directly or indirectly, direct the investment of his or her | ||||||
4 | account only as provided in Section 529(b)(4) of the Internal | ||||||
5 | Revenue Code. Donors and designated beneficiaries, in those | ||||||
6 | capacities, may not, directly or indirectly, direct the | ||||||
7 | investment of an account. | ||||||
8 | (i) Distributions. Distributions from an account in the | ||||||
9 | College Savings Pool may be used for the designated | ||||||
10 | beneficiary's qualified expenses, and if not used in that | ||||||
11 | manner, may be considered a nonqualified withdrawal. Funds | ||||||
12 | contained in a College Savings Pool account may be rolled over | ||||||
13 | into : | ||||||
14 | (1) an eligible ABLE account, as defined in Section | ||||||
15 | 16.6 of this Act to the extent permitted by Section 529 of | ||||||
16 | the Internal Revenue Code; , or | ||||||
17 | (2) another qualified tuition program, to the extent | ||||||
18 | permitted by Section 529 of the Internal Revenue Code ; or | ||||||
19 | (3) a Roth IRA account, to the extent permitted by | ||||||
20 | Section 529 of the Internal Revenue Code . | ||||||
21 | Distributions made from the College Savings Pool may be | ||||||
22 | made directly to the eligible educational institution, | ||||||
23 | directly to a vendor, in the form of a check payable to both | ||||||
24 | the designated beneficiary and the institution or vendor, | ||||||
25 | directly to the designated beneficiary or account owner, or in | ||||||
26 | any other manner that is permissible under Section 529 of the |
| |||||||
| |||||||
1 | Internal Revenue Code. | ||||||
2 | (j) Contributions. Contributions to the College Savings | ||||||
3 | Pool shall be as follows: | ||||||
4 | (1) Contributions to an account in the College Savings | ||||||
5 | Pool may be made only in cash. | ||||||
6 | (2) The Treasurer shall limit the contributions that | ||||||
7 | may be made to the College Savings Pool on behalf of a | ||||||
8 | designated beneficiary, as required under Section 529 of | ||||||
9 | the Internal Revenue Code, to prevent contributions for | ||||||
10 | the benefit of a designated beneficiary in excess of those | ||||||
11 | necessary to provide for the qualified expenses of the | ||||||
12 | designated beneficiary. The Pool shall not permit any | ||||||
13 | additional contributions to an account as soon as the sum | ||||||
14 | of (i) the aggregate balance in all accounts in the Pool | ||||||
15 | for the designated beneficiary and (ii) the aggregate | ||||||
16 | contributions in the Illinois Prepaid Tuition Program for | ||||||
17 | the designated beneficiary reaches the specified balance | ||||||
18 | limit established from time to time by the Treasurer. | ||||||
19 | (k) Illinois Student Assistance Commission. The Treasurer | ||||||
20 | and the Illinois Student Assistance Commission shall each | ||||||
21 | cooperate in providing each other with account information, as | ||||||
22 | necessary, to prevent contributions in excess of those | ||||||
23 | necessary to provide for the qualified expenses of the | ||||||
24 | designated beneficiary, as described in subsection (j). | ||||||
25 | The Treasurer shall work with the Illinois Student | ||||||
26 | Assistance Commission to coordinate the marketing of the |
| |||||||
| |||||||
1 | College Savings Pool and the Illinois Prepaid Tuition Program | ||||||
2 | when considered beneficial by the Treasurer and the Director | ||||||
3 | of the Illinois Student Assistance Commission. | ||||||
4 | (l) Prohibition; exemption. No interest in the program, or | ||||||
5 | any portion thereof, may be used as security for a loan. Moneys | ||||||
6 | held in an account invested in the College Savings Pool shall | ||||||
7 | be exempt from all claims of the creditors of the account | ||||||
8 | owner, donor, or designated beneficiary of that account, | ||||||
9 | except for the non-exempt College Savings Pool transfers to or | ||||||
10 | from the account as defined under subsection (j) of Section | ||||||
11 | 12-1001 of the Code of Civil Procedure. | ||||||
12 | (m) Taxation. The assets of the College Savings Pool and | ||||||
13 | its income and operation shall be exempt from all taxation by | ||||||
14 | the State of Illinois and any of its subdivisions. The accrued | ||||||
15 | earnings on investments in the Pool once disbursed on behalf | ||||||
16 | of a designated beneficiary shall be similarly exempt from all | ||||||
17 | taxation by the State of Illinois and its subdivisions, so | ||||||
18 | long as they are used for qualified expenses. Contributions to | ||||||
19 | a College Savings Pool account during the taxable year may be | ||||||
20 | deducted from adjusted gross income as provided in Section 203 | ||||||
21 | of the Illinois Income Tax Act. The provisions of this | ||||||
22 | paragraph are exempt from Section 250 of the Illinois Income | ||||||
23 | Tax Act. | ||||||
24 | (n) Rules. The Treasurer shall adopt rules he or she | ||||||
25 | considers necessary for the efficient administration of the | ||||||
26 | College Savings Pool. The rules shall provide whatever |
| |||||||
| |||||||
1 | additional parameters and restrictions are necessary to ensure | ||||||
2 | that the College Savings Pool meets all the requirements for a | ||||||
3 | qualified tuition program under Section 529 of the Internal | ||||||
4 | Revenue Code. | ||||||
5 | Notice of any proposed amendments to the rules and | ||||||
6 | regulations shall be provided to all account owners prior to | ||||||
7 | adoption. | ||||||
8 | (o) Bond. The State Treasurer shall give bond with at | ||||||
9 | least one surety, payable to and for the benefit of the account | ||||||
10 | owners in the College Savings Pool, in the penal sum of | ||||||
11 | $10,000,000, conditioned upon the faithful discharge of his or | ||||||
12 | her duties in relation to the College Savings Pool. | ||||||
13 | (p) The changes made to subsections (c) and (e) of this | ||||||
14 | Section by Public Act 101-26 are intended to be a restatement | ||||||
15 | and clarification of existing law. | ||||||
16 | (Source: P.A. 101-26, eff. 6-21-19; 101-81, eff. 7-12-19; | ||||||
17 | 102-186, eff. 7-30-21.)
| ||||||
18 | (15 ILCS 505/16.8) | ||||||
19 | Sec. 16.8. Illinois Higher Education Savings Program. | ||||||
20 | (a) Definitions. As used in this Section: | ||||||
21 | "Beneficiary" means an eligible child named as a recipient | ||||||
22 | of seed funds. | ||||||
23 | "Eligible child" means a child born or adopted after | ||||||
24 | December 31, 2022, to a parent who is a resident of Illinois at | ||||||
25 | the time of the birth or adoption, as evidenced by |
| |||||||
| |||||||
1 | documentation received by the Treasurer from the Department of | ||||||
2 | Revenue, the Department of Public Health, or another State or | ||||||
3 | local government agency , or a parent or legal guardian of the | ||||||
4 | child . | ||||||
5 | "Eligible educational institution" means institutions that | ||||||
6 | are described in Section 1001 of the federal Higher Education | ||||||
7 | Act of 1965 that are eligible to participate in Department of | ||||||
8 | Education student aid programs. | ||||||
9 | "Fund" means the Illinois Higher Education Savings Program | ||||||
10 | Fund. | ||||||
11 | "Omnibus account" means the pooled collection of seed | ||||||
12 | funds owned and managed by the State Treasurer in the College | ||||||
13 | Savings Pool under this Act. | ||||||
14 | "Program" means the Illinois Higher Education Savings | ||||||
15 | Program. | ||||||
16 | "Qualified higher education expense" means the following: | ||||||
17 | (i) tuition, fees, and the costs of books, supplies, and | ||||||
18 | equipment required for enrollment or attendance at an eligible | ||||||
19 | educational institution; (ii) expenses for special needs | ||||||
20 | services, in the case of a special needs beneficiary, which | ||||||
21 | are incurred in connection with such enrollment or attendance; | ||||||
22 | (iii) certain expenses for the purchase of computer or | ||||||
23 | peripheral equipment, computer software, or Internet access | ||||||
24 | and related services as defined under Section 529 of the | ||||||
25 | Internal Revenue Code; (iv) room and board expenses incurred | ||||||
26 | while attending an eligible educational institution at least |
| |||||||
| |||||||
1 | half-time; (v) expenses for fees, books, supplies, and | ||||||
2 | equipment required for the participation of a designated | ||||||
3 | beneficiary in an apprenticeship program registered and | ||||||
4 | certified with the Secretary of Labor under the National | ||||||
5 | Apprenticeship Act (29 U.S.C. 50); and (vi) amounts paid as | ||||||
6 | principal or interest on any qualified education loan of the | ||||||
7 | designated beneficiary or a sibling of the designated | ||||||
8 | beneficiary, as allowed under Section 529 of the Internal | ||||||
9 | Revenue Code. | ||||||
10 | "Seed funds" means the deposit made by the State Treasurer | ||||||
11 | into the Omnibus Accounts for Program beneficiaries. | ||||||
12 | (b) Program established. The State Treasurer shall | ||||||
13 | establish the Illinois Higher Education Savings Program as a | ||||||
14 | part of the College Savings Pool under Section 16.5 of this | ||||||
15 | Act, subject to appropriation by the General Assembly. The | ||||||
16 | State Treasurer shall administer the Program for the purposes | ||||||
17 | of expanding access to higher education through savings. | ||||||
18 | (c) Program enrollment. The State Treasurer shall enroll | ||||||
19 | all eligible children in the Program beginning in 2023, after | ||||||
20 | receiving records of recent births, adoptions, or dependents | ||||||
21 | from the Department of Revenue, the Department of Public | ||||||
22 | Health, or another State or local government agency designated | ||||||
23 | by the Treasurer , or documentation as may be required by the | ||||||
24 | Treasurer from a parent or legal guardian of the eligible | ||||||
25 | child . Notwithstanding any court order which would otherwise | ||||||
26 | prevent the release of information, the Department of Public |
| |||||||
| |||||||
1 | Health is authorized to release the information specified | ||||||
2 | under this subsection (c) to the State Treasurer for the | ||||||
3 | purposes of the Program established under this Section. | ||||||
4 | (1) Beginning in 2021, the Department of Public Health | ||||||
5 | shall provide the State Treasurer with information on | ||||||
6 | recent Illinois births and adoptions including, but not | ||||||
7 | limited to: the full name, residential address, birth | ||||||
8 | date, and birth record number of the child and the full | ||||||
9 | name and residential address of the child's parent or | ||||||
10 | legal guardian for the purpose of enrolling eligible | ||||||
11 | children in the Program. This data shall be provided to | ||||||
12 | the State Treasurer by the Department of Public Health on | ||||||
13 | a quarterly basis, no later than 30 days after the end of | ||||||
14 | each quarter, or some other date and frequency as mutually | ||||||
15 | agreed to by the State Treasurer and the Department of | ||||||
16 | Public Health. | ||||||
17 | (1.5) Beginning in 2021, the Department of Revenue | ||||||
18 | shall provide the State Treasurer with information on tax | ||||||
19 | filers claiming dependents or the adoption tax credit | ||||||
20 | including, but not limited to: the full name, residential | ||||||
21 | address, email address, phone number, birth date, and | ||||||
22 | social security number or taxpayer identification number | ||||||
23 | of the dependent child and of the child's parent or legal | ||||||
24 | guardian for the purpose of enrolling eligible children in | ||||||
25 | the Program. This data shall be provided to the State | ||||||
26 | Treasurer by the Department of Revenue on at least an |
| |||||||
| |||||||
1 | annual basis, by July 1 of each year or another date | ||||||
2 | jointly determined by the State Treasurer and the | ||||||
3 | Department of Revenue. Notwithstanding anything to the | ||||||
4 | contrary contained within this paragraph (2), the | ||||||
5 | Department of Revenue shall not be required to share any | ||||||
6 | information that would be contrary to federal law, | ||||||
7 | regulation, or Internal Revenue Service Publication 1075. | ||||||
8 | (2) The State Treasurer shall ensure the security and | ||||||
9 | confidentiality of the information provided by the | ||||||
10 | Department of Revenue, the Department of Public Health, or | ||||||
11 | another State or local government agency, and it shall not | ||||||
12 | be subject to release under the Freedom of Information | ||||||
13 | Act. | ||||||
14 | (3) Information provided under this Section shall only | ||||||
15 | be used by the State Treasurer for the Program and shall | ||||||
16 | not be used for any other purpose. | ||||||
17 | (4) The State Treasurer and any vendors working on the | ||||||
18 | Program shall maintain strict confidentiality of any | ||||||
19 | information provided under this Section, and shall | ||||||
20 | promptly provide written or electronic notice to the | ||||||
21 | providing agency of any security breach. The providing | ||||||
22 | State or local government agency shall remain the sole and | ||||||
23 | exclusive owner of information provided under this | ||||||
24 | Section. | ||||||
25 | (d) Seed funds. After receiving information on recent | ||||||
26 | births, adoptions, or dependents from the Department of |
| |||||||
| |||||||
1 | Revenue, the Department of Public Health, or another State or | ||||||
2 | local government agency, or documentation as may be required | ||||||
3 | by the State Treasurer from a parent or legal guardian of the | ||||||
4 | eligible child, the State Treasurer shall make deposits into | ||||||
5 | an omnibus account on behalf of eligible children. The State | ||||||
6 | Treasurer shall be the owner of the omnibus accounts. | ||||||
7 | (1) Deposit amount. The seed fund deposit for each | ||||||
8 | eligible child shall be in the amount of $50. This amount | ||||||
9 | may be increased by the State Treasurer by rule. The State | ||||||
10 | Treasurer may use or deposit funds appropriated by the | ||||||
11 | General Assembly together with moneys received as gifts, | ||||||
12 | grants, or contributions into the Fund. If insufficient | ||||||
13 | funds are available in the Fund, the State Treasurer may | ||||||
14 | reduce the deposit amount or forego deposits. | ||||||
15 | (2) Use of seed funds. Seed funds, including any | ||||||
16 | interest, dividends, and other earnings accrued, will be | ||||||
17 | eligible for use by a beneficiary for qualified higher | ||||||
18 | education expenses if: | ||||||
19 | (A) the parent or guardian of the eligible child | ||||||
20 | claimed the seed funds for the beneficiary by the | ||||||
21 | beneficiary's 10th birthday; | ||||||
22 | (B) the beneficiary has completed secondary | ||||||
23 | education or has reached the age of 18; and | ||||||
24 | (C) the beneficiary is currently a resident of the | ||||||
25 | State of Illinois. Non-residents are not eligible to | ||||||
26 | claim or use seed funds. |
| |||||||
| |||||||
1 | (3) Notice of seed fund availability. The State | ||||||
2 | Treasurer shall make a good faith effort to notify | ||||||
3 | beneficiaries and their parents or legal guardians of the | ||||||
4 | seed funds' availability and the deadline to claim such | ||||||
5 | funds. | ||||||
6 | (4) Unclaimed seed funds. Seed funds and any interest | ||||||
7 | earnings that are unclaimed by the beneficiary's 10th | ||||||
8 | birthday or unused by the beneficiary's 26th birthday will | ||||||
9 | be considered forfeited. Unclaimed and unused seed funds | ||||||
10 | and any interest earnings will remain in the omnibus | ||||||
11 | account for future beneficiaries. | ||||||
12 | (e) Financial education. The State Treasurer may develop | ||||||
13 | educational materials that support the financial literacy of | ||||||
14 | beneficiaries and their legal guardians, and may do so in | ||||||
15 | collaboration with State and federal agencies, including, but | ||||||
16 | not limited to, the Illinois State Board of Education and | ||||||
17 | existing nonprofit agencies with expertise in financial | ||||||
18 | literacy and education. | ||||||
19 | (f) Supplementary deposits and partnerships. The State | ||||||
20 | Treasurer may make supplementary deposits to children in | ||||||
21 | financially insecure households if sufficient funds are | ||||||
22 | available. Furthermore, the State Treasurer may develop | ||||||
23 | partnerships with private, nonprofit, or governmental | ||||||
24 | organizations to provide additional savings incentives, | ||||||
25 | including conditional cash transfers or matching contributions | ||||||
26 | that provide a savings incentive based on specific actions |
| |||||||
| |||||||
1 | taken or other criteria. | ||||||
2 | (g) Illinois Higher Education Savings Program Fund. The | ||||||
3 | Illinois Higher Education Savings Program Fund is hereby | ||||||
4 | established as a special fund in the State treasury. The Fund | ||||||
5 | shall be the official repository of all contributions, | ||||||
6 | appropriated funds, interest, and dividend payments, gifts, or | ||||||
7 | other financial assets received by the State Treasurer in | ||||||
8 | connection with the operation of the Program or related | ||||||
9 | partnerships. All such moneys shall be deposited into the Fund | ||||||
10 | and held by the State Treasurer as custodian thereof. The | ||||||
11 | State Treasurer may accept gifts, grants, awards, matching | ||||||
12 | contributions, interest income, and appropriated funds from | ||||||
13 | individuals, businesses, governments, and other third-party | ||||||
14 | sources to implement the Program on terms that the Treasurer | ||||||
15 | deems advisable. All interest or other earnings accruing or | ||||||
16 | received on amounts in the Illinois Higher Education Savings | ||||||
17 | Program Fund shall be credited to and retained by the Fund and | ||||||
18 | used for the benefit of the Program. Assets of the Fund must at | ||||||
19 | all times be preserved, invested, and expended only for the | ||||||
20 | purposes of the Program and must be held for the benefit of the | ||||||
21 | beneficiaries. Assets may not be transferred or used by the | ||||||
22 | State or the State Treasurer for any purposes other than the | ||||||
23 | purposes of the Program. In addition, no moneys, interest, or | ||||||
24 | other earnings paid into the Fund shall be used, temporarily | ||||||
25 | or otherwise, for inter-fund borrowing or be otherwise used or | ||||||
26 | appropriated except as expressly authorized by this Act. |
| |||||||
| |||||||
1 | Notwithstanding the requirements of this subsection (g), | ||||||
2 | amounts in the Fund may be used by the State Treasurer to pay | ||||||
3 | the administrative costs of the Program. | ||||||
4 | (g-5) Fund deposits and payments. On July 15 of each year, | ||||||
5 | beginning July 15, 2023, or as soon thereafter as practical, | ||||||
6 | the State Comptroller shall direct and the State Treasurer | ||||||
7 | shall transfer the sum of $2,500,000, or the amount that is | ||||||
8 | appropriated annually by the General Assembly, whichever is | ||||||
9 | greater, from the General Revenue Fund to the Illinois Higher | ||||||
10 | Education Savings Program Fund to be used for the | ||||||
11 | administration and operation of the Program. | ||||||
12 | (h) Audits and reports. The State Treasurer shall include | ||||||
13 | the Illinois Higher Education Savings Program as part of the | ||||||
14 | audit of the College Savings Pool described in Section 16.5. | ||||||
15 | The State Treasurer shall annually prepare a report that | ||||||
16 | includes a summary of the Program operations for the preceding | ||||||
17 | fiscal year, including the number of children enrolled in the | ||||||
18 | Program, the total amount of seed fund deposits, the rate of | ||||||
19 | seed deposits claimed, and, to the extent data is reported and | ||||||
20 | available, the racial, ethnic, socioeconomic, and geographic | ||||||
21 | data of beneficiaries and of children in financially insecure | ||||||
22 | households who may receive automatic bonus deposits. Such | ||||||
23 | other information that is relevant to make a full disclosure | ||||||
24 | of the operations of the Program and Fund may also be reported. | ||||||
25 | The report shall be made available on the Treasurer's website | ||||||
26 | by January 31 each year, starting in January of 2024. The State |
| |||||||
| |||||||
1 | Treasurer may include the Program in other reports as | ||||||
2 | warranted. | ||||||
3 | (i) Rules. The State Treasurer may adopt rules necessary | ||||||
4 | to implement this Section. | ||||||
5 | (Source: P.A. 102-129, eff. 7-23-21; 102-558, eff. 8-20-21; | ||||||
6 | 102-1047, eff. 1-1-23; 103-8, eff. 6-7-23.)
|