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92_SB0406enr
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1 AN ACT in relation to higher education.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Financial Assistance Act for
5 Nonpublic Institutions of Higher Learning is amended by
6 changing Sections 3, 4, 5, and 7 as follows:
7 (110 ILCS 210/3) (from Ch. 144, par. 1333)
8 Sec. 3. For the academic year beginning in 2002
9 September 1, 1977, institutional grants may shall be made for
10 that and for each succeeding academic year to each nonpublic
11 institution of higher learning in an amount determined by
12 allocating amounts for funding this Act among the eligible
13 institutions in accordance with a formula or formulae based
14 upon one or more of the following factors: on the number of
15 undergraduate degrees granted to students who are residents
16 of the State of Illinois enrolled as students at each such
17 institution; the number of full-time equivalent undergraduate
18 students who are residents of the State of Illinois enrolled
19 as students at each such institution; and the number of, with
20 double credit being given to the full-time equivalent of such
21 students who are junior or senior students at such
22 institutions. The number of full-time equivalent
23 undergraduate students enrolled at eligible nonpublic
24 institutions of higher learning shall be determined as of the
25 first day of the fourth week of classes of the fall term.
26 The Board of Higher Education shall establish formula
27 allocations guidelines and adopt rules necessary for the
28 administration of this Act.
29 Conditions of institutional eligibility for these grants
30 shall include but need not be limited to the following:
31 (1) That the governing board of the institution possess
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1 its own sovereignty.
2 (2) That the governing board, or its delegated
3 institutional officials, possess final authority in all
4 matters of local control, including educational policy,
5 choice of personnel, determination of program, and financial
6 management.
7 (3) That the institution possess and maintain an open
8 policy with respect to race, creed and color as to admission
9 of students, appointment of faculty and employment of staff.
10 (4) That the institution be able to show its current
11 financial stability and reasonable prospects for its future
12 stability.
13 (5) That the institution not be operated for profit.
14 (6) That the institution provide a full financial report
15 including a certified audit, and participate in the unit cost
16 study and other studies conducted annually by the Board of
17 Higher Education.
18 (7) If required by rule of the Board, that the
19 institution submit to an additional annual external audit of
20 its enrollment records and nonsectarian use of funds.
21 (Source: P.A. 84-834.)
22 (110 ILCS 210/4) (from Ch. 144, par. 1334)
23 Sec. 4. For the academic year beginning in 2002
24 1971-1972 and each academic year thereafter, each eligible
25 institution of higher learning shall prepare and certify to
26 the Board in writing any information required by the Board to
27 justify the grants of Higher Education, on the basis of
28 enrollment at that institution on October 1 of that year, a
29 list of the names, addresses and classification of each
30 resident of Illinois enrolled as a full-time freshman or
31 sophomore and of each resident of Illinois enrolled as a
32 full-time junior or senior at that institution and a similar
33 list of the names, addresses, and classifications of
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1 residents of Illinois enrolled as part-time freshmen and
2 sophomores, and as part-time juniors and seniors at such
3 institution, together with a certification of the number of
4 credit hours for which such students are enrolled. This
5 information certified list shall be signed and furnished to
6 the Board by the chief administrative officer of the
7 institution.
8 (Source: P.A. 80-289.)
9 (110 ILCS 210/5) (from Ch. 144, par. 1335)
10 Sec. 5. The Board shall prescribe and advise such
11 institutions as to the form of certificate or certificates to
12 be submitted under Section 4 of this Act, and promptly upon
13 receipt of such certificates from the institutions shall
14 certify to the State Comptroller Treasurer the aggregate
15 amount of the grant allocable to and to be paid to each such
16 institution. The Board shall examine the certificates
17 furnished by the institutions and may require such further
18 data and information as the Board may request. Upon written
19 notice by the Board to any institution, the Board may examine
20 the institution's student enrollment records for the purpose
21 of verification, amendment or correction of any such
22 certificate.
23 (Source: P.A. 77-273.)
24 (110 ILCS 210/7) (from Ch. 144, par. 1337)
25 Sec. 7. The Board shall keep an accurate record of all
26 its activities under this Act and by February 15, 1972 and
27 each year thereafter, shall make a report to its members, to
28 the Governor and to the General Assembly Auditor of Public
29 Accounts, such report to be a part of its annual report in a
30 form prescribed by its members, with the written approval of
31 the Auditor of Public Accounts.
32 (Source: P.A. 77-273.)
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1 Section 10. The Health Services Education Grants Act is
2 amended by changing Section 4 as follows:
3 (110 ILCS 215/4) (from Ch. 111 1/2, par. 824)
4 Sec. 4. Grants may be made to medical, dental, pharmacy,
5 optometry, and nursing schools, to physician assistant
6 programs, to other health-related schools and programs, and
7 to hospitals and clinical facilities used in health service
8 training programs.
9 Qualification for grants shall be on the basis of either
10 the number of Illinois resident enrollees or the number of
11 degrees granted to students who are residents of this State,
12 an increase in the number of Illinois resident enrollees, or
13 both. The grant amount or proportion of increase required to
14 qualify shall be determined by the Board of Higher Education
15 for each class of institution. However, in no case shall an
16 institution qualify for grants unless the increase in its
17 number of Illinois resident enrollees is at least equal to
18 the increase in total enrollment made possible through such
19 grants.
20 At the discretion of the Board of Higher Education grants
21 may be made for each class of institution in any or all of
22 the following forms:
23 (1) Single nonrecurring grants for planning and capital
24 expense based on the increase in the number of Illinois
25 resident enrollees;
26 (2) Annual grants based on the increase in the number of
27 degrees granted to (a) Illinois resident enrollees, or (b)
28 Illinois resident enrollees from minority racial and ethnic
29 groups, or both (a) and (b); and
30 (3) Annual stabilization grants based on the number of
31 (a) Illinois residents already enrolled, or (b) Illinois
32 residents already enrolled from minority racial and ethnic
33 groups, or both (a) and (b).
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1 In awarding grants to nursing schools and to hospital
2 schools of nursing, the Board of Higher Education may also
3 consider whether the nursing program is located in a
4 certified nurse shortage area. For purposes of this Section
5 "certified nurse shortage area" means an area certified by
6 the Director of the Department of Public Health as a nurse
7 shortage area based on the most reliable data available to
8 the Director.
9 (Source: P.A. 86-1032; 87-1087.)
10 Section 15. The Illinois Consortium for Educational
11 Opportunity Act is amended by changing Section 9 as follows:
12 (110 ILCS 930/9) (from Ch. 144, par. 2309)
13 Sec. 9. Terms of award. After a person has been
14 accepted into the ICEOP, the individual shall be eligible for
15 an annual up to a $10,000 award annually which shall be
16 renewable for up to an additional 3 years provided that he or
17 she makes satisfactory progress toward completing his or her
18 degree. The Consortium Board shall determine the award amount
19 annually.
20 (Source: P.A. 84-785.)
21 Section 20. The Higher Education Student Assistance Act
22 is amended by changing Sections 35, 113, and 145 as follows:
23 (110 ILCS 947/35)
24 Sec. 35. Monetary award program.
25 (a) The Commission shall, each year, receive and
26 consider applications for grant assistance under this
27 Section. Subject to a separate appropriation for such
28 purposes, an applicant is eligible for a grant under this
29 Section when the Commission finds that the applicant:
30 (1) is a resident of this State and a citizen or
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1 permanent resident of the United States; and
2 (2) in the absence of grant assistance, will be
3 deterred by financial considerations from completing an
4 educational program at the qualified institution of his
5 or her choice.
6 (b) The Commission shall award renewals only upon the
7 student's application and upon the Commission's finding that
8 the applicant:
9 (1) has remained a student in good standing;
10 (2) remains a resident of this State; and
11 (3) is in a financial situation that continues to
12 warrant assistance.
13 (c) All grants shall be applicable only to tuition and
14 necessary fee costs for 2 semesters or 3 quarters in an
15 academic year. Requests for summer term assistance will be
16 made separately and shall be considered on an individual
17 basis according to Commission policy. Each student who is
18 awarded a grant under this Section and is enrolled in summer
19 school classes shall be eligible for a summer school grant.
20 The summer school grant amount shall not exceed the lesser of
21 50 percent of the maximum annual grant amount authorized by
22 this Section or the actual cost of tuition and fees at the
23 institution at which the student is enrolled at least
24 part-time. For the regular academic year, the Commission
25 shall determine the grant amount for each full-time and
26 part-time student, which shall be the smallest of the
27 following amounts:
28 (1) $4,968 $4,740 for 2 semesters or 3 quarters of
29 full-time undergraduate enrollment or $2,484 $2,370 for 2
30 semesters or 3 quarters of part-time undergraduate
31 enrollment, or such lesser amount as the Commission finds
32 to be available; or
33 (2) the amount which equals the 2 semesters or 3
34 quarters tuition and other necessary fees required
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1 generally by the institution of all full-time
2 undergraduate students, or in the case of part-time
3 students an amount of tuition and fees for 2 semesters or
4 3 quarters which shall not exceed one-half the amount of
5 tuition and necessary fees generally charged to full-time
6 undergraduate students by the institution; or
7 (3) such amount as the Commission finds to be
8 appropriate in view of the applicant's financial
9 resources.
10 "Tuition and other necessary fees" as used in this Section
11 include the customary charge for instruction and use of
12 facilities in general, and the additional fixed fees charged
13 for specified purposes, which are required generally of
14 nongrant recipients for each academic period for which the
15 grant applicant actually enrolls, but do not include fees
16 payable only once or breakage fees and other contingent
17 deposits which are refundable in whole or in part. The
18 Commission may prescribe, by rule not inconsistent with this
19 Section, detailed provisions concerning the computation of
20 tuition and other necessary fees.
21 (d) No applicant, including those presently receiving
22 scholarship assistance under this Act, is eligible for
23 monetary award program consideration under this Act after
24 receiving a baccalaureate degree or the equivalent of 10
25 semesters or 15 quarters of award payments. The Commission
26 shall determine when award payments for part-time enrollment
27 or interim or summer terms shall be counted as a partial
28 semester or quarter of payment.
29 (e) The Commission, in determining the number of grants
30 to be offered, shall take into consideration past experience
31 with the rate of grant funds unclaimed by recipients. The
32 Commission shall notify applicants that grant assistance is
33 contingent upon the availability of appropriated funds.
34 (f) The Commission may request appropriations for
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1 deposit into the Monetary Award Program Reserve Fund. Monies
2 deposited into the Monetary Award Program Reserve Fund may be
3 expended exclusively for one purpose: to make Monetary Award
4 Program grants to eligible students. Amounts on deposit in
5 the Monetary Award Program Reserve Fund may not exceed 2% of
6 the current annual State appropriation for the Monetary Award
7 Program.
8 The purpose of the Monetary Award Program Reserve Fund is
9 to enable the Commission each year to assure as many students
10 as possible of their eligibility for a Monetary Award Program
11 grant and to do so before commencement of the academic year.
12 Moneys deposited in this Reserve Fund are intended to enhance
13 the Commission's management of the Monetary Award Program,
14 minimizing the necessity, magnitude, and frequency of
15 adjusting award amounts and ensuring that the annual Monetary
16 Award Program appropriation can be fully utilized.
17 (g) The Commission shall determine the eligibility of
18 and make grants to applicants enrolled at qualified
19 for-profit institutions in accordance with the criteria set
20 forth in this Section. The eligibility of applicants
21 enrolled at such for-profit institutions shall be limited as
22 follows:
23 (1) Beginning with the academic year 1997, only to
24 eligible first-time freshmen and first-time transfer
25 students who have attained an associate degree.
26 (2) Beginning with the academic year 1998, only to
27 eligible freshmen students, transfer students who have
28 attained an associate degree, and students who receive a
29 grant under paragraph (1) for the academic year 1997 and
30 whose grants are being renewed for the academic year
31 1998.
32 (3) Beginning with the academic year 1999, to all
33 eligible students.
34 (Source: P.A. 90-122, eff. 7-17-97; 90-647, eff. 7-24-98;
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1 90-769, eff. 8-14-98; 91-249, eff. 7-22-99; 91-250, eff.
2 7-22-99; 91-357, eff. 7-29-99; 91-747, eff. 7-1-00.)
3 (110 ILCS 947/113)
4 Sec. 113. Federal Student Loan Fund; Student Loan
5 Operating Fund; Federal Reserve Recall Fund. The Commission
6 shall create the Federal Student Loan Fund, the Student Loan
7 Operating Fund, and the Federal Reserve Recall Fund. At the
8 request of the Commission's Executive Director, the
9 Comptroller shall transfer funds, as necessary, from the
10 Student Assistance Commission Student Loan Fund into the
11 Federal Student Loan Fund, the Student Loan Operating Fund,
12 and the Federal Reserve Recall Fund. On or before August 31,
13 2000, the Commission's Executive Director shall request the
14 Comptroller to transfer all funds from the Student Assistance
15 Commission Student Loan Fund into any of the following funds:
16 the Federal Student Loan Fund, the Student Loan Operating
17 Fund, or the Federal Reserve Recall Fund. On September 1,
18 2000, the Student Assistance Commission Student Loan Fund is
19 abolished. Any future liabilities of this abolished fund
20 shall be assignable to the appropriate fund created as one of
21 its successors. At the request of the Commission's Executive
22 Director, the Comptroller shall transfer funds from the
23 Federal Student Loan Fund into the Student Loan Operating
24 Fund.
25 (Source: P.A. 91-670, eff. 12-22-99.)
26 (110 ILCS 947/145)
27 Sec. 145. Issuance of Bonds.
28 (a) The Commission has power, and is authorized from
29 time to time, to issue bonds (1) to make or acquire eligible
30 loans, (2) to refund the bonds of the Commission, or (3) for
31 a combination of such purposes. The Commission shall not have
32 outstanding at any one time bonds in an aggregate principal
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1 amount exceeding $3,500,000,000 $2,100,000,000, excluding
2 bonds issued to refund the bonds of the Commission.
3 The Commission is authorized to use the proceeds from the
4 sale of bonds issued pursuant to this Act to fund the
5 reserves created therefor, including a reserve for interest
6 coming due on the bonds for one year following the issuance
7 of the bonds, as provided in the resolution or resolutions
8 authorizing the bonds and to pay the necessary expenses of
9 issuing the bonds, including but not limited to, legal,
10 printing, and consulting fees.
11 (b) The Commission has power, and is authorized from
12 time to time, to issue refunding bonds (1) to refund unpaid
13 matured bonds; (2) to refund unpaid matured coupons
14 evidencing interest upon its unpaid matured bonds; and (3) to
15 refund interest at the coupon rate upon its unpaid matured
16 bonds that has accrued since the maturity of those bonds. The
17 refunding bonds may be exchanged for the bonds to be refunded
18 on a par for par basis of the bonds, interest coupons, and
19 interest not represented by coupons, if any, or may be sold
20 at not less than par or may be exchanged in part and sold in
21 part; and the proceeds received at any such sale shall be
22 used to pay the bonds, interest coupons, and interest not
23 represented by coupons, if any. Bonds and interest coupons
24 which have been received in exchange or paid shall be
25 cancelled and the obligation for interest, not represented by
26 coupons which have been discharged, shall be evidenced by a
27 written acknowledgement of the exchange or payment thereof.
28 (c) The Commission has power, and is authorized from
29 time to time, to also issue refunding bonds under this
30 Section, to refund bonds at or prior to their maturity or
31 which by their terms are subject to redemption before
32 maturity, or both, in an amount necessary to refund (1) the
33 principal amount of the bonds to be refunded, (2) the
34 interest to accrue up to and including the maturity date or
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1 dates thereof, and (3) the applicable redemption premiums, if
2 any. Those refunding bonds may be exchanged for not less than
3 an equal principal amount of bonds to be refunded or may be
4 sold and the proceeds received at the sale thereof (excepting
5 the accrued interest received) used to complete such
6 refunding, including the payment of the costs of issuance
7 thereof.
8 (d) The bonds shall be authorized by resolution of the
9 Commission and may be issued in one or more series, may bear
10 such date or dates, may be in such denomination or
11 denominations, may mature at such time or times not exceeding
12 40 years from the respective dates thereof, may mature in
13 such amount or amounts, may bear interest at such rate or
14 rates, may be in such form either coupon or registered as to
15 principal only or as to both principal and interest, may
16 carry such registration privileges (including the conversion
17 of a fully registered bond to a coupon bond or bonds and the
18 conversion of a coupon bond to a fully registered bond), may
19 be executed in such manner, may be made payable in such
20 medium of payment, at such place or places within or without
21 the State, and may be subject to such terms of redemption
22 prior to their expressed maturity, with or without premium,
23 as the resolution or other resolutions may provide. Proceeds
24 from the sale of the bonds may be invested as the resolution
25 or resolutions and as the Commission from time to time may
26 provide. All bonds issued under this Act shall be sold in
27 the manner and at such price as the Commission may deem to be
28 in the best interest of the public. The resolution may
29 provide that the bonds be executed with one manual signature
30 and that other signatures may be printed, lithographed or
31 engraved thereon.
32 The Commission shall not be authorized to create and the
33 bonds shall not in any event constitute State debt of the
34 State of Illinois within the meaning of the Constitution or
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1 statutes of the State of Illinois, and the same shall be so
2 stated upon the face of each bond. The source of payment for
3 the bonds shall be stated on the face of each bond.
4 The issuance of bonds under this Act is in all respects
5 for the benefit of the People of the State of Illinois, and
6 in consideration thereof the bonds issued pursuant to this
7 Act and the income therefrom shall be free from all taxation
8 by the State or its political subdivisions, except for
9 estate, transfer, and inheritance taxes. For purposes of
10 Section 250 of the Illinois Income Tax Act, the exemption of
11 the income from bonds issued under this Act shall terminate
12 after all of the bonds have been paid. The amount of such
13 income that shall be added and then subtracted on the
14 Illinois income tax return of a taxpayer, pursuant to Section
15 203 of the Illinois Income Tax Act, from federal adjusted
16 gross income or federal taxable income in computing Illinois
17 base income shall be the interest net of any bond premium
18 amortization.
19 (Source: P.A. 89-460, eff. 5-24-96; 90-281, eff. 7-31-97.)
20 Section 99. Effective date. This Act takes effect upon
21 becoming law, except that (i) in Section 20, the provisions
22 changing Section 35 of the Higher Education Student
23 Assistance Act take effect on July 1, 2001 and (ii) Sections
24 5, 10, and 15 take effect on July 1, 2002.
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