2023 Illinois Compiled Statutes › Chapter 110 - HIGHER EDUCATION › 110 ILCS 920/ - Baccalaureate Savings Act.

(110 ILCS 920/1) (from Ch. 144, par. 2401)
Sec. 1. 
		
		This Act shall be known and may be cited as the
"Baccalaureate Savings Act".
(Source: P.A. 85-939.)
(110 ILCS 920/2) (from Ch. 144, par. 2402)
Sec. 2. 
		Declaration of Purpose. 
		It is declared that
for the benefit of the people of the State of Illinois, the conduct and
increase of their commerce, the protection and enhancement of their
welfare, the development of continued prosperity and the improvement of
their health and living conditions, it is essential that this and future
generations of youth be given the fullest opportunity to learn and to
develop their intellectual and mental capacities and skills; that to
achieve these ends it is of the utmost importance that Illinois residents
be provided with investment alternatives to enhance their financial access
to Institutions of Higher Education.  It is the intent of this Act
to provide to the State of Illinois an alternative low cost method of
borrowing for the purposes authorized in the General Obligation Bond Act
and to encourage enrollment in Institutions of Higher Education located in
the State of Illinois, all in execution of the public policy set forth above.
(Source: P.A. 85-939.)
(110 ILCS 920/3) (from Ch. 144, par. 2403)
Sec. 3. 
		Definitions. 
		The following terms shall have the meanings ascribed
to them in this Section unless the context clearly indicates otherwise:
(a) "College Savings Bonds" mean general obligation bonds of the State
issued under the General Obligation Bond Act in accordance with this Act
and designated as General Obligation College Savings Bonds.
(b) "Institution of Higher Education" includes: The University of
Illinois; Southern Illinois University;
Chicago State University; Eastern Illinois University; Governors State
University; Illinois State University; Northeastern Illinois University;
Northern Illinois University; Western Illinois University; the public
community colleges of the State; any public universities, colleges and
community colleges now or hereafter established or authorized by the
General Assembly; any nonpublicly supported postsecondary educational
organization located and authorized to operate in this State which operates
privately, not-for-profit. "Institution of higher education" does not
include any educational organization used for sectarian instruction, as a
place of religious teaching or worship or for any religious denomination or
the training of ministers, priests, rabbis or other professional persons
in the field of religion.
(Source: P.A. 89-4, eff. 1-1-96; 90-372, eff. 7-1-98.)
(110 ILCS 920/4) (from Ch. 144, par. 2404)
Sec. 4. Issuance and Sale of College Savings Bonds. In order to
provide investors with investment alternatives to enhance their financial
access to Institutions of Higher Education located in the State of
Illinois, and in furtherance of the public policy of this Act, bonds
authorized by the provisions of the General Obligation Bond Act, in a total
aggregate original principal amount not to exceed
$2,200,000,000 may
be issued and sold from time to time, and as often as
practicable, as College Savings Bonds in such amounts as directed by the
Governor, upon recommendation by the Director of the
Governor's Office of Management and Budget.
Bonds to be issued and sold as College Savings Bonds shall be designated by
the Governor and the Director of the
Governor's Office of Management and Budget as "General
Obligation College Savings Bonds" in the proceedings authorizing the
issuance of such Bonds, and shall be subject to all of the terms and
provisions of the General Obligation Bond Act, except that College Savings
Bonds may bear interest payable at such time or times and may be sold at
such prices and in such manner as may be determined by the Governor and
the Director of the
Governor's Office of Management and Budget and except as otherwise provided
in this Act.  If College Savings Bonds are sold at
public sale, the public sale procedures shall be as set forth in Section 11 of
the General Obligation Bond Act.  College Savings Bonds may be sold at
negotiated sale if the Director of the
Governor's Office of Management and Budget determines that
a negotiated sale will result in either a more efficient and economic sale
of such Bonds or greater access to such Bonds by investors who are
residents of the State of Illinois.  If any College Savings Bonds are sold at a
negotiated sale, the underwriter or underwriters to which such Bonds are
sold shall (a) be organized, incorporated or have their principal place of
business in the State of Illinois, or (b) in the judgment of the Director
of the
Governor's Office of Management and Budget, have sufficient capability to make a broad
distribution of such Bonds to investors resident in the State of Illinois.
In determining the aggregate principal amount of College Savings Bonds that
has been issued pursuant to this Act, the aggregate original principal
amount of such Bonds issued and sold shall be taken into account.  Any bond
issued under this Act shall be payable in one payment on a fixed
date, unless the Governor and the Director of the
Governor's Office of Management and Budget
						
determine otherwise.
(Source: P.A. 94-793, eff. 5-19-06.)
(110 ILCS 920/5) (from Ch. 144, par. 2405)
Sec. 5. Security of College Savings Bonds. Any College Savings Bonds
issued under the General Obligation Bond Act in accordance with this Act
shall be direct, general obligations of the State of Illinois and subject
to repayment as provided in the General Obligation Bond Act; however in the
proceedings of the Governor and the Director of the
Governor's Office of Management and Budget
						
authorizing the issuance of College Savings Bonds, such officials may
covenant on behalf of the State with or for the benefit of the holders of
such Bonds as to all matters deemed advisable by such officials, including
the terms and conditions for creating and maintaining sinking funds,
reserve funds and such other special funds as may be created in such
proceedings, separate and apart from all other funds and accounts of the
State, and such officials may make such other covenants as may be deemed
necessary or desirable to assure the prompt payment of the principal of and
interest on such Bonds.  The transfers to and appropriations from the
General Obligation Bond Retirement and Interest Fund required by the
General Obligation Bond Act shall be made at such times and in such
amounts as shall be determined by the Governor and the Director of the
Governor's Office of Management and Budget and shall be made to and from any fund or funds
created pursuant to this Section for the payment of the principal of and
interest on any College Savings Bonds.
(Source: P.A. 94-793, eff. 5-19-06.)
(110 ILCS 920/6) (from Ch. 144, par. 2406)
Sec. 6. 
		Compel payment; remedies of bondholders. 
		If the State fails
to pay the principal of or interest on any College Savings Bonds or
premium, if any, as the same become due, or shall fail to make any required
monthly transfer of funds to provide for the payment of such principal,
interest or premium, a civil action to compel payment may be instituted in
the Supreme Court of Illinois as a court of original jurisdiction by the
holder or holders of the College Savings Bonds with respect to which
such default of payment or failure to make a required transfer exists.
Delivery of a summons and a copy of the complaint to the Attorney General
shall constitute sufficient service to give the Supreme Court of Illinois
jurisdiction of the subject matter of such suit and jurisdiction over the
State and its officers named as defendants for the purpose of compelling
such payment or transfer.  Any case, controversy or cause of action concerning
the validity of this Act relates to the revenue of the State of Illinois.
If the Supreme Court of Illinois denies the holder or holders of Bonds
leave to file an original action in the Supreme Court, the bond holder or
holders may bring the action in the Circuit Court of Sangamon County.
(Source: P.A. 85-939.)
(110 ILCS 920/7) (from Ch. 144, par. 2407)
Sec. 7. 
		Exemption from taxation. 
		As provided in this Act, the
issuance of College Savings Bonds is in all respects for the benefit of the
People of the State of Illinois, the conduct and increase of their
commerce, the protection and enhancement of their welfare, the development
of continued prosperity and the improvement of their health and living
conditions and the issuance of such Bonds is for public purposes.  In
consideration thereof, College Savings Bonds issued under the General
Obligation Bond Act in accordance with this Act and the income derived
therefrom shall be free from all taxation by the State or its political
subdivisions, except for estate, transfer and inheritance taxes.
For purposes of Section 250 of the Illinois Income Tax Act, the exemption
of the income from College Savings Bonds issued in accordance with this Act
shall terminate after all of the bonds have been paid.
The amount of such income that shall be added and then subtracted on the
Illinois income tax return of a taxpayer, pursuant to Section 203 of the
Illinois Income Tax Act, from federal adjusted gross income or federal taxable
income in computing Illinois base income shall be the interest net of any bond
premium amortization.
(Source: P.A. 89-460, eff. 5-24-96.)
(110 ILCS 920/8) (from Ch. 144, par. 2408)
Sec. 8. Grant Program. The proceedings of the
Governor and the Director of the
Governor's Office of Management and Budget authorizing the
issuance of College Savings Bonds shall also provide for a grant
program of additional financial
incentives to be provided to holders of such Bonds to encourage the
enrollment of students at Institutions of Higher Education located in the
State of Illinois.  The Grant Program of financial incentives shall be
administered by the State Scholarship Commission pursuant to administrative
rules promulgated by the Commission.  Such financial
incentives shall be in such forms as
determined by the Governor and the Director of the
Governor's Office of Management and Budget at
the time of the authorization of such College Savings Bonds and
may include, among others, supplemental payments to the holders of such
Bonds at maturity to be applied to tuition costs at institutions of higher
education located in the State of Illinois.  The Commission may
establish, by rule, administrative procedures and eligibility criteria for
the Grant Program, provided such rules are consistent with the purposes of
this Act.  The Commission may require bond holders, institutions of higher
education and other necessary parties to assist in the determination of
eligibility for financial incentives under the Grant Program.  All grants
shall be subject to annual appropriation of funds for such purpose by the
General Assembly.  Such financial incentives
shall be provided only if, in the sole
judgment of the Director of the
Governor's Office of Management and Budget, the cost of such
incentives shall not cause the cost to the State of the proceeds of the
College Savings Bonds being sold to be increased by more than 1/2 of 1%.
No such financial incentives shall be
paid to assist in the financing of the education of a student (i) in a school
or department of divinity for any religious denomination or (ii) pursuing a
course of study consisting of training to become a minister, priest, rabbi
or other professional person in the field of religion.
(Source: P.A. 94-793, eff. 5-19-06.)
(110 ILCS 920/9) (from Ch. 144, par. 2409)
Sec. 9. (Repealed).
(Source: P.A. 85-939. Repealed by P.A. 93-812, eff. 1-1-05.)
(110 ILCS 920/10) (from Ch. 144, par. 2410)
Sec. 10. 
		
		The Illinois Board of Higher Education, with the assistance
of the Illinois State Scholarship Commission, shall
develop and implement an educational program and marketing strategies
designed to inform parents about the options available
for financing a college education and the need to accumulate the financial
resources necessary to pay for a college education.  The Board and the
Commission shall report to the Governor and the General Assembly on the
program developed and its operation prior to April 30, 1988.
The Illinois Board of Higher Education shall promulgate rules and
regulations with respect to their powers and duties pursuant to this Act.
(Source: P.A. 85-939.)
(110 ILCS 920/11) (from Ch. 144, par. 2411)
Sec. 11. 
		(Repealed).
(Source: P.A. 90-372, eff. 7-1-98.  Repealed internally, eff. 7-1-98.)