Bill Amendment: IL HB4872 | 2025-2026 | 104th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: SAVINGS POOL-DISABILITIES

Status: 2026-04-17 - Rule 19(a) / Re-referred to Rules Committee [HB4872 Detail]

Download: Illinois-2025-HB4872-House_Amendment_001.html

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Rep. Amy Elik

Filed: 3/26/2026

 

 

 

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AMENDMENT TO HOUSE BILL 4872
AMENDMENT NO. ______. Amend House Bill 4872 by replacing
everything after the enacting clause with the following:
"Section 5. The State Treasurer Act is amended by changing
Section 16.5 as follows:
(15 ILCS 505/16.5)
Sec. 16.5. College Savings Pool.
(a) Definitions. As used in this Section:
"Account owner" means any person or entity who has opened
an account or to whom ownership of an account has been
transferred, as allowed by the Internal Revenue Code, and who
has authority to withdraw funds, direct withdrawal of funds,
change the designated beneficiary, or otherwise exercise
control over an account in the College Savings Pool.
"Donor" means any person or entity who makes contributions
to an account in the College Savings Pool.

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"Designated beneficiary" means any individual designated
as the beneficiary of an account in the College Savings Pool by
an account owner. A designated beneficiary must have a valid
social security number or taxpayer identification number. In
the case of an account established as part of a scholarship
program permitted under Section 529 of the Internal Revenue
Code, the designated beneficiary is any individual receiving
benefits accumulated in the account as a scholarship.
"Eligible educational institution" means public and
private colleges, junior colleges, graduate schools, and
certain vocational institutions that are described in Section
1001 of the Higher Education Resource and Student Assistance
Chapter of Title 20 of the United States Code (20 U.S.C. 1001)
and that are eligible to participate in Department of
Education student aid programs. "Eligible educational
institution" includes specialized, structured, and
individualized educational or therapy programs for the
intervention and treatment of a specific learning disability
for students who are 5 years of age or older.
"Member of the family" has the same meaning ascribed to
that term under Section 529 of the Internal Revenue Code.
"Nonqualified withdrawal" means a distribution from an
account other than a distribution that (i) is used for the
qualified expenses of the designated beneficiary; (ii) results
from the beneficiary's death or disability; (iii) is a
rollover to another account in the College Savings Pool; (iv)

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is a rollover to an Illinois ABLE account, as defined in
Section 16.6 of this Act, or any distribution that, within 60
days after such distribution, is transferred to an Illinois
ABLE account of the designated beneficiary or a member of the
family of the designated beneficiary to the extent that the
distribution, when added to all other contributions made to
the Illinois ABLE account for the taxable year, does not
exceed the limitation under Section 529A(b) of the Internal
Revenue Code; or (v) is a rollover to a Roth IRA account to the
extent permitted by Section 529 of the Internal Revenue Code.
"Qualified expenses" means: (i) tuition, fees, and the
costs of books, supplies, and equipment required for
enrollment or attendance at an eligible educational
institution; (ii) expenses for special needs services, in the
case of a special needs beneficiary, which are incurred in
connection with such enrollment or attendance, including
expenses incurred for the intervention and treatment of a
specific learning disability for students who are 5 years of
age or older; (iii) certain expenses, to the extent they
qualify as qualified higher education expenses under Section
529 of the Internal Revenue Code, for the purchase of computer
or peripheral equipment or Internet access and related
services, if such equipment, software, or services are to be
used primarily by the beneficiary during any of the years the
beneficiary is enrolled at an eligible educational
institution, except that, such expenses shall not include

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expenses for computer software designed for sports, games, or
hobbies, unless the software is predominantly educational in
nature; (iv) room and board expenses incurred while attending
an eligible educational institution at least half-time; (v)
expenses for fees, books, supplies, and equipment required for
the participation of a designated beneficiary in an
apprenticeship program registered and certified with the
Secretary of Labor under the National Apprenticeship Act (29
U.S.C. 50); and (vi) amounts paid as principal or interest on
any qualified education loan of the designated beneficiary or
a sibling of the designated beneficiary, as allowed under
Section 529 of the Internal Revenue Code. A student shall be
considered to be enrolled at least half-time if the student is
enrolled for at least half the full-time academic workload for
the course of study the student is pursuing as determined
under the standards of the institution at which the student is
enrolled.
"Specific learning disability" has the meaning given in
item (30) of Section 602 of the Individuals with Disabilities
Education Act (20 U.S.C. 1401(30)).
(b) Establishment of the Pool. The State Treasurer may
establish and administer the College Savings Pool as a
qualified tuition program under Section 529 of the Internal
Revenue Code. The Pool may consist of one or more college
savings programs. The State Treasurer, in administering the
College Savings Pool, may: (1) receive, hold, and invest

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moneys paid into the Pool; and (2) perform any other action he
or she deems necessary to administer the Pool, including any
other actions necessary to ensure that the Pool operates as a
qualified tuition program in accordance with Section 529 of
the Internal Revenue Code.
(c) Administration of the College Savings Pool. The State
Treasurer may delegate duties related to the College Savings
Pool to one or more contractors. The contributions deposited
in the Pool, and any earnings thereon, shall not constitute
property of the State or be commingled with State funds and the
State shall have no claim to or against, or interest in, such
funds; provided that the fees collected by the State Treasurer
in accordance with this Act, scholarship programs administered
by the State Treasurer, and seed funds deposited by the State
Treasurer under Section 16.8 of the Act are State funds.
(c-5) College Savings Pool Account Summaries. The State
Treasurer shall provide a separate accounting for each
designated beneficiary. The separate accounting shall be
provided to the account owner of the account for the
designated beneficiary at least annually and shall show the
account balance, the investment in the account, the investment
earnings, and the distributions from the account.
(d) Availability of the College Savings Pool. The State
Treasurer may permit persons, including trustees of trusts and
custodians under a Uniform Transfers to Minors Act or Uniform
Gifts to Minors Act account, and certain legal entities to be

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account owners, including as part of a scholarship program,
provided that: (1) an individual, trustee or custodian must
have a valid social security number or taxpayer identification
number, be at least 18 years of age, and have a valid United
States street address; and (2) a legal entity must have a valid
taxpayer identification number and a valid United States
street address. In-state and out-of-state persons, trustees,
custodians, and legal entities may be account owners and
donors, and both in-state and out-of-state individuals may be
designated beneficiaries in the College Savings Pool.
(e) Fees. Any fees, costs, and expenses, including
investment fees and expenses and payments to third parties,
related to the College Savings Pool, shall be paid from the
assets of the College Savings Pool. The State Treasurer shall
establish fees to be imposed on accounts to cover such fees,
costs, and expenses, to the extent not paid directly out of the
investments of the College Savings Pool, and to maintain an
adequate reserve fund in line with industry standards for
government operated funds. The Treasurer must use his or her
best efforts to keep these fees as low as possible and
consistent with administration of high quality competitive
college savings programs.
(f) Investments in the State. To enhance the safety and
liquidity of the College Savings Pool, to ensure the
diversification of the investment portfolio of the College
Savings Pool, and in an effort to keep investment dollars in

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the State of Illinois, the State Treasurer may make a
percentage of each account available for investment in
participating financial institutions doing business in the
State.
(g) Investment policy. The Treasurer shall develop,
publish, and implement an investment policy covering the
investment of the moneys in each of the programs in the College
Savings Pool. The policy shall be published each year as part
of the audit of the College Savings Pool by the Auditor
General, which shall be distributed to all account owners in
such program. The Treasurer shall notify all account owners in
such program in writing, and the Treasurer shall publish in a
newspaper of general circulation in both Chicago and
Springfield, any changes to the previously published
investment policy at least 30 calendar days before
implementing the policy. Any investment policy adopted by the
Treasurer shall be reviewed and updated if necessary within 90
days following the date that the State Treasurer takes office.
(h) Investment restrictions. An account owner may,
directly or indirectly, direct the investment of his or her
account only as provided in Section 529(b)(4) of the Internal
Revenue Code. Donors and designated beneficiaries, in those
capacities, may not, directly or indirectly, direct the
investment of an account.
(i) Distributions. Distributions from an account in the
College Savings Pool may be used for the designated

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beneficiary's qualified expenses, and if not used in that
manner, may be considered a nonqualified withdrawal. Funds
contained in a College Savings Pool account may be rolled over
into:
(1) an eligible Illinois ABLE account, as defined in
Section 16.6 of this Act to the extent permitted by
Section 529 of the Internal Revenue Code;
(2) another qualified tuition program, to the extent
permitted by Section 529 of the Internal Revenue Code; or
(3) a Roth IRA account, to the extent permitted by
Section 529 of the Internal Revenue Code.
Distributions made from the College Savings Pool may be
made directly to the eligible educational institution,
directly to a vendor, in the form of a check payable to both
the designated beneficiary and the institution or vendor,
directly to the designated beneficiary or account owner, or in
any other manner that is permissible under Section 529 of the
Internal Revenue Code.
(j) Contributions. Contributions to the College Savings
Pool shall be as follows:
(1) Contributions to an account in the College Savings
Pool may be made only in cash.
(2) The Treasurer shall limit the contributions that
may be made to the College Savings Pool on behalf of a
designated beneficiary, as required under Section 529 of
the Internal Revenue Code, to prevent contributions for

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the benefit of a designated beneficiary in excess of those
necessary to provide for the qualified expenses of the
designated beneficiary. The Pool shall not permit any
additional contributions to an account as soon as the sum
of (i) the aggregate balance in all accounts in the Pool
for the designated beneficiary and (ii) the aggregate
contributions in the Illinois Prepaid Tuition Program for
the designated beneficiary reaches the specified balance
limit established from time to time by the Treasurer.
(k) Illinois Student Assistance Commission. The Treasurer
and the Illinois Student Assistance Commission shall each
cooperate in providing each other with account information, as
necessary, to prevent contributions in excess of those
necessary to provide for the qualified expenses of the
designated beneficiary, as described in subsection (j).
The Treasurer shall work with the Illinois Student
Assistance Commission to coordinate the marketing of the
College Savings Pool and the Illinois Prepaid Tuition Program
when considered beneficial by the Treasurer and the Director
of the Illinois Student Assistance Commission.
(l) Prohibition; exemption. No interest in the program, or
any portion thereof, may be used as security for a loan. Moneys
held in an account invested in the College Savings Pool shall
be exempt from all claims of the creditors of the account
owner, donor, or designated beneficiary of that account,
except for the non-exempt College Savings Pool transfers to or

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from the account as defined under subsection (j) of Section
12-1001 of the Code of Civil Procedure.
(m) Taxation. The assets of the College Savings Pool and
its income and operation shall be exempt from all taxation by
the State of Illinois and any of its subdivisions. The accrued
earnings on investments in the Pool once disbursed on behalf
of a designated beneficiary shall be similarly exempt from all
taxation by the State of Illinois and its subdivisions, so
long as they are used for qualified expenses. Contributions to
a College Savings Pool account during the taxable year may be
deducted from adjusted gross income as provided in Section 203
of the Illinois Income Tax Act. The provisions of this
paragraph are exempt from Section 250 of the Illinois Income
Tax Act.
(n) Rules. The Treasurer shall adopt rules he or she
considers necessary for the efficient administration of the
College Savings Pool. The rules shall provide whatever
additional parameters and restrictions are necessary to ensure
that the College Savings Pool meets all the requirements for a
qualified tuition program under Section 529 of the Internal
Revenue Code.
Notice of any proposed amendments to the rules and
regulations shall be provided to all account owners prior to
adoption.
(o) Bond. The State Treasurer shall give bond with at
least one surety, payable to and for the benefit of the account

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owners in the College Savings Pool, in the penal sum of
$10,000,000, conditioned upon the faithful discharge of his or
her duties in relation to the College Savings Pool.
(p) The changes made to subsections (c) and (e) of this
Section by Public Act 101-26 are intended to be a restatement
and clarification of existing law.
(Source: P.A. 103-778, eff. 8-2-24; 104-314, eff. 1-1-26.)".