Bill Text: IL HB2237 | 2019-2020 | 101st General Assembly | Enrolled


Bill Title: Amends the State Treasurer Act. Provides that the State Treasurer shall establish the Illinois Higher Education Savings Program for the purpose of expanding access to higher education through savings. Provides for enrollment in the Program. Provides further duties and requirements of the Treasurer regarding the Program. Creates the Illinois Higher Education Savings Program Fund as a fund held outside of the State treasury to be the official repository of all contributions, appropriations, interest, and dividend payments, gifts, or other financial assets received by the State Treasurer in connection with operation of the Program or related partnerships. Provides for audits and reports concerning the Program. Allows the Treasurer to adopt any rules that may be necessary to implement the Program. Amends the Freedom of Information Act to provide an exemption for information that is exempt from disclosure under the Illinois Higher Education Savings Program.

Spectrum: Partisan Bill (Democrat 30-1)

Status: (Enrolled) 2019-05-29 - Passed Both Houses [HB2237 Detail]

Download: Illinois-2019-HB2237-Enrolled.html



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1 AN ACT concerning State government.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Freedom of Information Act is amended by
5changing Section 7.5 as follows:
6 (5 ILCS 140/7.5)
7 Sec. 7.5. Statutory exemptions. To the extent provided for
8by the statutes referenced below, the following shall be exempt
9from inspection and copying:
10 (a) All information determined to be confidential
11 under Section 4002 of the Technology Advancement and
12 Development Act.
13 (b) Library circulation and order records identifying
14 library users with specific materials under the Library
15 Records Confidentiality Act.
16 (c) Applications, related documents, and medical
17 records received by the Experimental Organ Transplantation
18 Procedures Board and any and all documents or other records
19 prepared by the Experimental Organ Transplantation
20 Procedures Board or its staff relating to applications it
21 has received.
22 (d) Information and records held by the Department of
23 Public Health and its authorized representatives relating

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1 to known or suspected cases of sexually transmissible
2 disease or any information the disclosure of which is
3 restricted under the Illinois Sexually Transmissible
4 Disease Control Act.
5 (e) Information the disclosure of which is exempted
6 under Section 30 of the Radon Industry Licensing Act.
7 (f) Firm performance evaluations under Section 55 of
8 the Architectural, Engineering, and Land Surveying
9 Qualifications Based Selection Act.
10 (g) Information the disclosure of which is restricted
11 and exempted under Section 50 of the Illinois Prepaid
12 Tuition Act.
13 (h) Information the disclosure of which is exempted
14 under the State Officials and Employees Ethics Act, and
15 records of any lawfully created State or local inspector
16 general's office that would be exempt if created or
17 obtained by an Executive Inspector General's office under
18 that Act.
19 (i) Information contained in a local emergency energy
20 plan submitted to a municipality in accordance with a local
21 emergency energy plan ordinance that is adopted under
22 Section 11-21.5-5 of the Illinois Municipal Code.
23 (j) Information and data concerning the distribution
24 of surcharge moneys collected and remitted by carriers
25 under the Emergency Telephone System Act.
26 (k) Law enforcement officer identification information

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1 or driver identification information compiled by a law
2 enforcement agency or the Department of Transportation
3 under Section 11-212 of the Illinois Vehicle Code.
4 (l) Records and information provided to a residential
5 health care facility resident sexual assault and death
6 review team or the Executive Council under the Abuse
7 Prevention Review Team Act.
8 (m) Information provided to the predatory lending
9 database created pursuant to Article 3 of the Residential
10 Real Property Disclosure Act, except to the extent
11 authorized under that Article.
12 (n) Defense budgets and petitions for certification of
13 compensation and expenses for court appointed trial
14 counsel as provided under Sections 10 and 15 of the Capital
15 Crimes Litigation Act. This subsection (n) shall apply
16 until the conclusion of the trial of the case, even if the
17 prosecution chooses not to pursue the death penalty prior
18 to trial or sentencing.
19 (o) Information that is prohibited from being
20 disclosed under Section 4 of the Illinois Health and
21 Hazardous Substances Registry Act.
22 (p) Security portions of system safety program plans,
23 investigation reports, surveys, schedules, lists, data, or
24 information compiled, collected, or prepared by or for the
25 Regional Transportation Authority under Section 2.11 of
26 the Regional Transportation Authority Act or the St. Clair

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1 County Transit District under the Bi-State Transit Safety
2 Act.
3 (q) Information prohibited from being disclosed by the
4 Personnel Record Records Review Act.
5 (r) Information prohibited from being disclosed by the
6 Illinois School Student Records Act.
7 (s) Information the disclosure of which is restricted
8 under Section 5-108 of the Public Utilities Act.
9 (t) All identified or deidentified health information
10 in the form of health data or medical records contained in,
11 stored in, submitted to, transferred by, or released from
12 the Illinois Health Information Exchange, and identified
13 or deidentified health information in the form of health
14 data and medical records of the Illinois Health Information
15 Exchange in the possession of the Illinois Health
16 Information Exchange Authority due to its administration
17 of the Illinois Health Information Exchange. The terms
18 "identified" and "deidentified" shall be given the same
19 meaning as in the Health Insurance Portability and
20 Accountability Act of 1996, Public Law 104-191, or any
21 subsequent amendments thereto, and any regulations
22 promulgated thereunder.
23 (u) Records and information provided to an independent
24 team of experts under the Developmental Disability and
25 Mental Health Safety Act (also known as Brian's Law).
26 (v) Names and information of people who have applied

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1 for or received Firearm Owner's Identification Cards under
2 the Firearm Owners Identification Card Act or applied for
3 or received a concealed carry license under the Firearm
4 Concealed Carry Act, unless otherwise authorized by the
5 Firearm Concealed Carry Act; and databases under the
6 Firearm Concealed Carry Act, records of the Concealed Carry
7 Licensing Review Board under the Firearm Concealed Carry
8 Act, and law enforcement agency objections under the
9 Firearm Concealed Carry Act.
10 (w) Personally identifiable information which is
11 exempted from disclosure under subsection (g) of Section
12 19.1 of the Toll Highway Act.
13 (x) Information which is exempted from disclosure
14 under Section 5-1014.3 of the Counties Code or Section
15 8-11-21 of the Illinois Municipal Code.
16 (y) Confidential information under the Adult
17 Protective Services Act and its predecessor enabling
18 statute, the Elder Abuse and Neglect Act, including
19 information about the identity and administrative finding
20 against any caregiver of a verified and substantiated
21 decision of abuse, neglect, or financial exploitation of an
22 eligible adult maintained in the Registry established
23 under Section 7.5 of the Adult Protective Services Act.
24 (z) Records and information provided to a fatality
25 review team or the Illinois Fatality Review Team Advisory
26 Council under Section 15 of the Adult Protective Services

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1 Act.
2 (aa) Information which is exempted from disclosure
3 under Section 2.37 of the Wildlife Code.
4 (bb) Information which is or was prohibited from
5 disclosure by the Juvenile Court Act of 1987.
6 (cc) Recordings made under the Law Enforcement
7 Officer-Worn Body Camera Act, except to the extent
8 authorized under that Act.
9 (dd) Information that is prohibited from being
10 disclosed under Section 45 of the Condominium and Common
11 Interest Community Ombudsperson Act.
12 (ee) Information that is exempted from disclosure
13 under Section 30.1 of the Pharmacy Practice Act.
14 (ff) Information that is exempted from disclosure
15 under the Revised Uniform Unclaimed Property Act.
16 (gg) Information that is prohibited from being
17 disclosed under Section 7-603.5 of the Illinois Vehicle
18 Code.
19 (hh) Records that are exempt from disclosure under
20 Section 1A-16.7 of the Election Code.
21 (ii) Information which is exempted from disclosure
22 under Section 2505-800 of the Department of Revenue Law of
23 the Civil Administrative Code of Illinois.
24 (jj) Information and reports that are required to be
25 submitted to the Department of Labor by registering day and
26 temporary labor service agencies but are exempt from

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1 disclosure under subsection (a-1) of Section 45 of the Day
2 and Temporary Labor Services Act.
3 (kk) Information prohibited from disclosure under the
4 Seizure and Forfeiture Reporting Act.
5 (ll) Information the disclosure of which is restricted
6 and exempted under Section 5-30.8 of the Illinois Public
7 Aid Code.
8 (mm) (ll) Records that are exempt from disclosure under
9 Section 4.2 of the Crime Victims Compensation Act.
10 (nn) (ll) Information that is exempt from disclosure
11 under Section 70 of the Higher Education Student Assistance
12 Act.
13 (oo) Information that is exempt from disclosure under
14 Section 16.8 of the State Treasurer Act.
15(Source: P.A. 99-78, eff. 7-20-15; 99-298, eff. 8-6-15; 99-352,
16eff. 1-1-16; 99-642, eff. 7-28-16; 99-776, eff. 8-12-16;
1799-863, eff. 8-19-16; 100-20, eff. 7-1-17; 100-22, eff. 1-1-18;
18100-201, eff. 8-18-17; 100-373, eff. 1-1-18; 100-464, eff.
198-28-17; 100-465, eff. 8-31-17; 100-512, eff. 7-1-18; 100-517,
20eff. 6-1-18; 100-646, eff. 7-27-18; 100-690, eff. 1-1-19;
21100-863, eff. 8-14-18; 100-887, eff. 8-14-18; revised
2210-12-18.)
23 Section 10. The State Treasurer Act is amended by adding
24Section 16.8 as follows:

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1 (15 ILCS 505/16.8 new)
2 Sec. 16.8. Illinois Higher Education Savings Program.
3 (a) Definitions. As used in this Section:
4 "Beneficiary" means an eligible child named as a recipient
5of seed funds.
6 "College savings account" means a 529 plan account
7established under Section 16.5.
8 "Eligible child" means a child born or adopted after
9December 31, 2020, to a parent who is a resident of Illinois at
10the time of the birth or adoption, as evidenced by
11documentation received by the Treasurer from the Department of
12Revenue, the Department of Public Health, or another State or
13local government agency.
14 "Eligible educational institution" means institutions that
15are described in Section 1001 of the federal Higher Education
16Act of 1965 that are eligible to participate in Department of
17Education student aid programs.
18 "Fund" means the Illinois Higher Education Savings Program
19Fund.
20 "Omnibus account" means the pooled collection of seed funds
21owned and managed by the State Treasurer under this Act.
22 "Program" means the Illinois Higher Education Savings
23Program.
24 "Qualified higher education expense" means the following:
25(i) tuition, fees, and the costs of books, supplies, and
26equipment required for enrollment or attendance at an eligible

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1educational institution; (ii) expenses for special needs
2services, in the case of a special needs beneficiary, which are
3incurred in connection with such enrollment or attendance;
4(iii) certain expenses for the purchase of computer or
5peripheral equipment, computer software, or Internet access
6and related services as defined under Section 529 of the
7Internal Revenue Code; and (iv) room and board expenses
8incurred while attending an eligible educational institution
9at least half-time.
10 "Seed funds" means the deposit made by the State Treasurer
11into the Omnibus Accounts for Program beneficiaries.
12 (b) Program established. The State Treasurer shall
13establish the Illinois Higher Education Savings Program
14provided that sufficient funds are available. The State
15Treasurer shall administer the Program for the purposes of
16expanding access to higher education through savings.
17 (c) Program enrollment. The State Treasurer shall enroll
18all eligible children in the Program beginning in 2021, after
19receiving records of recent births, adoptions, or dependents
20from the Department of Revenue, the Department of Public
21Health, or another State or local government agency designated
22by the Treasurer. Notwithstanding any court order which would
23otherwise prevent the release of information, the Department of
24Public Health is authorized to release the information
25specified under this subsection (c) to the State Treasurer for
26the purposes of the Program established under this Section.

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1 (1) On and after the effective date of this amendatory
2 Act of the 101st General Assembly, the Department of
3 Revenue and the Department of Public Health shall provide
4 the State Treasurer with information on recent Illinois
5 births, adoptions and dependents including, but not
6 limited to: the full name, residential address, and birth
7 date of the child and the child's parent or legal guardian
8 for the purpose of enrolling eligible children in the
9 Program. This data shall be provided to the State Treasurer
10 by the Department of Revenue and the Department of Public
11 Health on a quarterly basis, no later than 30 days after
12 the end of each quarter.
13 (2) The State Treasurer shall ensure the security and
14 confidentiality of the information provided by the
15 Department of Revenue, the Department of Public Health, or
16 another State or local government agency, and it shall not
17 be subject to release under the Freedom of Information Act.
18 (3) Information provided under this Section shall only
19 be used by the State Treasurer for the Program and shall
20 not be used for any other purpose.
21 (4) The State Treasurer and any vendors working on the
22 Program shall maintain strict confidentiality of any
23 information provided under this Section, and shall
24 promptly provide written or electronic notice to the
25 providing agency of any security breach. The providing
26 State or local government agency shall remain the sole and

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1 exclusive owner of information provided under this
2 Section.
3 (d) Seed funds. After receiving information on recent
4births, adoptions, or dependents from the Department of
5Revenue, the Department of Public Health, or another State or
6local government agency, the State Treasurer shall make a
7deposit into an omnibus account of the Fund on behalf of each
8eligible child. The State Treasurer shall be the owner of the
9omnibus accounts. The deposit of seed funds shall be subject to
10appropriation by the General Assembly.
11 (1) Deposit amount. The seed fund deposit for each
12 eligible child shall be in the amount of $50. This amount
13 may be increased by the State Treasurer by rule. The State
14 Treasurer may use or deposit funds appropriated by the
15 General Assembly together with moneys received as gifts,
16 grants, or contributions into the Fund. If insufficient
17 funds are available in the Fund, the State Treasurer may
18 reduce the deposit amount or forego deposits.
19 (2) Use of seed funds. Seed funds, including any
20 interest, dividends, and other earnings accrued, will be
21 eligible for use by a beneficiary for qualified higher
22 education expenses if:
23 (A) the parent or guardian of the eligible child
24 claimed the seed funds for the beneficiary by the
25 beneficiary's 10th birthday;
26 (B) the beneficiary has completed secondary

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1 education or has reached the age of 18; and
2 (C) the beneficiary is currently a resident of the
3 State of Illinois. Non-residents are not eligible to
4 claim or use seed funds.
5 (3) Notice of seed fund availability. The State
6 Treasurer shall make a good faith effort to notify
7 beneficiaries and their parents or legal guardians of the
8 seed funds' availability and the deadline to claim such
9 funds.
10 (4) Unclaimed seed funds. Seed funds that are unclaimed
11 by the beneficiary's 10th birthday or unused by the
12 beneficiary's 26th birthday will be considered forfeited.
13 Unclaimed and unused seed funds will remain in the omnibus
14 account for future beneficiaries.
15 (e) Financial education. The State Treasurer may develop
16educational materials that support the financial literacy of
17beneficiaries and their legal guardians, and may do so in
18collaboration with State and federal agencies, including, but
19not limited to, the Illinois State Board of Education and
20existing nonprofit agencies with expertise in financial
21literacy and education.
22 (f) Incentives and partnerships. The State Treasurer may
23develop partnerships with private, nonprofit, or governmental
24organizations to provide additional incentives for eligible
25children, including conditional cash transfers or matching
26contributions that provide a savings incentive based on

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1specific actions taken or other criteria.
2 (g) Illinois Higher Education Savings Program Fund. The
3Illinois Higher Education Savings Program Fund is hereby
4established. The Fund shall be the official repository of all
5contributions, appropriations, interest, and dividend
6payments, gifts, or other financial assets received by the
7State Treasurer in connection with operation of the Program or
8related partnerships. All such moneys shall be deposited in the
9Fund and held by the State Treasurer as custodian thereof,
10outside of the State treasury, separate and apart from all
11public moneys or funds of this State. The State Treasurer may
12accept gifts, grants, awards, matching contributions, interest
13income, and appropriations from individuals, businesses,
14governments, and other third-party sources to implement the
15Program on terms that the Treasurer deems advisable. All
16interest or other earnings accruing or received on amounts in
17the Illinois Higher Education Savings Program Fund shall be
18credited to and retained by the Fund and used for the benefit
19of the Program. Assets of the Fund must at all times be
20preserved, invested, and expended only for the purposes of the
21Program and must be held for the benefit of the beneficiaries.
22Assets may not be transferred or used by the State or the State
23Treasurer for any purposes other than the purposes of the
24Program. In addition, no moneys, interest, or other earnings
25paid into the Fund shall be used, temporarily or otherwise, for
26inter-fund borrowing or be otherwise used or appropriated

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1except as expressly authorized by this Act. Notwithstanding the
2requirements of this subsection (f), amounts in the Fund may be
3used by the State Treasurer to pay the administrative costs of
4the Program.
5 (h) Audits and reports. The State Treasurer shall include
6the Illinois Higher Education Savings Program as part of the
7audit of the College Savings Pool described in Section 16.5.
8The State Treasurer shall annually prepare a report that
9includes a summary of the Program operations for the preceding
10fiscal year, including the number of children enrolled in the
11Program, the total amount of seed fund deposits, and such other
12information that is relevant to make a full disclosure of the
13operations of the Program and Fund. The report shall be made
14available on the Treasurer's website by January 31 each year,
15starting in January of 2022. The State Treasurer may include
16the Program in other reports as warranted.
17 (i) Rules. The State Treasurer may adopt rules necessary to
18implement this Section.
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