Bill Text: IL HB3360 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Creates the University Student Fee Act. Provides that all students enrolled in college credit programs at State universities shall be charged fees, except students who are exempt from fees or students whose fees are waived. Provides that, beginning on July 1, 2014, the resident undergraduate tuition for lower-level and upper-level coursework at a State university shall be $103.32 per credit hour. Provides that, beginning with the 2016 fiscal year and each fiscal year thereafter, the resident undergraduate tuition per credit hour shall increase at the beginning of each fall semester at a rate equal to inflation. Allows the Board of Higher Education or the Board's designee to establish tuition for graduate and professional programs and out-of-State fees for all programs. Sets forth provisions concerning flexible tuition policies, the establishment of fees, fee proposals, a tuition differential, and rules.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2014-12-03 - Session Sine Die [HB3360 Detail]

Download: Illinois-2013-HB3360-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB3360 Introduced , by Rep. Michael W. Tryon SYNOPSIS AS INTRODUCED:
New Act
Creates the University Student Fee Act. Provides that all students enrolled in college credit programs at State universities shall be charged fees, except students who are exempt from fees or students whose fees are waived. Provides that, beginning on July 1, 2014, the resident undergraduate tuition for lower-level and upper-level coursework at a State university shall be $103.32 per credit hour. Provides that, beginning with the 2016 fiscal year and each fiscal year thereafter, the resident undergraduate tuition per credit hour shall increase at the beginning of each fall semester at a rate equal to inflation. Allows the Board of Higher Education or the Board's designee to establish tuition for graduate and professional programs and out-of-State fees for all programs. Sets forth provisions concerning flexible tuition policies, the establishment of fees, fee proposals, a tuition differential, and rules.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning education.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
University Student Fee Act.
Section 5. Definitions. In this Act:
"Board" means the Board of Higher Education.
"University" means 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, and any
other public universities now or hereafter established or
authorized by the General Assembly.
Section 10. Application.
(a) This Act applies notwithstanding any other provision of
law to the contrary.
(b) This Act applies to students enrolled in college credit
programs at State universities.
Section 15. Fees required to be charged; resident
undergraduate tuition rate.

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(a) All students shall be charged fees, except students who
are exempt from fees or students whose fees are waived.
(b) Beginning on July 1, 2014, the resident undergraduate
tuition for lower-level and upper-level coursework shall be
$103.32 per credit hour.
(c) Beginning with the 2016 fiscal year and each fiscal
year thereafter, the resident undergraduate tuition per credit
hour shall increase at the beginning of each fall semester at a
rate equal to inflation. The Department of Labor shall report
the rate of inflation to the President of the Senate, the
Speaker of the House of Representatives, the Governor, and the
Board each year prior to March 1. For purposes of this
subsection (c), the rate of inflation shall be defined as the
rate of the 12-month percentage change in the Consumer Price
Index for All Urban Consumers, U.S. City Average, All Items, or
successor reports as reported by the United States Department
of Labor, Bureau of Labor Statistics, or its successor for
December of the previous year. In the event the percentage
change is negative, the resident undergraduate tuition shall
remain at the same level as the prior fiscal year.
Section 20. Tuition for graduate and professional
programs; out-of-State fees. The Board or the Board's designee
may establish tuition for graduate and professional programs
and out-of-State fees for all programs. Except as otherwise
provided in this Section, the sum of tuition and out-of-State

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fees assessed to nonresident students must be sufficient to
offset the full instructional cost of serving such students.
However, adjustments to out-of-State fees or tuition for
graduate programs and professional programs may not exceed 15%
in any year.
Section 25. Flexible tuition policies. The Board may
consider and approve flexible tuition policies as requested by
a university's board of trustees, in accordance with the
provisions of Section 35 of this Act, only to the extent such
policies are in alignment with the mission of the university
and do not increase the State's fiscal liability or
obligations.
Section 30. Establishment of fees.
(a) The sum of the activity and service, health, and
athletic fees a student is required to pay to register for a
course shall not exceed 40% of the tuition established under
this Act. No university shall be required to lower any fee in
effect on the effective date of this Act in order to comply
with this Section. Within the 40% cap, universities may not
increase the aggregate sum of activity and service, health, and
athletic fees more than 5% per year or the same percentage
increase in tuition authorized under subsection (c) of Section
15 of this Act, whichever is greater, unless specifically
authorized by law. A university may increase its athletic fee

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to defray the costs associated with changing National
Collegiate Athletic Association divisions. Any such increase
in the athletic fee may exceed both the 40% cap and the 5% cap
imposed by this subsection (a). Any such increase must be
approved by the athletic fee committee in the process outlined
in subsection (j) of this Section and may not exceed $2 per
credit hour. That portion of any increase in an athletic fee
pursuant to this Section that causes the sum of the activity
and service, health, and athletic fees to exceed the 40% cap or
the annual increase in such fees to exceed the 5% cap shall not
be included in calculating the amount a student receives from a
scholarship from the Illinois Student Assistance Commission.
(b) This Section does not prohibit a university from
increasing or assessing optional fees related to specific
activities if payment of such fees is not required as a part of
registration for courses.
(c) A university may implement a differential out-of-State
fee, in accordance with rules developed by the Board, for the
following:
(1) A student from another state that borders the
service area of the university.
(2) A graduate student who has been determined to be a
nonresident for tuition purposes and has a 0.25 full-time
equivalent appointment or greater as a graduate assistant,
graduate research assistant, graduate teaching assistant,
graduate research associate, or graduate teaching

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associate.
(3) A graduate student who has been determined to be a
nonresident for tuition purposes and is receiving a full
fellowship.
(d) Students who are enrolled in programs in medical
sciences are considered graduate students for the purpose of
enrollment and student fees.
(e) A university's board of trustees is authorized to
collect for financial aid purposes an amount not to exceed 5%
of the tuition and out-of-State fees. The revenues from fees
are to remain at each campus and replace existing financial aid
fees. Such funds shall be disbursed to students as quickly as
possible. A minimum of 75% of funds from the student financial
aid fee shall be used to provide financial aid based on
absolute need. The Illinois Student Assistance Commission
shall develop criteria for making financial aid awards. Each
university shall report annually to the Illinois Student
Assistance Commission and the Board on the revenue collected
pursuant to this subsection (e), the amount carried forward,
the criteria used to make awards, the amount and number of
awards for each criterion, and a delineation of the
distribution of such awards. The report shall include an
assessment by category of the financial need of every student
who receives an award, regardless of the purpose for which the
award is received. Awards that are based on financial need
shall be distributed in accordance with a nationally recognized

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system of need analysis approved by the Board. An award for
academic merit shall require a minimum overall grade point
average of 3.0 on a 4.0 scale or the equivalent for both
initial receipt of the award and renewal of the award.
(f) The capital improvement fee is established at $2.44 per
credit hour per semester. The building fee is established at
$2.32 per credit hour per semester.
(g) Each university's board of trustees is authorized to
establish separate activity and service, health, and athletic
fees. When duly established, the fees shall be collected as
component parts of tuition and fees and shall be retained by
the university and paid into the separate activity and service,
health, and athletic funds. Notwithstanding any other
provision of law to the contrary, a university may transfer
revenues derived from the fees authorized pursuant to this
subsection (g) to a direct-support organization of the
university to be used only for the purpose of paying and
securing debt on projects approved by the Board and pursuant to
a written agreement approved by the Board. The amount
transferred may not exceed the amount authorized for annual
debt service.
(h) Each university's board of trustees shall establish a
student activity and service fee for the main campus of the
university. The university's board of trustees may also
establish a student activity and service fee for any branch
campus or center. Any subsequent increase in the activity and

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service fee must be recommended by an activity and service fee
committee, at least one-half of whom are students appointed by
the student body president. The remainder of the committee
shall be appointed by the university president. A chairperson,
appointed jointly by the university president and the student
body president, shall vote only in the case of a tie. The
recommendations of the committee shall take effect only after
approval by the university president, after consultation with
the student body president, with final approval by the
university's board of trustees. An increase in the activity and
service fee may occur only once each fiscal year and must be
implemented beginning with the fall term. The Board is
responsible for adopting the rules and timetables necessary to
implement this fee.
The student activity and service fees shall be expended for
lawful purposes to benefit the student body in general. This
shall include, but shall not be limited to, student
publications and grants to duly recognized student
organizations, the membership of which is open to all students
at the university without regard to race, sex, or religion. The
funds may not benefit activities for which an admission fee is
charged to students, except for student government
association-sponsored concerts. The allocation and expenditure
of the funds shall be determined by the student government
association of the university, except that the president of the
university may veto any line item or portion thereof within the

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budget when submitted by the student government association's
legislative body. The university president shall have 15 school
days from the date of presentation of the budget to act on the
allocation and expenditure recommendations, which shall be
deemed approved if no action is taken within the 15 school
days. If any line item or portion thereof within the budget is
vetoed, the student government association's legislative body
shall, within 15 school days, make new budget recommendations
for expenditure of the vetoed portion of the funds. If the
university president vetoes any line item or portion thereof
within the new budget revisions, the university president may
reallocate by line item that vetoed portion to bond obligations
guaranteed by activity and service fees. Unexpended funds and
undisbursed funds remaining at the end of a fiscal year shall
be carried over and remain in the student activity and service
fund and be available for allocation and expenditure during the
next fiscal year.
(i) Each university's board of trustees shall establish a
student health fee for the main campus of the university. The
university's board of trustees may also establish a student
health fee for any branch campus or center. Any subsequent
increase in the health fee must be recommended by a health
committee, at least one-half of whom are students appointed by
the student body president. The remainder of the committee
shall be appointed by the university president. A chairperson,
appointed jointly by the university president and the student

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body president, shall vote only in the case of a tie. The
recommendations of the committee shall take effect only after
approval by the university president, after consultation with
the student body president, with final approval by the
university's board of trustees. An increase in the health fee
may occur only once each fiscal year and must be implemented
beginning with the fall term. The Board is responsible for
adopting the rules and timetables necessary to implement this
fee.
(j) Each university's board of trustees shall establish a
separate athletic fee for the main campus of the university.
The university's board of trustees may also establish a
separate athletic fee for any branch campus or center. Any
subsequent increase in the athletic fee must be recommended by
an athletic fee committee, at least one-half of whom are
students appointed by the student body president. The remainder
of the committee shall be appointed by the university
president. A chairperson, appointed jointly by the university
president and the student body president, shall vote only in
the case of a tie. The recommendations of the committee shall
take effect only after approval by the university president,
after consultation with the student body president, with final
approval by the university's board of trustees. An increase in
the athletic fee may occur only once each fiscal year and must
be implemented beginning with the fall term. The Board is
responsible for adopting the rules and timetables necessary to

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implement this fee.
(k) Each university's board of trustees may establish a
technology fee of up to 5% of the tuition per credit hour. The
revenue from this fee shall be used to enhance instructional
technology resources for students and faculty.
(l) Except as otherwise provided in Section 35 of this Act,
each university's board of trustees is authorized to establish
the following fees:
(1) A nonrefundable application fee in an amount not to
exceed $30.
(2) An orientation fee in an amount not to exceed $35.
(3) A fee for security, access, or identification
cards. The annual fee for such a card may not exceed $10
per card. The maximum amount charged for a replacement card
may not exceed $15.
(4) Registration fees for audit and zero-hours
registration; a service charge, which may not exceed $15,
for the payment of tuition and fees in installments; and a
late-registration fee in an amount not less than $50 nor
more than $100 to be imposed on students who fail to
initiate registration during the regular registration
period.
(5) A late-payment fee in an amount not less than $50
nor more than $100 to be imposed on students who fail to
pay or fail to make appropriate arrangements to pay (by
means of installment payment, deferment, or third-party

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billing) tuition by the deadline set by each university.
Each university may adopt specific procedures or policies
for waiving the late-payment fee for minor underpayments.
(6) Fees for transcripts and diploma replacement, not
to exceed $10 per item.
(7) A nonrefundable admissions deposit for
undergraduate, graduate, and professional degree programs
in an amount not to exceed $200. The admissions deposit
shall be imposed at the time of an applicant's acceptance
to the university and shall be applied toward tuition upon
enrollment. If the applicant does not enroll in the
university, the admissions deposit shall be deposited in an
auxiliary account of the university and used to expand
financial assistance, scholarships, and student academic
and career counseling services at the university. The Board
shall adopt a policy that provides for the waiver of such
admissions deposit on the basis of financial hardship.
(8) A fee for miscellaneous health-related charges for
services provided at cost by the university health center
that are not covered by the health fee set under subsection
(i) of this Section.
(9) Materials and supplies fees to offset the cost of
materials or supplies that are consumed in the course of
the student's instructional activities, excluding the cost
of equipment replacement, repairs, and maintenance.
(10) Housing rental rates and miscellaneous housing

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charges for services provided by the university at the
request of the student.
(11) A charge representing the reasonable cost of
efforts to collect payment of overdue accounts.
(12) A service charge on university loans in lieu of
interest and administrative handling charges.
(13) A fee for off-campus course offerings when the
location results in specific, identifiable, increased
costs to the university.
(14) Library fees and fines, including charges for
damaged and lost library materials, overdue reserve
library books, interlibrary loans, and literature
searches.
(15) Fees relating to duplicating, photocopying,
binding, and microfilming; copyright services; and
standardized testing. These fees may be charged only to
those who receive the services.
(16) Fees and fines relating to the use, late return,
and loss and damage of facilities and equipment.
(17) A returned-check fee for unpaid checks returned to
the university.
(18) Traffic and parking fines, charges for parking
decals, and transportation access fees.
(19) A fee for child care and services offered by the
university.
(20) A transient student fee that may not exceed $5 per

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distance learning course for accepting a transient student
and processing the transient student's admissions
application.
With the exception of housing rental rates and except as
otherwise provided, fees assessed pursuant to items (8) through
(19) of this subsection (l) shall be based on reasonable costs
of services.
The Board shall adopt rules and timetables necessary to
implement the fees and fines authorized under this subsection
(l). The fees assessed under this subsection (l) may be used
for debt.
Section 35. Fee proposals.
(a) The Board may approve the following:
(1) A proposal from a university's board of trustees to
establish a new student fee that is not specifically
authorized by this Act.
(2) A proposal from a university's board of trustees to
increase the current cap for an existing fee authorized
pursuant to items (1) through (7) of subsection (l) of
Section 30 of this Act.
(3) A proposal from a university's board of trustees to
implement flexible tuition policies, such as undergraduate
or graduate block tuition, a block tuition differential, or
market tuition rates for graduate-level online courses or
graduate-level courses offered through a university's

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continuing education program. A block tuition policy for
resident undergraduate students or undergraduate-level
courses shall be based on the per-credit-hour
undergraduate tuition established under Section 15 of this
Act. A block tuition policy for nonresident undergraduate
students shall be based on the per-credit-hour
undergraduate tuition and out-of-State fee established
under Section 15 of this Act. Flexible tuition policies,
including block tuition, may not increase this State's
fiscal liability or obligation.
(b) A proposal developed pursuant to subsection (a) of this
Section shall be submitted in accordance with guidelines
established by the Board. Approval by the Board of such a
proposal must be made in accordance with the provisions of this
Section.
(c) In reviewing a proposal to establish a new fee under
subdivision (1) of subsection (a) of this Section, the Board
shall consider the following:
(1) The purpose to be served or accomplished by the new
fee.
(2) Whether there is a demonstrable, student-based
need for the new fee that is not currently being met
through existing university services, operations, or
another fee.
(3) Whether the financial impact on students is
warranted in light of other charges assessed to students

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for tuition and associated fees.
(4) Whether any restrictions, limitations, or
conditions should be placed on the use of the fee.
(5) Whether there are outcome measures to indicate if
the purpose for which the fee was established is
accomplished.
(d) In reviewing a proposal to increase or exceed the
current cap for an existing fee under subdivision (2) of
subsection (a) of this Section, the Board shall consider the
following:
(1) The services or operations currently being funded
by the fee.
(2) Whether those services or operations can be
performed more efficiently to alleviate the need for any
increase.
(3) The additional or enhanced services or operations
to be funded by the increase.
(4) Whether any alternative resources are available to
meet the need.
(5) Whether the financial impact on students is
warranted in light of other charges assessed to students
for tuition and associated fees.
(e) In reviewing a proposal to implement a flexible tuition
policy under subdivision (3) of subsection (a) of this Section,
the Board shall consider the following:
(1) Whether the proposed tuition flexibility policy is

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aligned with the mission of the university.
(2) Whether the proposed tuition flexibility policy
increases this State's fiscal liabilities or obligations,
and, if so, the proposal shall be denied.
(3) Whether any restrictions, limitations, or
conditions should be placed on the policy.
(4) How the proposed tuition flexibility policy will be
implemented to honor the advance payment contracts of
students who are beneficiaries of prepaid tuition
contracts.
(f) The Board shall submit an annual report to the
President of the Senate, the Speaker of the House of
Representatives, and the Governor summarizing the proposals
received by the Board during the preceding year and actions
taken by the Board in response to such proposals. The Board
shall also include in the annual report the following
information for each fee established pursuant to subdivision
(1) of subsection (a) of this Section:
(1) The amount of the fee.
(2) The total revenues generated by the fee.
(3) Detailed expenditures of the revenues generated by
the fee.
(g) The aggregate sum of any fees established pursuant to
subdivision (1) of subsection (a) of this Section that a
student is required to pay to register for a course shall not
exceed 10% of tuition.

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(h) The revenues generated by a fee established pursuant to
subdivision (1) of subsection (a) of this Section may not be
transferred to an auxiliary enterprise or a direct-support
organization and may not be used for the purpose of paying or
securing debt.
(i) If the Board approves a university's proposal to
establish a fee pursuant to subdivision (1) of subsection (a)
of this Section, a fee committee shall be established at the
university to make recommendations to the university president
and the university's board of trustees regarding how the
revenue from the fee is to be spent and any subsequent changes
to the fee. At least one-half of the committee must be students
appointed by the student body president. The remainder of the
committee shall be appointed by the university president. A
chairperson, appointed jointly by the university president and
the student body president, shall vote only in the case of a
tie.
(j) An increase to an existing fee or a fee established
pursuant to subdivision (1) of subsection (a) of this Section
may occur no more than once each fiscal year and must be
implemented beginning with the fall term.
Section 40. Tuition differential.
(a) Each university's board of trustees may establish a
tuition differential for undergraduate courses upon receipt of
approval from the Board. The tuition differential shall promote

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improvements in the quality of undergraduate education and
shall provide financial aid to undergraduate students who
exhibit financial need.
(b) Seventy percent of the revenues from the tuition
differential shall be expended for purposes of undergraduate
education. Such expenditures may include, but are not limited
to, increasing course offerings, improving graduation rates,
increasing the percentage of undergraduate students who are
taught by faculty, decreasing student-faculty ratios,
providing salary increases for faculty who have a history of
excellent teaching in undergraduate courses, improving the
efficiency of the delivery of undergraduate education through
academic advisement and counseling, and reducing the
percentage of students who graduate with excess hours. This
expenditure for undergraduate education may not be used to pay
the salaries of graduate teaching assistants. Except as
otherwise provided in this Section, the remaining 30% of the
revenues from the tuition differential or the equivalent amount
of revenue from private sources shall be expended to provide
financial aid to undergraduate students who exhibit financial
need, including students who are scholarship recipients, to
meet the cost of university attendance. This expenditure for
need-based financial aid shall not supplant the amount of
need-based aid provided to undergraduate students in the
preceding fiscal year from financial aid fee revenues, from the
direct appropriation for financial assistance provided to

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universities, or from private sources. If the entire tuition
and fee costs of resident students who have applied for and
received Pell Grant funds have been met and the university has
excess funds remaining from the 30% of the revenues from the
tuition differential required to be used to assist students who
exhibit financial need, the university may expend the excess
portion in the same manner as required for the other 70% of the
tuition differential revenues.
(c) Each tuition differential is subject to the following
conditions:
(1) The tuition differential may be assessed on one or
more undergraduate courses or on all undergraduate courses
at a university.
(2) The tuition differential may vary by course or
courses, by campus or center location, and by institution.
Each university's board of trustees shall strive to
maintain and increase enrollment in degree programs
related to mathematics, science, high technology, and
other State or regional high-need fields when establishing
tuition differentials by course.
(3) For each university, the aggregate sum of tuition
and the tuition differential may not be increased by more
than 15% of the total charged for the aggregate sum of
these fees in the preceding fiscal year.
(4) The aggregate sum of undergraduate tuition and fees
per credit hour, including the tuition differential, may

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not exceed the national average of undergraduate tuition
and fees at 4-year, degree-granting, public, postsecondary
educational institutions.
(5) Beneficiaries having prepaid tuition contracts
that are in effect on January 1, 2014 and which remain in
effect are exempt from the payment of the tuition
differential.
(6) The tuition differential may not be charged to any
student who was in attendance at the university before
January 1, 2014 and who maintains continuous enrollment.
(7) Subject to approval by the Board, the tuition
differential authorized pursuant to this Section may take
effect with the 2014 fall term.
(d) A university's board of trustees may submit a proposal
to the Board to implement a tuition differential for one or
more undergraduate courses. At a minimum, the proposal shall do
the following:
(1) Identify the course or courses for which the
tuition differential will be assessed.
(2) Indicate the amount that will be assessed for each
tuition differential proposed.
(3) Indicate the purpose of the tuition differential.
(4) Indicate how the revenues from the tuition
differential will be used.
(5) Indicate how the university will monitor the
success of the tuition differential in achieving the

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purpose for which the tuition differential is being
assessed.
(e) The Board shall review each proposal and advise the
university's board of trustees of approval of the proposal, the
need for additional information or revision to the proposal, or
denial of the proposal. The Board shall establish a process for
any university to revise a proposal or appeal a decision of the
Board.
(f) The Board shall submit a report to the President of the
Senate, the Speaker of the House of Representatives, and the
Governor describing the implementation of the provisions of
this Section no later than January 1, 2015 and no later than
January 1 each year thereafter. The report shall summarize
proposals received by the Board during the preceding fiscal
year and actions taken by the Board in response to such
proposals. In addition, the report shall provide the following
information for each university that has been approved by the
Board to assess a tuition differential:
(1) The course or courses for which the tuition
differential was assessed and the amount assessed.
(2) The total revenues generated by the tuition
differential.
(3) Detailed expenditures of the revenues generated by
the tuition differential.
(4) Changes in retention rates, graduation rates, the
percentage of students graduating with more than 110% of

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the hours required for graduation, passage rates on
licensure examinations, the number of undergraduate course
offerings, the percentage of undergraduate students who
are taught by faculty, student-faculty ratios, and the
average salaries of faculty who teach undergraduate
courses.
(g) No university shall be required to lower any tuition
differential that was approved by the Board and in effect prior
to January 1, 2014 in order to comply with the provisions of
this Section.
Section 45. Distance learning course fee.
(a) A University may assess a student who enrolls in a
distance learning course a per-credit-hour distance learning
course fee. For purposes of assessing this fee, a distance
learning course is a course in which at least 80% of the direct
instruction of the course is delivered using some form of
technology when the student and instructor are separated by
time or space or both.
(b) The amount of the distance learning course fee may not
exceed the additional costs of the services provided that are
attributable to the development and delivery of the distance
learning course. If the distance learning course fee is
assessed by a university, the university may not assess
duplicative fees to cover the additional costs.

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Section 50. Authorized fees only. A university may not
charge any fee except as specifically authorized by law.
Section 90. Rules. The Board shall adopt rules to
implement the provisions of this Act.