Bill Text: IL HB3749 | 2013-2014 | 98th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Creates the Higher Education Employee Loan Act. Provides that if a not-for-profit higher education institution located in this State or its foundation makes a loan to an employee or contractor of either the institution or the foundation, then the annual rate of interest must be equal to the prevailing loan interest rate in effect at the time the institution or foundation approves the loan, except that the institution or its foundation may not make a loan to an employee or contractor of either the institution or the foundation for the purpose of purchasing a non-primary residence. Prohibits such an institution or foundation from forgiving a loan made to an employee or contractor of either the institution or the foundation. Requires the Board of Higher Education to adopt enforcement rules, which may include the imposition of a civil penalty. Effective immediately.

Sponsorship: Partisan Bill (Democrat 3)

Status: (Failed) 2014-12-03 - Session Sine Die [HB3749 Detail]

Download: Illinois-2013-HB3749-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB3749 Introduced , by Rep. Jack D. Franks SYNOPSIS AS INTRODUCED:
New Act
Creates the Higher Education Employee Loan Act. Provides that if a not-for-profit higher education institution located in this State or its foundation makes a loan to an employee or contractor of either the institution or the foundation, then the annual rate of interest must be equal to the prevailing loan interest rate in effect at the time the institution or foundation approves the loan, except that the institution or its foundation may not make a loan to an employee or contractor of either the institution or the foundation for the purpose of purchasing a non-primary residence. Prohibits such an institution or foundation from forgiving a loan made to an employee or contractor of either the institution or the foundation. Requires the Board of Higher Education to adopt enforcement rules, which may include the imposition of a civil penalty. Effective immediately.
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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 Higher
Education Employee Loan Act.
Section 5. Definitions. In this Act:
"Foundation" means the official fundraising and private
gift-receiving organization for an institution.
"Institution" means a not-for-profit higher education
institution, whether public or private, located in this State.
"Prevailing loan interest rate" means the prevailing rate
of interest on loans as from time to time is publicly announced
by the largest commercial banking institution located in this
State.
Section 10. Limitations on loan making.
(a) If an institution or its foundation makes a loan to an
employee or contractor of either the institution or the
foundation, then the annual rate of interest must be equal to
the prevailing loan interest rate in effect at the time the
institution or foundation approves the loan. However, an
institution or its foundation may not make a loan to an
employee or contractor of either the institution or the

HB3749 - 2 - LRB098 14652 NHT 49564 b
foundation for the purpose of purchasing a non-primary
residence.
(b) An institution or its foundation may not forgive a loan
made to an employee or contractor of either the institution or
the foundation.
Section 90. Enforcement. The Board of Higher Education
shall adopt rules to enforce this Act, which may include the
imposition of a civil penalty.
Section 99. Effective date. This Act takes effect upon
becoming law.