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

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

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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 the 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: Strong Partisan Bill (Democrat 32-2)

Status: (Passed) 2020-05-22 - Added Co-Sponsor Rep. Michelle Mussman [HB2237 Detail]

Download: Illinois-2019-HB2237-Enrolled.html

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

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

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

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

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

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Act.
(aa) Information which is exempted from disclosure
under Section 2.37 of the Wildlife Code.
(bb) Information which is or was prohibited from
disclosure by the Juvenile Court Act of 1987.
(cc) Recordings made under the Law Enforcement
Officer-Worn Body Camera Act, except to the extent
authorized under that Act.
(dd) Information that is prohibited from being
disclosed under Section 45 of the Condominium and Common
Interest Community Ombudsperson Act.
(ee) Information that is exempted from disclosure
under Section 30.1 of the Pharmacy Practice Act.
(ff) Information that is exempted from disclosure
under the Revised Uniform Unclaimed Property Act.
(gg) Information that is prohibited from being
disclosed under Section 7-603.5 of the Illinois Vehicle
Code.
(hh) Records that are exempt from disclosure under
Section 1A-16.7 of the Election Code.
(ii) Information which is exempted from disclosure
under Section 2505-800 of the Department of Revenue Law of
the Civil Administrative Code of Illinois.
(jj) Information and reports that are required to be
submitted to the Department of Labor by registering day and
temporary labor service agencies but are exempt from

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

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

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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;
(iii) certain expenses for the purchase of computer or
peripheral equipment, computer software, or Internet access
and related services as defined under Section 529 of the
Internal Revenue Code; and (iv) room and board expenses
incurred while attending an eligible educational institution
at least half-time.
"Seed funds" means the deposit made by the State Treasurer
into the Omnibus Accounts for Program beneficiaries.
(b) Program established. The State Treasurer shall
establish the Illinois Higher Education Savings Program
provided that sufficient funds are available. The State
Treasurer shall administer the Program for the purposes of
expanding access to higher education through savings.
(c) Program enrollment. The State Treasurer shall enroll
all eligible children in the Program beginning in 2021, after
receiving records of recent births, adoptions, or dependents
from the Department of Revenue, the Department of Public
Health, or another State or local government agency designated
by the Treasurer. Notwithstanding any court order which would
otherwise prevent the release of information, the Department of
Public Health is authorized to release the information
specified under this subsection (c) to the State Treasurer for
the purposes of the Program established under this Section.

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

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

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

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specific actions taken or other criteria.
(g) Illinois Higher Education Savings Program Fund. The
Illinois Higher Education Savings Program Fund is hereby
established. The Fund shall 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. All such moneys shall be deposited in the
Fund and held by the State Treasurer as custodian thereof,
outside of the State treasury, separate and apart from all
public moneys or funds of this State. The State Treasurer may
accept gifts, grants, awards, matching contributions, interest
income, and appropriations from individuals, businesses,
governments, and other third-party sources to implement the
Program on terms that the Treasurer deems advisable. All
interest or other earnings accruing or received on amounts in
the Illinois Higher Education Savings Program Fund shall be
credited to and retained by the Fund and used for the benefit
of the Program. Assets of the Fund must at all times be
preserved, invested, and expended only for the purposes of the
Program and must be held for the benefit of the beneficiaries.
Assets may not be transferred or used by the State or the State
Treasurer for any purposes other than the purposes of the
Program. In addition, no moneys, interest, or other earnings
paid into the Fund shall be used, temporarily or otherwise, for
inter-fund borrowing or be otherwise used or appropriated

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