103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2898 Introduced , by Rep. Maurice A. West, II SYNOPSIS AS INTRODUCED: 30 ILCS 105/5.990 new105 ILCS 426/35 110 ILCS 947/35 Amends the Private Business and Vocational Schools Act of 2012. In provisions regarding institution and program approval criteria, provides that a part of the criteria for approval is fair and equitable reimbursement in the case of an unfair or deceptive practice finding. Amends the Higher Education Student Assistance Act. In provisions concerning the monetary award program, sets forth provisions concerning an institution that received monetary award program funds at a time the institution was using unfair or deceptive practices, including refunding State funds to the Illinois Student Assistance Commission and awarding grants to students who attended that institution. Amends the State Finance Act to create the MAP Refund Fund as a special fund in the State treasury. Effective immediately. LRB103 05261 RJT 50279 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2898 Introduced , by Rep. Maurice A. West, II SYNOPSIS AS INTRODUCED: 30 ILCS 105/5.990 new105 ILCS 426/35 110 ILCS 947/35 30 ILCS 105/5.990 new 105 ILCS 426/35 110 ILCS 947/35 Amends the Private Business and Vocational Schools Act of 2012. In provisions regarding institution and program approval criteria, provides that a part of the criteria for approval is fair and equitable reimbursement in the case of an unfair or deceptive practice finding. Amends the Higher Education Student Assistance Act. In provisions concerning the monetary award program, sets forth provisions concerning an institution that received monetary award program funds at a time the institution was using unfair or deceptive practices, including refunding State funds to the Illinois Student Assistance Commission and awarding grants to students who attended that institution. Amends the State Finance Act to create the MAP Refund Fund as a special fund in the State treasury. Effective immediately. LRB103 05261 RJT 50279 b LRB103 05261 RJT 50279 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2898 Introduced , by Rep. Maurice A. West, II SYNOPSIS AS INTRODUCED: 30 ILCS 105/5.990 new105 ILCS 426/35 110 ILCS 947/35 30 ILCS 105/5.990 new 105 ILCS 426/35 110 ILCS 947/35 30 ILCS 105/5.990 new 105 ILCS 426/35 110 ILCS 947/35 Amends the Private Business and Vocational Schools Act of 2012. In provisions regarding institution and program approval criteria, provides that a part of the criteria for approval is fair and equitable reimbursement in the case of an unfair or deceptive practice finding. Amends the Higher Education Student Assistance Act. In provisions concerning the monetary award program, sets forth provisions concerning an institution that received monetary award program funds at a time the institution was using unfair or deceptive practices, including refunding State funds to the Illinois Student Assistance Commission and awarding grants to students who attended that institution. Amends the State Finance Act to create the MAP Refund Fund as a special fund in the State treasury. Effective immediately. LRB103 05261 RJT 50279 b LRB103 05261 RJT 50279 b LRB103 05261 RJT 50279 b A BILL FOR HB2898LRB103 05261 RJT 50279 b HB2898 LRB103 05261 RJT 50279 b HB2898 LRB103 05261 RJT 50279 b 1 AN ACT concerning education. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The State Finance Act is amended by adding 5 Section 5.990 as follows: 6 (30 ILCS 105/5.990 new) 7 Sec. 5.990. The MAP Refund Fund. 8 Section 10. The Private Business and Vocational Schools 9 Act of 2012 is amended by changing Section 35 as follows: 10 (105 ILCS 426/35) 11 Sec. 35. Institution and program approval criteria. Each 12 entity seeking a permit of approval is required to demonstrate 13 that it satisfies institution-approval criteria and that each 14 program of study offered meets the program-approval criteria 15 in this Act and any applicable rules. The following standard 16 criteria are intended to measure the appropriateness of the 17 stated educational objectives of the educational programs of a 18 given institution and the extent to which suitable and proper 19 processes have been developed for meeting those objectives. 20 Information related to the satisfaction of the approval 21 criteria outlined in this Section must be supplied to the 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2898 Introduced , by Rep. Maurice A. West, II SYNOPSIS AS INTRODUCED: 30 ILCS 105/5.990 new105 ILCS 426/35 110 ILCS 947/35 30 ILCS 105/5.990 new 105 ILCS 426/35 110 ILCS 947/35 30 ILCS 105/5.990 new 105 ILCS 426/35 110 ILCS 947/35 Amends the Private Business and Vocational Schools Act of 2012. In provisions regarding institution and program approval criteria, provides that a part of the criteria for approval is fair and equitable reimbursement in the case of an unfair or deceptive practice finding. Amends the Higher Education Student Assistance Act. In provisions concerning the monetary award program, sets forth provisions concerning an institution that received monetary award program funds at a time the institution was using unfair or deceptive practices, including refunding State funds to the Illinois Student Assistance Commission and awarding grants to students who attended that institution. Amends the State Finance Act to create the MAP Refund Fund as a special fund in the State treasury. Effective immediately. LRB103 05261 RJT 50279 b LRB103 05261 RJT 50279 b LRB103 05261 RJT 50279 b A BILL FOR 30 ILCS 105/5.990 new 105 ILCS 426/35 110 ILCS 947/35 LRB103 05261 RJT 50279 b HB2898 LRB103 05261 RJT 50279 b HB2898- 2 -LRB103 05261 RJT 50279 b HB2898 - 2 - LRB103 05261 RJT 50279 b HB2898 - 2 - LRB103 05261 RJT 50279 b 1 Board by institutions on forms provided by the Board. 2 Additional information may be requested by the Board to 3 determine the institution's ability to satisfy the criteria. 4 The following must be considered as part of, but not 5 necessarily all of, the criteria for approval of institutions 6 and the programs offered under this Act: 7 (1) Qualifications of governing board members, owners, 8 and senior administrators. At a minimum, these individuals 9 must be of good moral character and have no felony 10 criminal record. 11 (2) Qualifications of faculty and staff. 12 (3) Demonstration of student learning and quality of 13 program delivery. 14 (4) Sufficiency of institutional finances. The 15 institution must demonstrate that it has the financial 16 resources sufficient to meet its financial obligations, 17 including, but not limited to, refunding tuition pursuant 18 to the institution's stated policies. The school must 19 tender financial records, including, but not limited to, 20 financial statements, income statements, and cash flow 21 statements. 22 (5) Accuracy, clarity, and appropriateness of program 23 descriptions. Institutional promotional, advertising, and 24 recruiting materials must be clear, appropriate, and 25 accurate. 26 (6) Sufficiency of facilities and equipment. At a HB2898 - 2 - LRB103 05261 RJT 50279 b HB2898- 3 -LRB103 05261 RJT 50279 b HB2898 - 3 - LRB103 05261 RJT 50279 b HB2898 - 3 - LRB103 05261 RJT 50279 b 1 minimum, these must be appropriate and must meet 2 applicable safety code requirements and ordinances. 3 (7) Fair and equitable refund policies. At a minimum, 4 these must be fair and equitable, must satisfy any related 5 State or federal rules, and must abide by the standards 6 established in Section 60 of this Act and the rules 7 adopted for the implementation of this Act. 8 (8) Appropriate and ethical admissions and recruitment 9 practices. At a minimum, recruiting practices must be 10 ethical and abide by any State or federal rules. 11 (9) Recognized accreditation status. Accreditation 12 with an accrediting body approved by the U.S. Department 13 of Education may be counted as significant evidence of the 14 institution's ability to meet curricular approval 15 criteria. 16 (10) Meeting employment requirements in the field of 17 study. The institution must clearly demonstrate how a 18 student's completion of the program of study satisfies 19 employment requirements in the occupational field. Such 20 information must be clearly and accurately provided to 21 students. If licensure, certification, or their equivalent 22 is required of program graduates to enter the field of 23 employment, the institution must clearly demonstrate that 24 completion of the program will allow students to achieve 25 this status. 26 (11) Enrollment agreements that, at a minimum, meet HB2898 - 3 - LRB103 05261 RJT 50279 b HB2898- 4 -LRB103 05261 RJT 50279 b HB2898 - 4 - LRB103 05261 RJT 50279 b HB2898 - 4 - LRB103 05261 RJT 50279 b 1 the requirements outlined in Section 40 of this Act. 2 (12) Clearly communicated tuition and fee charges. 3 Tuition and fees and any other expense charged by the 4 school must be appropriate to the expected income that 5 will be earned by graduates. No school may have a tuition 6 policy or enrollment agreement that requires that a 7 student register for more than a single semester, quarter, 8 term, or other such period of enrollment as a condition of 9 the enrollment nor shall any school charge a student for 10 multiple periods of enrollment prior to completion of the 11 single semester, quarter, term, or other such period of 12 enrollment. 13 (13) Legal action against the institution, its parent 14 company, its owners, its governing board, or its board 15 members. Any such legal action must be provided to the 16 Board and may be considered as a reason for denial or 17 revocation of the permit of approval. 18 (14) Fair and equitable reimbursement in the case of 19 an unfair or deceptive practice finding. If an institution 20 received monetary award program funds under Section 35 of 21 the Higher Education Student Assistance Act at a time the 22 institution was using an unfair or deceptive practice, as 23 defined by the Federal Trade Commission, and is required 24 to reimburse students for loans taken to pay for their 25 education due to a judgment against the institution after 26 the effective date of this amendatory Act of the 103rd HB2898 - 4 - LRB103 05261 RJT 50279 b HB2898- 5 -LRB103 05261 RJT 50279 b HB2898 - 5 - LRB103 05261 RJT 50279 b HB2898 - 5 - LRB103 05261 RJT 50279 b 1 General Assembly, then any State funds paid to the 2 institution in the time period of that judgment must be 3 refunded to the Illinois Student Assistance Commission 4 under Section 35 of the Higher Education Student 5 Assistance Act. In this paragraph (14), "unfair or 6 deceptive practice" means an act or practice in which a 7 representation, omission, or practice misleads or is 8 likely to mislead a consumer as determined by the Federal 9 Trade Commission. 10 (Source: P.A. 102-1046, eff. 6-7-22.) 11 Section 15. The Higher Education Student Assistance Act is 12 amended by changing Section 35 as follows: 13 (110 ILCS 947/35) 14 Sec. 35. Monetary award program. 15 (a) The Commission shall, each year, receive and consider 16 applications for grant assistance under this Section. Subject 17 to a separate appropriation for such purposes, an applicant is 18 eligible for a grant under this Section when the Commission 19 finds that the applicant: 20 (1) is a resident of this State and a citizen or 21 permanent resident of the United States; 22 (2) is enrolled or has been accepted for enrollment in 23 a qualified institution for the purpose of obtaining a 24 degree, certificate, or other credential offered by the HB2898 - 5 - LRB103 05261 RJT 50279 b HB2898- 6 -LRB103 05261 RJT 50279 b HB2898 - 6 - LRB103 05261 RJT 50279 b HB2898 - 6 - LRB103 05261 RJT 50279 b 1 institution, as applicable; and 2 (3) in the absence of grant assistance, will be 3 deterred by financial considerations from completing an 4 educational program at the qualified institution of his or 5 her choice. 6 (b) The Commission shall award renewals only upon the 7 student's application and upon the Commission's finding that 8 the applicant: 9 (1) has remained a student in good standing; 10 (2) remains a resident of this State; and 11 (3) is in a financial situation that continues to 12 warrant assistance. 13 (c) All grants shall be applicable only to tuition and 14 necessary fee costs. The Commission shall determine the grant 15 amount for each student, which shall not exceed the smallest 16 of the following amounts: 17 (1) subject to appropriation, $5,468 for fiscal year 18 2009, $5,968 for fiscal year 2010, $6,468 for fiscal year 19 2011 and each fiscal year thereafter through fiscal year 20 2022, and $8,508 for fiscal year 2023 and each fiscal year 21 thereafter, or such lesser amount as the Commission finds 22 to be available, during an academic year; 23 (2) the amount which equals 2 semesters or 3 quarters 24 tuition and other necessary fees required generally by the 25 institution of all full-time undergraduate students; or 26 (3) such amount as the Commission finds to be HB2898 - 6 - LRB103 05261 RJT 50279 b HB2898- 7 -LRB103 05261 RJT 50279 b HB2898 - 7 - LRB103 05261 RJT 50279 b HB2898 - 7 - LRB103 05261 RJT 50279 b 1 appropriate in view of the applicant's financial 2 resources. 3 Subject to appropriation, the maximum grant amount for 4 students not subject to subdivision (1) of this subsection (c) 5 must be increased by the same percentage as any increase made 6 by law to the maximum grant amount under subdivision (1) of 7 this subsection (c). 8 "Tuition and other necessary fees" as used in this Section 9 include the customary charge for instruction and use of 10 facilities in general, and the additional fixed fees charged 11 for specified purposes, which are required generally of 12 nongrant recipients for each academic period for which the 13 grant applicant actually enrolls, but do not include fees 14 payable only once or breakage fees and other contingent 15 deposits which are refundable in whole or in part. The 16 Commission may prescribe, by rule not inconsistent with this 17 Section, detailed provisions concerning the computation of 18 tuition and other necessary fees. 19 (d) No applicant, including those presently receiving 20 scholarship assistance under this Act, is eligible for 21 monetary award program consideration under this Act after 22 receiving a baccalaureate degree or the equivalent of 135 23 semester credit hours of award payments. 24 (d-5) In this subsection (d-5), "renewing applicant" means 25 a student attending an institution of higher learning who 26 received a Monetary Award Program grant during the prior HB2898 - 7 - LRB103 05261 RJT 50279 b HB2898- 8 -LRB103 05261 RJT 50279 b HB2898 - 8 - LRB103 05261 RJT 50279 b HB2898 - 8 - LRB103 05261 RJT 50279 b 1 academic year. Beginning with the processing of applications 2 for the 2020-2021 academic year, the Commission shall annually 3 publish a priority deadline date for renewing applicants. 4 Subject to appropriation, a renewing applicant who files by 5 the published priority deadline date shall receive a grant if 6 he or she continues to meet the eligibility requirements under 7 this Section. A renewing applicant's failure to apply by the 8 priority deadline date established under this subsection (d-5) 9 shall not disqualify him or her from receiving a grant if 10 sufficient funding is available to provide awards after that 11 date. 12 (e) The Commission, in determining the number of grants to 13 be offered, shall take into consideration past experience with 14 the rate of grant funds unclaimed by recipients. The 15 Commission shall notify applicants that grant assistance is 16 contingent upon the availability of appropriated funds. 17 (e-5) The General Assembly finds and declares that it is 18 an important purpose of the Monetary Award Program to 19 facilitate access to college both for students who pursue 20 postsecondary education immediately following high school and 21 for those who pursue postsecondary education later in life, 22 particularly Illinoisans who are dislocated workers with 23 financial need and who are seeking to improve their economic 24 position through education. For the 2015-2016 and 2016-2017 25 academic years, the Commission shall give additional and 26 specific consideration to the needs of dislocated workers with HB2898 - 8 - LRB103 05261 RJT 50279 b HB2898- 9 -LRB103 05261 RJT 50279 b HB2898 - 9 - LRB103 05261 RJT 50279 b HB2898 - 9 - LRB103 05261 RJT 50279 b 1 the intent of allowing applicants who are dislocated workers 2 an opportunity to secure financial assistance even if applying 3 later than the general pool of applicants. The Commission's 4 consideration shall include, in determining the number of 5 grants to be offered, an estimate of the resources needed to 6 serve dislocated workers who apply after the Commission 7 initially suspends award announcements for the upcoming 8 regular academic year, but prior to the beginning of that 9 academic year. For the purposes of this subsection (e-5), a 10 dislocated worker is defined as in the federal Workforce 11 Innovation and Opportunity Act. 12 (f) (Blank). 13 (g) The Commission shall determine the eligibility of and 14 make grants to applicants enrolled at qualified for-profit 15 institutions in accordance with the criteria set forth in this 16 Section. The eligibility of applicants enrolled at such 17 for-profit institutions shall be limited as follows: 18 (1) Beginning with the academic year 1997, only to 19 eligible first-time freshmen and first-time transfer 20 students who have attained an associate degree. 21 (2) Beginning with the academic year 1998, only to 22 eligible freshmen students, transfer students who have 23 attained an associate degree, and students who receive a 24 grant under paragraph (1) for the academic year 1997 and 25 whose grants are being renewed for the academic year 1998. 26 (3) Beginning with the academic year 1999, to all HB2898 - 9 - LRB103 05261 RJT 50279 b HB2898- 10 -LRB103 05261 RJT 50279 b HB2898 - 10 - LRB103 05261 RJT 50279 b HB2898 - 10 - LRB103 05261 RJT 50279 b 1 eligible students. 2 (h) The Commission may award a grant to an eligible 3 applicant enrolled at an Illinois public institution of higher 4 learning in a program that will culminate in the award of an 5 occupational or career and technical certificate as that term 6 is defined in 23 Ill. Adm. Code 1501.301. 7 (h-5) In this subsection (h-5), "unfair or deceptive 8 practice" means an act or practice in which a representation, 9 omission, or practice misleads or is likely to mislead a 10 consumer as determined by the Federal Trade Commission. 11 If an institution received monetary award program funds at 12 a time the institution was using an unfair or deceptive 13 practice, as defined by the Federal Trade Commission, and is 14 required to reimburse students for loans taken to pay for 15 their education due to a judgment against the institution 16 after the effective date of this amendatory Act of the 103rd 17 General Assembly, then any State funds paid to the institution 18 in the time period of that judgment must be refunded to the 19 Commission, to be deposited into the MAP Refund Fund. The 20 Commission shall use funds appropriated from the MAP Refund 21 Fund to award grants to students who attended that institution 22 during the period in which the institution had a judgment 23 found against it. 24 An institution found to have been using an unfair or 25 deceptive practice must notify students who were enrolled 26 during the period of the judgment about the judgment, HB2898 - 10 - LRB103 05261 RJT 50279 b HB2898- 11 -LRB103 05261 RJT 50279 b HB2898 - 11 - LRB103 05261 RJT 50279 b HB2898 - 11 - LRB103 05261 RJT 50279 b 1 electronically and by certified mail, within 6 months after 2 the effective date of this amendatory Act of the 103rd General 3 Assembly. Affected students may apply for a grant under this 4 subsection (h-5) following the effective date of this 5 amendatory Act of the 103rd General Assembly or notification 6 of the judgment against the institution, whichever is later. 7 The application process shall be administered by the 8 Commission and remain open until no funds remain in the MAP 9 Refund Fund, subject to the other provisions of this 10 subsection (h-5). 11 A grant under this subsection (h-5) may not exceed the 12 maximum amount for a monetary award program grant for the 13 academic year that the grant under this subsection (h-5) is 14 awarded, as determined by the Commission. A grant under this 15 subsection (h-5) may be awarded to a student in addition to a 16 monetary award program grant but may not exceed the cost of 17 attendance at the institution at which the student is 18 enrolled. 19 At the start of the third academic year following the 20 effective date of this amendatory Act of the 103rd General 21 Assembly, the remaining balance in the MAP Refund Fund shall 22 be appropriated to the Commission for the Commission's 23 operating budget for the monetary award program. 24 The MAP Refund Fund is created as a special fund in the 25 State treasury. All refunds of Monetary Award Program funds 26 shall be deposited into the MAP Refund Fund. All money in the HB2898 - 11 - LRB103 05261 RJT 50279 b HB2898- 12 -LRB103 05261 RJT 50279 b HB2898 - 12 - LRB103 05261 RJT 50279 b HB2898 - 12 - LRB103 05261 RJT 50279 b 1 Fund shall be used, subject to appropriation, by the 2 Commission for the purposes of this subsection (h-5). 3 (i) The Commission may adopt rules to implement this 4 Section. 5 (Source: P.A. 101-81, eff. 7-12-19; 102-699, eff. 4-19-22.) 6 Section 99. Effective date. This Act takes effect upon 7 becoming law. HB2898 - 12 - LRB103 05261 RJT 50279 b