IL HB3691

Establishes the Illinois Higher Education Savings Program as part of the College Savings Pool, administered by the State Treasurer to expand access to higher education through savings accounts.

All children born or adopted in Illinois are automatically eligible; parents/guardians may opt out at birth certificate application; the Department of Public Health provides quarterly birth record data to the State Treasurer.

State Treasurer deposits $50 initial seed and up to $150 annual matching funds (one-to-one basis) into custodial 529 plan accounts for eligible low-income beneficiaries (below 250% of federal poverty line) age 18 or younger.

Account distributions permitted only for qualifying post-secondary education expenses before beneficiary reaches age 29; service in national programs or military confinement extends maturity date by one year per year of service.

Creates the Illinois Higher Education Savings Program Fund to hold all contributions, appropriations, gifts, and earnings; funds cannot be transferred to other state funds or used for inter-fund borrowing while contracts are outstanding.