HB3012 Summary

• Amends the Illinois Prepaid Tuition Act to prohibit new Illinois prepaid tuition contracts from being entered into after the effective date of this amendatory Act.

• Existing contract provisions remain in effect, including terms for refunds, withdrawals, conversions between public university and community college plans, and transfers to nonpublic or out-of-state institutions.

• Contracts must be purchased in units of 15 credit hours with a minimum of one unit and maximum of 9 units (135 credit hours) for the Public University Plan and 4 units (60 credit hours) for the Community College Plan.

• Qualified beneficiaries cannot receive benefits earlier than 3 years from the date the contract is purchased, and refunds generally cannot exceed the amount paid into the Illinois Prepaid Tuition Trust Fund.

• The Act takes effect June 30, 2021, effectively ending the ability to purchase new prepaid tuition contracts while maintaining protections for existing contract holders.