SB159

Senate Bill No. 159–Senator Rawson

CHAPTER..........

AN ACT relating to education; deleting the authority of the Western Interstate Commission for Higher Education to adopt certain regulations; revising certain references to the members of the Commission from the State of Nevada; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 397.030 is hereby amended to read as follows:

397.030 1. In furtherance of the provisions contained in the

Compact, there must be three Commissioners from the State of

Nevada, appointed by the Governor.

2. The qualifications and terms of the three Nevada State

Commissioners must be in accordance with Article 4 of the

Compact. A Nevada State Commissioner shall hold office until his

successor is appointed and qualified , but the successor’s term

expires 4 years [from] after the legal date of expiration of the term

of his predecessor.

3. Any Nevada State Commissioner may be removed from

office by the Governor upon charges and after a hearing.

4. The term of any Nevada State Commissioner who ceases to

hold the required qualifications terminates when a successor is

appointed.

Sec. 2. NRS 397.050 is hereby amended to read as follows:

397.050 1. Money to carry out the provisions of this chapter

must be provided by direct legislative appropriation from the State

General Fund and must be accounted for in the Western Regional

Higher Education Compact Account which is hereby created.

2. The money in the Account may be used by the three Nevada

State Commissioners appointed pursuant to NRS 397.030:

(a) To pay dues to the Western Interstate Commission for

Higher Education.

(b) To meet necessary administrative expenses.

Sec. 3. NRS 397.055 is hereby amended to read as follows:

397.055 1. Whenever the three Nevada State Commissioners

appointed pursuant to NRS 397.030 are unable to provide contract

places for Nevada residents in graduate or professional schools

pursuant to contractual agreements authorized by Article 8 of the

Compact, or the cost of attending a school within the region is

excessive, they may enter into contractual agreements with the

governing authority of any educational institution offering

accredited graduate and professional education outside the region of

the Compact or with any state outside the region.

2. The terms and conditions of any such agreements must

adhere to the same standards which are observed in the selection of

contract places for Nevada residents in graduate or professional

schools within the region.

Sec. 4. NRS 397.060 is hereby amended to read as follows:

397.060 The three Nevada State Commissioners , [from the

State of Nevada,] acting jointly, shall:

1. Choose from among Nevada residents who apply, and have

at least 1 year’s residence in this state immediately before applying

for the program, those most qualified for contract places; and

2. Certify them to receiving institutions.

Sec. 5. NRS 397.0615 is hereby amended to read as follows:

397.0615 Financial support provided to a student who is

chosen by the three Nevada State Commissioners [from the State of

Nevada] to receive such support from the Western Interstate

Commission for Higher Education must be provided in the form of a

support fee. Except as otherwise provided in NRS 397.0617, 25

percent of the support fee is a loan that the student must repay with

interest pursuant to NRS 397.063 or 397.064, as appropriate.

Seventy-five percent of the support fee is a stipend that the student

is not required to repay, except as otherwise provided in

NRS 397.0653.

Sec. 6. NRS 397.0617 is hereby amended to read as follows:

397.0617 1. The provisions of this section apply only to

support fees received by a student on or after July 1, 1997.

2. The three Nevada State Commissioners , [from the State of

Nevada,] acting jointly, may require a student who is certified to

study to practice in a profession which could benefit a medically

underserved area of this state, as that term is defined by the Officer

of Rural Health of the University of Nevada School of Medicine, to

practice in such an area or to practice in an area designated by the

Secretary of Health and Human Services:

(a) Pursuant to 42 U.S.C. § 254c, as containing a medically

underserved population; or

(b) Pursuant to 42 U.S.C. § 254e, as a health professional

shortage area,

as a condition to receiving a support fee.

3. If a person agrees to practice in a medically underserved

area of this state pursuant to subsection 2 for at least 2 years, the

three Nevada State Commissioners , [from the State of Nevada,]

acting jointly, may forgive the portion of the support fee designated

as the loan of the person.

4. If a person returns to this state but does not practice in a

medically underserved area of this state pursuant to subsection 2 for

at least 2 years, the three Nevada State Commissioners , [from the

State of Nevada,] acting jointly, shall assess a default charge in an

amount not less than three times the portion of the support fee

designated as the loan of the person, plus interest.

5. As used in this section, a “profession which could benefit a

medically underserved area of this state” includes, without

limitation, dentistry, physical therapy, pharmacy and practicing as a

physician assistant.

Sec. 7. NRS 397.062 is hereby amended to read as follows:

397.062 1. There is hereby created an account in the State

General Fund entitled the Western Interstate Commission for Higher

Education’s Account for Miscellaneous Expenses. Any money

received by the three Nevada State Commissioners [from the State

of Nevada] as the proceeds of any penalty or appropriated or

authorized for the purposes of this section must be deposited in this

Account.

2. The three Nevada State Commissioners , [from the State of

Nevada,] acting jointly, shall administer the Account and the money

in the Account must be used to:

(a) Pay miscellaneous expenses incurred in administering the

Western Interstate Commission for Higher Education’s Fund for

Student Loans; and

(b) Pay expenses incurred in collecting money due the State

from a student loan or a stipend granted from the Western Interstate

Commission for Higher Education’s Fund for Student Loans.

Sec. 8. NRS 397.063 is hereby amended to read as follows:

397.063 1. All contributions from students must be

accounted for in the Western Interstate Commission for Higher

Education’s Fund for Student Loans which is hereby created as an

enterprise fund.

2. The three Nevada State Commissioners , [from the State of

Nevada,] acting jointly, shall administer the Fund and the money in

the Fund must be used solely to provide:

(a) Loans to; and

(b) Contractual arrangements for educational services and

facilities for,

residents of Nevada who are certified to attend graduate or

professional schools in accordance with the provisions of the

Western Regional Higher Education Compact.

3. Loans from the Western Interstate Commission for Higher

Education’s Fund for Student Loans, before July 1, 1985, and loans

made to students classified as continuing students before July 1,

1985, must be made upon the following terms:

(a) All student loans must bear interest at 5 percent per annum

from the date when the student receives the loan.

(b) Each student receiving a loan must repay the loan with

interest following the termination of his education or completion of

his internship in accordance with the following schedule:

(1) Within 5 years for loans which total less than $10,000.

(2) Within 8 years for loans which total $10,000 or more but

less than $20,000.

(3) Within 10 years for loans which total $20,000 or more.

for any academic year.

Sec. 9. NRS 397.064 is hereby amended to read as follows:

397.064 Loans, from the Western Interstate Commission for

Higher Education’s Fund for Student Loans, to students who enter

the program on or after July 1, 1985, must be made upon the

following terms:

1. All loans must bear interest at 8 percent per annum from

the first day of the academic term for which the student received the

loan.

2. Except as otherwise provided in NRS 397.0617, each

student receiving a loan must repay the loan with interest following

the termination of his education or completion of his internship for

which the loan is made.

3. The loan must be repaid in monthly installments over the

period allowed, as set forth in subsection 4, with the first installment

due 1 year after the date of the termination of his education or the

completion of his internship for which the loan is made. The

amounts of the installments may not be less than $50 and may be

calculated to allow a smaller payment at the beginning of the

repayment period, with each succeeding payment gradually

increasing so that the total amount due will have been paid within

the period allowed for repayment.

4. The three Nevada State Commissioners , [from the State of

Nevada,] acting jointly, shall, or shall delegate to the Director of the

Western Interstate Commission for Higher Education the power to,

schedule the repayment within the following periods:

(a) Five years for loans which total less than $10,000.

(b) Eight years for loans which total $10,000 or more but less

than $20,000.

5. A student loan may not exceed 50 percent of the student fees

for any academic year.

6. A delinquency charge may be assessed on any installment

delinquent 10 days or more in the amount of 8 percent of the

installment or $4, whichever is greater, but not more than $15.

7. The reasonable costs of collection and an attorney’s fee may

be recovered in the event of delinquency.

Sec. 10. NRS 397.0645 is hereby amended to read as follows:

397.0645 1. A student who receives from the Western

Interstate Commission for Higher Education a stipend governed by

the provisions of NRS 397.065 or 397.0653 must repay all state

contributions for the stipend unless he practices, in Nevada, the

profession which he was certified to study:

(a) For 3 years, if he entered the program before July 1, 1985;

(b) For 1 year for each academic year he receives a stipend, if he

enters the program after June 30, 1985; or

enters the program after June 30, 1985, and is enrolled in an

accelerated program that provides more than 1 academic year of

graduate and professional education in 9 months,

within 5 years after the completion or termination of his education,

internship or residency for which he receives the stipend.

2. The three Nevada State Commissioners , [from the State of

Nevada,] acting jointly, may adopt regulations which:

(a) Reduce the period of required practice for a person who

practices his profession in a rural area of this state or as an employee

of this state.

(b) Extend the time for completing the required practice beyond

5 years for a person who is granted an extension because of

hardship.

3. If the period for the required practice is only partially

completed, the Commission may give credit towards repayment of

the stipend for the time the person practiced his profession as

required.

Sec. 11. NRS 397.0655 is hereby amended to read as follows:

397.0655 The three Nevada State Commissioners [from the

State of Nevada] may, by regulation, delegate to the Director of the

Western Interstate Commission for Higher Education the authority

to negotiate the terms of repayment, including how and when

payments will be made on loans or stipends in default. The three

Nevada State Commissioners may not delegate the authority to

reduce the principal balance owing.

Sec. 12. NRS 397.066 is hereby amended to read as follows:

397.066 The three Nevada State Commissioners , [from the

State of Nevada,] acting jointly, may require:

1. A student to acquire, as security for a stipend or student

loan, insurance on his life and on his health or against his disability,

or both.

2. That a financially responsible person agree to be jointly

liable with the recipient for the repayment of the loan or stipend.

Sec. 13. NRS 397.067 is hereby amended to read as follows:

397.067 The three Nevada State Commissioners , [from the

State of Nevada,] acting jointly, may, or may delegate to the

Director of the Western Interstate Commission for Higher Education

the power to, require, upon notice to a recipient of a loan, that he

repay the balance and any unpaid interest on the loan at once if:

1. An installment is not paid within 30 days after it is due;

2. The recipient fails to notify the three Nevada State

Commissioners, within 30 days, of:

(a) A change of name or of the address of his home or place of

practice; or

(b) The termination of his education or completion of his

internship for which he receives the loan; or

3. The recipient fails to comply with any other requirement or

perform any other obligation he is required to perform pursuant to

any agreement under the program.

Sec. 14. NRS 397.068 is hereby amended to read as follows:

397.068 A recipient of a loan or a stipend under the program of

the Western Interstate Compact for Higher Education shall comply

with the regulations adopted by the Commission or the three

Nevada State Commissioners . [from the State of Nevada.] If he

fails so to comply, the three Nevada State Commissioners , [from

the State of Nevada,] acting jointly, may:

1. For each infraction, impose a fine of not more than $200

against any recipient in any academic year, and may deny additional

money to any student who fails to pay the fine when due;

2. Increase the portion of any future loan to be repaid by the

recipient;

3. Extend the time a recipient is required to practice his

profession to repay his stipend; and

4. Expel him from the program.

Sec. 15. NRS 397.0685 is hereby amended to read as follows:

397.0685 1. The three Nevada State Commissioners , [from

the State of Nevada,] acting jointly, may, after receiving a written

application stating the reasons therefor, reduce the period of

required practice for the repayment of a stipend under NRS

397.0645 if the applicant:

(a) Has had at least 1 continuous year of practice of his

profession in this state, and practices his profession in a rural area of

this state. The applicant’s practice in the rural area must be equal to

at least half of the total time spent by the applicant in his

professional practice, and not less than 20 hours per week.

(b) Practices his profession as a full-time employee of the State

of Nevada and has been employed by the State for at least 1

continuous year immediately before his application.

2. Any claim as to practice must be verified.

Sec. 16. NRS 397.069 is hereby amended to read as follows:

397.069 1. The three Nevada State Commissioners , [from

the State of Nevada,] acting jointly, may after receiving an

application stating the reasons therefor, grant an extension of the

period for the repayment of a loan or a stipend under the program in

case of hardship arising out of the individual circumstances of a

recipient. The extension must be for a period that will reasonably

alleviate that hardship.

2. Applications for extensions must be filed within the time

prescribed by regulation of the three Nevada State Commissioners ,

[from the State of Nevada,] acting jointly.

Sec. 17. NRS 397.0695 is hereby amended to read as follows:

397.0695 A person obligated to repay a student loan may, as

determined by the three Nevada State Commissioners , [from the

State of Nevada,] acting jointly, receive credit towards payment of

the loan for professional services provided without compensation to

the State or any of its political subdivisions.

Sec. 18. NRS 353.357 is hereby amended to read as follows:

353.357 1. If the three Nevada State Commissioners [from

the State of Nevada] on the Western Interstate Commission for

Higher Education, acting jointly, determine that current claims

against the Western Interstate Commission for Higher Education’s

Fund for Student Loans created pursuant to NRS 397.063 exceed the

amount of money available in the Fund to pay the claims because of

a delay in the receipt of revenue due the Fund, the three Nevada

State Commissioners may request from the Director of the

Department of Administration a temporary advance from the State

General Fund to the Western Interstate Commission for Higher

Education’s Fund for Student Loans for the payment of authorized

expenses.

2. If the Director of the Department of Administration

approves a request made pursuant to subsection 1, he shall notify the

State Controller and the Fiscal Analysis Division of the Legislative

Counsel Bureau of that approval. The State Controller shall draw his

warrant upon receipt of the approval by the Director of the

Department of Administration.

3. An advance from the State General Fund is limited to 50

percent of the revenue expected to be received by the Western

Interstate Commission for Higher Education’s Fund for Student

Loans in the current fiscal year from any source other than

legislative appropriation.

4. Any money that is temporarily advanced from the State

General Fund pursuant to subsection 2 must be repaid by August 31

following the end of the fiscal year in which the temporary advance

is made.

Sec. 19. NRS 397.0605 is hereby repealed.

Sec. 20. This act becomes effective on July 1, 2003.

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