REQUIRES TWO-THIRDS MAJORITY VOTE (§ 1)
A.B. 164
- *AB164*
ASSEMBLY BILL NO. 164–ASSEMBLYMEMBER O’NEILL
PREFILED JANUARY 31, 2025
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Referred to Committee on Education
SUMMARY—Revises provisions relating to the Account for
Student Indemnification. (BDR 34-544)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State: No.
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to postsecondary education; changing the balance
in the Account for Student Indemnification above which
certain postsecondary educational institutions are not
required to pay certain fees; and providing other matters
properly relating thereto.
Legislative Counsel’s Digest:
Existing law requires each postsecondary educational institution licensed by the 1
Commission on Postsecondary Education, generally privately owned postsecondary 2
educational institutions, to pay to the Administrator of the Commission a quarterly 3
fee of $5 for each student the institution initially enrolls in a calendar quarter in a 4
program for which the student pays a tuition or registration fee. Money from this 5
fee is required to be deposited in the State Treasury for credit to the Account for 6
Student Indemnification. (NRS 394.557) Money in the Account may be used to 7
indemnify a student or enrollee of a postsecondary educational institution who has 8
suffered damage because the postsecondary educational institution ceased 9
operations or due to a violation of certain provisions governing postsecondary 10
educational institutions that are licensed by the Commission. Money in the Account 11
may also be used for certain costs related to investigating claims for 12
indemnification from the Account. (NRS 394.553) 13
If the balance in the Account is $250,000 or more, existing law: (1) requires the 14
Administrator to notify the postsecondary educational institutions licensed by the 15
Commission; and (2) exempts such postsecondary educational institutions from 16
the requirement to pay the fee. If the balance in the Account subsequently falls 17
below $250,000, the Administrator is required to notify the postsecondary 18
educational institutions that the fee must again be paid until the balance in the 19
Account is $250,000 or more. (NRS 394.557) This bill raises the Account balance 20
above which postsecondary educational institutions are not required to pay the fee 21
from $250,000 or more to $750,000 or more. 22
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- *AB164*
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 394.557 is hereby amended to read as follows: 1
394.557 1. Except as otherwise provided in subsection 2, 2
each postsecondary educational institution licensed in this state shall 3
pay to the Administrator a fee of $5 for each student the institution 4
initially enrolls in a program for which the student pays a tuition 5
or registration fee. On or before January 1, April 1, July 1 and 6
October 1 of each year, each institution shall transmit to the 7
Administrator the fees required by this subsection for the 8
immediately preceding quarter. The Administrator shall deposit 9
the money in the State Treasury for credit to the Account for 10
Student Indemnification. 11
2. The Administrator shall notify each postsecondary 12
educational institution licensed in this state if the balance in the 13
Account is [$250,000] $750,000 or more. If the balance in the 14
Account is [$250,000] $750,000 or more, a postsecondary 15
educational institution is not required to pay the fee required by 16
subsection 1. If the balance in the Account subsequently falls below 17
[$250,000,] $750,000, the Administrator shall notify each 18
postsecondary educational institution licensed in this state that the 19
fee must be paid until the balance in the Account is [$250,000] 20
$750,000 or more. 21
Sec. 2. This act becomes effective on July 1, 2025. 22
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