EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. Chapter 396 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 to 14, inclusive, of this act.

1-3 Sec. 2. As used in sections 2 to 14, inclusive, of this act, unless the

1-4 context otherwise requires, the words and terms defined in sections 3 to

1-5 7, inclusive, of this act have the meanings ascribed to them in those

1-6 sections.

1-7 Sec. 3. "Academic scholarship" means a scholarship that is awarded

1-8 from the trust fund to a student who:

1-9 1. Completed in high school the core curriculum prescribed by the

1-10 board for an academic scholarship; and

1-11 2. Is enrolled in a community college or university.

1-12 Sec. 4. "Board" means the millennium scholarship board created

1-13 pursuant to section 9 of this act.

1-14 Sec. 5. "Millennium scholarship" means an academic or vocational

1-15 scholarship that is awarded from the trust fund to a student.

2-1 Sec. 6. "Trust fund" means the millennium scholarship trust fund

2-2 created pursuant to section 8 of this act.

2-3 Sec. 7. "Vocational scholarship" means a scholarship that is

2-4 awarded from the trust fund to a student who:

2-5 1. Completed in high school the core curriculum prescribed by the

2-6 board for a vocational scholarship; and

2-7 2. Is enrolled in a community college.

2-8 Sec. 8. 1. The millennium scholarship trust fund is hereby created

2-9 in the state treasury to be administered by the state treasurer. The state

2-10 treasurer may accept gifts, grants, bequests and donations for deposit in

2-11 the trust fund.

2-12 2. Except as otherwise provided in section 8.5 of this act, the state

2-13 treasurer shall deposit in the trust fund:

2-14 (a) Fifty percent of all money received by this state pursuant to any

2-15 settlement entered into by the State of Nevada and a manufacturer of

2-16 tobacco products;

2-17 (b) Fifty percent of all money recovered by the State of Nevada from a

2-18 judgment in a civil action against a manufacturer of tobacco products;

2-19 and

2-20 (c) Any gifts, grants, bequests or donations specifically designated for

2-21 the trust fund by the donor.

2-22 3. The state treasurer, in consultation with the board, shall invest

2-23 money in the trust fund as the money in other state funds is invested.

2-24 4. All interest and income earned on the money in the trust fund

2-25 must, after deducting any applicable charges, be credited to the trust

2-26 fund.

2-27 5. All claims against the trust fund must be paid as other claims

2-28 against the state are paid.

2-29 6. Not more than 2 percent of the amount of money in the trust fund

2-30 that is awarded in millennium scholarships each year may be used to pay

2-31 the costs of administering the trust fund and to pay the per diem

2-32 allowances and travel expenses of the members of the board pursuant to

2-33 section 9 of this act.

2-34 7. Money in the trust fund may be used only for the purposes set

2-35 forth in sections 2 to 14, inclusive, of this act.

2-36 Sec. 8.5. 1. The board may form a nonprofit corporation pursuant

2-37 to chapter 82 of NRS for the purpose of issuing bonds or other

2-38 obligations for the benefit of the trust fund. The board shall serve as the

2-39 board of directors of any such corporation created pursuant to this

2-40 section.

2-41 2. The corporation may issue obligations payable solely from the

2-42 revenue described in paragraphs (a) and (b) of subsection 2 of section 8

2-43 of this act. Any such obligations are solely the obligations of the

3-1 corporation and are not obligations, special or general, of the state and

3-2 do not give rise to any claim against the state, the taxing power of the

3-3 state or any asset or income of the state except the revenue described in

3-4 paragraphs (a) and (b) of subsection 2 of section 8 of this act.

3-5 3. If obligations are issued by the corporation pursuant to this

3-6 section, the state treasurer shall transfer in each fiscal year sufficient

3-7 money from the revenue described in paragraphs (a) and (b) of

3-8 subsection 2 of section 8 of this act to the corporation to pay the principal

3-9 and interest on the obligations when due; but in no event shall the state

3-10 treasurer transfer to the corporation in any fiscal year more money than

3-11 he has received in that fiscal year from the sources of revenue described

3-12 in paragraphs (a) and (b) of subsection 2 of section 8 of this act.

3-13 Sec. 9. 1. The millennium scholarship board is hereby created.

3-14 The membership of the board consists of the governor or his designee,

3-15 the state treasurer or his designee and:

3-16 (a) One member appointed by the majority leader of the senate who is

3-17 not a legislator;

3-18 (b) One member appointed by the speaker of the assembly who is not

3-19 a legislator; and

3-20 (c) Three members of the board of regents, appointed by the governor.

3-21 The governor shall appoint members of the board of regents with due

3-22 regard to maintaining equitable representation for the entire state.

3-23 2. Each member of the board serves at the pleasure of his appointing

3-24 authority. A vacancy in the membership of the board must be filled for

3-25 the remainder of the unexpired term in the same manner as the original

3-26 appointment.

3-27 3. The members of the board serve without compensation, except

3-28 that for each day or portion of a day during which a member of the

3-29 board attends a meeting of the board or is otherwise engaged in the

3-30 business of the board, he is entitled to receive the per diem allowance and

3-31 travel expenses provided for state officers and employees generally.

3-32 4. The board may request assistance from the board of regents, the

3-33 office of the chancellor and any branch or facility of the system as is

3-34 necessary for the board to carry out its duties pursuant to sections 2 to

3-35 14, inclusive, of this act.

3-36 Sec. 10. 1. The board shall adopt regulations that set forth:

3-37 (a) The core curriculum that a student must complete in high school

3-38 to be eligible for an academic scholarship and the core curriculum that a

3-39 student must complete in high school to be eligible for a vocational

3-40 scholarship. The regulations must set forth the conditions under which

3-41 required completion of the core curriculum may be waived during the

3-42 first 2 academic years after adoption of the regulations. The core

3-43 curriculum must be established in consultation with the board of regents.

4-1 (b) The requirements for a student who:

4-2 (1) Received a vocational scholarship; and

4-3 (2) Completed a course of study recognized by the board at a

4-4 community college,

4-5 to be eligible for an academic scholarship upon transfer to a university.

4-6 A student who received an academic scholarship and enrolled in a

4-7 community college may continue to receive an academic scholarship

4-8 upon transfer to a university if he otherwise satisfies the requirements for

4-9 a millennium scholarship.

4-10 (c) For students who did not graduate from a public or private high

4-11 school in this state, the minimum score on a standardized test that such

4-12 students must receive to be eligible for millennium scholarships.

4-13 (d) The minimum number of credits that a student must maintain in

4-14 each academic year to maintain eligibility for a millennium scholarship.

4-15 The regulations must require a student to maintain at least 6 but not

4-16 more than 12 semester credit hours in each of the fall and spring

4-17 semesters.

4-18 (e) The criteria for determining whether a student who receives a

4-19 millennium scholarship is making satisfactory academic progress toward

4-20 obtaining a degree or certificate. The criteria must require a student to

4-21 maintain at least a 2.0 grade-point average on a 4.0 grading scale for his

4-22 first academic year and a 2.5 grade-point average on a 4.0 grading scale

4-23 thereafter. If a student participates as a member of a varsity athletic

4-24 team, he must also satisfy the standards established by the board of

4-25 regents pursuant to NRS 396.585. The regulations must establish the

4-26 maximum period that a student may take to obtain his degree or

4-27 certificate and continue to be eligible for a millennium scholarship. The

4-28 period must not exceed 8 years after a student obtained a high school

4-29 diploma or a certificate of educational equivalence for achieving a

4-30 passing score on the tests of general educational development.

4-31 (f) The amount by which the distribution of a millennium scholarship

4-32 to a student must be set off against other financial aid received by the

4-33 student.

4-34 (g) The terms for repayment of a millennium scholarship for any

4-35 semester in which the student fails to maintain the minimum number of

4-36 semester credits required by the board, including, without limitation, that

4-37 the board may deny future installments of the millennium scholarship to

4-38 any student who fails to make adequate provision for repayment.

4-39 (h) The expenditures for which money from a millennium scholarship

4-40 may be used and any related limitations on the use of the money.

4-41 2. The board shall determine whether:

4-42 (a) Millennium scholarships may be awarded for summer semesters.

4-43 If the board authorizes scholarships for summer semesters, it shall apply

5-1 the same criteria for eligibility as is set forth in the regulations adopted

5-2 pursuant to subsection 1.

5-3 (b) Honors division classes must be given additional weight in

5-4 calculating a student’s grade-point average to determine eligibility for a

5-5 millennium scholarship. If the board determines that additional weight

5-6 must be given, it shall include in the regulations adopted pursuant to

5-7 subsection 1 the formula for calculating a student’s grade-point average

5-8 if the student completed honors division classes in high school.

5-9 Sec. 11. 1. Within the limits of money available in the trust fund,

5-10 the board shall award millennium scholarships to all eligible students

5-11 who apply.

5-12 2. A student may apply to the board for a millennium scholarship. In

5-13 addition to satisfying the criteria for eligibility set forth by the board

5-14 pursuant to section 10 of this act, to be eligible for a millennium

5-15 scholarship a student must:

5-16 (a) Except as otherwise provided in paragraph (b), graduate from a

5-17 public or private high school in this state after May 1, 2000, with at least

5-18 a 3.0 grade-point average overall and in the core curriculum, on a 4.0

5-19 grading scale, and otherwise meet the requirements for graduation from

5-20 high school in this state, including, without limitation, passing the

5-21 proficiency examination administered in grade 11 pursuant to NRS

5-22 389.015 or thereafter, if applicable;

5-23 (b) If a student has not completed the credits required for graduation

5-24 from high school in this state, the student must:

5-25 (1) Receive at least the minimum score on a standardized test, as set

5-26 forth by the regulations of the board; or

5-27 (2) Complete at least 30 semester credits at a university or

5-28 community college with at least a 3.0 grade-point average overall, on a

5-29 4.0 grading scale;

5-30 (c) Reside in this state for at least 2 years before obtaining a high

5-31 school diploma or a certificate of educational equivalence for achieving

5-32 a passing score on the tests of general educational development; and

5-33 (d) Be enrolled in a community college or university of the system for

5-34 the minimum number of semester credits established by the board.

5-35 3. If a dispute exists concerning a student’s eligibility, the board

5-36 shall determine whether the student is eligible for the millennium

5-37 scholarship. The board’s determination is final and not subject to

5-38 judicial review.

5-39 4. Within the limits of money available in the trust fund, the board

5-40 shall award each eligible student who is enrolled in a:

5-41 (a) Community college, a scholarship of $40 per credit for which the

5-42 student is enrolled.

6-1 (b) University, a scholarship of $80 per credit for which the student is

6-2 enrolled.

6-3 The credits for which such a scholarship may be awarded are any credits

6-4 which will satisfy the requirements toward obtaining a degree or

6-5 certificate. No student may be awarded a scholarship for more than 125

6-6 total credits or for a total amount in excess of $10,000.

6-7 5. The board shall certify a list of eligible students to the state

6-8 treasurer. The state treasurer shall disburse a millennium scholarship for

6-9 each semester on behalf of an eligible student directly to the community

6-10 college or university in which the student is enrolled, upon certification

6-11 from the community college or university of:

6-12 (a) The number of credits for which the student is enrolled, which

6-13 must meet or exceed the minimum number of credits required for

6-14 eligibility; and

6-15 (b) That the student is in good standing and making satisfactory

6-16 academic progress toward a degree or certificate.

6-17 The scholarship must be administered by the community college or

6-18 university as other similar scholarships are administered and may be

6-19 used for any expenditure authorized by the board.

6-20 Sec. 12. The board of regents shall develop a plan to direct a

6-21 significant portion of other available financial aid to culturally

6-22 disadvantaged or at-risk students, and students who graduated from high

6-23 school before May 1, 2000, who wish to attend college and have the

6-24 potential to be successful, but who do not otherwise meet the eligibility

6-25 requirements for millennium scholarships.

6-26 Sec. 13. 1. On or before February 1 of each odd-numbered year,

6-27 the board shall submit a written report to the director of the legislative

6-28 counsel bureau for transmittal to the legislature.

6-29 2. The report must contain the following information for the system

6-30 and each university and community college within the system:

6-31 (a) The total number of students that received millennium

6-32 scholarships;

6-33 (b) The number of students that received millennium scholarships in

6-34 the current fiscal year;

6-35 (c) The median grade-point average of recipients upon entering

6-36 college;

6-37 (d) The median grade-point average of recipients in college;

6-38 (e) The number of recipients who have graduated from college;

6-39 (f) The number of recipients who did not graduate from college and

6-40 who are not currently enrolled in college; and

6-41 (g) An evaluation of the effect of the millennium scholarship program

6-42 on the rates of college participation, the rates of the award of degrees or

6-43 certificates and the success of students in college.

7-1 3. The state treasurer, in conjunction with the board, shall include a

7-2 report on the financial status of the trust fund, including, without

7-3 limitation, the most recent actuarial studies conducted pursuant to

7-4 subsection 4.

7-5 4. The board shall contract with a certified actuary to perform an

7-6 annual actuarial study. The money in the trust fund must be used to pay

7-7 the costs of contracting with the actuary. The state treasurer shall make

7-8 available for inspection all records necessary to perform the actuarial

7-9 study.

7-10 Sec. 14. 1. The board of trustees of each school district and each

7-11 public or private high school shall cooperate with the millennium

7-12 scholarship board by providing reports of the projected numbers of

7-13 students eligible for millennium scholarships and shall develop a

7-14 program to certify whether graduating seniors meet applicable eligibility

7-15 requirements.

7-16 2. The board shall work with the board of trustees of each school

7-17 district, the department of education, and each participating community

7-18 college or university, to create appropriate programs to inform students

7-19 of the millennium scholarship program and the requirements for

7-20 eligibility.

7-21 Sec. 15. On or before September 15, 1999, the governor, the majority

7-22 leader of the senate and the speaker of the assembly shall make

7-23 appointments to the millennium scholarship board in accordance with

7-24 section 9 of this act.

7-25 Sec. 16. For the first year of operation of the millennium scholarship

7-26 board, not more than $100,000 may be used from the millennium

7-27 scholarship trust fund to pay the costs of administering the trust fund and to

7-28 pay the per diem allowances and travel expenses of the members of the

7-29 board.

7-30 Sec. 17. 1. This section and section 15 of this act become effective

7-31 on July 1, 1999.

7-32 2. Section 9 of this act becomes effective on July 1, 1999, for the

7-33 purpose of appointing members to the millennium scholarship board and on

7-34 October 1, 1999, for all other purposes.

7-35 3. Sections 1 to 8.5, inclusive, 10 to 14, inclusive, and 16 of this act

7-36 become effective on October 1, 1999.