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 9, inclusive, of this act.

1-3 Sec. 2. 1. The legislature hereby declares that its priorities in

1-4 expending the proceeds to the State of Nevada from settlement

1-5 agreements with and civil actions against manufacturers of tobacco

1-6 products are:

1-7 (a) To increase the number of Nevada students who attend and

1-8 graduate from Nevada institutions of higher education; and

1-9 (b) To assist Nevada residents in obtaining and maintaining good

1-10 health.

1-11 2. To further these priorities, the legislature hereby declares that it is

1-12 in the best interest of the residents of the State of Nevada that all money

1-13 received by the State of Nevada pursuant to any settlement entered into

1-14 by the State of Nevada and a manufacturer of tobacco products and all

1-15 money recovered by the State of Nevada from a judgment in a civil action

1-16 against a manufacturer of tobacco products be dedicated solely toward

1-17 the achievement of the following goals:

2-1 (a) Increasing the number of residents of the State of Nevada who

2-2 enroll in and attend a university or community college of the University

2-3 and Community College System of Nevada;

2-4 (b) Reducing and preventing the use of tobacco products, alcohol and

2-5 illegal drugs, especially by children;

2-6 (c) Expanding the availability of health insurance and health care for

2-7 children and adults in this state, especially for children and for adults

2-8 with disabilities;

2-9 (d) Assisting senior citizens who have modest incomes in purchasing

2-10 prescription drugs and assisting those senior citizens in meeting their

2-11 needs related to health care, home care, respite care and their ability to

2-12 live independent of institutional care; and

2-13 (e) Promoting the general health of all residents of the State of

2-14 Nevada.

2-15 Sec. 3. As used in sections 3 to 9, inclusive, of this act, unless the

2-16 context otherwise requires, the words and terms defined in sections 4 and

2-17 5 of this act have the meanings ascribed to them in those sections.

2-18 Sec. 4. "Millennium scholarship" means a scholarship that is

2-19 awarded from the trust fund to a student.

2-20 Sec. 5. "Trust fund" means the millennium scholarship trust fund

2-21 created pursuant to section 6 of this act.

2-22 Sec. 6. 1. The millennium scholarship trust fund is hereby created

2-23 in the state treasury. The state treasurer may accept gifts, grants,

2-24 bequests and donations for deposit in the trust fund.

2-25 2. The state treasurer shall deposit in the trust fund:

2-26 (a) Forty percent of all money received by the State of Nevada

2-27 pursuant to any settlement entered into by the State of Nevada and a

2-28 manufacturer of tobacco products;

2-29 (b) Forty percent of all money recovered by the State of Nevada from

2-30 a judgment in a civil action against a manufacturer of tobacco products;

2-31 and

2-32 (c) Any gifts, grants, bequests or donations specifically designated for

2-33 the trust fund by the donor.

2-34 3. The state treasurer shall administer the trust fund. As

2-35 administrator of the trust fund, the state treasurer:

2-36 (a) Shall maintain the financial records of the trust fund;

2-37 (b) Shall invest the money in the trust fund as the money in other state

2-38 funds is invested;

2-39 (c) Shall manage any account associated with the trust fund;

2-40 (d) Shall maintain any instruments that evidence investments made

2-41 with the money in the trust fund;

2-42 (e) May contract with vendors for any good or service that is

2-43 necessary to carry out the provisions of this section; and

3-1 (f) May perform any other duties necessary to administer the trust

3-2 fund.

3-3 4. All interest and income earned on the money in the trust fund

3-4 must, after deducting any applicable charges, be credited to the trust

3-5 fund. All claims against the trust fund must be paid as other claims

3-6 against the state are paid.

3-7 5. Not more than 2 percent of the amount of money in the trust fund

3-8 may be used to pay the costs of administering the trust fund.

3-9 6. The money in the fund remains in the fund and does not revert to

3-10 the state general fund at the end of any fiscal year.

3-11 7. Money in the trust fund may be used only for the purposes set

3-12 forth in sections 3 to 8, inclusive, of this act.

3-13 Sec. 7. 1. Except as otherwise provided in subsections 2 and 3, a

3-14 student may apply to the board of regents for a millennium scholarship if

3-15 he:

3-16 (a) Has been a resident of this state for at least 2 years before he

3-17 applies for the scholarship;

3-18 (b) Graduated from a public or private high school in this state:

3-19 (1) After May 1, 2000; and

3-20 (2) Not more than 8 years before he applies for the scholarship;

3-21 (c) Maintained at least a 3.0 grade-point average on a 4.0 grading

3-22 scale in high school in the core curriculum, as determined by the board

3-23 of regents pursuant to subsection 2; and

3-24 (d) Is enrolled in at least 12 semester credit hours in a university or at

3-25 least 6 semester credit hours in a community college.

3-26 2. The board of regents shall:

3-27 (a) Define the core curriculum that a student must complete in high

3-28 school to be eligible for a millennium scholarship.

3-29 (b) Develop a plan to ensure that needy students and students from

3-30 families that otherwise could not afford to send their children to college

3-31 receive millenium scholarships.

3-32 3. For students who did not graduate from a public or private high

3-33 school in this state and who have been residents of this state for at least 2

3-34 years, the board of regents shall establish:

3-35 (a) The minimum score on a standardized test that such students must

3-36 receive; or

3-37 (b) Other criteria that students must meet,

3-38 to be eligible for millennium scholarships.

3-39 4. In awarding scholarships, the board of regents shall enhance its

3-40 outreach to students who:

3-41 (a) Are pursuing a career in education or health care;

4-1 (b) Come from families who lack sufficient financial resources to pay

4-2 for the costs of sending their children to a university or community

4-3 college; or

4-4 (c) Substantially participated in an anti-smoking, anti-drug or anti-

4-5 alcohol program during high school.

4-6 Sec. 8. 1. Within the limits of money available in the trust fund, a

4-7 student who is eligible for a millennium scholarship is entitled to receive:

4-8 (a) If he is enrolled in a community college, $40 per credit for which

4-9 the student is enrolled, or the amount of money that is necessary for the

4-10 student to pay the costs of attending the community college that are not

4-11 otherwise satisfied by other grants or scholarships, whichever is less.

4-12 (b) If he is enrolled in a university, $80 per credit for which the

4-13 student is enrolled, or the amount of money that is necessary for the

4-14 student to pay the costs of attending the university that are not otherwise

4-15 satisfied by other grants or scholarships, whichever is less.

4-16 No student may be awarded a scholarship for a total amount in excess of

4-17 $10,000.

4-18 2. A student who receives a millennium scholarship shall:

4-19 (a) Make satisfactory academic progress toward a recognized degree

4-20 or certificate, as determined by the board of regents pursuant to

4-21 subsection 6; and

4-22 (b) Maintain at least a 2.0 grade-point average on a 4.0 grading scale.

4-23 3. A millennium scholarship must be used only:

4-24 (a) For the payment of registration fees and laboratory fees and

4-25 expenses;

4-26 (b) To purchase required textbooks and course materials; and

4-27 (c) For other costs related to the attendance of the student at the

4-28 university or community college.

4-29 4. Except as otherwise provided in this subsection, if a student drops

4-30 out of school or fails to maintain at least a 2.0 grade-point average in

4-31 any semester, the student shall repay the millennium scholarship before

4-32 the student is eligible to receive an additional millennium scholarship or

4-33 otherwise receive money pursuant to sections 3 to 8, inclusive, of this act.

4-34 The board of regents shall establish criteria for a waiver from the

4-35 repayment required by this subsection, including, without limitation,

4-36 service in the military and conditions of hardship such as medical

4-37 necessity.

4-38 5. The board of regents shall certify a list of eligible students to the

4-39 state treasurer. The state treasurer shall disburse a millennium

4-40 scholarship for each semester on behalf of an eligible student directly to

4-41 the community college or university in which the student is enrolled,

4-42 upon certification from the community college or university of the

4-43 number of credits for which the student is enrolled, which must meet or

5-1 exceed the minimum number of credits required for eligibility and

5-2 certification that the student is in good standing and making satisfactory

5-3 academic progress toward a recognized degree or certificate, as

5-4 determined by the board of regents pursuant to subsection 6. The

5-5 scholarship must be administered by the community college or university

5-6 as other similar scholarships are administered and may be used only for

5-7 the expenditures authorized pursuant to subsection 3.

5-8 6. The board of regents shall establish criteria for determining

5-9 whether a student is making satisfactory academic progress toward a

5-10 recognized degree or certificate for purposes of subsection 5.

5-11 Sec. 9. The board of regents shall develop a plan to direct a

5-12 significant portion of other available financial aid to culturally

5-13 disadvantaged or at-risk students, and students who graduated from high

5-14 school before May 1, 2000, who wish to attend college and have the

5-15 potential to be successful, but who do not otherwise meet the eligibility

5-16 requirements for millennium scholarships.

5-17 Sec. 10. On or before February 1, 2003, the board of regents of the

5-18 University of Nevada shall submit a report to the director of the legislative

5-19 counsel bureau for transmittal to the 72nd session of the Nevada legislature

5-20 that includes:

5-21 1. An examination of the projected enrollment of students in the

5-22 University and Community College System of Nevada who will be eligible

5-23 for millennium scholarships;

5-24 2. An actuarial study to determine the approximate costs of continuing

5-25 the millennium scholarship program; and

5-26 3. A report setting forth any enhanced outreach efforts carried out

5-27 pursuant to subsection 4 of section 7 of this act.