Senate Bill No. 159–Senator Rawson

 

February 18, 2003

____________

 

Referred to Committee on Human Resources and Facilities

 

SUMMARY—Deletes authority of Western Interstate Commission for Higher Education to adopt certain regulations. (BDR 34‑924)

 

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 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:

 

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

1-2  397.030  1.  In furtherance of the provisions contained in the

1-3  Compact, there must be three Commissioners from the State of

1-4  Nevada, appointed by the Governor.

1-5  2.  The qualifications and terms of the three Nevada State

1-6  Commissioners must be in accordance with Article 4 of the

1-7  Compact. A Nevada State Commissioner shall hold office until his

1-8  successor is appointed and qualified , but the successor’s term

1-9  expires 4 years [from] after the legal date of expiration of the term

1-10  of his predecessor.

1-11      3.  Any Nevada State Commissioner may be removed from

1-12  office by the Governor upon charges and after a hearing.

1-13      4.  The term of any Nevada State Commissioner who ceases to

1-14  hold the required qualifications terminates when a successor is

1-15  appointed.

 

2-1  Sec. 2.  NRS 397.050 is hereby amended to read as follows:

2-2  397.050  1.  Money to carry out the provisions of this chapter

2-3  must be provided by direct legislative appropriation from the State

2-4  General Fund and must be accounted for in the Western Regional

2-5  Higher Education Compact Account which is hereby created.

2-6  2.  The money in the Account may be used by the three Nevada

2-7  State Commissioners appointed pursuant to NRS 397.030:

2-8  (a) To pay dues to the Western Interstate Commission for

2-9  Higher Education.

2-10      (b) To meet necessary administrative expenses.

2-11      Sec. 3.  NRS 397.055 is hereby amended to read as follows:

2-12      397.055  1.  Whenever the three Nevada State Commissioners

2-13  appointed pursuant to NRS 397.030 are unable to provide contract

2-14  places for Nevada residents in graduate or professional schools

2-15  pursuant to contractual agreements authorized by Article 8 of the

2-16  Compact, or the cost of attending a school within the region is

2-17  excessive, they may enter into contractual agreements with the

2-18  governing authority of any educational institution offering

2-19  accredited graduate and professional education outside the region of

2-20  the Compact or with any state outside the region.

2-21      2.  The terms and conditions of any such agreements must

2-22  adhere to the same standards which are observed in the selection of

2-23  contract places for Nevada residents in graduate or professional

2-24  schools within the region.

2-25      Sec. 4.  NRS 397.060 is hereby amended to read as follows:

2-26      397.060  The three Nevada State Commissioners , [from the

2-27  State of Nevada,] acting jointly, shall:

2-28      1.  Choose from among Nevada residents who apply, and have

2-29  at least 1 year’s residence in this state immediately before applying

2-30  for the program, those most qualified for contract places; and

2-31      2.  Certify them to receiving institutions.

2-32      Sec. 5.  NRS 397.0615 is hereby amended to read as follows:

2-33      397.0615  Financial support provided to a student who is

2-34  chosen by the three Nevada State Commissioners [from the State of

2-35  Nevada] to receive such support from the Western Interstate

2-36  Commission for Higher Education must be provided in the form of a

2-37  support fee. Except as otherwise provided in NRS 397.0617, 25

2-38  percent of the support fee is a loan that the student must repay with

2-39  interest pursuant to NRS 397.063 or 397.064, as appropriate.

2-40  Seventy-five percent of the support fee is a stipend that the student

2-41  is not required to repay, except as otherwise provided in

2-42  NRS 397.0653.

2-43      Sec. 6.  NRS 397.0617 is hereby amended to read as follows:

2-44      397.0617  1.  The provisions of this section apply only to

2-45  support fees received by a student on or after July 1, 1997.

3-1  2.  The three Nevada State Commissioners , [from the State of

3-2  Nevada,] acting jointly, may require a student who is certified to

3-3  study to practice in a profession which could benefit a medically

3-4  underserved area of this state, as that term is defined by the Officer

3-5  of Rural Health of the University of Nevada School of Medicine, to

3-6  practice in such an area or to practice in an area designated by the

3-7  Secretary of Health and Human Services:

3-8  (a) Pursuant to 42 U.S.C. § 254c, as containing a medically

3-9  underserved population; or

3-10      (b) Pursuant to 42 U.S.C. § 254e, as a health professional

3-11  shortage area,

3-12  as a condition to receiving a support fee.

3-13      3.  If a person agrees to practice in a medically underserved

3-14  area of this state pursuant to subsection 2 for at least 2 years, the

3-15  three Nevada State Commissioners , [from the State of Nevada,]

3-16  acting jointly, may forgive the portion of the support fee designated

3-17  as the loan of the person.

3-18      4.  If a person returns to this state but does not practice in a

3-19  medically underserved area of this state pursuant to subsection 2 for

3-20  at least 2 years, the three Nevada State Commissioners , [from the

3-21  State of Nevada,] acting jointly, shall assess a default charge in an

3-22  amount not less than three times the portion of the support fee

3-23  designated as the loan of the person, plus interest.

3-24      5.  As used in this section, a “profession which could benefit a

3-25  medically underserved area of this state” includes, without

3-26  limitation, dentistry, physical therapy, pharmacy and practicing as a

3-27  physician assistant.

3-28      Sec. 7.  NRS 397.062 is hereby amended to read as follows:

3-29      397.062  1.  There is hereby created an account in the State

3-30  General Fund entitled the Western Interstate Commission for Higher

3-31  Education’s Account for Miscellaneous Expenses. Any money

3-32  received by the three Nevada State Commissioners [from the State

3-33  of Nevada] as the proceeds of any penalty or appropriated or

3-34  authorized for the purposes of this section must be deposited in this

3-35  Account.

3-36      2.  The three Nevada State Commissioners , [from the State of

3-37  Nevada,] acting jointly, shall administer the Account and the money

3-38  in the Account must be used to:

3-39      (a) Pay miscellaneous expenses incurred in administering the

3-40  Western Interstate Commission for Higher Education’s Fund for

3-41  Student Loans; and

3-42      (b) Pay expenses incurred in collecting money due the State

3-43  from a student loan or a stipend granted from the Western Interstate

3-44  Commission for Higher Education’s Fund for Student Loans.

 

4-1  Sec. 8.  NRS 397.063 is hereby amended to read as follows:

4-2  397.063  1.  All contributions from students must be

4-3  accounted for in the Western Interstate Commission for Higher

4-4  Education’s Fund for Student Loans which is hereby created as an

4-5  enterprise fund.

4-6  2.  The three Nevada State Commissioners , [from the State of

4-7  Nevada,] acting jointly, shall administer the Fund and the money in

4-8  the Fund must be used solely to provide:

4-9  (a) Loans to; and

4-10      (b) Contractual arrangements for educational services and

4-11  facilities for,

4-12  residents of Nevada who are certified to attend graduate or

4-13  professional schools in accordance with the provisions of the

4-14  Western Regional Higher Education Compact.

4-15      3.  Loans from the Western Interstate Commission for Higher

4-16  Education’s Fund for Student Loans, before July 1, 1985, and loans

4-17  made to students classified as continuing students before July 1,

4-18  1985, must be made upon the following terms:

4-19      (a) All student loans must bear interest at 5 percent per annum

4-20  from the date when the student receives the loan.

4-21      (b) Each student receiving a loan must repay the loan with

4-22  interest following the termination of his education or completion of

4-23  his internship in accordance with the following schedule:

4-24          (1) Within 5 years for loans which total less than $10,000.

4-25          (2) Within 8 years for loans which total $10,000 or more but

4-26  less than $20,000.

4-27          (3) Within 10 years for loans which total $20,000 or more.

4-28      (c) No student loan may exceed 50 percent of the student fees

4-29  for any academic year.

4-30      Sec. 9.  NRS 397.064 is hereby amended to read as follows:

4-31      397.064  Loans, from the Western Interstate Commission for

4-32  Higher Education’s Fund for Student Loans, to students who enter

4-33  the program on or after July 1, 1985, must be made upon the

4-34  following terms:

4-35      1.  All loans must bear interest at 8 percent per annum from

4-36  the first day of the academic term for which the student received the

4-37  loan.

4-38      2.  Except as otherwise provided in NRS 397.0617, each

4-39  student receiving a loan must repay the loan with interest following

4-40  the termination of his education or completion of his internship for

4-41  which the loan is made.

4-42      3.  The loan must be repaid in monthly installments over the

4-43  period allowed, as set forth in subsection 4, with the first installment

4-44  due 1 year after the date of the termination of his education or the

4-45  completion of his internship for which the loan is made. The

5-1  amounts of the installments may not be less than $50 and may be

5-2  calculated to allow a smaller payment at the beginning of the

5-3  repayment period, with each succeeding payment gradually

5-4  increasing so that the total amount due will have been paid within

5-5  the period allowed for repayment.

5-6  4.  The three Nevada State Commissioners , [from the State of

5-7  Nevada,] acting jointly, shall, or shall delegate to the Director of the

5-8  Western Interstate Commission for Higher Education the power to,

5-9  schedule the repayment within the following periods:

5-10      (a) Five years for loans which total less than $10,000.

5-11      (b) Eight years for loans which total $10,000 or more but less

5-12  than $20,000.

5-13      (c) Ten years for loans which total $20,000 or more.

5-14      5.  A student loan may not exceed 50 percent of the student fees

5-15  for any academic year.

5-16      6.  A delinquency charge may be assessed on any installment

5-17  delinquent 10 days or more in the amount of 8 percent of the

5-18  installment or $4, whichever is greater, but not more than $15.

5-19      7.  The reasonable costs of collection and an attorney’s fee may

5-20  be recovered in the event of delinquency.

5-21      Sec. 10.  NRS 397.0645 is hereby amended to read as follows:

5-22      397.0645  1.  A student who receives from the Western

5-23  Interstate Commission for Higher Education a stipend governed by

5-24  the provisions of NRS 397.065 or 397.0653 must repay all state

5-25  contributions for the stipend unless he practices, in Nevada, the

5-26  profession which he was certified to study:

5-27      (a) For 3 years, if he entered the program before July 1, 1985;

5-28      (b) For 1 year for each academic year he receives a stipend, if he

5-29  enters the program after June 30, 1985; or

5-30      (c) For 1 year for each 9 months he receives a stipend, if he

5-31  enters the program after June 30, 1985, and is enrolled in an

5-32  accelerated program that provides more than 1 academic year of

5-33  graduate and professional education in 9 months,

5-34  within 5 years after the completion or termination of his education,

5-35  internship or residency for which he receives the stipend.

5-36      2.  The three Nevada State Commissioners , [from the State of

5-37  Nevada,] acting jointly, may adopt regulations which:

5-38      (a) Reduce the period of required practice for a person who

5-39  practices his profession in a rural area of this state or as an employee

5-40  of this state.

5-41      (b) Extend the time for completing the required practice beyond

5-42  5 years for a person who is granted an extension because of

5-43  hardship.

5-44      3.  If the period for the required practice is only partially

5-45  completed, the Commission may give credit towards repayment of

6-1  the stipend for the time the person practiced his profession as

6-2  required.

6-3  Sec. 11.  NRS 397.0655 is hereby amended to read as follows:

6-4  397.0655  The three Nevada State Commissioners [from the

6-5  State of Nevada] may, by regulation, delegate to the Director of the

6-6  Western Interstate Commission for Higher Education the authority

6-7  to negotiate the terms of repayment, including how and when

6-8  payments will be made on loans or stipends in default. The three

6-9  Nevada State Commissioners may not delegate the authority to

6-10  reduce the principal balance owing.

6-11      Sec. 12.  NRS 397.066 is hereby amended to read as follows:

6-12      397.066  The three Nevada State Commissioners , [from the

6-13  State of Nevada,] acting jointly, may require:

6-14      1.  A student to acquire, as security for a stipend or student

6-15  loan, insurance on his life and on his health or against his disability,

6-16  or both.

6-17      2.  That a financially responsible person agree to be jointly

6-18  liable with the recipient for the repayment of the loan or stipend.

6-19      Sec. 13.  NRS 397.067 is hereby amended to read as follows:

6-20      397.067  The three Nevada State Commissioners , [from the

6-21  State of Nevada,] acting jointly, may, or may delegate to the

6-22  Director of the Western Interstate Commission for Higher Education

6-23  the power to, require, upon notice to a recipient of a loan, that he

6-24  repay the balance and any unpaid interest on the loan at once if:

6-25      1.  An installment is not paid within 30 days after it is due;

6-26      2.  The recipient fails to notify the three Nevada State

6-27  Commissioners, within 30 days, of:

6-28      (a) A change of name or of the address of his home or place of

6-29  practice; or

6-30      (b) The termination of his education or completion of his

6-31  internship for which he receives the loan; or

6-32      3.  The recipient fails to comply with any other requirement or

6-33  perform any other obligation he is required to perform pursuant to

6-34  any agreement under the program.

6-35      Sec. 14.  NRS 397.068 is hereby amended to read as follows:

6-36      397.068  A recipient of a loan or a stipend under the program of

6-37  the Western Interstate Compact for Higher Education shall comply

6-38  with the regulations adopted by the Commission or the three

6-39  Nevada State Commissioners . [from the State of Nevada.] If he

6-40  fails so to comply, the three Nevada State Commissioners , [from

6-41  the State of Nevada,] acting jointly, may:

6-42      1.  For each infraction, impose a fine of not more than $200

6-43  against any recipient in any academic year, and may deny additional

6-44  money to any student who fails to pay the fine when due;

7-1  2.  Increase the portion of any future loan to be repaid by the

7-2  recipient;

7-3  3.  Extend the time a recipient is required to practice his

7-4  profession to repay his stipend; and

7-5  4.  Expel him from the program.

7-6  Sec. 15.  NRS 397.0685 is hereby amended to read as follows:

7-7  397.0685  1.  The three Nevada State Commissioners , [from

7-8  the State of Nevada,] acting jointly, may, after receiving a written

7-9  application stating the reasons therefor, reduce the period of

7-10  required practice for the repayment of a stipend under NRS

7-11  397.0645 if the applicant:

7-12      (a) Has had at least 1 continuous year of practice of his

7-13  profession in this state, and practices his profession in a rural area of

7-14  this state. The applicant’s practice in the rural area must be equal to

7-15  at least half of the total time spent by the applicant in his

7-16  professional practice, and not less than 20 hours per week.

7-17      (b) Practices his profession as a full-time employee of the State

7-18  of Nevada and has been employed by the State for at least 1

7-19  continuous year immediately before his application.

7-20      2.  Any claim as to practice must be verified.

7-21      Sec. 16.  NRS 397.069 is hereby amended to read as follows:

7-22      397.069  1.  The three Nevada State Commissioners , [from

7-23  the State of Nevada,] acting jointly, may after receiving an

7-24  application stating the reasons therefor, grant an extension of the

7-25  period for the repayment of a loan or a stipend under the program in

7-26  case of hardship arising out of the individual circumstances of a

7-27  recipient. The extension must be for a period that will reasonably

7-28  alleviate that hardship.

7-29      2.  Applications for extensions must be filed within the time

7-30  prescribed by regulation of the three Nevada State Commissioners ,

7-31  [from the State of Nevada,] acting jointly.

7-32      Sec. 17.  NRS 397.0695 is hereby amended to read as follows:

7-33      397.0695  A person obligated to repay a student loan may, as

7-34  determined by the three Nevada State Commissioners , [from the

7-35  State of Nevada,] acting jointly, receive credit towards payment of

7-36  the loan for professional services provided without compensation to

7-37  the State or any of its political subdivisions.

7-38      Sec. 18.  NRS 353.357 is hereby amended to read as follows:

7-39      353.357  1.  If the three Nevada State Commissioners [from

7-40  the State of Nevada] on the Western Interstate Commission for

7-41  Higher Education, acting jointly, determine that current claims

7-42  against the Western Interstate Commission for Higher Education’s

7-43  Fund for Student Loans created pursuant to NRS 397.063 exceed the

7-44  amount of money available in the Fund to pay the claims because of

7-45  a delay in the receipt of revenue due the Fund, the three Nevada

8-1  State Commissioners may request from the Director of the

8-2  Department of Administration a temporary advance from the State

8-3  General Fund to the Western Interstate Commission for Higher

8-4  Education’s Fund for Student Loans for the payment of authorized

8-5  expenses.

8-6  2.  If the Director of the Department of Administration

8-7  approves a request made pursuant to subsection 1, he shall notify the

8-8  State Controller and the Fiscal Analysis Division of the Legislative

8-9  Counsel Bureau of that approval. The State Controller shall draw his

8-10  warrant upon receipt of the approval by the Director of the

8-11  Department of Administration.

8-12      3.  An advance from the State General Fund is limited to 50

8-13  percent of the revenue expected to be received by the Western

8-14  Interstate Commission for Higher Education’s Fund for Student

8-15  Loans in the current fiscal year from any source other than

8-16  legislative appropriation.

8-17      4.  Any money that is temporarily advanced from the State

8-18  General Fund pursuant to subsection 2 must be repaid by August 31

8-19  following the end of the fiscal year in which the temporary advance

8-20  is made.

8-21      Sec. 19.  NRS 397.0605 is hereby repealed.

8-22      Sec. 20.  This act becomes effective on July 1, 2003.

 

8-23  TEXT OF REPEALED SECTION

 

8-24      397.0605  Regulations regarding condition of placement of

8-25   student in educational program for physician assistant. The

8-26   provisions of NRS 397.0615, 397.0645 and 397.0653 to the

8-27   contrary notwithstanding, the Western Interstate Commission for

8-28   Higher Education may adopt regulations which require as a

8-29   condition of placement of a student in an educational program for

8-30   physician assistants and receipt of the related financial support that

8-31   the student submit to the Director of the Western Interstate

8-32   Commission for Higher Education:

8-33      1.  A written statement from a licensed provider of health care

8-34   who practices his profession in a rural area of this state that he

8-35   agrees to employ the student for the term necessary to fulfill the

8-36   requirements of NRS 397.0645 upon the completion of the

8-37   student’s education, examination and licensure.

8-38      2.  A written statement from the student that in lieu of

8-39   repayment of all state contributions for the stipend he received he

9-1  will practice his profession in a rural area of this state in accordance

9-2  with the schedule set forth in subsection 1 of NRS 397.0645.

 

9-3  H