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- 83rd Session (2025)
Assembly Bill No. 164–Assemblymember O’Neill
CHAPTER..........
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
Commission on Postsecondary Education, generally privately owned postsecondary
educational institutions, to pay to the Administrator of the Commission a quart erly
fee of $5 for each student the institution initially enrolls in a calendar quarter in a
program for which the student pays a tuition or registration fee. Money from this
fee is required to be deposited in the State Treasury for credit to the Account f or
Student Indemnification. (NRS 394.557) Money in the Account may be used to
indemnify a student or enrollee of a postsecondary educational institution who has
suffered damage because the postsecondary educational institution ceased
operations or due to a violation of certain provisions governing postsecondary
educational institutions that are licensed by the Commission. Money in the Account
may also be used for certain costs related to investigating claims for
indemnification from the Account. (NRS 394.553)
If the balance in the Account is $250,000 or more, existing law: (1) requires the
Administrator to notify the postsecondary educational institutions licensed by the
Commission; and (2) exempts such postsecondary educational institutions from
the requ irement to pay the fee. If the balance in the Account subsequently falls
below $250,000, the Administrator is required to notify the postsecondary
educational institutions that the fee must again be paid until the balance in the
Account is $250,000 or more . (NRS 394.557) This bill raises the Account balance
above which postsecondary educational institutions are not required to pay the fee
from $250,000 or more to $750,000 or more.
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
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:
394.557 1. Except as otherwise provided in subsection 2,
each postsecondary educational institution licensed in this state shall
pay to the Administrator a fee of $5 for each student the institution
initially enrolls in a program for which the student pays a tuition
or registration fee. On or before January 1, April 1, July 1 and
October 1 of each year, each institution shall transmit to the
Administrator the fees required by this subsection for the
immediately preceding quarter. The Administrator shall deposit
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- 83rd Session (2025)
the money in the State Treasury for credit to the Account for
Student Indemnification.
2. The Administrator shall notify each postsecondary
educational institution licensed in this state if the balance in the
Account is [$250,000] $750,000 or more. If the ba lance in the
Account is [$250,000] $750,000 or more, a postsecondary
educational institution is not required to pay the fee required by
subsection 1. If the balance in the Account subsequently falls below
[$250,000,] $750,000, the Administrator shall notif y each
postsecondary educational institution licensed in this state that the
fee must be paid until the balance in the Account is [$250,000]
$750,000 or more.
Sec. 2. This act becomes effective on July 1, 2025.
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