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 quarterly 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 for 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 requirement 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.

Statutes affected:
As Introduced: 394.557
BDR: 394.557