USA Statutes : nevada
Title : Title 31 - PUBLIC FINANCIAL ADMINISTRATION
Chapter : CHAPTER 353B - COLLEGE SAVINGS PLANS OF NEVADA
As used in this chapter, unless the
context otherwise requires, the words and terms defined in NRS 353B.002
and 353B.004 have the meanings ascribed to them in those
sections.
(Added to NRS by 2001, 2159 )
“Board” means the Board of Trustees
of the College Savings Plans of Nevada created by NRS 353B.005 .
(Added to NRS by 2001, 2159 )
“System” means the Nevada System
of Higher Education.
(Added to NRS by 1997, 3483; A 2001, 2166 ; 2005, 364 )
1. There is hereby created a Board of Trustees of the College
Savings Plans of Nevada.
2. The Board consists of five members composed of:
(a) The State Treasurer, who may name a designee to serve on the
Board on his behalf.
(b) The Director of the Department of Administration, who may name
a designee to serve on the Board on his behalf.
(c) The Chancellor of the System, who may name a designee to serve
on the Board on his behalf.
(d) Two members appointed by the Governor. A member who is
appointed by the Governor must possess knowledge, skill and experience in
the field of:
(1) Accounting;
(2) Finance;
(3) Investment management; or
(4) Marketing.
3. A member of the Board who is appointed by the Governor:
(a) Serves for a term of 4 years;
(b) Except as otherwise provided in paragraph (c), may be
reappointed by the Governor; and
(c) Except as otherwise provided in this paragraph, may serve for
only two terms. A member who is appointed to fill a vacancy in an
unexpired term that is not longer than 3 years may serve two terms in
addition to the unexpired term.
4. The State Treasurer or his designee shall serve as the Chairman
of the Board.
5. Each member of the Board serves without compensation, except
that each member is entitled to receive:
(a) The per diem allowance and travel expenses provided for state
officers and employees generally; and
(b) Reimbursement for any other actual and reasonable expense
incurred while performing his duties.
6. As used in this section, the term “College Savings Plans of
Nevada” includes the Nevada Higher Education Prepaid Tuition Program set
forth in NRS 353B.010 to 353B.190
, inclusive, and the Nevada College
Savings Program set forth in NRS 353B.300 to 353B.370 , inclusive.
(Added to NRS by 2001, 2159 )
The Board may endorse insurance
coverage written exclusively to protect prepaid tuition contracts, and
purchasers and beneficiaries of prepaid tuition contracts pursuant to NRS
353B.010 to 353B.190 , inclusive, and the regulations adopted
pursuant thereto, and savings trust accounts and account owners, and
beneficiaries of savings trust accounts pursuant to NRS 353B.300 to 353B.370 , inclusive, and the regulations adopted
pursuant thereto, which may be issued in the form of a group life policy.
The provisions of title 57 of NRS are not applicable to the Board in
carrying out the provisions of this section.
(Added to NRS by 2001, 2160 )
Notwithstanding the
provisions of any specific statute to the contrary, no money on deposit
in a prepaid tuition contract pursuant to NRS 353B.010 to 353B.190 , inclusive, or a savings trust account
pursuant to NRS 353B.300 to 353B.370
, inclusive, may be considered an
asset of a parent, guardian or student for the purpose of determining the
eligibility of a person for a grant, scholarship or work opportunity that
is based on need and offered or administered by a state agency, except as
otherwise required by the source of the funding of the grant, scholarship
or work opportunity.
(Added to NRS by 2001, 2160 )
NEVADA HIGHER EDUCATION PREPAID TUITION PROGRAM
General Provisions
As used in NRS 353B.010 to 353B.190 , unless the context otherwise requires, the
words and terms defined in NRS 353B.030 to 353B.070 , inclusive, have the meanings ascribed to
them in those sections.
(Added to NRS by 1997, 3483; A 2001, 2162 , 2166 )
“Prepaid tuition
contract” means the contract created pursuant to NRS 353B.100 .
(Added to NRS by 1997, 3483; A 2001, 2166 )
“Purchaser” means a person who
makes or is obligated to make payments for tuition in accordance with a
prepaid tuition contract.
(Added to NRS by 1997, 3483; A 2001, 2166 )
“Qualified
beneficiary” means a person for whom tuition is paid pursuant to a
prepaid tuition contract.
(Added to NRS by 1997, 3483; A 2001, 2166 )
“Trust Fund” means the Nevada
Higher Education Prepaid Tuition Trust Fund created pursuant to NRS
353B.140 .
(Added to NRS by 1997, 3483; A 2001, 2162 , 2166 )
The
provisions of NRS 353B.010 to
353B.190 , inclusive, must not be
construed as a promise or guarantee that a qualified beneficiary:
1. Will be admitted to, allowed to continue enrollment at or
graduated from a community college or university; or
2. Will have the full cost of his tuition paid at a community
college, college or university that is not a member of the system.
(Added to NRS by 1997, 3489; A 2001, 2165 , 2166 )—(Substituted in revision for NRS
353B.810)
Administration
1. The Board shall develop the Nevada Higher Education Prepaid
Tuition Program for the prepayment of tuition at a guaranteed rate which
is established based on the annual actuarial study required pursuant to
NRS 353B.190 for undergraduate
studies at a university, state college or community college that is a
member of the System.
2. The Board shall adopt regulations for the implementation of the
Program, including, without limitation, regulations setting forth
requirements for residency, a limit on the number of qualified
beneficiaries, the termination, withdrawal and transfer of money paid
into the Trust Fund, the time within which the money paid into the Trust
Fund must be used, and payment schedules.
(Added to NRS by 1997, 3484; A 2001, 2163 , 2166 ; 2005, 364 )
1. The Board may enter into a prepaid tuition contract with a
purchaser.
2. The Board shall create a prepaid tuition contract in accordance
with the provisions of this section.
3. The prepaid tuition contract must include, without limitation:
(a) The terms and conditions under which the purchaser shall remit
payment, including, without limitation:
(1) The amount and number of payments that are required from
the purchaser on behalf of the qualified beneficiary;
(2) The date upon which each payment is due; and
(3) A provision for a reasonable penalty for a delinquent
payment or default.
(b) The name and date of birth of the qualified beneficiary on
whose behalf the prepaid tuition contract is drawn.
(c) The terms and conditions under which another person may be
substituted as the qualified beneficiary.
(d) The terms and conditions under which the purchaser, or another
person designated by the purchaser, may terminate the prepaid tuition
contract, receive a refund of money that he has paid into the Trust Fund
or withdraw money that he has paid into the Trust Fund, including,
without limitation, a provision allowing the Board to impose a fee that
amounts to more than a de minimis penalty.
(e) A provision that the Board shall, after making a reasonable
effort to contact the purchaser, report any money that has been deposited
under a prepaid tuition contract that has not been terminated and has not
been used within a specified period to the State Treasurer for proper
disposition.
(f) The number of semesters for which the purchaser is contracting.
(g) A provision that money paid into the Trust Fund under a prepaid
tuition contract may be applied toward tuition at:
(1) A university, state college or community college that is
a member of the System;
(2) An accredited college or university in this State that
is not a member of the System; or
(3) An accredited community college, college or university
in another state.
Ê Payments authorized pursuant to subparagraph (2) or (3) must not exceed
the projected highest payment for tuition for the current academic year
at a university that is a member of the System.
(h) Any other term or condition that the Board considers necessary
or proper.
(Added to NRS by 1997, 3484; A 2001, 2166 ; 2005, 364 )
The State of Nevada, an agency, county,
municipality or other political subdivision of the State, or any other
public or private employer may enter into an agreement to remit payments
toward a prepaid tuition contract on behalf of an employee through
payroll deductions.
(Added to NRS by 1997, 3489; A 2001, 2166 )—(Substituted in revision for NRS
353B.800)
The Board:
1. May modify the regulations for the implementation of the
Program adopted pursuant to subsection 2 of NRS 353B.090 .
2. May establish agreements to fulfill its obligations under the
prepaid tuition contracts.
3. May contract for any necessary good or service, including,
without limitation, the power to engage financial consultants, actuaries
or legal counsel.
4. May procure insurance against any loss in connection with the
property, assets or activities of the Trust Fund, the State Treasurer or
the Board.
5. May solicit and accept a gift, including, without limitation, a
bequeathment or other testamentary gift, grant, loan or aid from any
source.
6. Shall solicit answers to requests for rulings from the Internal
Revenue Service regarding the tax status of fees paid to or on behalf of
a purchaser or a qualified beneficiary pursuant to a prepaid tuition
contract.
(Added to NRS by 1997, 3486; A 2001, 2166 ; 2003, 155 )
An act or
undertaking of the Board does not constitute a debt of the State of
Nevada, or any political subdivision thereof, or a pledge of the full
faith and credit of the State of Nevada, or of any political subdivision
thereof, and is payable solely from the Trust Fund.
(Added to NRS by 1997, 3489; A 2001, 2166 )
Nevada Higher Education Prepaid Tuition Trust Fund
1. The Nevada Higher Education Prepaid Tuition Trust Fund is
hereby created within the State Treasury to allow the cost of tuition to
be paid in advance of enrollment at an institution of higher education.
2. The Trust Fund consists of payments received pursuant to:
(a) A prepaid tuition contract;
(b) A bequest, endowment or grant from the Federal Government; or
(c) Any other public or private source of money.
3. Money in the Trust Fund that is not expended during any
biennium does not revert to the State General Fund at any time.
(Added to NRS by 1997, 3483; A 2001, 2163 , 2166 )
1. The State Treasurer shall administer the trust fund.
2. As Administrator of the Trust Fund, the State Treasurer:
(a) Shall maintain the financial records of the Trust Fund;
(b) Shall invest the property in the Trust Fund pursuant to the
policies for investment established by the Board pursuant to NRS 353B.160
;
(c) Shall manage any account associated with the Trust Fund;
(d) Shall maintain any instruments that evidence investments made
with property from the Trust Fund;
(e) May contract with vendors for any good or service that is
necessary to carry out the provisions of NRS 353B.010 to 353B.190 , inclusive;
(f) May hire such employees as are necessary to carry out the
provisions of NRS 353B.010 to
353B.190 , inclusive, who must be paid
out of the assets of the Trust Fund; and
(g) May perform any other duties necessary to administer the Trust
Fund.
(Added to NRS by 1997, 3483; A 2001, 2163 , 2166 )
1. The Board shall actively promote and market use of the Trust
Fund.
2. The Board shall, before it enters into a prepaid tuition
contract with a purchaser, solicit the opinion of:
(a) The Securities and Exchange Commission regarding the
application of federal law regarding securities to the Trust Fund; or
(b) An independent legal counsel to ensure that the method of
structuring and offering the Trust Fund is in compliance with federal law
regarding securities.
3. The Board may:
(a) Require a reasonable length of residence in the State to become
a qualified beneficiary.
(b) Restrict the number of qualified beneficiaries.
(Added to NRS by 1997, 3485; A 2001, 2166 )—(Substituted in revision for NRS
353B.120)
1. The Board shall create a comprehensive plan that specifies the
policies for investment which the State Treasurer shall follow in his
administration of the Trust Fund.
2. The Board may authorize the State Treasurer to invest the
property of the Trust Fund in:
(a) A bond, note, certificate or other general obligation of the
State of Nevada, or of a county, city, general improvement district or
school district of the State of Nevada.
(b) A corporate bond of a corporation created by or existing under
the laws of the United States or of a state, district or territory of the
United States with a rating not lower than “A” or its equivalent by a
nationally recognized rating service. The total amount invested in such
bonds must not exceed 50 percent of the book value of the total fixed
income investments of the Trust Fund.
(c) Commercial paper of a corporation created by or existing under
the laws of the United States or of a state, district or territory of the
United States or of a wholly owned subsidiary of such a corporation with
a rating not lower than “A-3” or “P-3” by a nationally recognized rating
service.
(d) A bond, note, debenture or other valid obligation that is
issued by the Treasury of the United States.
(e) A bond, note, debenture or other security that is issued by an
agency or instrumentality of the United States or that is fully
guaranteed by the United States in:
(1) The Federal Farm Credit Bank;
(2) The Federal National Mortgage Association;
(3) The Federal Home Loan Bank;
(4) The Federal Home Loan Mortgage Corporation; or
(5) The Government National Mortgage Association.
(f) A bond, note, debenture or other security in the Student Loan
Marketing Association, regardless of whether it is guaranteed by the
United States.
(g) Collateralized mortgage obligations that are rated “AAA” or its
equivalent by a nationally recognized rating service.
(h) Asset-backed securities that are rated “AAA” or its equivalent
by a nationally recognized rating service.
(i) Money market mutual funds that:
(1) Are registered with the Securities and Exchange
Commission;
(2) Are rated by a nationally recognized rating service as
“A” or its equivalent, or better; and
(3) Invest only in securities issued by the Federal
Government or agencies of the Federal Government or in repurchase
agreements fully collateralized by such securities.
Ê The total dollar amount invested in such mutual funds must not exceed
20 percent of the total dollar amount of the Trust Fund that is invested.
(j) Common or preferred stock of a corporation created by or
existing under the laws of the United States or of a state, district or
territory of the United States, if:
(1) The stock of the corporation is:
(I) Listed on a national stock exchange; or
(II) Traded in the over-the-counter market, if the
price quotations for the over-the-counter stock are quoted by the
National Association of Securities Dealers Automated Quotations System,
NASDAQ;
(2) The outstanding shares of the corporation have a total
market value of not less than $50,000,000;
(3) The maximum investment in stock is not greater than 60
percent of the book value of the total investments of the Trust Fund;
(4) Except for investments made pursuant to paragraph (m),
the amount of an investment in a single corporation is not greater than 3
percent of the book value of the assets of the Trust Fund; and
(5) Except for investments made pursuant to paragraph (m),
the total amount of shares owned by the Trust Fund is not greater than 5
percent of the outstanding stock of a single corporation.
(k) A covered call or put option on securities that are traded on
one or more of the regulated exchanges in the United States.
(l) A pooled or commingled real estate fund or a real estate
security that is managed by a corporate trustee or by an investment
advisory firm that is registered with the Securities and Exchange
Commission, either of which may be retained by the Board as an investment
manager. The shares and the pooled or commingled fund must be held in
trust. The total book value of an investment made under this paragraph
must not at any time be greater than 5 percent of the total book value of
all investments of the Trust Fund.
(m) Mutual funds or common trust funds that consist of any
combination of the investments listed in paragraphs (a) to (l), inclusive.
3. The State Treasurer shall exercise the standard of care in
investing the property of the fund that a person of prudence, discretion
and intelligence would exercise in the management of his own affairs,
given the prevailing circumstances, not in regard to speculation but
rather to the permanent disposition of the property, considering the
potential income from and the probable safety of his capital.
4. Subject to the terms, conditions, limitations and restrictions
set forth in this section, the State Treasurer may sell, assign, transfer
or dispose of the property and investments of the Trust Fund upon the
approval of a majority of the Board.
5. The assets of the Trust Fund:
(a) Must be maintained, invested and expended solely for the
purposes of NRS 353B.010 to 353B.190
, inclusive; and
(b) Must not be loaned, transferred or otherwise used for a purpose
other than the purposes of NRS 353B.010 to 353B.190 , inclusive.
6. The State Treasurer shall credit any income derived from an
investment or a gain from a sale or exchange of an investment to the
Trust Fund.
7. The State Treasurer shall acquire each investment for the Trust
Fund at a price not to exceed the prevailing market value for such an
investment.
8. Each investment in the Trust Fund must be clearly marked to
indicate ownership by the Trust Fund.
9. The State Treasurer, an employee of the State Treasurer, or a
member or employee of the Board shall not:
(a) Have a direct or indirect interest in the income, gain or
profit of an investment that the State Treasurer makes;
(b) Receive pay or emolument for his services in connection with an
investment that the State Treasurer makes; or
(c) Become an endorser, surety or obligor for money that is
borrowed from the Trust Fund.
10. If the annual actuarial study performed pursuant to NRS
353B.190 reveals that there is
insufficient money to ensure the actuarial soundness of the Trust Fund,
the Board shall modify the terms of subsequent prepaid tuition contracts.
11. The terms, conditions, limitations and restrictions regarding
investments of the Trust Fund listed in this section apply only at the
time an investment is originally acquired and must not be construed to
require the liquidation of an investment at any time.
(Added to NRS by 1997, 3486; A 1999, 796 ; 2001, 2163 , 2166 )
The Board shall:
1. Prepare an annual report setting forth in appropriate detail an
accounting of the Trust Fund and a description of the financial condition
of the Trust Fund at the close of each fiscal year, including, without
limitation, a statement of projected receipts, disbursements and
operating costs of the Trust Fund.
2. Submit the report prepared pursuant to subsection 1 on or
before March 31 of each year:
(a) In odd-numbered years, to the Governor, the Senate Standing
Committee on Finance and the Assembly Standing Committee on Ways and
Means.
(b) In even-numbered years, to the Governor and the Interim Finance
Committee.
(Added to NRS by 1997, 3488; A 2001, 2166 )
The Board shall contract with a
certified public accounting firm to perform an annual audit of the
accounts and records of the State Treasurer and the Board showing the
receipts to and disbursements from the Trust Fund. The cost of the audit
must be borne by the Trust Fund. The State Treasurer shall make available
for inspection all records necessary to perform the audit.
(Added to NRS by 1997, 3488; A 2001, 2166 )
The board shall contract
with a certified actuary to perform an annual actuarial study, the cost
of which must be borne by the trust fund. The state treasurer shall make
available for inspection all records necessary to perform the actuarial
study.
(Added to NRS by 1997, 3488; A 2001, 2166 )
NEVADA COLLEGE SAVINGS PROGRAM
General Provisions
As used in NRS 353B.300 to 353B.370 , inclusive, unless the context otherwise
requires, “Trust Fund” means the Nevada College Savings Trust Fund
created by NRS 353B.340 .
(Added to NRS by 2001, 2160 )
Administration
1. The State Treasurer shall adopt regulations to establish and
carry out the Nevada College Savings Program, which must comply with the
requirements of a qualified state tuition program pursuant to 26 U.S.C. §
529.
2. The regulations must be consistent with the provisions of the
Internal Revenue Code set forth in Title 26 of the United States Code,
and the regulations adopted pursuant thereto, to ensure that the Nevada
College Savings Program meets all criteria for federal tax-deferred or
tax-exempt benefits, or both.
3. The regulations must provide for the use of savings trust
agreements and savings trust accounts to apply distributions toward
qualified higher education expenses at eligible educational institutions
in accordance with 26 U.S.C. § 529.
4. The regulations may include any other provisions not
inconsistent with federal law that the State Treasurer determines are
necessary for the efficient and effective administration of the Nevada
College Savings Program and the Trust Fund.
(Added to NRS by 2001, 2160 )
The Board may delegate to the State Treasurer
any of its administrative powers and duties specified in NRS 353B.300
to 353B.370 , inclusive, if the Board determines that
such delegation is necessary for the efficient and effective
administration of the Nevada College Savings Program and the Trust Fund.
(Added to NRS by 2001, 2162 )
Savings trust accounts and agreements entered
into pursuant to NRS 353B.300 to
353B.370 , inclusive, are not
guaranteed by the full faith and credit of the State of Nevada.
(Added to NRS by 2001, 2162 )
Nevada College Savings Trust Fund
1. The Nevada College Savings Trust Fund is hereby created.
2. The Trust Fund is an instrumentality of this state, and its
property and income are exempt from all taxation by this state and any
political subdivision thereof.
3. The Trust Fund consists of:
(a) All legislative appropriations made thereto;
(b) All money acquired by or for the use of the Trust Fund from:
(1) Any other governmental source, including, without
limitation, any grant from the Federal Government, or a state or local
government; or
(2) Any private source, including, without limitation, any
gift, bequest, devise or endowment;
(c) All money deposited in accordance with savings trust
agreements; and
(d) All earnings on the money in the Trust Fund.
4. All money deposited in accordance with savings trust agreements
and all earnings on such money:
(a) Are not the property of this state, and this state has no claim
to or interest in such money; and
(b) Must not be commingled with money of this state.
5. A savings trust agreement or any other contract entered into by
or on behalf of the Trust Fund does not constitute a debt or obligation
of this state, and no account owner is entitled to any money in the Trust
Fund except for that money on deposit in or accrued to his account.
6. The money in the Trust Fund must be preserved, invested and
expended solely pursuant to and for the purposes authorized by NRS
353B.300 to 353B.370 , inclusive, and must not be loaned or
otherwise transferred or used by this state for any other purpose.
(Added to NRS by 2001, 2161 )
1. The Trust Fund must be administered by the State Treasurer.
2. The State Treasurer shall establish such accounts within the
Trust Fund as he determines necessary, including, without limitation, a
Program Account, an Administrative Account and an Endowment Account.
3. The Program Account must be used for the receipt, investment
and disbursement of money pursuant to savings trust agreements.
4. The Administrative Account must be used for the deposit and
disbursement of money to administer and market the Nevada College Savings
Program and to supplement the administration and marketing of the Nevada
Higher Education Prepaid Tuition Program set forth in NRS 353B.010 to 353B.190 , inclusive.
5. The Endowment Account must be used for the deposit of any money
received by the Trust Fund that is not received pursuant to a savings
trust agreement and, in the determination of the State Treasurer, is not
necessary for the use of the Administrative Account. The money in the
Endowment Account may be expended for any purpose related to the Nevada
College Savings Program or otherwise to assist the residents of this
state to attain postsecondary education.
(Added to NRS by 2001, 2161 )
The State
Treasurer may accept and expend on behalf of the Trust Fund money
provided by private entities for direct expenses or marketing. Such money
is not a part of the Trust Fund.
(Added to NRS by 2001, 2161 )
1. The Board shall establish a comprehensive investment plan for
the money in the Trust Fund.
2. Notwithstanding the provisions of any specific statute to the
contrary, the Board may invest or cause to be invested any money in the
Trust Fund, including, without limitation, the money in the Program
Account, in any manner reasonable and appropriate to achieve the
objectives of the Nevada College Savings Program, exercising the
discretion and care of a prudent person in similar circumstances with
similar objectives. The Board shall consider the risk, expected rate of
return, term or maturity, diversification of total investments, liquidity
and anticipated investments in and withdrawals from the Trust Fund.
3. The Board may establish criteria and select investment
managers, mutual funds or other such entities to act as investment
managers for the Nevada College Savings Program.
4. The Board may employ or contract with investment managers,
evaluation services or other services as determined by the Board to be
necessary for the effective and efficient operation of the Nevada College
Savings Program.
5. The Board may employ personnel and contract for goods and
services necessary for the effective and efficient operation of the
Nevada College Savings Program.
6. The marketing plan and materials for the Nevada College Savings
Program must be approved by the Board.
7. The Board may prescribe terms and conditions of savings trust
agreements.
8. The Board may contract with one or more qualified entities for
the day-to-day operations of the Nevada College Savings Program as the
Program Administrator for the management of the marketing of the Program,
the administration of the comprehensive investment plan and Trust Fund,
the selection of investment managers for the Nevada College Savings
Program and the performance of similar activities.
9. All contracts authorized by this section are subject to the
requirements of chapter 333 of NRS, except
that:
(a) Notwithstanding the provisions of subsection 1 of NRS 333.165
to the contrary, the Board shall
contract for all services regardless of the estimated value of the
services; and
(b) Notwithstanding the provisions of NRS 333.335 to the contrary, each proposal received by the
Board concerning services must be evaluated by the Board at a public
meeting and each contract for services must be awarded by the Board at a
public meeting.
(Added to NRS by 2001, 2161 )
