(REPRINTED WITH ADOPTED AMENDMENTS)
"                    FIRST REPRINT       A.B. 135" 


Assembly Bill No. 135--Committee on Ways and Means

                 February 1, 1995
                 _____________


      Referred to Committee on Ways and Means


SUMMARY--Revises provisions governing repayment of 
          financial support received by students from 
          Western Interstate Commission for Higher 
          Education. (BDR 34-863)

FISCAL NOTE:  Effect on Local Government: No.
              Effect on the State or on Industrial Insurance: No.



EXPLANATION--Matter in italics is new; matter in bra
ckets [ ] is material to be omitted.

AN ACT relating to the Western Interstate Commission for Higher 
        Education; revising provisions governing the repayment of 
        financial support received by students from the commission; 
        authorizing the commissioners from this state to delegate 
        certain powers to the director of the commission; eliminating 
        a provision which allows students to qualify for financial 
        support by contributing a certain amount of money; and 
        providing other matters properly relating thereto.

     THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
                AND ASSEMBLY, DO ENACT AS FOLLOWS:



  Section 1.  Chapter 397 of NRS is hereby 
amended by adding thereto the provisions set forth as 
sections 2 to 7, inclusive, of this act.
  Sec. 2.  \Financial support provided to a 
student who is chosen by the three commissioners from the 
State of Nevada to receive such support from the Western 
Interstate Commission for Higher Education must be provided 
in the form of a support fee. Twenty-five percent of the 
support fee is a loan that the student must repay with 
interest pursuant to NRS 397.063 or 397.064, as appropriate. 
Seventy-five percent of the support fee is a stipend that 
the student is not required to repay, except as otherwise 
provided in section 3 of this act.\\
  Sec. 3.  \1.  The provisions of this section 
apply only to stipends received by a student on or after 
July 1, 1995.
  2.  Each student must repay all stipends which he receives 
from the Western Interstate Commission for Higher Education 
unless he:
  (a) Practices, in Nevada, for the period determined 
pursuant to section 4 of this act, the profession which he 
was certified to study.
  (b) Reports his practice status annually on forms provided 
by the commission.
  (c) Except as otherwise approved by the commission, 
commences his practice obligation within 1 year after 
completion or termination of the education, internship or 
residency for which he received the stipend.
  (d) Maintains his permanent residence in the State of 
Nevada throughout the period of his practice obligation. For 
the purposes of this section, a person who leaves the state 
for a limited period of time without forming the intent of 
changing his permanent residence is not considered to have 
moved his residence.
  (e) Graduates with a degree in the area of study for which 
he received the stipend.
  (f) Completes his practice obligation within the period 
specified in section 4 of this act.
  3.  A stipend that must be repaid in accordance with 
this section must be repaid under the following terms:
  (a) All stipends must bear interest at 8 percent per annum 
from the first day of the academic term for which the 
student received the support fee.
  (b) The balance due must be repaid in monthly installments 
within the following periods:
    (1) Five years for stipends which total, including 
interest, less than $10,000.
    (2) Eight years for stipends which total, including 
interest, $10,000 or more but less than $20,000.
    (3) Ten years for stipends which total, including 
interest, $20,000 or more.
  \\Sec. 4.  \1.  A student who receives from the 
Western Interstate Commission for Higher Education a stipend 
governed by the provisions of NRS 397.065 or section 3 of 
this act, must repay all state contributions for the stipend 
unless he practices, in Nevada, the profession which he was 
certified to study:
  (a) For 3 years, if he entered the program before July 1, 
1985;
  (b) For 1 year for each academic year he receives a 
stipend, if he enters the program after June 30, 1985; or
  (c) For 1 year for each 9 months he receives a stipend, if 
he enters the program after June 30, 1985, and is enrolled 
in an accelerated program that provides more than 1 academic 
year of graduate and professional education in 9 months,
within 5 years after the completion or termination of his 
education, internship or residency for which he receives the 
stipend.
  2.  The three commissioners from the State of Nevada, 
acting jointly, may adopt regulations which:
  (a) Reduce the period of required practice for a person 
who practices his profession in a rural area of this state 
or as an employee of this state.
  (b) Extend the time for completing the required practice 
beyond 5 years for a person who is granted an 
extension because of hardship.
  3.  If the period for the required practice is only 
partially completed, the commission may give credit towards 
repayment of the stipend for the time the person practiced 
his profession as required.\\
  Sec. 5.  \The three commissioners from the 
State of Nevada:
  1.  Shall by regulation require, as a condition of the 
receipt of financial support pursuant to section 2 of this 
act, the student to submit to the director of the Western 
Interstate Commission for Higher Education a prepaid policy 
of term life insurance which lists the Western Interstate 
Commission for Higher Education as a named beneficiary to 
the extent of any obligation which remains unpaid at the 
time of the student's death.
  2.  May, by regulation, delegate to the director of the 
Western Interstate Commission for Higher Education the 
authority to negotiate the terms of repayment, including how 
and when payments will be made on loans or stipends in 
default. The commissioners may not delegate the authority to 
reduce the principal balance owing.\\
  Sec. 6.  \The Western Interstate Commission for 
Higher Education may apply for and accept grants. Upon 
receipt of sufficient grants, the Commission may enter into 
binding agreements to purchase additional contract places 
for Nevada residents in graduate or professional schools 
within the region. The provisions of NRS 397.060 apply to 
the selection and certification of students to fill any 
contract place purchased pursuant to this section. The 
provisions of sections 2, 3 and 4 of this act do not apply 
to financial support provided to a student pursuant to this 
section. The terms and conditions of repayment, if any, must 
be set forth fully in a contract between the student and the 
grantor.
  \\Sec. 7.  \The provisions of sections 2, 3 and 4 
of this act to the contrary notwithstanding, the Western 
Interstate Commission for Higher Education may adopt 
regulations which require as a condition of placement of a 
student in an educational program for physicians' assistants 
and receipt of the related financial support that the 
student submit to the director of the Western Interstate 
Commission for Higher Education:
  1.  A written statement from a licensed provider of health 
care who practices his profession in a rural area of this 
state that he agrees to employ the student for the term 
necessary to fulfill the requirements of section 4 of this 
act upon the completion of the student's education, 
examination and licensure.
  2.  A written statement from the student that in lieu of 
repayment of all state contributions for the stipend he 
received he will practice his profession in a rural area of 
this state in accordance with the schedule set forth in 
subsection 1 of section 4 of this act.\\
  Sec. 8.  NRS 397.064 is hereby amended to read 
as follows:
  397.064  Loans, from the Western Interstate Commission for 
Higher Education's fund for student loans, to students who 
enter the program on or after July 1, 1985, must be made 
upon the following terms:
  1.  All loans must bear interest at 8 percent per annum 
from the [date when the student receives] \first day of 
the academic term for which the student received\\ the 
loan.
  2.  Each student receiving a loan must repay the loan with 
interest following the termination of his education or 
completion of his internship for which the loan is made. The 
loan must be repaid in monthly installments over the period 
allowed with the first installment due 1 year after the date 
of the termination of his education or the completion of his 
internship for which the loan is made. The amounts of the 
installments may not be less than $50 and may be calculated 
to allow a smaller payment at the beginning of the repayment 
period, with each succeeding payment gradually increasing so 
that the total amount due will have been paid within the 
period allowed for repayment. The three commissioners from 
the State of Nevada, acting jointly, shall \, or shall 
delegate to the director of the Western Interstate 
Commission for Higher Education the power to,\\ schedule 
the repayment within the following periods:
  (a) Five years for loans which total less than $10,000.
  (b) Eight years for loans which total $10,000 or more but 
less than $20,000.
  (c) Ten years for loans which total $20,000 or more.
  3.  A student loan may not exceed 50 percent of the 
student fees for any academic year.
  4.  A delinquency charge may be assessed on any 
installment delinquent 10 days or more in the amount of 8 
percent of the installment or $4, whichever is greater, but 
not more than $15.
  5.  The reasonable costs of collection and an attorney's 
fee may be recovered in the event of 
delinquency.
  Sec. 9.  NRS 397.065 is hereby amended to read 
as follows:
  397.065  1.  [Except as provided in subsection 2, each] 
\The provisions of this section apply only to stipends 
received by a student before July 1, 1995.
  2.  Each\\ student entering the Western Regional 
Higher Education Compact program after April 23, 1977, must 
repay all state contributions for stipends which he receives 
from the Western Interstate Commission for Higher Education 
unless he practices, in Nevada, \for the period 
determined pursuant to section 4 of this act,\\ the 
profession which he was certified to study \.\\ [:
  (a) For 3 years, if he entered the program before July 1, 
1985;
  (b) For 1 year for each academic year he receives a 
stipend, if he enters the program after June 30, 1985; or
  (c) For 1 year for each 9 months he receives a stipend, if 
he enters the program after June 30, 1985, and is enrolled 
in an accelerated program that provides more than 1 academic 
year of graduate and professional education in 9 months,
within 5 years after the completion or termination of his 
education, internship or residency for which he receives the 
stipend.
  2.  The three commissioners from the State of Nevada, 
acting jointly, may adopt regulations which:
  (a) Reduce the period of required practice for persons who 
practice their professions in rural areas of this state or 
as employees of this state.
  (b) Extend the time for completing the required practice 
beyond 5 years for persons who are granted extensions 
because of hardship.]
  3.  Stipends granted before July 1, 1985, and stipends 
granted to students classified as continuing students before 
July 1, 1985, must be repaid within the same period 
established for the repayment of loans in NRS 397.063. 
Stipends granted before July 1, 1985, and stipends granted 
to students classified as continuing students before July 1, 
1985, do not bear interest.
  4.  Stipends granted to students entering the program on 
or after July 1, 1985, must be repaid in the same manner, 
within the same period and at the same rate of interest 
established for the repayment of loans in NRS 397.064.
  5.  [If the period for the required practice is only 
partially completed, the commission may give credit towards 
repayment of the stipend for the time the person practiced 
his profession as required.]
  Sec. 10.  NRS 397.067 is hereby amended to 
read as follows:
  397.067  The three commissioners from the State of Nevada, 
acting jointly, may \, or may delegate to the director 
of the Western Interstate Commission for Higher Education 
the power to,\\ require, upon notice to a recipient of a 
loan, that he repay the balance and any unpaid interest on 
the loan at once if:
  1.  An installment is not paid within 30 days after it is 
due;
  2.  The recipient fails to notify the commissioners, 
within 30 days, of:
  (a) A change of name or of the address of his home or 
place of practice; or
  (b) The termination of his education or completion of his 
internship for which he receives the loan; or
  3.  The recipient fails to comply with any other 
requirement or perform any other obligation he is required 
to perform pursuant to any agreement under the program.
  Sec. 11.  NRS 397.0685 is hereby amended to 
read as follows:
  397.0685  1.  The three commissioners from the State of 
Nevada, acting jointly, may, after receiving a written 
application stating the reasons therefor, reduce the period 
of required practice for the repayment of a stipend under 
[NRS 397.065] \section 4 of this act\\ if the 
applicant:
  (a) Has had at least 1 continuous year of practice of his 
profession in this state, and practices his profession in a 
rural area of this state. The applicant's practice in the 
rural area must be equal to at least half of the total time 
spent by the applicant in his professional practice, and not 
less than 20 hours per week.
  (b) Practices his profession as a full-time employee of 
the State of Nevada and has been employed by the state for 
at least 1 continuous year immediately before his 
application.
  2.  Any claim as to practice must be verified.
  Sec. 12.  NRS 397.061 is hereby repealed.
  Sec. 13.  This act becomes effective on July 
1, 1995.


"T                                                        T" 

                TEXT OF REPEALED SECTION
"T                                                        T" 

  397.061  Contribution by student for additional 
place.
  1.  If the money available to the commissioners from this 
state is not sufficient to pay the state's contribution for 
all the available contract places, students who are 
qualified to participate in the Western Interstate 
Commission for Higher Education program may qualify for the 
additional contract places by contributing an amount of 
money equal to the required state contribution.
  2.  The commissioners from this state shall offer the 
additional contract places to the most qualified students 
who are not selected for contract places until all of the 
available contract places are filled.

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