Nrs: Chapter 353B - College Savings Plans Of Nevada

Link to law: https://www.leg.state.nv.us/NRS/NRS-353B.html
Published: 2015

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[Rev. 11/21/2013 10:59:37

AM--2013]



CHAPTER 353B - COLLEGE SAVINGS PLANS OF

NEVADA

GENERAL PROVISIONS

NRS 353B.001        Definitions.



NRS 353B.002        “Board”

defined.

NRS 353B.004        “System”

defined.

NRS 353B.005        Board

of Trustees: Creation; membership; terms; Chair; compensation.

NRS 353B.007        Insurance

coverage to protect prepaid tuition contracts and savings trust accounts.

NRS 353B.009        Money

on deposit in prepaid tuition contract or savings trust account not considered

asset of parent, guardian or student for purposes of determining certain

eligibility.

NEVADA HIGHER EDUCATION PREPAID TUITION PROGRAM

General Provisions

NRS 353B.010        Definitions.

NRS 353B.030        “Prepaid

tuition contract” defined.

NRS 353B.040        “Purchaser”

defined.

NRS 353B.050        “Qualified

beneficiary” defined.

NRS 353B.070        “Trust

Fund” defined.

NRS 353B.075        Limitations

on construction of provisions.

 

Administration

NRS 353B.090        Development

of Program by Board; regulations.

NRS 353B.100        Prepaid

tuition contracts: Authority of Board to enter; required provisions.

NRS 353B.105        Agreement

to payroll deductions for prepaid tuition contract authorized.

NRS 353B.110        General

duties and powers of Board.

NRS 353B.130        Limitation

on effect of action by Board.

 

Nevada Higher Education Prepaid Tuition Trust Fund

NRS 353B.140        Creation.

NRS 353B.150        Administration

by State Treasurer; duties and powers of State Treasurer.

NRS 353B.155        Duties

and powers of Board; authority to limit qualified beneficiaries.

NRS 353B.160        Investment.

NRS 353B.170        Annual

report.

NRS 353B.180        Annual

audit.

NRS 353B.190        Annual

actuarial study.

NEVADA COLLEGE SAVINGS PROGRAM

General Provisions

NRS 353B.300        “Trust

Fund” defined.

 

Administration

NRS 353B.310        Regulations.

NRS 353B.320        Delegation

by Board of administrative powers and duties to State Treasurer.

NRS 353B.330        Savings

trust accounts and agreements not guaranteed by full faith and credit.

 

Nevada College Savings Trust Fund

NRS 353B.340        Creation;

sources; limitations on use of money.

NRS 353B.350        Administration

by State Treasurer; establishment of Program, Administrative and Endowment

Accounts.

NRS 353B.360        Acceptance

and expenditure of money provided by private entities for direct expenses and

marketing of Fund.

NRS 353B.370        Duties

and powers of Board; contracts for services.

_________

GENERAL PROVISIONS

      NRS 353B.001  Definitions.  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)

      NRS 353B.002  “Board” defined.  “Board”

means the Board of Trustees of the College Savings Plans of Nevada created by NRS 353B.005.

      (Added to NRS by 2001, 2159)

      NRS 353B.004  “System” defined.  “System”

means the Nevada System of Higher Education.

      (Added to NRS by 1997, 3483; A 2001, 2166; 2005, 364)

      NRS 353B.005  Board of Trustees: Creation; membership; terms; Chair;

compensation.

      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 or her behalf.

      (b) The Director of the Department of

Administration, who may name a designee to serve on the Board on his or her

behalf.

      (c) The Chancellor of the System, who may name a

designee to serve on the Board on his or her 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 or her

designee shall serve as the Chair 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 or her 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)

      NRS 353B.007  Insurance coverage to protect prepaid tuition contracts and

savings trust accounts.  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)

      NRS 353B.009  Money on deposit in prepaid tuition contract or savings trust

account not considered asset of parent, guardian or student for purposes of

determining certain eligibility.  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

      NRS 353B.010  Definitions.  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)

      NRS 353B.030  “Prepaid tuition contract” defined.  “Prepaid

tuition contract” means the contract created pursuant to NRS 353B.100.

      (Added to NRS by 1997, 3483; A 2001, 2166)

      NRS 353B.040  “Purchaser” defined.  “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)

      NRS 353B.050  “Qualified beneficiary” defined.  “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)

      NRS 353B.070  “Trust Fund” defined.  “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)

      NRS 353B.075  Limitations on construction of provisions.  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 or her

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)

Administration

      NRS 353B.090  Development of Program by Board; regulations.

      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)

      NRS 353B.100  Prepaid tuition contracts: Authority of Board to enter; required

provisions.

      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 or she has paid

into the Trust Fund or withdraw money that he or she 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)

      NRS 353B.105  Agreement to payroll deductions for prepaid tuition contract

authorized.  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)

      NRS 353B.110  General duties and powers of Board.  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)

      NRS 353B.130  Limitation on effect of action by Board.  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

      NRS 353B.140  Creation.

      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)

      NRS 353B.150  Administration by State Treasurer; duties and powers of State

Treasurer.

      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)

      NRS 353B.155  Duties and powers of Board; authority to limit qualified

beneficiaries.

      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)

      NRS 353B.160  Investment.

      1.  The Board shall create a comprehensive

plan that specifies the policies for investment which the State Treasurer shall

follow in administrating 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

or her 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 or her

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 or her

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)

      NRS 353B.170  Annual report.  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)

      NRS 353B.180  Annual audit.  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)

      NRS 353B.190  Annual actuarial study.  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

      NRS 353B.300  “Trust Fund” defined.  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

      NRS 353B.310  Regulations.

      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)

      NRS 353B.320  Delegation by Board of administrative powers and duties to State

Treasurer.  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)

      NRS 353B.330  Savings trust accounts and agreements not guaranteed by full

faith and credit.  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

      NRS 353B.340  Creation; sources; limitations on use of money.

      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 money deposited in accordance with

savings trust agreements; and

      (b) All earnings on the money in the Trust Fund.

      4.  Money in the Trust Fund:

      (a) Is 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 or her

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; A 2009, 1027)

      NRS 353B.350  Administration by State Treasurer; establishment of Program,

Administrative and Endowment Accounts.

      1.  The Trust Fund and any account

established by the State Treasurer pursuant to this section must be

administered by the State Treasurer.

      2.  The State Treasurer shall establish

such accounts as he or she determines necessary to carry out his or her duties

pursuant to NRS 353B.300 to 353B.370, inclusive, including, without limitation:

      (a) A Program Account in the Trust Fund; and

      (b) An Administrative Account and an Endowment

Account in the State General Fund.

      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 Nevada College Savings Program 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:

      (a) For any purpose related to the Nevada College

Savings Program;

      (b) To pay the costs of administering the

Governor Guinn Millennium Scholarship Program created pursuant to NRS 396.926, but such costs must not

exceed an amount equal to 3 percent of the anticipated annual revenue to the

State of Nevada from the settlement agreements with and civil actions against

manufacturers of tobacco products anticipated for deposit in the Trust Fund; or



      (c) In any other manner which assists the

residents of this state to attain postsecondary education.

      (Added to NRS by 2001, 2161; A 2009, 1027,

1165)

      NRS 353B.360  Acceptance and expenditure of money provided by private entities

for direct expenses and marketing of Fund.  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)

      NRS 353B.370  Duties and powers of Board; contracts for services.

      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)