SB463 - Revises provisions relating to the Governor Guinn Millennium Scholarship Program. (BDR 34-1129)

EXEMPT S.B. 463 - *SB463* SENATE BILL NO. 463–COMMITTEE ON FINANCE (ON BEHALF OF THE OFFICE OF FINANCE IN THE OFFICE OF THE GOVERNOR) MAY 5, 2025 ____________ Referred to Committee on Finance SUMMARY—Revises provisions relating to the Governor Guinn Millennium Scholarship Program. (BDR 34-1129) FISCAL NOTE: Effect on Local Government: No. Effect on the State: Yes. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to education; increasing the amount of anticipated annual revenue from certain settlement agreements and civil actions that may be used to pay the costs of administering the Millennium Scholarship Trust Fund; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law establishes the Governor Guinn Millennium Scholarship Program 1 and creates the Millennium Scholarship Trust Fund to fund the Program. Existing 2 law requires the State Treasurer to deposit in the Millennium Scholarship Trust 3 Fund: (1) forty percent of all money received by the State of Nevada pursuant to 4 any settlement entered into by the State and a manufacturer of tobacco products; 5 and (2) forty percent of all money recovered by the State from a judgment in a civil 6 action against a manufacturer of tobacco products. Existing law authorizes up to 3 7 percent of the anticipated annual revenue to the State from the settlement 8 agreements with and civil actions against manufacturers of tobacco products 9 anticipated for deposit in the Millennium Scholarship Trust Fund to be used to pay 10 the costs of administering the Trust Fund. (NRS 396.926) Existing law also creates 11 the Nevada College Savings Trust Fund and an Endowment Account within the 12 Nevada College Savings Trust Fund. (NRS 353B.340) Existing law authorizes 13 money in Endowment Account to be expended for any purpose related to the 14 Governor Guinn Millennium Scholarship Program, including the costs of 15 administering the Program, up to an amount equal to 3 percent of the anticipated 16 annual revenue to the State from the settlement agreements with and civil actions 17 against manufacturers of tobacco products anticipated for deposit in the Millennium 18 Scholarship Trust Fund. (NRS 353B.350) Between these two sources, existing law 19 therefore authorizes administrative funding for the Millennium Scholarship Trust 20 – 2 – - *SB463* Fund up to 6 percent of the anticipated annual revenue to the State from the 21 settlement agreements with and civil actions against manufacturers of tobacco 22 products anticipated for deposit in the Trust Fund. This bill increases the amount of 23 the anticipated annual revenue to the State from the settlement agreements with and 24 civil actions against manufacturers of tobacco products anticipated for deposit in 25 the Millennium Scholarship Trust Fund which is authorized to be used from the 26 Trust Fund to pay the costs of administering the Trust Fund from 3 percent to 10 27 percent. This bill does not increase the amount of money in the Endowment 28 Account in the Nevada College Savings Trust Fund which may be used to pay for 29 the administrative costs of the Millennium Scholarship Trust Fund, thereby capping 30 the total administrative funding that is available between these sources at 13 31 percent of the anticipated annual revenue to the State from the settlement 32 agreements with and civil actions against manufacturers of tobacco products 33 anticipated for deposit in the Millennium Scholarship Trust Fund. 34 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 396.926 is hereby amended to read as follows: 1 396.926 1. The Governor Guinn Millennium Scholarship 2 Program is hereby created for the distribution of the Governor 3 Guinn Millennium Scholarships in accordance with NRS 396.911 to 4 396.945, inclusive. The Millennium Scholarship Trust Fund is 5 hereby created in the State Treasury. The State Treasurer may 6 accept gifts, grants, bequests and donations for deposit in the Trust 7 Fund. 8 2. The State Treasurer shall deposit in the Trust Fund: 9 (a) Forty percent of all money received by the State of Nevada 10 pursuant to any settlement entered into by the State of Nevada and a 11 manufacturer of tobacco products; 12 (b) Forty percent of all money recovered by the State of Nevada 13 from a judgment in a civil action against a manufacturer of tobacco 14 products; and 15 (c) Any gifts, grants, bequests or donations specifically 16 designated for the Trust Fund by the donor. 17 3. The State Treasurer shall administer the Trust Fund. As 18 administrator of the Trust Fund, the State Treasurer, except as 19 otherwise provided in this section: 20 (a) Shall maintain the financial records of the Trust Fund; 21 (b) Shall invest the money in the Trust Fund as the money in 22 other state funds is invested; 23 (c) Shall manage any account associated with the Trust Fund; 24 (d) Shall maintain any instruments that evidence investments 25 made with the money in the Trust Fund; 26 (e) May contract with vendors for any good or service that is 27 necessary to carry out the provisions of this section; and 28 – 3 – - *SB463* (f) May perform any other duties necessary to administer the 1 Trust Fund. 2 4. In addition to the investments authorized pursuant to 3 paragraph (b) of subsection 3, the State Treasurer may, except as 4 otherwise provided in subsection 5, invest the money in the Trust 5 Fund in: 6 (a) Common or preferred stock of a corporation created by or 7 existing under the laws of the United States or of a state, district or 8 territory of the United States, if: 9 (1) The stock of the corporation is: 10 (I) Listed on a national stock exchange; or 11 (II) Traded in the over-the-counter market, if the price 12 quotations for the over-the-counter stock are quoted by the National 13 Association of Securities Dealers Automated Quotations System 14 (NASDAQ); 15 (2) The outstanding shares of the corporation have a total 16 market value of not less than $50,000,000; 17 (3) The maximum investment in stock is not greater than 25 18 percent of the book value of the total investments of the Trust Fund; 19 (4) Except for investments made pursuant to paragraph (c), 20 the amount of an investment in a single corporation is not greater 21 than 3 percent of the book value of the assets of the Trust Fund; and 22 (5) Except for investments made pursuant to paragraph (c), 23 the total amount of shares owned by the Trust Fund is not greater 24 than 5 percent of the outstanding stock of a single corporation. 25 (b) A pooled or commingled real estate fund or a real estate 26 security that is managed by a corporate trustee or by an investment 27 advisory firm that is registered with the Securities and Exchange 28 Commission, either of which may be retained by the State Treasurer 29 as an investment manager. The shares and the pooled or 30 commingled fund must be held in trust. The total book value of an 31 investment made under this paragraph must not at any time be 32 greater than 5 percent of the total book value of all investments of 33 the Trust Fund. 34 (c) Mutual funds or common trust funds that consist of any 35 combination of the investments authorized pursuant to paragraph (b) 36 of subsection 3 and paragraphs (a) and (b) of this subsection. 37 5. The State Treasurer shall not invest any money in the Trust 38 Fund pursuant to subsection 4 unless the State Treasurer obtains a 39 judicial determination that the proposed investment or category of 40 investments will not violate the provisions of Section 9 of Article 8 41 of the Constitution of the State of Nevada. The State Treasurer shall 42 contract for the services of independent contractors to manage any 43 investments of the State Treasurer made pursuant to subsection 4. 44 The State Treasurer shall establish such criteria for the qualifications 45 – 4 – - *SB463* of such an independent contractor as are appropriate to ensure that 1 each independent contractor has expertise in the management of 2 such investments. 3 6. All interest and income earned on the money in the Trust 4 Fund must, after deducting any applicable charges, be credited to 5 the Trust Fund. All claims against the Trust Fund must be paid as 6 other claims against the State are paid. 7 7. Not more than [3] 10 percent of the anticipated annual 8 revenue to the State of Nevada from the settlement agreements with 9 and civil actions against manufacturers of tobacco products 10 anticipated for deposit in the Trust Fund may be used to pay the 11 costs of administering the Trust Fund. 12 8. The money in the Trust Fund remains in the Fund and does 13 not revert to the State General Fund at the end of any fiscal year. 14 9. Money in the Trust Fund may be used for the purposes set 15 forth in NRS 396.914 to 396.945, inclusive, or for any other purpose 16 authorized by the Legislature. 17 Sec. 2. This act becomes effective on July 1, 2025. 18 H