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AB 397

Revises provisions relating to higher education. (BDR 34-653)

2025 Regular Session Introduced by Angie Taylor and 1 co-sponsor

AB 397 standardizes and expands NSHE fee waivers, making them last-dollar, requires FAFSA/Progress standards, and adds a mandatory homeless/unaccompanied youth waiver for eligible

Vetoed by the Governor.
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Bill Summary · AB 397

AB 397 — Summary (Higher Education fee waivers; 83rd Nevada Legislature)

Status: Vetoed by the Governor (delivered to Governor 6/5/2025; vetoed 6/12/2025)
Introduced / Key dates: introduced in 2025 session (referred to Education March 11, 2025); passed both houses (Senate concurrence June 2, 2025); enrolled June 5, 2025.

Main purpose / intent

AB 397 sought to standardize and expand certain student fee-waiver programs administered by the Nevada System of Higher Education (NSHE) Board of Regents, reduce administrative variation across waivers, and clarify eligibility and documentation rules—particularly for students who experienced homelessness (unaccompanied youth) and for Native American students. The bill also repealed statutes requiring NSHE to analyze ores, minerals, soil and water submitted by Nevada residents.

Key provisions and changes

  • Standardization across multiple waivers:

    • Requires each student seeking a waiver (for the year they apply) to complete the Free Application for Federal Student Aid (FAFSA) or an NSHE alternative when federal law makes FAFSA inapplicable.
    • Replaces fixed GPA thresholds with a requirement to meet "satisfactory academic progress" as defined under Title IV of the Higher Education Act (federal standard used for federal aid).
    • Declares waiver amounts to be a “last dollar” credit in many waiver programs: equal to the remaining balance of registration, laboratory and other mandatory fees after application of grants, scholarships and other non-loan financial aid to which the student is entitled for the semester.

  • Homeless youth / unaccompanied youth waiver (NRS 396.5448; made mandatory rather than permissive):

    • Board of Regents shall grant a waiver of registration, laboratory and other mandatory fees for qualifying students.
    • Eligibility: age 25 or younger at enrollment; was an unaccompanied youth who, for at least 6 months after turning 13, was homeless or self‑supporting and at risk of homelessness; enrolled in an undergraduate degree program; completed FAFSA (when eligible).
    • Requires documentation (signed statement from appropriate service provider) to verify homelessness/unaccompanied status and service receipt.
    • Amount: last-dollar after federal educational benefits; if none, full fees waived.
    • Effective timing: provisions phased (amendments set some effective dates July 1, 2025 and July 1, 2026).

  • Native American fee waiver (NRS 396.5449):

    • Expanded/clarified eligibility to include Nevada high‑school graduates who are members/descendants of federally recognized tribes with ties to Nevada; high‑school equivalency completers; current Nevada high‑school students (including dual-credit); descendants of Stewart Indian School attendees.
    • Added continuity/hold‑harmless language to preserve fee waivers for certain students who previously received them (through July 1, 2030 for specified cohorts).

  • Other: repeals statutes requiring NSHE to analyze ores/minerals/soil/water sent by state residents (NRS 396.620–396.660).

Who is affected

  • Direct beneficiaries: eligible undergraduate students in NSHE who meet expanded criteria — especially unaccompanied youth who experienced homelessness and a broader group of Native American students.
  • NSHE / Board of Regents: must implement standardized application, documentation and waiver-calculation rules; increased administrative responsibilities and potential revenue impacts.
  • State budget: fiscal note indicates an effect on the State (waivers reduce fee collections; fiscal impact dependent on uptake).

Procedural / timeline notes

  • The bill underwent multiple committee amendments and reprints (Assembly and Senate amendments in late May–early June 2025), with staggered effective dates in the adopted amendments (some changes effective July 1, 2025; others July 1, 2026).
  • Passed both houses (Assembly and Senate) with recorded approvals; enrolled and delivered to Governor June 5, 2025; vetoed June 12, 2025.

Potential impact (summary)

  • Would lower financial barriers to enrollment/retention for targeted students (unaccompanied/homeless youth and expanded Native American eligibility) by making critical mandatory fees easier to cover.
  • Implements uniform financial‑aid verification (FAFSA) and academic progress standards across diverse waiver programs.
  • Creates state fiscal exposure tied to the number of eligible students and extent of last‑dollar waivers; increases administrative duties for NSHE to verify eligibility and apply the new waiver-calculation rules.

Compiled from official sources — confirm details with the bill’s official record.

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