(1) The commission shall annually assess each for-profit postsecondary institution one-tenth of one percent of the prior school year’s gross tuition revenue until the Guaranty Recovery Cash Fund reaches the minimum fund level. The fund shall be maintained at a minimum fund level of two hundred fifty thousand dollars and a maximum fund level of five hundred thousand dollars. At any time when the fund drops below the minimum fund level, the commission may resume the assessment. Funds in excess of the maximum fund level shall be used as directed by the commission to provide grants or scholarships for students attending for-profit postsecondary institutions in Nebraska.

(2) The commission shall require documentation from each for-profit postsecondary institution to verify the tuition revenue collected by the institution and to determine the amount of the assessment under this section.

(3) Any for-profit postsecondary institution applying for an initial recurrent authorization to operate shall not be assessed under this section for the first year of operation but shall be assessed each year thereafter for four years or until the fund reaches the minimum fund level, whichever occurs last, and shall maintain the surety bond or other security required by section 85-2424.

(4) If a for-profit postsecondary institution fails to comply with this section, its authorization to operate shall be subject to revocation.

(5) The commission shall remit all funds collected pursuant to this section to the State Treasurer for credit to the Guaranty Recovery Cash Fund.