LB378 LB378
2023 2023
LEGISLATURE OF NEBRASKA
ONE HUNDRED EIGHTH LEGISLATURE
FIRST SESSION
LEGISLATIVE BILL 378
Introduced by McDonnell, 5.
Read first time January 12, 2023
Committee: Nebraska Retirement Systems
1 A BILL FOR AN ACT relating to retirement; to amend sections 4-108, 4-111,
2 23-2306, 24-703.01, 60-1304, 79-9,118, 81-2016, and 84-1504, Reissue
3 Revised Statutes of Nebraska, and sections 79-915 and 84-1307,
4 Revised Statutes Cumulative Supplement, 2022; to change retirement
5 system participation provisions relating to aliens and lawful
6 presence; to eliminate obsolete provisions; to harmonize provisions;
7 to repeal the original sections; and to declare an emergency.
8 Be it enacted by the people of the State of Nebraska,
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1 Section 1. Section 4-108, Reissue Revised Statutes of Nebraska, is
2 amended to read:
3 4-108 (1) Notwithstanding any other provisions of law, unless
4 exempted from verification under section 4-110 or pursuant to federal
5 law, no state agency or political subdivision of the State of Nebraska
6 shall provide public benefits to a person not lawfully present in the
7 United States.
8 (2) Except as provided in section 4-110 or if exempted by federal
9 law, every agency or political subdivision of the State of Nebraska shall
10 verify the lawful presence in the United States of any person who has
11 applied for public benefits administered by an agency or a political
12 subdivision of the State of Nebraska. This section shall be enforced
13 without regard to race, religion, gender, ethnicity, or national origin.
14 (3) No On and after October 1, 2009, no employee of a state agency
15 or political subdivision of the State of Nebraska shall be authorized to
16 participate in any retirement system, including, but not limited to, the
17 systems provided for in the Class V School Employees Retirement Act, the
18 County Employees Retirement Act, the Judges Retirement Act, the Nebraska
19 State Patrol Retirement Act, the School Employees Retirement Act, and the
20 State Employees Retirement Act, unless the employee (a) is a United
21 States citizen or (b) is a qualified alien under the federal Immigration
22 and Nationality Act, 8 U.S.C. 1101 et seq., as such act existed on
23 January 1, 2009, and is lawfully present in the United States. The
24 employing state agency or political subdivision of the State of Nebraska
25 and the employee shall maintain at least one of the following documents
26 to demonstrate lawful presence in the United States as of the employee's
27 date of hire and produce any such document so maintained upon request of
28 the Public Employees Retirement Board or the Nebraska Public Employees
29 Retirement Systems:
30 (a) A Nebraska driver's license;
31 (b) A Nebraska state identification card;
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1 (c) A birth certificate or delayed birth certificate issued in any
2 state, territory, or possession of the United States;
3 (d) A United States certificate of birth abroad;
4 (e) A United States passport;
5 (f) A foreign passport with a United States visa;
6 (g) A United States Certificate of Naturalization;
7 (h) A United States Certificate of Citizenship;
8 (i) A tribal certificate of Native American blood or similar
9 document; or
10 (j) A United States Citizenship and Immigration Services Employment
11 Authorization Document, Form I-766.
12 Sec. 2. Section 4-111, Reissue Revised Statutes of Nebraska, is
13 amended to read:
14 4-111 (1) Verification of lawful presence in the United States
15 pursuant to section 4-108 requires that the applicant for public benefits
16 attest in a format prescribed by the Department of Administrative
17 Services that such applicant : (a) He or she is a United States citizen;
18 or (b) He or she is a qualified alien under the federal Immigration and
19 Nationality Act, 8 U.S.C. 1101 et seq., as such act existed on January 1,
20 2009, and is lawfully present in the United States and maintains the
21 documentation required under subsection (3) of section 4-108.
22 (2) A state agency or political subdivision of the State of Nebraska
23 may adopt and promulgate rules and regulations or procedures for the
24 electronic filing of the attestation required under subsection (1) of
25 this section if such attestation is substantially similar to the format
26 prescribed by the Department of Administrative Services.
27 (3)(a) The Legislature finds that it is in the best interest of the
28 State of Nebraska to make full use of the skills and talents in the state
29 by ensuring that a person who is work-authorized is able to obtain a
30 professional or commercial license and practice his or her profession.
31 (b) For purposes of a professional or commercial license, the
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1 Legislature finds that a person not described in subdivision (1)(a) or
2 (1)(b) of this section who submits (i) an unexpired employment
3 authorization document issued by the United States Department of Homeland
4 Security, Form I-766, and (ii) documentation issued by the United States
5 Department of Homeland Security, the United States Citizenship and
6 Immigration Services, or any other federal agency, such as one of the
7 types of Form I-797 used by the United States Citizenship and Immigration
8 Services, demonstrating that such person is described in section 202(c)
9 (2)(B)(i) through (x) of the federal REAL ID Act of 2005, Public Law
10 109-13, has demonstrated lawful presence pursuant to section 4-108 and is
11 eligible to obtain such license. Such license shall be valid only for the
12 period of time during which such person's employment authorization
13 document is valid. Nothing in this subsection shall affect the
14 requirements to obtain a professional or commercial license that are
15 unrelated to the lawful presence requirements demonstrated pursuant to
16 this subsection.
17 (c) Nothing in this subsection shall be construed to grant
18 eligibility for any public benefits other than obtaining a professional
19 or commercial license.
20 (d) Any person who has complied with the requirements of this
21 subsection shall have his or her employment authorization document
22 verified through the Systematic Alien Verification for Entitlements
23 Program operated by the United States Department of Homeland Security or
24 an equivalent program designated by the United States Department of
25 Homeland Security.
26 (e) The Legislature enacts this subsection pursuant to the authority
27 provided in 8 U.S.C. 1621(d), as such section existed on January 1, 2016.
28 Sec. 3. Section 23-2306, Reissue Revised Statutes of Nebraska, is
29 amended to read:
30 23-2306 (1) The membership of the retirement system shall be
31 composed of all persons who are or were employed by member counties and
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1 who maintain an account balance with the retirement system.
2 (2) The following employees of member counties are authorized to
3 participate in the retirement system: (a) All permanent full-time
4 employees who have attained the age of eighteen years shall begin
5 participation in the retirement system upon employment and full-time
6 elected officials shall begin participation in the retirement system upon
7 taking office, (b) all permanent part-time employees who have attained
8 the age of eighteen years may exercise the option to begin participation
9 in the retirement system within the first thirty days of employment, and
10 (c) all part-time elected officials may exercise the option to begin
11 participation in the retirement system within thirty days after taking
12 office. An employee who exercises the option to begin participation in
13 the retirement system shall remain in the system until termination or
14 retirement, regardless of any change of status as a permanent or
15 temporary employee.
16 (3) No On and after July 1, 2010, no employee of a member county
17 shall be authorized to participate in the retirement system provided for
18 in the County Employees Retirement Act unless the employee (a) is a
19 United States citizen or (b) is a qualified alien under the federal
20 Immigration and Nationality Act, 8 U.S.C. 1101 et seq., as such act
21 existed on January 1, 2009, and is lawfully present in the United States.
22 The employing member county and the employee shall maintain at least one
23 of the following documents to demonstrate lawful presence in the United
24 States as of the employee's date of hire and produce any such document so
25 maintained upon request of the Public Employees Retirement Board or the
26 Nebraska Public Employees Retirement Systems:
27 (a) A Nebraska driver's license;
28 (b) A Nebraska state identification card;
29 (c) A birth certificate or delayed birth certificate issued in any
30 state, territory, or possession of the United States;
31 (d) A United States certificate of birth abroad;
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1 (e) A United States passport;
2 (f) A foreign passport with a United States visa;
3 (g) A United States Certificate of Naturalization;
4 (h) A United States Certificate of Citizenship;
5 (i) A tribal certificate of Native American blood or similar
6 document; or
7 (j) A United States Citizenship and Immigration Services Employment
8 Authorization Document, Form I-766.
9 (4)(a) The board may determine that a governmental entity currently
10 participating in the retirement system no longer qualifies, in whole or
11 in part, under section 414(d) of the Internal Revenue Code as a
12 participating employer in a governmental plan.
13 (b)(i) To aid governmental entities in their business decisionmaking
14 process, any governmental entity currently participating in the
15 retirement system contemplating a business transaction that may result in
16 such entity no longer qualifying, in whole or in part, under section
17 414(d) of the Internal Revenue Code may notify the board in writing as
18 soon as reasonably practicable, but no later than one hundred eighty days
19 before the transaction is to occur.
20 (ii) The board when timely notified shall, as soon as is reasonably
21 practicable, obtain from its contracted actuary the cost of any actuarial
22 study necessary to determine the potential funding obligation. The board
23 shall notify the entity of such cost.
24 (iii) If such entity pays the board's contracted actuary pursuant to
25 subdivision (4)(c)(vi) of this section for any actuarial study necessary
26 to determine the potential funding obligation, the board shall, as soon
27 as reasonably practicable following its receipt of the actuarial study,
28 (A) determine whether the entity's contemplated business transaction will
29 cause the entity to no longer qualify under section 414(d) of the
30 Internal Revenue Code, (B) determine whether the contemplated business
31 transaction constitutes a plan termination by the entity, (C) determine
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1 the potential funding obligation, (D) determine the administrative costs
2 that will be incurred by the board or the Nebraska Public Employees
3 Retirement Systems in connection with the entity's removal from the
4 retirement system, and (E) notify the entity of such determinations.
5 (iv) Failure to timely notify the board pursuant to subdivision (4)
6 (b)(i) of this section may result in the entity being treated as though
7 the board made a decision pursuant to subdivision (4)(a) of this section.
8 (c) If the board makes a determination pursuant to subdivision (4)
9 (a) of this section, or if the entity engages in the contemplated
10 business transaction reviewed under subdivision (4)(b) of this section
11 that results in the entity no longer qualifying under section 414(d) of
12 the Internal Revenue Code:
13 (i) The board shall notify the entity that it no longer qualifies
14 under section 414(d) of the Internal Revenue Code within ten business
15 days after the determination;
16 (ii) The affected plan members shall be immediately considered fully
17 vested;
18 (iii) The affected plan members shall become inactive within ninety
19 days after the board's determination;
20 (iv) The entity shall pay to the County Employees Retirement Fund an
21 amount equal to any funding obligation;
22 (v) The entity shall pay to the County Employees Cash Balance
23 Retirement Expense Fund an amount equal to any administrative costs
24 incurred by the board or the Nebraska Public Employees Retirement Systems
25 in connection with the entity's removal from the retirement system; and
26 (vi) The entity shall pay directly to the board's contracted actuary
27 an amount equal to the cost of any actuarial study necessary to aid the
28 board in determining the amount of such funding obligation, if not
29 previously paid.
30 (d) For purposes of this subsection:
31 (i) Business transaction means a merger; consolidation; sale of
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1 assets, equipment, or facilities; termination of a division, department,
2 section, or subgroup of the entity; or any other business transaction
3 that results in termination of some or all of the entity's workforce; and
4 (ii) Funding obligation means the financial liability of the
5 retirement system to provide benefits for the affected plan members
6 incurred by the retirement system due to the entity's business
7 transaction calculated using the methodology and assumptions recommended
8 by the board's contracted actuary and approved by the board. The
9 methodology and assumptions used must be structured in a way that ensures
10 the entity is financially liable for all the costs of the entity's
11 business transaction, and the retirement system is not financially liable
12 for any of the cost of the entity's business transaction.
13 (e) The board may adopt and promulgate rules and regulations to
14 carry out this subsection including, but not limited to, the methods of
15 notifying the board of pending business transactions, the acceptable
16 methods of payment, and the timing of such payment.
17 (5) Within the first one hundred eighty days of employment, a full-
18 time employee may apply to the board for vesting credit for years of
19 participation in another Nebraska governmental plan, as defined by
20 section 414(d) of the Internal Revenue Code. During the years of
21 participation in the other Nebraska governmental plan, the employee must
22 have been a full-time employee, as defined in the Nebraska governmental
23 plan in which the credit was earned. The board may adopt and promulgate
24 rules and regulations governing the assessment and granting of vesting
25 credit.
26 (6) Any employee who qualifies for membership in the retirement
27 system pursu