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LEGISLATIVE BILL 3
Approved by the Governor August 20, 2024
Introduced by Clements, 2; at the request of the Governor.
A BILL FOR AN ACT relating to funds; to amend sections 8-604, 9-1107, 13-2704,
37-345, 44-116, 48-1,103, 60-3,201.01, 60-1505, 60-1509, 60-1513,
72-232.02, 74-1317, 81-1010, 81-1110.04, 81-1117, and 81-1120.29, Reissue Revised Statutes of Nebraska; sections 37-327.03, 37-1017, 38-157,
39-1390, 61-222, 81-179, 81-829.33, 81-8,239.03, 81-1108.22, 81-12,224,
81-1558, 81-3714, and 84-1227, Revised Statutes Cumulative Supplement,
2022; sections 79-3109, 81-12,218, 81-15,174, 81-3142, and 85-2009,
Revised Statutes Supplement, 2023; section 8-1120, Reissue Revised Statutes of Nebraska, as amended by Laws 2024, LB1074, section 48; section
48-621, Reissue Revised Statutes of Nebraska, as amended by Laws 2024,
LB1413, section 36; section 59-1608.04, Reissue Revised Statutes of
Nebraska, as amended by Laws 2024, LB1413, section 41; section 37-327.02,
Revised Statutes Cumulative Supplement, 2022, as amended by Laws 2024,
LB1108, section 1; section 55-901, Revised Statutes Cumulative Supplement,
2022, as amended by Laws 2024, LB1413, section 39; section 61-405, Revised Statutes Cumulative Supplement, 2022, as amended by Laws 2024, LB1413,
section 42; section 68-996, Revised Statutes Cumulative Supplement, 2022,
as amended by Laws 2024, LB62, section 3, Laws 2024, LB857, section 9,
Laws 2024, LB904, section 3, Laws 2024, LB905, section 2, and Laws 2024,
LB1413, section 43; section 77-5601, Revised Statutes Cumulative Supplement, 2022, as amended by Laws 2024, LB1317, section 95; section
37-1804, Revised Statutes Supplement, 2023, as amended by Laws 2024,
LB1413, section 34; section 61-218, Revised Statutes Supplement, 2023, as amended by Laws 2024, LB1368, section 9; section 77-4025, Revised Statutes Supplement, 2023, as amended by Laws 2024, LB1204, section 36; section
84-612, Revised Statutes Supplement, 2023, as amended by Laws 2024, LB600,
section 9, and Laws 2024, LB1413, section 58; and section 86-324, Revised Statutes Supplement, 2023, as amended by Laws 2024, LB1413, section 59; to provide for, change, and eliminate fund transfers; to provide powers and duties; to change the use of certain funds and the investment earnings of
certain funds; to eliminate obsolete provisions; to harmonize provisions;
to repeal the original sections; and to declare an emergency.
Be it enacted by the people of the State of Nebraska,
Section 1. The State Treasurer shall transfer $6,500,000 from the Health and Human Services Cash Fund to the General Fund on or before June 30, 2025, on such dates and in such amounts as directed by the budget administrator of the budget division of the Department of Administrative Services.
Sec. 2. Section 8-604, Reissue Revised Statutes of Nebraska, is amended to
read:
8-604 (1) The Financial Institution Assessment Cash Fund is hereby created. The fund shall be used solely for the purposes of administering and enforcing the laws specified in section 8-601.
(2) Any money in the fund available for investment shall be invested by
the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act. Beginning October 1, 2024, any investment earnings from investment of money in the fund shall be credited to
the General Fund.
Sec. 3. Section 8-1120, Reissue Revised Statutes of Nebraska, as amended by Laws 2024, LB1074, section 48, is amended to read:
8-1120 (1) Except as otherwise provided in this section, the Securities Act of Nebraska shall be administered by the Director of Banking and Finance who may employ such deputies, examiners, assistants, or counsel as may be
reasonably necessary for the purpose thereof. The employment of any person for the administration of the act is subject to section 49-1499.07. The director may delegate to a deputy director or counsel any powers, authority, and duties imposed upon or granted to the director under the act, such as may be lawfully delegated under the common law or the statutes of this state. The director may also employ special counsel with respect to any investigation conducted by him or her under the act or with respect to any litigation to which the director is
a party under the act.
(2) A security issued by and representing an interest in or a debt of, or guaranteed by, any insurance company shall be registered, pursuant to the provisions of sections 8-1104 to 8-1109, with the Director of Insurance who shall as to such registrations administer and enforce the act, and as pertains to the administration and enforcement of such registration of such securities all references in the act to director shall mean the Director of Insurance.
(3)(a) It shall be unlawful for the director or any of his or her employees to use for personal benefit any information which is filed with or
obtained by the director and which is not made public. Neither the director nor any of his or her employees shall disclose any confidential information except among themselves, when necessary or appropriate in a proceeding, examination,
or investigation under the act, or as authorized in subdivision (3)(b) of this
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subsection. No provision of the act shall either create or derogate from any privilege which exists at common law or otherwise when documentary or other evidence is sought under a subpoena directed to the director or any of his or
her employees.
(b)(i) In administering the act, the director may also:
(A) Enter into agreements or relationships with other government officials, including, but not limited to, the securities administrator of a foreign state and the Securities and Exchange Commission, or self-regulatory organizations, to share resources, standardized or uniform methods or
procedures, and documents, records, and information; or
(B) Accept and rely on examination or investigation reports made by other government officials, including, but not limited to, the securities administrator of a foreign state and the Securities and Exchange Commission, or self-regulatory organizations.
(ii) For purposes of this subdivision, foreign state means any state of
the United States, other than the State of Nebraska, any territory of the United States, including Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, or the Virgin Islands, and the District of Columbia.
(4) The director may adopt and promulgate rules and regulations and prescribe forms to carry out the act. No rule and regulation may be adopted and promulgated or form may be prescribed unless the director finds that the action is necessary or appropriate in the public interest or for the protection of
investors and consistent with the purposes fairly intended by the policy and provisions of the act. In adopting and promulgating rules and regulations and prescribing forms the director may cooperate with the securities administrators of the other states and the Securities and Exchange Commission with a view to
effectuating the policy of the Securities Act of Nebraska to achieve maximum uniformity in the form and content of registration statements, applications,
and reports wherever practicable. All rules and regulations and forms of the director shall be published and made available to any person upon request.
(5) No provision of the act imposing any liability shall apply to any act done or omitted in good faith in conformity with any rule and regulation, form,
or order of the director, notwithstanding that the rule and regulation or form may later be amended or rescinded or be determined by judicial or other authority to be invalid for any reason.
(6) Every hearing in an administrative proceeding shall be public unless the director in his or her discretion grants a request joined in by all the respondents that the hearing be conducted privately.
(7)(a) (7) The Securities Act Cash Fund is created. All filing fees,
registration fees, and all other fees and all money collected by or paid to the director under any of the provisions of the act shall be remitted to the State Treasurer for credit to the fund, except that registration fees collected by or paid to the Director of Insurance pursuant to the provisions of the act shall be credited to the Department of Insurance Cash Fund. The Securities Act Cash Fund shall be used for the purpose of administering and enforcing the provisions of the act, except that transfers may be made to the General Fund at
the direction of the Legislature. Any money in the Securities Act Cash Fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.
(b) The State Treasurer shall transfer thirty-four million dollars from the Securities Act Cash Fund to the General Fund on or before June 30, 2026, on such dates and in such amounts as directed by the budget administrator of the budget division of the Department of Administrative Services. The State Treasurer shall transfer twenty-eight million dollars from the Securities Act Cash Fund to the General Fund on or before June 30, 2027, on such dates and in
such amounts as directed by the budget administrator of the budget division of
the Department of Administrative Services. The State Treasurer shall transfer twenty-eight million dollars from the Securities Act Cash Fund to the General Fund on or before June 30, 2028, on such dates and in such amounts as directed by the budget administrator of the budget division of the Department of
Administrative Services. The State Treasurer shall transfer twenty-eight million dollars from the Securities Act Cash Fund to the General Fund on or before June 30, 2029, on such dates and in such amounts as directed by the budget administrator of the budget division of the Department of Administrative Services.
(8) A document is filed when it is received by the director. The director shall keep a register of all applications for registration and registration statements which are or have ever been effective under the Securities Act of
Nebraska and all denial, suspension, or revocation orders which have ever been entered under the act. The register shall be open for public inspection. The information contained in or filed with any registration statement, application,
or report may be made available to the public under such conditions as the director may prescribe.
(9) The director may, by rule and regulation or order, authorize or
require the filing of any document required to be filed under the act by
electronic or other means, processes, or systems.
(10) Upon request and at such reasonable charges as he or she shall prescribe, the director shall furnish to any person photostatic or other copies, certified under his or her seal of office if requested, of any entry in
the register or any document which is a matter of public record. In any proceeding or prosecution under the act, any copy so certified shall be prima facie evidence of the contents of the entry or document certified.
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(11) The director in his or her discretion may honor requests from interested persons for interpretative opinions.
Sec. 4. Section 9-1107, Reissue Revised Statutes of Nebraska, is amended to read:
9-1107 The Racing and Gaming Commission's Racetrack Gaming Fund is
created. The fund shall consist of all license, application, and other fees collected under the Nebraska Racetrack Gaming Act. The fund shall be used for administration of the Nebraska Racetrack Gaming Act. Any money in the Racing and Gaming Commission's Racetrack Gaming Fund available for investment shall be
invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act. Beginning October 1,
2024, any investment earnings from investment of money in the fund shall be
credited to the General Fund.
Sec. 5. Section 13-2704, Reissue Revised Statutes of Nebraska, is amended to read:
13-2704 (1) The Civic and Community Center Financing Fund is created. The fund shall be administered by the department. Any money in the fund available for investment shall be invested by the state investment officer pursuant to
the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.
Beginning October 1, 2024, any investment earnings from investment of money in
the fund shall be credited to the General Fund. Transfers may be made from the Civic and Community Center Financing Fund fund to the General Fund, the Department of Revenue Enforcement Fund, and the State Colleges Sport Facilities Cash Fund at the direction of the Legislature.
(2)(a) The department shall use the Civic and Community Center Financing Fund for the following purposes:
(i) For grants of assistance as described in section 13-2704.01;
(ii) For grants of assistance as described in section 13-2704.02; and
(iii) For reasonable and necessary costs of the department directly related to the administration of the fund.
(b) Grants of assistance shall not be used for programming, marketing,
advertising, or facility-staffing activities.
(3) The State Treasurer shall transfer two hundred fifty thousand dollars from the Civic and Community Center Financing Fund to the State Colleges Sport Facilities Cash Fund on October 1 of 2012, 2013, and 2014. Commencing October
1, 2015, and every year thereafter, the State Treasurer shall transfer three hundred thousand dollars from the Civic and Community Center Financing Fund to
the State Colleges Sport Facilities Cash Fund.
Sec. 6. Section 37-327.02, Revised Statutes Cumulative Supplement, 2022,
as amended by Laws 2024, LB1108, section 1, is amended to read:
37-327.02 (1) The Game and Parks Commission Capital Maintenance Fund is
created. The fund shall consist of money credited to the fund pursuant to
section 77-27,132, transfers authorized by the Legislature, and any gifts,
grants, bequests, or donations to the fund. The fund shall be administered by
the commission and shall be used to build, repair, renovate, rehabilitate,
restore, modify, or improve any infrastructure within the statutory authority and administration of the commission. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.
Beginning October 1, 2024, any investment earnings from investment of money in
the fund shall be credited to the General Fund.
(2) On or before December 1, 2021, and on or before December 1 of each year thereafter through 2027, the commission shall electronically submit a report to the Clerk of the Legislature and the Revenue Committee of the Legislature. The report shall include (a) a list of each project that received funding from the Game and Parks Commission Capital Maintenance Fund under subsection (1) of this section during the most recently completed fiscal year and (b) a list of projects that will receive such funding during the current fiscal year.
(3) Transfers may be made from the Game and Parks Commission Capital Maintenance Fund to the Nebraska Emergency Medical System Operations Fund at
the direction of the Legislature. The State Treasurer shall transfer one million two hundred seventy thousand dollars from the Game and Parks Commission Capital Maintenance Fund to the Nebraska Emergency Medical System Operations Fund in June of each fiscal year beginning in June 2025, from the proceeds of
the sales and use taxes imposed pursuant to section 77-2703 on the sale or
lease of all-terrain vehicles and utility-type vehicles as provided in section
77-27,132, on such date as directed by the budget administrator of the budget division of the Department of Administrative Services.
Sec. 7. Section 37-327.03, Revised Statutes Cumulative Supplement, 2022,
is amended to read:
37-327.03 The Game and Parks State Park Improvement and Maintenance Fund is created. The fund shall consist of transfers made by the Legislature, money credited to the fund pursuant to section 60-3,254, and any gifts, grants,
bequests, or donations to the fund. The money credited to the fund pursuant to
section 60-3,254 shall be used only for the improvement and maintenance of
state recreational trails as defined in section 37-338. Any other money in the fund shall be used to build, repair, renovate, rehabilitate, restore, modify,
or improve any infrastructure in the state park system. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act. Beginning October 1, 2024, any investment earnings from investment of money in the fund shall be credited to the General Fund.
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Sec. 8. Section 37-345, Reissue Revised Statutes of Nebraska, is amended to read:
37-345 (1) The commission may establish and collect reasonable fees for the use of state park-operated facilities of a personal-service nature, such as
cabins, camps, swimming facilities, boats, and other equipment or services of a similar nature. The commission, in its sole discretion, may grant concessions in state park areas for the provisions of certain appropriate services to the public, may grant permits for certain land or other resource utilization commensurate with the purposes of sections 37-337 to 37-348, and may prescribe and collect appropriate fees or rentals therefor.
(2) The proceeds of all such fees, rentals, or other revenue from operated facilities, concessions, or permits shall be credited to the State Park Cash Revolving Fund, which fund is hereby created in the state treasury, and shall be used by the commission solely for the improvement, maintenance, and operation of the state parks. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act. Beginning October 1, 2024, any investment earnings from investment of money in the fund shall be credited to