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LEGISLATURE OF NEBRASKA
ONE HUNDRED EIGHTH LEGISLATURE
FIRST SPECIAL SESSION
LEGISLATIVE BILL 3
FINAL READING
Introduced by Clements, 2; at the request of the Governor.
Read first time July 25, 2024
Committee: Appropriations
1 A BILL FOR AN ACT relating to funds; to amend sections 8-604, 9-1107,
2 13-2704, 37-345, 44-116, 48-1,103, 60-3,201.01, 60-1505, 60-1509,
3 60-1513, 72-232.02, 74-1317, 81-1010, 81-1110.04, 81-1117, and
4 81-1120.29, Reissue Revised Statutes of Nebraska; sections
5 37-327.03, 37-1017, 38-157, 39-1390, 61-222, 81-179, 81-829.33,
6 81-8,239.03, 81-1108.22, 81-12,224, 81-1558, 81-3714, and 84-1227,
7 Revised Statutes Cumulative Supplement, 2022; sections 79-3109,
8 81-12,218, 81-15,174, 81-3142, and 85-2009, Revised Statutes
9 Supplement, 2023; section 8-1120, Reissue Revised Statutes of
10 Nebraska, as amended by Laws 2024, LB1074, section 48; section
11 48-621, Reissue Revised Statutes of Nebraska, as amended by Laws
12 2024, LB1413, section 36; section 59-1608.04, Reissue Revised
13 Statutes of Nebraska, as amended by Laws 2024, LB1413, section 41;
14 section 37-327.02, Revised Statutes Cumulative Supplement, 2022, as
15 amended by Laws 2024, LB1108, section 1; section 55-901, Revised
16 Statutes Cumulative Supplement, 2022, as amended by Laws 2024,
17 LB1413, section 39; section 61-405, Revised Statutes Cumulative
18 Supplement, 2022, as amended by Laws 2024, LB1413, section 42;
19 section 68-996, Revised Statutes Cumulative Supplement, 2022, as
20 amended by Laws 2024, LB62, section 3, Laws 2024, LB857, section 9,
21 Laws 2024, LB904, section 3, Laws 2024, LB905, section 2, and Laws
22 2024, LB1413, section 43; section 77-5601, Revised Statutes
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1 Cumulative Supplement, 2022, as amended by Laws 2024, LB1317,
2 section 95; section 37-1804, Revised Statutes Supplement, 2023, as
3 amended by Laws 2024, LB1413, section 34; section 61-218, Revised
4 Statutes Supplement, 2023, as amended by Laws 2024, LB1368, section
5 9; section 77-4025, Revised Statutes Supplement, 2023, as amended by
6 Laws 2024, LB1204, section 36; section 84-612, Revised Statutes
7 Supplement, 2023, as amended by Laws 2024, LB600, section 9, and
8 Laws 2024, LB1413, section 58; and section 86-324, Revised Statutes
9 Supplement, 2023, as amended by Laws 2024, LB1413, section 59; to
10 provide for, change, and eliminate fund transfers; to provide powers
11 and duties; to change the use of certain funds and the investment
12 earnings of certain funds; to eliminate obsolete provisions; to
13 harmonize provisions; to repeal the original sections; and to
14 declare an emergency.
15 Be it enacted by the people of the State of Nebraska,
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1 Section 1. The State Treasurer shall transfer $6,500,000 from the
2 Health and Human Services Cash Fund to the General Fund on or before June
3 30, 2025, on such dates and in such amounts as directed by the budget
4 administrator of the budget division of the Department of Administrative
5 Services.
6 Sec. 2. Section 8-604, Reissue Revised Statutes of Nebraska, is
7 amended to read:
8 8-604 (1) The Financial Institution Assessment Cash Fund is hereby
9 created. The fund shall be used solely for the purposes of administering
10 and enforcing the laws specified in section 8-601.
11 (2) Any money in the fund available for investment shall be invested
12 by the state investment officer pursuant to the Nebraska Capital
13 Expansion Act and the Nebraska State Funds Investment Act. Beginning
14 October 1, 2024, any investment earnings from investment of money in the
15 fund shall be credited to the General Fund.
16 Sec. 3. Section 8-1120, Reissue Revised Statutes of Nebraska, as
17 amended by Laws 2024, LB1074, section 48, is amended to read:
18 8-1120 (1) Except as otherwise provided in this section, the
19 Securities Act of Nebraska shall be administered by the Director of
20 Banking and Finance who may employ such deputies, examiners, assistants,
21 or counsel as may be reasonably necessary for the purpose thereof. The
22 employment of any person for the administration of the act is subject to
23 section 49-1499.07. The director may delegate to a deputy director or
24 counsel any powers, authority, and duties imposed upon or granted to the
25 director under the act, such as may be lawfully delegated under the
26 common law or the statutes of this state. The director may also employ
27 special counsel with respect to any investigation conducted by him or her
28 under the act or with respect to any litigation to which the director is
29 a party under the act.
30 (2) A security issued by and representing an interest in or a debt
31 of, or guaranteed by, any insurance company shall be registered, pursuant
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1 to the provisions of sections 8-1104 to 8-1109, with the Director of
2 Insurance who shall as to such registrations administer and enforce the
3 act, and as pertains to the administration and enforcement of such
4 registration of such securities all references in the act to director
5 shall mean the Director of Insurance.
6 (3)(a) It shall be unlawful for the director or any of his or her
7 employees to use for personal benefit any information which is filed with
8 or obtained by the director and which is not made public. Neither the
9 director nor any of his or her employees shall disclose any confidential
10 information except among themselves, when necessary or appropriate in a
11 proceeding, examination, or investigation under the act, or as authorized
12 in subdivision (3)(b) of this subsection. No provision of the act shall
13 either create or derogate from any privilege which exists at common law
14 or otherwise when documentary or other evidence is sought under a
15 subpoena directed to the director or any of his or her employees.
16 (b)(i) In administering the act, the director may also:
17 (A) Enter into agreements or relationships with other government
18 officials, including, but not limited to, the securities administrator of
19 a foreign state and the Securities and Exchange Commission, or self-
20 regulatory organizations, to share resources, standardized or uniform
21 methods or procedures, and documents, records, and information; or
22 (B) Accept and rely on examination or investigation reports made by
23 other government officials, including, but not limited to, the securities
24 administrator of a foreign state and the Securities and Exchange
25 Commission, or self-regulatory organizations.
26 (ii) For purposes of this subdivision, foreign state means any state
27 of the United States, other than the State of Nebraska, any territory of
28 the United States, including Puerto Rico, Guam, American Samoa, the Trust
29 Territory of the Pacific Islands, or the Virgin Islands, and the District
30 of Columbia.
31 (4) The director may adopt and promulgate rules and regulations and
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1 prescribe forms to carry out the act. No rule and regulation may be
2 adopted and promulgated or form may be prescribed unless the director
3 finds that the action is necessary or appropriate in the public interest
4 or for the protection of investors and consistent with the purposes
5 fairly intended by the policy and provisions of the act. In adopting and
6 promulgating rules and regulations and prescribing forms the director may
7 cooperate with the securities administrators of the other states and the
8 Securities and Exchange Commission with a view to effectuating the policy
9 of the Securities Act of Nebraska to achieve maximum uniformity in the
10 form and content of registration statements, applications, and reports
11 wherever practicable. All rules and regulations and forms of the director
12 shall be published and made available to any person upon request.
13 (5) No provision of the act imposing any liability shall apply to
14 any act done or omitted in good faith in conformity with any rule and
15 regulation, form, or order of the director, notwithstanding that the rule
16 and regulation or form may later be amended or rescinded or be determined
17 by judicial or other authority to be invalid for any reason.
18 (6) Every hearing in an administrative proceeding shall be public
19 unless the director in his or her discretion grants a request joined in
20 by all the respondents that the hearing be conducted privately.
21 (7)(a) (7) The Securities Act Cash Fund is created. All filing fees,
22 registration fees, and all other fees and all money collected by or paid
23 to the director under any of the provisions of the act shall be remitted
24 to the State Treasurer for credit to the fund, except that registration
25 fees collected by or paid to the Director of Insurance pursuant to the
26 provisions of the act shall be credited to the Department of Insurance
27 Cash Fund. The Securities Act Cash Fund shall be used for the purpose of
28 administering and enforcing the provisions of the act, except that
29 transfers may be made to the General Fund at the direction of the
30 Legislature. Any money in the Securities Act Cash Fund available for
31 investment shall be invested by the state investment officer pursuant to
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1 the Nebraska Capital Expansion Act and the Nebraska State Funds
2 Investment Act.
3 (b) The State Treasurer shall transfer thirty-four million dollars
4 from the Securities Act Cash Fund to the General Fund on or before June
5 30, 2026, on such dates and in such amounts as directed by the budget
6 administrator of the budget division of the Department of Administrative
7 Services. The State Treasurer shall transfer twenty-eight million dollars
8 from the Securities Act Cash Fund to the General Fund on or before June
9 30, 2027, on such dates and in such amounts as directed by the budget
10 administrator of the budget division of the Department of Administrative
11 Services. The State Treasurer shall transfer twenty-eight million dollars
12 from the Securities Act Cash Fund to the General Fund on or before June
13 30, 2028, on such dates and in such amounts as directed by the budget
14 administrator of the budget division of the Department of Administrative
15 Services. The State Treasurer shall transfer twenty-eight million dollars
16 from the Securities Act Cash Fund to the General Fund on or before June
17 30, 2029, on such dates and in such amounts as directed by the budget
18 administrator of the budget division of the Department of Administrative
19 Services.
20 (8) A document is filed when it is received by the director. The
21 director shall keep a register of all applications for registration and
22 registration statements which are or have ever been effective under the
23 Securities Act of Nebraska and all denial, suspension, or revocation
24 orders which have ever been entered under the act. The register shall be
25 open for public inspection. The information contained in or filed with
26 any registration statement, application, or report may be made available
27 to the public under such conditions as the director may prescribe.
28 (9) The director may, by rule and regulation or order, authorize or
29 require the filing of any document required to be filed under the act by
30 electronic or other means, processes, or systems.
31 (10) Upon request and at such reasonable charges as he or she shall
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1 prescribe, the director shall furnish to any person photostatic or other
2 copies, certified under his or her seal of office if requested, of any
3 entry in the register or any document which is a matter of public record.
4 In any proceeding or prosecution under the act, any copy so certified
5 shall be prima facie evidence of the contents of the entry or document
6 certified.
7 (11) The director in his or her discretion may honor requests from
8 interested persons for interpretative opinions.
9 Sec. 4. Section 9-1107, Reissue Revised Statutes of Nebraska, is
10 amended to read:
11 9-1107 The Racing and Gaming Commission's Racetrack Gaming Fund is
12 created. The fund shall consist of all license, application, and other
13 fees collected under the Nebraska Racetrack Gaming Act. The fund shall be
14 used for administration of the Nebraska Racetrack Gaming Act. Any money
15 in the Racing and Gaming Commission's Racetrack Gaming Fund available for
16 investment shall be invested by the state investment officer pursuant to
17 the Nebraska Capital Expansion Act and the Nebraska State Funds
18 Investment Act. Beginning October 1, 2024, any investment earnings from
19 investment of money in the fund shall be credited to the General Fund.
20 Sec. 5. Section 13-2704, Reissue Revised Statutes of Nebraska, is
21 amended to read:
22 13-2704 (1) The Civic and Community Center Financing Fund is
23 created. The fund shall be administered by the department. Any money in
24 the fund available for investment shall be invested by the state
25 investment officer pursuant to the Nebraska Capital Expansion Act and the
26 Nebraska State Funds Investment Act. Beginning October 1, 2024, any
27 investment earnings from investment of money in the fund shall be
28 credited to the General Fund. Transfers may be made from the Civic and
29 Community Center Financing Fund fund to the General Fund, the Department
30 of Revenue Enforcement Fund, and the State Colleges Sport Facilities Cash
31 Fund at the direction of the Legislature.
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1 (2)(a) The department shall use the Civic and Community Center
2 Financing Fund for the following purposes:
3 (i) For grants of assistance as described in section 13-2704.01;
4 (ii) For grants of assistance as described in section 13-2704.02;
5 and
6 (iii) For reasonable and necessary costs of the department directly
7 related to the administration of the fund.
8 (b) Grants of assistance shall not be used for programming,
9 marketing, advertising, or facility-staffing activities.
10 (3) The State Treasurer shall transfer two hundred fifty thousand
11 dollars from the Civic and Community Center Financing Fund to the State
12 Colleges Sport Facilities Cash Fund on October 1 of 2012, 2013, and 2014.
13 Commencing October 1, 2015, and every year thereafter, the State
14 Treasurer shall transfer three hundred thousand dollars from the Civic
15 and Community Center Financing Fund to the State Colleges Sport
16 Facilities Cash Fund.
17 Sec. 6. Section 37-327.02, Revised Statutes Cumulative Supplement,
18 2022, as amended by Laws 2024, LB1108, section 1, is amended to read:
19 37-327.02 (1) The Game and Parks Commission Capital Maintenance Fund
20 is created. The fund shall consist of money credited to the fund pursuant
21 to section 77-27,132, transfers author