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LEGISLATURE OF NEBRASKA
ONE HUNDRED SIXTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 920
Introduced by Groene, 42.
Read first time January 10, 2020
Committee: Education
1 A BILL FOR AN ACT relating to education; to amend sections 79-8,124,
2 79-8,125, 79-8,126, 79-8,128, 79-8,131, 79-8,132, 79-8,133,
3 79-8,135, 79-8,138, 79-8,139, 79-8,140, 79-1064, and 79-1201.01,
4 Reissue Revised Statutes of Nebraska, sections 9-812, 9-836.01,
5 79-759, 79-8,134, 79-8,137, 79-8,137.01, 79-8,137.02, 79-8,137.03,
6 79-8,137.04, 79-8,137.05, 79-1054, 79-1104.02, 79-1337, 79-2503,
7 79-2505, 79-2506, 85-1412, 85-1920, and 85-2009, Revised Statutes
8 Cumulative Supplement, 2018, and sections 79-1003 and 84-304,
9 Revised Statutes Supplement, 2019; to change provisions relating to
10 the State Lottery Operation Trust Fund, the Nebraska Education
11 Improvement Fund, the Nebraska Opportunity Grant Fund, the
12 Excellence in Teaching Cash Fund, the Excellence in Teaching Act,
13 the Department of Education Innovative Grant Fund, the Community
14 College Gap Assistance Program Fund, the Expanded Learning
15 Opportunity Grant Fund, the State Department of Education Cash Fund,
16 the State Department of Education, and the Coordinating Commission
17 for Postsecondary Education; to change the name and provisions of
18 the Master Teacher Program Act; to create funds; to eliminate funds;
19 to transfer powers and duties as prescribed; to define and redefine
20 terms; to provide for funding for schools implementing and offering
21 distance education, and expanded learning opportunities, as
22 prescribed; to provide funding for education pathway software, a
23 consortium, and grants as prescribed; to provide duties; to
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1 eliminate obsolete provisions; to harmonize provisions; to provide a
2 duty for the Revisor of Statutes; to provide operative dates; to
3 repeal the original sections; and to outright repeal sections
4 79-8,127, 79-8,129, 79-8,130, and 79-1336, Reissue Revised Statutes
5 of Nebraska, and sections 50-425, 50-426, 50-427, 50-428, and
6 79-10,145, Revised Statutes Cumulative Supplement, 2018.
7 Be it enacted by the people of the State of Nebraska,
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1 Section 1. Section 9-812, Revised Statutes Cumulative Supplement,
2 2018, is amended to read:
3 9-812 (1) All money received from the operation of lottery games
4 conducted pursuant to the State Lottery Act in Nebraska shall be credited
5 to the State Lottery Operation Trust Fund, which fund is hereby created.
6 All payments of the costs of establishing and maintaining the lottery
7 games shall be made from the State Lottery Operation Cash Fund. In
8 accordance with legislative appropriations, money for payments for
9 expenses of the division shall be transferred from the State Lottery
10 Operation Trust Fund to the State Lottery Operation Cash Fund, which fund
11 is hereby created. All money necessary for the payment of lottery prizes
12 shall be transferred from the State Lottery Operation Trust Fund to the
13 State Lottery Prize Trust Fund, which fund is hereby created. The amount
14 used for the payment of lottery prizes shall not be less than forty
15 percent of the dollar amount of the lottery tickets which have been sold.
16 (2) A portion of the dollar amount of the lottery tickets which have
17 been sold on an annualized basis shall be transferred from the State
18 Lottery Operation Trust Fund to the Education Innovation Fund, the
19 Nebraska Opportunity Grant Fund, the Nebraska Education Improvement Fund,
20 the Nebraska Environmental Trust Fund, the Nebraska State Fair Board, and
21 the Compulsive Gamblers Assistance Fund as provided in subsection (3) of
22 this section. The dollar amount transferred pursuant to this subsection
23 shall equal the greater of (a) the dollar amount transferred to the funds
24 in fiscal year 2002-03 or (b) any amount which constitutes at least
25 twenty-two percent and no more than twenty-five percent of the dollar
26 amount of the lottery tickets which have been sold on an annualized
27 basis. To the extent that funds are available, the Tax Commissioner and
28 director may authorize a transfer exceeding twenty-five percent of the
29 dollar amount of the lottery tickets sold on an annualized basis.
30 (3) Of the money available to be transferred as provided in this
31 subsection to the Education Innovation Fund, the Nebraska Opportunity
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1 Grant Fund, the Nebraska Education Improvement Fund, the Nebraska
2 Environmental Trust Fund, the Nebraska State Fair Board, and the
3 Compulsive Gamblers Assistance Fund:
4 (a) The first five hundred thousand dollars shall be transferred to
5 the Compulsive Gamblers Assistance Fund to be used as provided in section
6 9-1006;
7 (b) Forty-four Beginning July 1, 2016, forty-four and one-half
8 percent of the money remaining after the payment of prizes and operating
9 expenses and the initial transfer to the Compulsive Gamblers Assistance
10 Fund shall be used for education and transferred pursuant to subsections
11 (4), (5), and (6) of this section to the Nebraska Education Improvement
12 Fund;
13 (c) Forty-four and one-half percent of the money remaining after the
14 payment of prizes and operating expenses and the initial transfer to the
15 Compulsive Gamblers Assistance Fund shall be transferred to the Nebraska
16 Environmental Trust Fund to be used as provided in the Nebraska
17 Environmental Trust Act;
18 (d) Ten percent of the money remaining after the payment of prizes
19 and operating expenses and the initial transfer to the Compulsive
20 Gamblers Assistance Fund shall be transferred to the Nebraska State Fair
21 Board if the most populous city within the county in which the fair is
22 located provides matching funds equivalent to ten percent of the funds
23 available for transfer. Such matching funds may be obtained from the city
24 and any other private or public entity, except that no portion of such
25 matching funds shall be provided by the state. If the Nebraska State Fair
26 ceases operations, ten percent of the money remaining after the payment
27 of prizes and operating expenses and the initial transfer to the
28 Compulsive Gamblers Assistance Fund shall be transferred to the General
29 Fund; and
30 (e) One percent of the money remaining after the payment of prizes
31 and operating expenses and the initial transfer to the Compulsive
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1 Gamblers Assistance Fund shall be transferred to the Compulsive Gamblers
2 Assistance Fund to be used as provided in section 9-1006.
3 (4) For fiscal years through fiscal year 2020-21, all of the money
4 available to be used for education pursuant to subdivision (3)(b) of this
5 section shall be transferred to the Nebraska Education Improvement Fund.
6 (5) For fiscal years 2021-22 through 2025-26, of the money available
7 to be used for education pursuant to subdivision (3)(b) of this section:
8 (a) Fifty-eight percent of the money shall be transferred to the
9 Nebraska Opportunity Grant Fund;
10 (b) Nine and one-half percent of the money shall be transferred to
11 the Behavioral Training Cash Fund;
12 (c) Eight percent of the money shall be transferred to the
13 Excellence in Teaching Cash Fund;
14 (d) Seven percent of the money shall be used for career-readiness
15 and dual-credit education and transferred as follows:
16 (i) The first two hundred eighty-two thousand five hundred dollars
17 each fiscal year to the State Department of Education Cash Fund for the
18 annual fee for an online education and career planning tool; and
19 (ii) For the remainder:
20 (A) Forty percent to the Access College Early Scholarship Cash Fund;
21 (B) Forty-five percent to the Career-Readiness and Dual-Credit
22 Education Cash Fund; and
23 (C) Fifteen percent to the College Credit Testing Fee Cash Fund;
24 (e) Seven percent of the money shall be transferred to the
25 Department of Education Innovative Grant Fund;
26 (f) Four and one-half percent of the money shall be transferred to
27 the Community College Gap Assistance Program Fund;
28 (g) Three percent of the money shall be transferred to the Expanded
29 Learning Opportunity Grant Fund; and
30 (h) Three percent of the money shall be transferred to the Nebraska
31 Education Improvement Fund.
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1 (6) For fiscal year 2026-27 and each fiscal year thereafter, all of
2 the money available to be used for education pursuant to subdivision (3)
3 (b) of this section shall be transferred as the Legislature may direct.
4 (7)(a) (4) The Nebraska Education Improvement Fund is created. The
5 fund shall consist of money transferred pursuant to subsections (4) and
6 (5) subsection (3) of this section, money transferred pursuant to section
7 85-1920, and any other funds appropriated by the Legislature. The fund
8 shall be allocated, after actual and necessary administrative expenses,
9 as provided in this subsection section for fiscal years 2016-17 through
10 2020-21.
11 (b) A portion of each allocation pursuant to this subsection may be
12 retained by the agency to which the allocation is made or the agency
13 administering the fund to which the allocation is made for actual and
14 necessary expenses incurred by such agency for administration,
15 evaluation, and technical assistance related to the purposes of the
16 allocation, except that no amount of the allocation to the Nebraska
17 Opportunity Grant Fund may be used for such purposes. On or before
18 December 31, 2019, the Education Committee of the Legislature shall
19 electronically submit recommendations to the Clerk of the Legislature
20 regarding how the fund should be allocated to best advance the
21 educational priorities of the state for the five-year period beginning
22 with fiscal year 2021-22. For fiscal year 2016-17, an amount equal to ten
23 percent of the revenue allocated to the Education Innovation Fund and to
24 the Nebraska Opportunity Grant Fund for fiscal year 2015-16 shall be
25 retained in the Nebraska Education Improvement Fund.
26 (c) For fiscal years 2017-18 through 2020-21, an amount equal to ten
27 percent of the revenue received by the Nebraska Education Improvement
28 Fund in the prior fiscal year shall be retained in the fund. The balance
29 of the fund on August 1, 2021, shall be transferred to the Behavioral
30 Training Cash Fund.
31 (d) For fiscal years 2016-17 through 2020-21, the Nebraska Education
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1 Improvement Fund remainder of the fund, after payment of any learning
2 community transition aid pursuant to section 79-10,145, shall be
3 allocated as follows:
4 (i) (a) One percent of the allocated funds to the Expanded Learning
5 Opportunity Grant Fund to carry out the Expanded Learning Opportunity
6 Grant Program Act;
7 (ii) (b) Seventeen percent of the allocated funds to the Department
8 of Education Innovative Grant Fund to be used (i) for competitive
9 innovation grants pursuant to section 79-1054 and (ii) to carry out the
10 purposes of section 79-759;
11 (iii) (c) Nine percent of the allocated funds to the Community
12 College Gap Assistance Program Fund to carry out the community college
13 gap assistance program;
14 (iv) (d) Eight percent of the allocated funds to the Excellence in
15 Teaching Cash Fund to carry out the Excellence in Teaching Act;
16 (v) (e) Sixty-two percent of the allocated funds to the Nebraska
17 Opportunity Grant Fund to carry out the Nebraska Opportunity Grant Act in
18 conjunction with appropriations from the General Fund; and
19 (vi) (f) Three percent of the allocated funds to fund distance
20 education incentives pursuant to section 79-1337; .
21 (e) For fiscal years 2021-22 through 2025-26, the fund shall be
22 allocated to the State Department of Education for distance education
23 incentives pursuant to section 79-1337; and
24 (f) For fiscal year 2026-27 and each fiscal year thereafter, the
25 fund shall be allocated as the Legislature may direct.
26 (8) On or before September 20, 2022, and on or before each September
27 20 thereafter, the department or agency receiving a transfer or acting as
28 the administrator for a fund receiving a transfer pursuant to subdivision
29 (3)(b)(ii) of this section shall prepare an annual report in a manner
30 prescribed by the Auditor of Public Accounts for the immediately
31 preceding July 1 to June 30 fiscal year detailing information regarding
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1 the use of money received pursuant to such transfer, including
2 information regarding the use of such money by any recipient or
3 subsequent recipient, and shall submit such report to the Auditor of
4 Public Accounts by such date. The Auditor of Public Accounts shall
5 annually compile a summary of the annual reports received pursuant to
6 this subsection, any audits related to transfers pursuant to subsection
7 (5) of this section conducted by the Auditor of Public Accounts, and any
8 findings or recommendations related to such transfers into a consolidated
9 annual report and shall submit such consolidated annual report
10 electronically to the Legislature on or before January 1, 2023, and on or
11 before each January 1 thereafter through 2027.
12 (9) On or before December 31, 2024, the Education Committee of the
13 Legislature shall electronically submit recommendations to the Clerk of
14 the Legislature regarding how the money used for education from the State
15 Lottery Operation Trust Fund should be allocated to best advance the
16 educational priorities of the state for the five-year period beginning
17 with fiscal year 2026-27.
18 (10) (5) Any money in the State Lottery Operation Trust Fund, the
19 State Lottery Operation Cash Fund, the State Lottery Prize Trust Fund, or
20 the Nebraska Education Improvement Fund, or the Education Innovation Fund
21 available for investment shall be invested by the state investment
22 officer pursuant to the Nebraska Capital Expansion Act and the Nebraska
23 State Funds Investment Act.
24 (11) (6) Unclaimed prize money on a winning lottery ticket shall be
25 retained for a period of time prescribed by rules and regulations. If no
26 claim is made within such period, the prize money shall be used at the
27 discretion of the Tax Commissioner for any of the purposes prescribed in
28 this section.
29 Sec. 2. Section 9-836.01, Revised Statutes Cumulative Supplement,
30 2018, is amended to read:
31 9-836.01 The division may endorse and sell for profit tangible
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