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LEGISLATIVE BILL 528
Approved by the Governor May 25, 2021
Introduced by Walz, 15.
A BILL FOR AN ACT relating to education; to amend sections 38-316, 38-10,109,
38-2613, 38-2616, 38-3106, 72-232, 72-233, 72-234, 72-235, 76-2203.01,
77-2704.12, 79-202, 79-422, 79-433, 79-449, 79-8,133, 79-10,119,
79-1201.01, 79-1605, 79-2118, and 85-1609, Reissue Revised Statutes of
Nebraska, and sections 1-116, 9-812, 9-836.01, 13-506, 38-1813, 58-809,
77-1601.02, 77-27,119, 79-308, 79-309.01, 79-611, 79-759, 79-8,137.01,
79-8,137.05, 79-1003, 79-1007.11, 79-1035, 79-1065.02, 79-1074, 79-1075,
79-1241.03, 79-1337, 79-2104.02, 79-2603, 79-2605, 79-2606, 84-304,
85-505, 85-507, 85-1802, 85-1920, 85-2002, 85-2003, 85-2004, 85-2005,
85-2007, 85-2008, 85-2009, 85-2010, 85-2104, 85-2802, and 85-2803, Revised Statutes Cumulative Supplement, 2020; to update academic accreditation terminology in state law; to change provisions relating to the distribution of lottery funds used for education and to provide duties related to the receipt and use of such funds; to change requirements for school district budget hearing notices; to require the State Department of
Education to establish and maintain a web site as prescribed; to change provisions relating to school lands; to change tax levy notice provisions;
to eliminate certain obsolete school and school district provisions and terminology; to adopt certain federal provisions; to change powers and duties of the State Department of Education; to change a form requirement;
to change provisions relating to a grant program; to change provisions relating to certain income from school lands; to eliminate obsolete bonded indebtedness requirements; to adopt the Alternative Certification for Quality Teachers Act; to change provisions relating to standard college admission tests; to redefine terms and eliminate obsolete provisions under the Tax Equity and Educational Opportunities Support Act; to change state aid provisions for school districts and educational service units relating to boundary line changes and the timing of payments as prescribed; to eliminate certain county clerk and county board duties; to change provisions relating to core services and technology infrastructure funds;
to change certain learning community coordinating council reporting dates;
to change certain diversity plan requirements; to change requirements under the Nebraska Reading Improvement Act as prescribed; to provide duties for the Auditor of Public Accounts; to redefine a term relating to
the Nebraska educational savings plan trust; to define and redefine terms and change provisions under the Community College Gap Assistance Program Act; to authorize verification of eligibility by the Commissioner of
Education under the Access College Early Scholarship Program Act; to define a term, eliminate a term, and change provisions under the Meadowlark Act; to require hotline telephone numbers on student identification cards for middle school, high school, and postsecondary students as prescribed; to repeal a requirement relating to the residency of school land lessees; to repeal a requirement for the provision of
student debt information to students; to repeal provisions relating to
distance education equipment reimbursements and learning community transition aid; to harmonize provisions; to provide operative dates; to repeal the original sections; to outright repeal sections 72-234.01 and
79-1336, Reissue Revised Statutes of Nebraska, and sections 79-10,145 and
85-9,140, Revised Statutes Cumulative Supplement, 2020; and to declare an
emergency.
Be it enacted by the people of the State of Nebraska,
Section 1. Section 1-116, Revised Statutes Cumulative Supplement, 2020, is amended to read:
1-116 Any person making initial application to take the examination described in section 1-114 shall be eligible to take the examination if he or
she has completed at least one hundred fifty semester hours or two hundred twenty-five quarter hours of postsecondary academic credit and has earned a baccalaureate or higher degree from a college or university accredited by an a regional accrediting agency recognized by the United States Department of
Education or a similar agency as determined to be acceptable by the board. The person shall demonstrate that accounting, auditing, business, and other subjects at the appropriate academic level as required by the board are included within the required hours of postsecondary academic credit. A person who expects to complete the postsecondary academic credit and earn the degree as required by this section may take test sections of the examination within one hundred twenty days prior to completing the postsecondary academic credit and earning the degree, but such person shall not receive any credit for such test sections unless evidence satisfactory to the board showing that such person has completed the postsecondary academic credit and earned the degree as
required by this section is received by the board within one hundred fifty days following when the first test section of the examination is taken. The board shall not prescribe the specific curricula of colleges or universities. If the
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applicant is an individual, the application shall include the applicant's social security number.
Sec. 2. Section 9-812, Revised Statutes Cumulative Supplement, 2020, is amended to read:
9-812 (1) All money received from the operation of lottery games conducted pursuant to the State Lottery Act in Nebraska shall be credited to the State Lottery Operation Trust Fund, which fund is hereby created. All payments of the costs of establishing and maintaining the lottery games shall be made from the State Lottery Operation Cash Fund. In accordance with legislative appropriations, money for payments for expenses of the division shall be
transferred from the State Lottery Operation Trust Fund to the State Lottery Operation Cash Fund, which fund is hereby created. All money necessary for the payment of lottery prizes shall be transferred from the State Lottery Operation Trust Fund to the State Lottery Prize Trust Fund, which fund is hereby created.
The amount used for the payment of lottery prizes shall not be less than forty percent of the dollar amount of the lottery tickets which have been sold.
(2) A portion of the dollar amount of the lottery tickets which have been sold on an annualized basis shall be transferred from the State Lottery Operation Trust Fund to the Education Innovation Fund, the Nebraska Opportunity Grant Fund, the Nebraska Education Improvement Fund, the Nebraska Environmental Trust Fund, the Nebraska State Fair Board, and the Compulsive Gamblers Assistance Fund as provided in subsection (3) of this section. The dollar amount transferred pursuant to this subsection shall equal the greater of (a)
the dollar amount transferred to the funds in fiscal year 2002-03 or (b) any amount which constitutes at least twenty-two percent and no more than twenty-
five percent of the dollar amount of the lottery tickets which have been sold on an annualized basis. To the extent that funds are available, the Tax Commissioner and director may authorize a transfer exceeding twenty-five percent of the dollar amount of the lottery tickets sold on an annualized basis.
(3) Of the money available to be transferred to the Education Innovation Fund, the Nebraska Opportunity Grant Fund, the Nebraska Education Improvement Fund, the Nebraska Environmental Trust Fund, the Nebraska State Fair Board, and the Compulsive Gamblers Assistance Fund:
(a) The first five hundred thousand dollars shall be transferred to the Compulsive Gamblers Assistance Fund to be used as provided in section 9-1006;
(b) Beginning July 1, 2016, forty-four and one-half percent of the money remaining after the payment of prizes and operating expenses and the initial transfer to the Compulsive Gamblers Assistance Fund shall be transferred to the Nebraska Education Improvement Fund;
(c) Forty-four and one-half percent of the money remaining after the payment of prizes and operating expenses and the initial transfer to the Compulsive Gamblers Assistance Fund shall be transferred to the Nebraska Environmental Trust Fund to be used as provided in the Nebraska Environmental Trust Act;
(d) Ten percent of the money remaining after the payment of prizes and operating expenses and the initial transfer to the Compulsive Gamblers Assistance Fund shall be transferred to the Nebraska State Fair Board if the most populous city within the county in which the fair is located provides matching funds equivalent to ten percent of the funds available for transfer.
Such matching funds may be obtained from the city and any other private or
public entity, except that no portion of such matching funds shall be provided by the state. If the Nebraska State Fair ceases operations, ten percent of the money remaining after the payment of prizes and operating expenses and the initial transfer to the Compulsive Gamblers Assistance Fund shall be
transferred to the General Fund; and
(e) One percent of the money remaining after the payment of prizes and operating expenses and the initial transfer to the Compulsive Gamblers Assistance Fund shall be transferred to the Compulsive Gamblers Assistance Fund to be used as provided in section 9-1006.
(4) The Nebraska Education Improvement Fund is created. The fund shall consist of money transferred pursuant to subsection (3) of this section, money transferred pursuant to section 85-1920, and any other funds appropriated by
the Legislature. The fund shall be allocated, after actual and necessary administrative expenses, as provided in this section for fiscal years 2016-17
through 2023-24 2020-21. A portion of each allocation may be retained by the agency to which the allocation is made or the agency administering the fund to
which the allocation is made for actual and necessary expenses incurred by such agency for administration, evaluation, and technical assistance related to the purposes of the allocation, except that no amount of the allocation to the Nebraska Opportunity Grant Fund may be used for such purposes. On or before December 31, 2022 2019, the Education Committee of the Legislature shall electronically submit recommendations to the Clerk of the Legislature regarding how the fund should be allocated to best advance the educational priorities of
the state for the five-year period beginning with fiscal year 2024-25 2021-22.
For fiscal year 2016-17, an amount equal to ten percent of the revenue allocated to the Education Innovation Fund and to the Nebraska Opportunity Grant Fund for fiscal year 2015-16 shall be retained in the Nebraska Education Improvement Fund. For fiscal years 2017-18 through 2023-24 2020-21, an amount equal to ten percent of the revenue received by the Nebraska Education Improvement Fund in the prior fiscal year shall be retained in the fund at all times plus any interest earned during the current fiscal year. For fiscal years
2016-17 through 2023-24 2020-21, the remainder of the fund, after payment of
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any learning community transition aid pursuant to section 79-10,145, shall be
allocated as follows:
(a) One percent of the allocated funds to the Expanded Learning Opportunity Grant Fund to carry out the Expanded Learning Opportunity Grant Program Act;
(b) Seventeen percent of the allocated funds to the Department of
Education Innovative Grant Fund to be used (i) for competitive innovation grants pursuant to section 79-1054 and (ii) to carry out the purposes of
section 79-759;
(c) Nine percent of the allocated funds to the Community College Gap Assistance Program Fund to carry out the community college gap assistance program;
(d) Eight percent of the allocated funds to the Excellence in Teaching Cash Fund to carry out the Excellence in Teaching Act;
(e) Sixty-two percent of the allocated funds to the Nebraska Opportunity Grant Fund to carry out the Nebraska Opportunity Grant Act in conjunction with appropriations from the General Fund; and
(f) Three percent of the allocated funds to fund distance education incentives pursuant to section 79-1337.
(5)(a) On or before September 20, 2022, and on or before each September 20
thereafter, (i) any department or agency receiving a transfer or acting as the administrator for a fund receiving a transfer pursuant to subsection (4) of this section, (ii) any recipient or subsequent recipient of money from any such fund, and (iii) any service contractor responsible for managing any portion of
any such fund or any money disbursed from any such fund on behalf of any entity shall prepare and submit an annual report to the Auditor of Public Accounts in
a manner prescribed by the auditor for the immediately preceding July 1 through June 30 fiscal year detailing information regarding the use of such fund or
such money.
(b) The Auditor of Public Accounts shall annually compile a summary of the annual reports received pursuant to subdivision (5)(a) of this section, any audits related to transfers pursuant to subsection (4) of this section conducted by the Auditor of Public Accounts, and any findings or
recommendations related to such transfers into a consolidated annual report and shall submit such consolidated annual report electronically to the Legislature on or before January 1, 2023, and on or before each January 1 thereafter.
(c) For purposes of this subsection, recipient, subsequent recipient, or service contractor means a nonprofit entity that expends funds transferred pursuant to subsection (4) of this section to carry out a state program or
function, but does not include an individual who is a direct beneficiary of
such a program or function.
(6) (5) Any money in the State Lottery Operation Trust Fund, the State Lottery Operation Cash Fund, the State Lottery Prize Trust Fund, or the Nebraska Education Improvement Fund, or the Education Innovation 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.
(7) (6) Unclaimed prize money on a winning lottery ticket shall be
retained for a period of time prescribed by rules and regulations. If no claim is made within such period, the prize money shall be used at the discretion of
the Tax Commissioner for any of the purposes prescribed in this section.
Sec. 3. Section 9-836.01, Revised Statutes Cumulative Supplement, 2020, is amended to read:
9-836.01 The division may endorse and sell for profit tangible personal property related to the lottery. Any money received as profit by the division pursuant to this section shall be remitted to the State Treasurer for credit to
the State Lottery Operation Trust Fund to be distributed to the Education Innovation Fund, the Nebraska Opportunity Grant Fund, the Nebraska Education Improvement Fund, the Nebraska Environmental Trust Fund, and the Compulsive Gamblers Assistance Fund pursuant to the requirements of section 9-812.
Sec. 4. Section 13-506, Revised Statutes Cumulative Supplement, 2020, is amended to read:
13-506 (1) Each governing body shall each year or biennial period conduct
a public hearing on its proposed budget statement. Such hearing shall be held separately from any regularly scheduled meeting of the governing body and shall not be limited by time. Notice of place and time of such hearing, together with
a summary of the proposed budget statement, shall be published at least four calendar days prior to the date set for hearing in a newspaper of general circulation within the governing body's jurisdiction. For purposes of such notice, the four calendar days shall include the day of publication but not the day of hearing. When the total operating budget, not including reserves, does not exceed ten thousand dollars per year or twenty thousand dollars per biennial period, the proposed budget summary may be posted at the governing body's principal headquarters. At such hearing, the governing body shall make at least three copies of the proposed budget statement available to the public and shall make a presentation outlining key provisions of the proposed budget statement, including, but not limited to, a comparison with the prior year's budget. Any member of the public desiring to speak on the proposed budget statement shall be allowed to address the governing body at the hearing and shall be given a reasonable amount of time to do so. After such hearing, the proposed budget statement shall be adopted, or amended and adopted as amended,
and a written record shall be kept of such hearing. The amount to be received from personal and real property taxation shall be certified to the levying board after the proposed budget statement is adopted or is amended and adopted
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as amended. If the levying board represents more than one county, a member or a representative of the governing board shall, upon the written request of any represented county, appear and present its budget at the hearing of the requesting county. The certification of the amount to be received from personal and real property taxation shall specify separately (a) the amount to be applied to the payment of principal or interest on bonds issued by the governing body and (b) the amount to be received for all other purposes. If the adopted budget statement reflects a change from that shown in the published proposed budget statement, a summary of such changes shall be published within twenty calendar days after its adoption in the manner provided in this section,
but without provision for hearing, setting forth the items changed and the reasons for such changes.
(2) Upon approval by the governing body, the budget shall be filed with the auditor. The auditor may review the budget for errors in mathematics,
improper accounting, and noncompliance with the Nebraska Budget Act or sections
13-518 to 13-522. If the auditor detects such errors, he or she shall immediately notify the governing body of such errors. The governing body shall correct any such error as provided in section 13-511. Warrants for the payment of expenditures provided in the budget adopted under this section shall be
valid notwithstanding any errors or noncompliance for which the auditor has notified the governing bod