Nebraska LB 592: Change the tax incentives available under the Nebraska Advantage Act

Bill Text

LEGISLATIVE BILL 592
Approved by the Governor April 7, 2025

Introduced by Ballard, 21.

A BILL FOR AN ACT relating to the achieving a better life experience program;
to amend section 77-1407, Reissue Revised Statutes of Nebraska; to exempt
accounts from levy, execution, judgment, garnishment, and other judicial
enforcement as prescribed; and to repeal the original section.
Be it enacted by the people of the State of Nebraska,
Section 1. Section 77-1407, Reissue Revised Statutes of Nebraska, is
amended to read:
77-1407 (1) Funds contributed to the program shall be held in trust by the
State Treasurer. The State Treasurer shall credit money received by the program
into three funds: The ABLE Program Fund, the ABLE Expense Fund, and the
Treasury Management Cash Fund. The State Treasurer shall credit money received
into the appropriate fund. The State Treasurer and Accounting Administrator of
the Department of Administrative Services shall determine the state fund types
necessary to comply with section 529A and state policy. The money in the funds
shall be invested by the state investment officer pursuant to policies
established by the Nebraska Investment Council. The program fund, the expense
fund, and the Treasury Management Cash Fund shall be separately administered.
(2) The ABLE Program Fund is created. All money paid by participants in
connection with accounts and all investment income earned on such money shall
be deposited as received into separate accounts within the program fund.
Contributions to the program may only be made in the form of cash. All funds
generated in connection with accounts shall be deposited into the appropriate
accounts within the program fund. A beneficiary shall not provide investment
direction regarding contributions or earnings held by the program. Money
accrued by designated beneficiaries in the program fund may be used for
qualified disability expenses. Any money in the program 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.
(3)(a) The ABLE Expense Fund is created. The expense fund shall be used to
pay costs associated with the program and shall be funded with fees assessed to
the program fund.
(b) The State Treasurer shall transfer from the expense fund to the State
Investment Officer's Cash Fund an amount equal to the pro rata share of the
budget appropriated to the Nebraska Investment Council as permitted in section
72-1249.02, to cover reasonable expenses incurred for investment management of
the program. Annually and prior to such transfer to the State Investment
Officer's Cash Fund, the State Treasurer shall report to the budget division of
the Department of Administrative Services and to the Legislative Fiscal Analyst
the amounts transferred during the previous fiscal year. The report submitted
to the Legislative Fiscal Analyst shall be submitted electronically.
(c) When the State Treasurer determines that the ABLE Program Fund is
generating enough fees to make the program self-sustaining, it is the intent of
the Legislature to reimburse the Treasury Management Cash Fund for startup
costs of the program from the expense fund.
(d) Any money in the expense 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.
(4) Until the State Treasurer determines that the ABLE Program Fund is
generating enough fees to make the program self-sustaining, the costs of
establishing, administering, operating, and maintaining the program shall be
paid from the Treasury Management Cash Fund and, to the extent permitted by
section 529A, from money transferred from the expense fund to the Treasury
Management Cash Fund, in an amount authorized by an appropriation from the
Legislature. The Treasury Management Cash Fund shall not be credited with any
money from the program other than money transferred from the expense fund in an
amount authorized by an appropriation by the Legislature or any interest income
earned on the money from the program held in the Treasury Management Cash Fund.
(5) The assets of the program, including the program fund and excluding
the expense fund and the Treasury Management Cash Fund, shall at all times be
preserved, invested, and expended solely and only for the purposes of the
program and shall be held in trust for the designated beneficiaries. No
property rights in the program shall exist in favor of the state. Such assets
of the program shall not be transferred or used by the state for any purposes
other than the purposes of the program.
(6) Notwithstanding any other provision of law, any amount in an account
is not susceptible to any levy, execution, judgment, or other operation of law,
garnishment, or other judicial enforcement, and shall not be seized, taken,
appropriated, or applied by any legal or equitable process or operat