Read the full stored bill text
LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1095
Introduced by Andersen, 49.
Read first time January 15, 2026
Committee: Nebraska Retirement Systems
A BILL FOR AN ACT relating to retirement; to amend sections 72-1246,1
72-1254, and 84-602, Reissue Revised Statutes of Nebraska, and2
section 72-1239.01, Revised Statutes Supplement, 2025; to prohibit3
investment of certain retirement systems assets in restricted4
entities; to provide duties for the Nebraska Investment Council and5
the state investment officer; to require reports; to provide a duty6
for the State Treasurer; to define a term; to harmonize provisions;7
to provide an operative date; to repeal the original sections; and8
to declare an emergency. 9
Be it enacted by the people of the State of Nebraska,10
LB1095
2026
LB1095
2026
-1-
Section 1. Section 72-1239.01, Revised Statutes Supplement, 2025, is1
amended to read: 2
72-1239.01 (1)(a) The appointed members of the council shall have3
the responsibility for the investment management of the assets of the4
retirement systems administered by the Public Employees Retirement Board5
as provided in section 84-1503, the assets of the Nebraska educational6
savings plan trust as provided in section 77-1420, the assets of the7
achieving a better life experience program pursuant to sections 77-14018
to 77-1409, and beginning January 1, 2017, the assets of each retirement9
system provided for under the Class V School Employees Retirement Act.10
Except as provided in subsection (4) of this section, the appointed11
members shall be deemed fiduciaries with respect to the investment of the12
assets of the retirement systems, of the Nebraska educational savings13
plan trust, and of the achieving a better life experience program and14
shall be held to the standard of conduct of a fiduciary specified in15
subsection (3) of this section. The nonvoting, ex officio members of the16
council shall not be deemed fiduciaries. 17
(b) As fiduciaries, the appointed members of the council and the18
state investment officer shall discharge their duties with respect to the19
assets of the retirement systems, of the Nebraska educational savings20
plan trust, and of the achieving a better life experience program solely21
in the interests of the members and beneficiaries of the retirement22
systems or the interests of the participants and beneficiaries of the23
Nebraska educational savings plan trust and the achieving a better life24
experience program, as the case may be, for the exclusive purposes of25
providing benefits to members, members' beneficiaries, participants, and26
participants' beneficiaries and defraying reasonable expenses incurred27
within the limitations and according to the powers, duties, and purposes28
prescribed by law. 29
(2)(a) The appointed members of the council shall have the30
responsibility for the investment management of the assets of state31
LB1095
2026
LB1095
2026
-2-
funds. The appointed members shall be deemed fiduciaries with respect to1
the investment of the assets of state funds and shall be held to the2
standard of conduct of a fiduciary specified in subsection (3) of this3
section. The nonvoting, ex officio members of the council shall not be4
deemed fiduciaries. 5
(b) As fiduciaries, the appointed members of the council and the6
state investment officer shall discharge their duties with respect to the7
assets of state funds solely in the interests of the citizens of the8
state within the limitations and according to the powers, duties, and9
purposes prescribed by law. 10
(3)(a) (3) The appointed members of the council shall act with the11
care, skill, prudence, and diligence under the circumstances then12
prevailing that a prudent person acting in like capacity and familiar13
with such matters would use in the conduct of an enterprise of a like14
character and with like aims by diversifying the investments of the15
assets of the retirement systems, the Nebraska educational savings plan16
trust, the achieving a better life experience program, and state funds so17
as to minimize risk of large losses, unless in light of such18
circumstances it is clearly prudent not to do so. No assets of the19
retirement systems, the Nebraska educational savings plan trust, or the20
achieving a better life experience program shall be invested or21
reinvested if the sole or primary investment objective is for economic22
development or social purposes or objectives. 23
(b)(i) For any investments related to the retirement systems, the24
appointed members of the council shall not engage in investment25
activities in a restricted entity. 26
(ii) The appointed members of the council shall identify any27
holdings of the retirement systems related to any such restricted entity28
and shall divest from all holdings and other investment activity in such29
entity as soon as practicable. Nothing in this subdivision (b)(ii) shall30
be construed to require divestment from any such holdings or other31
LB1095
2026
LB1095
2026
-3-
investment activity prior to the end of the term of such holdings or1
other investment activity, if one exists, or in a manner contrary to such2
appointed members' duties and responsibilities. 3
(4) Neither the appointed members of the council nor the state4
investment officer shall be deemed fiduciaries with respect to5
investments of the assets of a retirement system provided for under the6
Class V School Employees Retirement Act made by or on behalf of the board7
of education as defined in section 79-978 or the board of trustees8
provided for in section 79-980. Neither the council nor any member9
thereof nor the state investment officer shall be liable for the action10
or inaction of the board of education or the board of trustees with11
respect to the investment of the assets of a retirement system provided12
for under the Class V School Employees Retirement Act, the consequences13
of any such action or inaction of the board of education or the board of14
trustees, and any claims, suits, losses, damages, fees, and costs related15
to such action or inaction or consequences thereof.16
(5) For purposes of this section, restricted entity means:17
(a) A Chinese entity: 18
(i) Designated by Presidential Executive Order 13959, 85 Federal19
Register 73185, dated November 12, 2020, relating to addressing the20
threat from securities investments that finance Communist Chinese21
military companies; 22
(ii) Designated by Presidential Executive Order 14105, 88 Federal23
Register 54867, dated August 9, 2023, relating to addressing United24
States investments in certain national security technologies and products25
in countries of concern; or 26
(iii) Included in the Specially Designated Nationals and Blocked27
Persons list maintained by the Office of Foreign Assets Control of the28
United States Department of the Treasury; 29
(b) A Chinese entity that: 30
(i) Is included on the Non-SDN Chinese Military-Industrial Complex31
LB1095
2026
LB1095
2026
-4-
Companies List (NS–CMIC List), as such list existed on January 1, 2026,1
maintained by the Office of Foreign Assets Control of the United States2
Department of the Treasury under Presidential Executive Order 14032, 863
Federal Register 30145, dated June 3, 2021; 4
(ii) Is a Chinese military company or a military-civil fusion5
contributor and included on the list maintained by the United States6
Department of Defense in accordance with section 1260H of the National7
Defense Authorization Act for Fiscal Year 2021, Public Law 116-283, as8
such list and section existed on January 1, 2026; 9
(iii) Is included on the list required under section 1237 of the10
National Defense Authorization Act for Fiscal Year 1999, Public Law11
105-261, as such list and section existed on January 1, 2026;12
(iv) Is included on the Entity List set forth in Supplement No. 4 to13
Part 744, 15 C.F.R. 744, as such part existed on January 1, 2026;14
(v) Is included on the Denied Persons List pursuant to 15 C.F.R.15
764.3(a)(2), as such list and regulation existed on January 1, 2026;16
(vi) Is included on the Unverified List set forth in Supplement No.17
6 to Part 744, 15 C.F.R. 744, as such list and regulation existed on18
January 1, 2026; 19
(vii) Is included on the Military End User List set forth in20
Supplement No. 7 to Part 744, 15 C.F.R. 744, as such list and regulation21
existed on January 1, 2026; 22
(viii) Produces or provides communications equipment or service on23
the list published by the Federal Communications Commission under section24
47 U.S.C. 1601 of the Secure and Trusted Communications Networks Act of25
2019, as such list and section existed on January 1, 2026;26
(ix) Is included on the Uyghur Forced Labor Prevention Act Entity27
List, maintained by the United States Department of Homeland Security, as28
such list existed on January 1, 2026; 29
(x) Is included on the Withhold Release Orders and Findings List30
issued by the Commissioner of United States Customs and Border Protection31
LB1095
2026
LB1095
2026
-5-
Agency pursuant to the Uyghur Forced Labor Prevention Act, Public Law No.1
117–78, as such list and act existed on January 1, 2026;2
(xi) Is included on the list of covered issuers as defined in the3
Sarbanes-Oxley Act of 2002 maintained by the United States Securities and4
Exchange Commission, as such list existed on January 1, 2026; or5
(xii) Is otherwise included on any other list that existed on6
January 1, 2026, maintained by the United States Government that7
designates a Chinese entity for a restriction relating to investment,8
contracting, or procurement; 9
(c) A Chinese entity otherwise subject to the control of a Chinese10
entity listed in subdivision (a) or (b) of this subsection; and11
(d) Any agency or instrumentality of the People's Republic of China.12
Sec. 2. Section 72-1246, Reissue Revised Statutes of Nebraska, is13
amended to read: 14
72-1246 (1) The state investment officer shall invest in investments15
of the nature which individuals of prudence, discretion, and intelligence16
acquire or retain in dealing with the property of another, and if the17
state investment officer has special skills or is named on the basis of18
representations of special skills or expertise, he or she is under a duty19
to use such skills, subject to the direction of the Nebraska Investment20
Council. 21
(2)(a) For any investments related to the retirement systems22
administered by the Public Employees Retirement Board as provided in23
section 84-1503, the state investment officer shall not engage in24
investment activities in a restricted entity as defined in section25
72-1239.01. 26
(b) The state investment officer shall identify any holdings of the27
retirement systems related to any such restricted entity and shall divest28
from any holdings or other investment activity related to any such entity29
as soon as practicable. Nothing in this subdivision shall be construed to30
require divestment from any such holdings or other investment activity31
LB1095
2026
LB1095
2026
-6-
prior to the end of the term of such holdings or other investment1
activity, if one exists, or in a manner contrary to the state investment2
officer's duties and responsibilities. 3
Sec. 3. Section 72-1254, Reissue Revised Statutes of Nebraska, is4
amended to read: 5
72-1254 (1) The state investment officer shall report no later than6
fifteen days after the close of each month to the Governor, the State7
Treasurer, the Auditor of Public Accounts, the Department of8
Administrative Services, and the members of the council on the operations9
for the pooled accounts during such month. The report shall include a10
summary of investments, purchases, and dealers utilized. Such reports11
shall be available for public inspection in the office of the state12
investment officer. 13
(2)(a) The state investment officer shall electronically provide14
semiannual written reports to the Nebraska Retirement Systems Committee15
of the Legislature and the Clerk of the Legislature regarding any16
investments related to the retirement systems administered by the Public17
Employees Retirement Board as provided in section 84-1503, related to any18
such restricted entity as defined in section 72-1239.01. The report shall19
include the name of each such company or restricted entity, the asset20
allocation class and sector to which it belongs pursuant to the asset21
allocation policy and the amount of retirement systems funds invested22
therein. 23
(b) The first report shall be due on or before January 15, 2027, and24
shall contain information for the six-month period ending December 31,25
2026. The second report shall be due on or before July 15, 2027, and26
shall contain information for the six-month period ending June 30, 2027.27
In each calendar year thereafter, reports shall be due:28
(i) On or before January 15, containing information for the most29
recent six-month period ending December 31; and 30
(ii) On or before July 15, containing information for the most31
LB1095
2026
LB1095
2026
-7-
recent six-month period ending June 30. 1
Sec. 4. Section 84-602, Reissue Revised Statutes of Nebraska, is2
amended to read: 3
84-602 It shall be the duty of the State Treasurer:4
(1) To receive and keep all money of the state not expressly5
required to be received and kept by some other person;6
(2) To disburse the public money upon warrants drawn upon the state7
treasury according to law and not otherwise; 8
(3) To keep a just, true, and comprehensive account of all money9
received and disbursed; 10
(4) To keep a just account with each fund, and each head of11
appropriation made by law, and the warrants drawn against them;12
(5) To report electronically to the Legislature as soon as13
practicable, but within ten days after the commencement of each regular14
session, a detailed statement of the condition of the treasury and its15
operations for the preceding fiscal year; 16
(6) To give information electronically to the Legislature, whenever17
required, upon any subject connected with the treasury or touching any18
duty of his or her office; 19
(7) To account for, and pay over, all money received by him or her20
as such treasurer, to his or her successor in office, and deliver all21
books, vouchers, and effects of office to him or her; and such successor22
shall receipt therefor. In accounting for and paying over such money the23
treasurer shall not be held liable on account of any loss occasioned by24
any investment, when such investment shall have been made pursuant to the25
direction of the state investment officer; 26
(8) To develop and maintain the website required under the Taxpayer27
Transparency Act; and 28
(9) To award grants as provided under the Municipal Inland Port29
Authority Act; and . 30
(10) On or before October 1, 2026, to create and publish on the31
LB1095
2026
LB1095
2026
-8-
State Treasurer's website a list of restricted entities as defined in1
section 72-1239.01 and update such list at least every six months, and2
notify the Nebraska Investment Council and the state investment officer3
of any updates to such list. 4
Sec. 5. This act becomes operative on July 1, 2026.5
Sec. 6. Original sections 72-1246, 72-1254, and 84-602, Reissue6
Revised Statutes of Nebraska, and section 72-1239.01, Revised Statutes7
Supplement, 2025, are repealed. 8
Sec. 7. Since an emergency exists, this act takes effect when9
passed and approved according to law. 10
LB1095
2026
LB1095
2026
-9-